What is an Operational Level Agreement (OLA)? How Does it Differ from an SLA?
In IT service management, transparency is a critical factor, both in meeting the expectations of customers who receive the service and in ensuring smooth and continuous collaboration among different teams within the organization. At this point, one of the key concepts that comes into play is the Operational Level Agreement (OLA), which regulates organizational processes, clarifies the sharing of responsibilities between teams, and helps ensure that the commitments made to customers are sustainably fulfilled in the background. So, what exactly is OLA—the invisible hero of internal operations—what benefits does it bring, and how does it relate to the frequently confused concept of the Service Level Agreement (SLA)?
What is an Operational Level Agreement (OLA)?
An Operational Level Agreement (OLA) is a formal agreement between differentIT service teams within the same organization.
The purpose of an OLA is to clearly define the responsibilities of internal teams in order to achieve the targets set in the Service Level Agreement (SLA) that the organization has promised to its customers.
For example:
- The network team commits to responding to a critical incident within 15 minutes.
- The systems team commits to resolving the issue within 2 hours.
- The application team commits to deploying the required patch within 24 hours.
Difference Between OLA and SLA
Operational Level Agreement and Service Level Agreement are often confused, but they serve different purposes:
- SLA (Service Level Agreement):
- Signed between the service provider and the customer.
- Defines the scope, quality, and performance targets of the service delivered.
- Example: “The email system will have 99.9% uptime.”
- OLA (Operational Level Agreement):
- Signed between different IT teams within the same organization.
- Defines the internal operational processes required to meet SLA commitments.
- Example: “The network team will handle critical alerts within 15 minutes.”
In short, The Service Level Agreement is the promise to the customer, while the Operational Level Agreement is the internal guarantee that backs up that promise.
Why is an Operational Level Agreement Important?
Many organizations put effort into creating Service Level Agreement documents, but often overlook Operational Level Agreement. However, without Operational Level Agreement, SLA sustainability is nearly impossible.
Benefits of OLA for organizations:
1. Establishes clear responsibility sharing between teams.
2. Enables more consistent and faster delivery of IT services.
3. Ensures SLA targets are met.
4. Improves efficiency in incident, problem, and change management.
5. Increases customer satisfaction by preventing SLA breaches.
Example of an Operational Level Agreement
A financial institution aims to deliver 24/7 uninterrupted IT services to its customers. The SLA specifies 99.95% availability.
Behind this SLA, the following OLAs are in place:
- Database team → Respond to critical issues within 10 minutes.
- Network team → Restore connectivity within 30 minutes in case of an outage.
- Support team → Notify customers within 1 hour of the incident.
As seen here, SLA success depends on well-defined OLAs that align internal operations with external commitments.
OLA is the Invisible Backbone of Every SLA!
The Operational Level Agreement is the invisible backbone of every SLA. While the SLA defines the customer-facing commitments, the OLA secures the internal processes that make those commitments achievable. Without solid OLAs, SLAs remain nothing more than words on paper.
To achieve success in IT service delivery and improve customer satisfaction, SLA and OLA must be designed together and regularly reviewed.
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