The Signature That Anchors Accountability: Why Internal SLAs Must Be Signed in Shared Services Arrangements

Jim Bergman

In the world of shared services – where enabling functions like HR, IT, finance, and procurement are centralized to serve multiple business units – clarity and accountability are everything. Internal Service Level Agreements (SLAs) are the backbone of this clarity. They define what services are provided, how performance is measured, and who is responsible for delivery and oversight.

Yet one element is often overlooked: the signature.

A signed SLA isn’t just a formality. It’s a governance tool, a commitment mechanism, and a safeguard against ambiguity. In shared services environments, where internal customers and service providers operate within the same organization but often have competing priorities, the act of signing an SLA transforms it from a conceptual framework into an enforceable agreement.

Why Internal SLAs Matter in Shared Services

Shared services models are designed to improve efficiency, reduce duplication, and standardize service delivery across an enterprise. But without clearly defined expectations, these benefits can quickly erode.

Internal SLAs serve several key functions:

  • Define scope and boundaries: What services are provided, to whom, and under what conditions.
  • Establish performance metrics: Response times, resolution rates, uptime, and other KPIs.
  • Clarify roles and responsibilities: Who delivers the service, who receives it, and who governs it.
  • Enable cost transparency: Chargeback models, resource allocation, and budgeting.
  • Support continuous improvement: Through regular reviews, feedback loops, and performance reporting.

But none of this holds weight without mutual agreement – and that’s where signatures come in.

The Role of Signatures in Internal SLAs

Unlike external contracts, internal SLAs often operate in a gray zone. They’re not legally binding in the traditional sense, but they carry operational and reputational weight. A signature affirms that:

  • The service provider commits to delivering the agreed-upon standards.
  • The internal customer acknowledges the scope, limitations, and expectations.
  • Both parties agree to the governance structure, escalation paths, and review cadence.

In essence, the signature transforms the SLA from a draft into a shared commitment. It signals that the agreement has been reviewed, understood, and accepted – not just by operational teams, but by leadership.

What Happens Without a Signature?

When SLAs are unsigned or informally adopted, several risks emerge:

  • Ambiguity in expectations: Teams may interpret service standards differently, leading to friction.
  • Lack of accountability: Without formal acceptance, it’s difficult to hold parties responsible for underperformance.
  • Governance breakdowns: Escalation paths and review mechanisms may be ignored or bypassed.
  • Resistance to change: Without a signed baseline, continuous improvement efforts lack traction.
  • Audit and compliance gaps: In regulated environments, unsigned SLAs may fail to meet documentation standards.

In shared services, where internal politics and resource constraints are common, these risks can derail even the most well-intentioned service models.

Sector-Relevant Examples

Let’s explore how signed internal SLAs play out across different shared services contexts:

  • Finance Shared Services: A signed SLA between the accounts payable team and business units ensures timely invoice processing and dispute resolution. Without it, delays and duplicate payments may go unaddressed.
  • HR Shared Services: A signed SLA covering onboarding, benefits administration, and employee data updates helps HR teams manage expectations across departments. It also supports compliance with labor laws and internal policies.
  • IT Shared Services: A signed SLA defining system uptime, helpdesk response times, and cybersecurity protocols ensures that business units receive consistent support. It also provides a framework for incident escalation and root cause analysis.
  • Procurement Shared Services: A signed SLA outlining sourcing timelines, vendor onboarding, and contract turnaround times help align procurement with operational needs. It also supports strategic sourcing and risk mitigation.
  • Facilities and Operations: A signed SLA for workspace management, maintenance, and safety protocols ensures that facilities teams deliver consistent service across locations. It also supports health and safety compliance.

Best Practices for SLA Sign-Off in Shared Services

To ensure that internal SLAs are not only signed but effective, consider these best practices:

  • Engage stakeholders early: Involve both service providers and internal customers in SLA development.
  • Use clear, measurable language: Avoid jargon and ambiguity—define metrics, timelines, and responsibilities.
  • Include escalation paths: Specify how issues will be resolved and who is accountable.
  • Align with strategic goals: Ensure SLAs support broader organizational objectives.
  • Formalize governance: Establish review boards or steering committees to oversee SLA performance.
  • Document sign-off: Capture signatures from functional leaders, not just operational managers.

Common Pitfalls to Avoid

Even well-crafted SLAs can fail if these missteps occur:

  • Skipping the signature: Assuming verbal agreement is enough undermines accountability.
  • Overloading the SLA: Including too many metrics or vague commitments dilutes focus.
  • Ignoring review cycles: SLAs must evolve with business needs – set regular checkpoints.
  • Failing to socialize the SLA: If frontline teams aren’t aware of the SLA, it won’t be followed.
  • Treating it as a legal contract: Internal SLAs are governance tools – not instruments of litigation.

The Signature as a Catalyst for Continuous Improvement

In mature shared services environments, signed SLAs are more than static documents. They’re living agreements that evolve through:

  • Monthly or quarterly performance reviews
  • Root cause analysis of service failures
  • Feedback from internal customers
  • Adjustments to scope, metrics, or governance

The signature anchors this process. It provides a reference point for what was agreed, what’s being delivered, and what needs to change.

Final Thought: Signatures Signal Commitment, Not Just Compliance

In shared services, where relationships are internal, but expectations are externalized, the signature on an SLA is a powerful symbol. It says: “We’re aligned. We’re accountable. We’re committed.”

For leaders building or refining shared services models, don’t treat SLA signatures as optional. Treat them as foundational. Because in the absence of a signature, even the best service model can unravel under the weight of ambiguity.

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Published by Jim Bergman

Jim Bergman is a commercial contract professional with global experience spanning the USA, Latin America, UK, Europe, China, South Korea, Japan, India, SE Asia, the Middle East, Africa and Australia. He has worked on a wide range of direct and indirect spend categories in numerous sectors, developing a deep knowledge of services, goods and technology procurement and sales. Across this wide array of commodity and services experience, Jim has found the keys to success in maximizing value for money through customer-supplier relationships founded on innovative category management and strategic sourcing practices, key performance metrics and measures, as well as Total Cost of Ownership principles and collaborative contracting tenets. He has shared his knowledge through advisory engagements, as well as in developing and delivering training programs both on-line and in classrooms, in both open-enrollment and internal environments. Jim has assisted his clients through all phases and steps of contracting, negotiation, strategic sourcing and bidding processes, demonstrating value generation in excess of $250 million. His audiences and clients have included over 7,000 attorneys and commercial professionals students from over 1,000 corporations and public-sector entities.

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