What is the difference between SLA and KPI?

Question

Accepted Answer

SLA (Service Level Agreement) defines service expectations, while KPI (Key Performance Indicator) measures performance against those expectations.

Definition: SLA is a formal agreement between service providers and clients outlining expected service levels, e.g., 99.9% uptime.
Purpose: KPI is a measurable value that demonstrates how effectively a company is achieving key business objectives, e.g., customer satisfaction score.
Focus: SLAs focus on service delivery and compliance, while KPIs focus on performance measurement and improvement.
Examples: An SLA might specify response times for support tickets, while a KPI could track the average resolution time for those tickets.
Measurement: SLAs are often contractual and legally binding, whereas KPIs are internal metrics used for performance evaluation.

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