Metrics form an integral component of a managed services operation and can have a significant play on the relationship between the client and provider. Historically, the back-office metrics have been linked to the process efficiency and their linkage to the overall client objectives may not exist or possibly may not be evident. This is where the Business Level Agreements (BLAs) come in and an appropriate selection of metrics can help the providers and clients demonstrate the impact/value of managed services to the business.
As an example, some of the F&A BLAs can be
- Accounts Payable: Error free payments, DPO, PO penetration
- Accounts Receivable: DSO, Cash Application Time, Average Time to Bill
- General Accounting: Days to close month-end, Reconciliation Cycle Time
There is increasing evidence of managed services contracts embedding BLAs; once the providers start delivering the minimum accepted levels, these can go a long-way in defining the impact on ultimate customer success.
