Operational Level Agreement: Everything You Need to Know

An operational level agreement (OLA) is a contract that outlines the internal working relationship between two or more departments in an organization. In essence, the OLA is a service level agreement (SLA) that exists between parties within the same company. OLAs are important in ensuring that different departments in an organization work in harmony towards achieving the same goals.

The primary function of an OLA is to define the roles, responsibilities, and expectations of each department involved in a particular service delivery. This ensures that each party knows what is expected of them and what they can expect from others. For instance, if the IT department provides IT services to the marketing department, the OLA will specify the level of support that the IT department is legally bound to provide to the marketing department.

Implementation of an OLA has a myriad of benefits to an organization. Firstly, it eliminates confusion that arises from inter-departmental operations. By outlining responsibilities and expectations, it ensures that everyone is on the same page, and there is minimal overlap. The clarity provided by an OLA also ensures that conflicts are resolved amicably and expeditiously.

OLAs also increase operational efficiency by streamlining processes and eliminating redundancies. This is because each department knows exactly what is expected of them and works towards fulfilling their obligations towards the other departments. The departments are also aware of possible bottlenecks, which can be addressed in advance before they become critical.

Another benefit of OLAs is that they facilitate transparency. By defining what each party should do, the OLA ensures that departments communicate effectively. This helps to avoid situations where one department is not aware of what the other is doing, leading to misunderstandings.

In conclusion, OLAs are essential in ensuring that organizations function smoothly. By defining roles, responsibilities, and expectations of each department, operations are streamlined, and redundancies eliminated, leading to increased efficiency. OLAs also facilitate transparency and eliminate confusion, leading to better operational outcomes. Organizations that implement effective OLAs will undoubtedly experience improved operational effectiveness and a better working culture.