An operational level agreement (OLA) sets clear expectations between internal teams that support a service. Instead of focusing on what the business or customer receives, it clarifies how different departments work together to meet those commitments.
The goal is practical coordination: who does what, within which timeframes, and under which conditions, so service delivery doesn’t break down behind the scenes. They help tackle everyday challenges like miscommunication, overlapping duties, and inconsistent IT Service Management (ITSM).
In this article, we'll explore what OLAs are, why they matter, and how to create and implement them effectively. We'll break down their key components and show how they work hand-in-hand with Service Level Agreements (SLAs).
Operational level agreement definition
An operational level agreement is an internal agreement that defines responsibilities, response times, and dependencies between teams involved in delivering an IT service. Typical participants include IT support, infrastructure, security, application management, or even non-IT areas like HR or facilities when their work affects service outcomes.
In an ITSM context, OLAs translate service commitments into day-to-day operational responsibilities. By establishing clear expectations for response times, escalation procedures, and other critical aspects of service delivery, OLAs ensure that internal teams work together efficiently.
Support, infrastructure, security, and application teams use them to clarify handoffs, escalation paths, and timing. When several teams contribute to a single service, the OLA explains how their work fits together and what each group is accountable for.
ITIL builds on this ITSM foundation by formalizing OLAs. They sit under the umbrella of Service Level Management. While service level agreements (SLAs) describe commitments made to customers or the business, OLAs explain how internal teams support those commitments.
For example, if an SLA commits to resolving high-priority incidents within four hours, the related OLAs define how quickly supporting teams must respond and what actions they are expected to take. That structure keeps service targets realistic and avoids confusion when issues cross team boundaries.
OLA vs. SLA vs. SLO
OLAs, SLAs, and SLOs all define expectations around service performance, but they operate at different levels and serve different purposes.
In practice, SLAs define the commitment, OLAs define the internal execution, and SLOs provide the metrics that connect the two.
- Service level agreement (SLA): A formal agreement between a service provider and a customer or business unit.
- Operational level agreement (OLA): An internal agreement between teams that support a service.
- Service level objective (SLO): A specific, measurable performance target for a service or process. Commonly expressed as a percentage, threshold, or time-based goal, such as uptime or error rates.
SLAs sit at the top, setting expectations with the business or customers. They answer the question: what level of service is being promised? OLAs operate underneath those promises, defining how internal teams must work together to meet them. Without OLAs, SLAs often rely on assumptions about internal capacity and timing.
SLOs cut across both. They provide the measurable targets that inform SLAs and guide OLAs. A single SLA may rely on multiple SLOs, and each OLA may reference specific SLOs to define acceptable performance for internal steps.
Why do you need ITIL OLAs?
Many organizations rely on SLAs to define service expectations, yet still struggle to meet them consistently. The issue usually isn’t the lack of a formal commitment, but what happens internally once that commitment exists. SLAs describe what must be delivered, while OLAs explain how teams make it happen.
ITIL OLAs help close that gap by turning service targets into shared operational responsibilities. They give internal teams clear response times, ownership, and handoff rules, so work doesn’t stall when an incident or request crosses team boundaries. Instead of debating who should act or how fast, teams can refer to an agreed framework.
They also support more realistic SLAs. When OLAs define what internal teams can actually deliver, service commitments are based on operational capacity rather than assumptions. Over time, that alignment reduces friction, improves predictability, and makes service reporting more meaningful.
When are OLAs necessary?
OLAs become necessary once service delivery depends on more than one team. Early on, a single support group may handle most issues end to end, making informal coordination enough. As services grow and responsibilities split, informal agreements start to break down.
Organizations typically need OLAs when incident resolution requires multiple groups, such as service desk, infrastructure, and application teams. The same applies when external suppliers are involved but internal teams still carry part of the responsibility. In those scenarios, delays often come from unclear ownership rather than technical complexity.
Maturity also plays a role. Teams that already track SLAs and performance metrics often reach a point where improving results depends on internal alignment. OLAs provide that next layer of structure, helping organizations move from reacting to issues toward managing services with more consistency and control.
ITSM OLA components
An operational level agreement works best when it clearly documents how internal teams are expected to support a service. While the level of detail may vary, most OLAs include the following components:
- Scope of the agreement: Services, processes, or activities covered by the OLA, including what falls outside its boundaries.
- Participating teams and roles: Internal groups involved, along with their responsibilities and points of contact.
- Supported SLAs: The service level agreements the OLA is designed to support, creating a clear link to business commitments.
- Service level objectives (SLOs): Measurable internal targets such as response times, resolution times, or availability thresholds.
- Responsibilities and dependencies:What each team is accountable for and where handoffs occur during service delivery.
- Escalation paths: How and when issues move to higher levels of support if targets are at risk.
- Operating hours and availability: Coverage windows, on-call expectations, and any time-based constraints.
- Communication and reporting: How teams share status updates, performance data, and exceptions.
- Review and revision rules: How often the OLA is reviewed and the process for updating it as services change.
How to implement Operational level agreements in InvGate Service Management
Operational level agreements work best when they are tied directly to day-to-day workflows. In InvGate Service Management, OLAs can be configured to coordinate internal teams, set clear time limits for each stage of a request, and track performance against internal commitments that support SLAs.
Here are the key steps to follow:
Step 1: Define the purpose and scope of the OLA
Start by identifying which internal teams are involved and what part of the service they support. At the practice level, this means clarifying responsibilities and handoffs between teams so internal work aligns with service commitments.
In InvGate Service Management, OLAs are created from Settings > Requests > SLA & OLA. When creating a new OLA, you define its scope by selecting the relevant Help Desks. This links the agreement directly to the teams responsible for meeting it and ensures the OLA applies only where internal coordination is required.
Step 2: Establish conditions and timelines
Once the scope is defined, set response or resolution targets for the teams involved. These internal time limits should support existing SLAs by breaking total service time into manageable stages.
Within the OLA configuration, InvGate Service Management lets you define time limits in minutes, hours, or days through the Time settings. You can also enable Pause according to schedule to account for non-working hours and holidays. That keeps internal targets realistic and performance data consistent with how teams actually operate.
Step 3: Define triggering conditions
An effective OLA only applies when specific conditions are met. From a process perspective, this prevents unnecessary tracking and keeps internal agreements focused on the scenarios that matter most.
In InvGate Service Management, those rules are set in the Conditions section of the OLA. Conditions can be based on attributes such as request priority, category, or assignment. For example, an OLA may activate only for high-priority incidents or for requests handled by a specific help desk.
Step 4: Configure automated actions
Automation helps OLAs stay active without constant manual oversight. Internally, this supports consistent execution and reduces delays when targets are approaching or missed.
The Actions tab in InvGate Service Management allows you to define what happens when an OLA is close to expiring or has been breached. You can add predefined tasks such as:
- Sending alerts when the OLA approaches its expiration.
- Automatically reassigning a request to another team if no action is taken.
- Adding an observer or triggering an approval process for specific types of requests.
Step 5: Monitor and refine the OLA
After OLAs are in place, ongoing review turns them into a tool for improvement rather than static documentation. Comparing internal performance with SLA results helps identify which workflow stages create delays.
InvGate Service Management displays OLA performance directly within each request, alongside SLA data. Reporting features make it possible to analyze metrics such as average response and resolution times across teams. Those insights support adjustments to OLA conditions, timelines, or actions as services and workloads change.
Used together, SLAs and OLAs in InvGate Service Management provide visibility into both the full lifecycle of a request and the internal steps that shape its outcome. That visibility makes it easier to coordinate teams and improve service delivery.
6 best practices to successfully use OLAs
To facilitate its implementation, consider the following best practices for the Operational Level Agreement:
- Standardize: Establish a standard process and template for preparing OLAs. This standardization ensures consistency and efficiency in creating OLAs.
- Involve stakeholders: Involve all relevant stakeholders in the preparation and review process. This involvement ensures that all perspectives are considered and that the OLA is comprehensive.
- Regular reviews and updates: Regularly review and update OLAs to ensure they remain relevant and effective. As organizational needs change, OLAs should be updated to reflect these changes and foster continual service improvement.
- Consider alignment with the SLA and business objectives: Internal service levels support external commitments to ensure customer satisfaction. In turn, the Operational Level Agreement helps add value to the organization.
- Establish realistic service levels: Take into account the current capabilities of the teams and resources, and consult with the people involved.
- Train and raise awareness among the staff: Educate department members on the content of the IT OLA, their potential contributions, and responsibilities.
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