Page 574 - Handbook of Modern Telecommunications

Network Organization and Governance 4-105

• Metrics definitions. To avoid confusion or misinterpretation, each metric used in an SLA must
have a definition. A definition will include a name, description, objective, measurement method,
rules of initialization, and responsibility/roles for collection and interpretation.
• For most sourcing arrangements, a subset of metrics will suffice, and metrics generally are cen-
tralized in one definitions document. The rules by which a metric is calculated and the sources for
data are items typically entered into a performance management tool.
• Operating principles. Operating principles define how the service provider and client will work
together on a daily basis, paying special attention to logistics and handoffs between provider
and client. Reporting relationships, governance, procedures, and processes for such activities as
submitting work requests, turning completed work over to production, obtaining sign-offs, and
raising problems are covered by the operating principles document. When creating the service
catalog, this document is an important source of information.

4.5.5.1 Benefits of Contract Management Tools
When managing a single, complex contract, or many smaller contracts, tools offer significant benefits
over manual, occasional oversight. These benefits include:
• The ability to actively manage the contract throughout its life cycle. By capturing all rel-
evant contractual terms and obligations (i.e., SOWs, SLA metrics, payment), important dates
and procedures (i.e., operating principles, notice provisions), and interested parties, tools
automate contract administration, relieving managers of the burden of wading through pages
of detail.
• The ability to manage changes to contract documents. Contracts will inevitably change as new
services are added, existing services are terminated, service-levels are adjusted, or the parties
want to modify terms and conditions. Because tools integrate all of the contract’s components,
they can assist in the change management process by allowing the parties to assess the impact
of changes before they’re rolled out. Once changes are approved, tools can help propagate them
throughout all components and documents. This way, tools serve as a central place to route and
track change requests and help formalize otherwise ad hoc change requests.
• The ability to log contract changes and notify aἀected parties. Once contract changes are
approved, tools can keep a log of modifications so that all parties have a current view of the con-
tract and associated terms, such as changed SLAs. Tools also can send alerts or notices to parties
affected by selected modifications for legal compliance purposes and to enable them to prepare for
no changes in services, price, responsiveness, hours of operation, or other terms.
• The ability to automate the approval process. In addition to changes in the contract, various
other terms and services will inevitably change during the course of an engagement. The oper-
ating principles typically specify which approval processes to use and the parties involved in
approving changes. Tools also can help automate the approval process by ensuring that the appro-
priate individuals are notified, that changes are captured and forwarded without falling through
the cracks or languishing on someone’s desk, and that sign-offs are obtained in the right order
and from the right people.
• The ability to perform initial setup and definition of Sl As and metrics. Tools are ideal for defin-
ing metrics and service levels. Using predefined templates, wizards, lists of formulas, and calcula-
tions, tools allow companies to take the SLA and metrics definitions from the paper contract and
translate them into a format that can be used to collect performance data automatically.
• The ability to support issue elevation and resolution. Operating principles usually describe a
process for raising issues that affect the relationship (as opposed to project or application-type
issues that are resolved as part of project management). When issues rise to a certain level—
whether it’s a noticeable trend, a failure, or a predicted failure—tools can automate the process
described in the operating principles to alert stakeholders, forward relevant data, and monitor