What is the difference between key performance indicator (KPI) and - ProProfs Discuss
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What is the difference between key performance indicator (KPI) and Service Level Agreement (SLA)?

Asked by R. Barnes, Last updated: Oct 31, 2020

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A. Boaz

A. Boaz

I have compassion for Automobiles and I dig the fast pace while I ride or drive.

A. Boaz
A. Boaz, Mechanical Engineer, Diploma in Mechanical Engineering, Atlanta, Georgia

Answered Nov 08, 2019

The KPI is normally used by companies when they want to know more about how their company is performing against the various indicators that will prove if the projects and tasks that they are doing are successful or not. They would usually relate this to their strategic goals so that they will know if there are some things that they should change or not.

SLA can also refer to the documents that people may need that will outline the service agreements that are between the customers and the company which provides the services. The SLA can provide the type of standards that the company should meet in order to please its clients.

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C. Lucan

C. Lucan

I'm a freelance Copywriter and well that explains everything!

C. Lucan
C. Lucan, Copywriter, Literature Major, Baton Rouge, Louisiana

Answered Nov 04, 2019

SLA and KPI are variables of business process management, which is abbreviated as BPM. SLA stands for service level agreement. KPI stands for a critical performance indicator. They both involve monitoring specific measurements of the performance of your business. The difference between them is when they are most beneficial.

You might have a service level agreement to set expectations for your contributions to your clients or business partners. SLA should set standards for timelines, quality levels of the quantity of service you expect a business deal to include. Key performance indicators can alter the size of your business and type of market. KPI’s include some combination of web traffic, social media engagement, and net profit on the products or services offered.

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