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Service level management (SLM) is the practice of setting business-based targets for a service and assessing delivery against them. It operates within a broader service management system (SMS), the organization-wide framework for managing services. ISO/IEC 20000-1:2018 specifies requirements for an SMS; it does not define a separate standard called a “service level management system.”
What is service level management?
In ITIL, service level management is a practice for agreeing useful targets and checking whether the service meets them. PeopleCert describes its purpose as setting “clear, business-based targets for service utility, warranty and experience” and ensuring service delivery and use are assessed, monitored, and managed against those targets. PeopleCert’s ITIL 4 Practitioner: Service Level Management page provides its official practice description.
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The phrase “service level management system” can be ambiguous. In ordinary usage, it may mean the processes, roles, agreements, and monitoring an organization uses to manage service levels. In ISO/IEC terminology, however, the overarching arrangement is a service management system, while SLM is a practice within service management. Calling it an SMS with an SLM practice makes the distinction clearer.
How does SLM differ from a service management system?
An SMS covers the organization’s management of in-scope services, including planning, design, transition, delivery, and improvement. SLM has a narrower focus: defining service targets with business relevance and managing delivery against them.
| Term | What it means | Reference |
|---|---|---|
| Service management system (SMS) | The broader management system for establishing, implementing, maintaining, and continually improving service management. | ISO/IEC 20000-1:2018 |
| Service level management (SLM) | A service management practice that sets business-based targets and assesses, monitors, and manages service delivery against them. | PeopleCert’s ITIL 4 Practitioner: Service Level Management page |
What do the ISO/IEC 20000 standards say?
ISO/IEC 20000-1:2018 sets requirements for an SMS. It addresses the management of services to meet requirements and deliver value, including their planning, design, transition, delivery, and improvement.
ISO/IEC 20000-2:2019 gives guidance on applying Part 1’s requirements. ISO reports that Part 1 remains current following its 2023 review confirmation, and that Part 2 was reviewed and confirmed in 2024 and remains current. Part 1 is the requirements source; Part 2 is application guidance.
How does a service level management cycle work?
The specific targets and review schedule depend on the service, its requirements, and what the parties agree. A practical cycle is:
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- Set targets. Turn those needs into explicit targets that reflect outcomes customers care about.
- Agree measurement. Specify what will be measured and how the parties will determine whether a target was met.
- Monitor and report. Collect and communicate evidence about service performance and experience. Monitoring, reporting, and analysis tools can support this work.
- Review and improve. Discuss results with relevant parties and use evidence and feedback to improve the service or its targets.
What makes a service target useful?
There is no universal set of SLM metrics established by the cited standards and practice description. Choose measures to fit the service, its requirements, and the agreement. When evaluating targets, consider whether they:
- Reflect business needs: describe outcomes that matter to customers, not just activity that is easy to count.
- Can be measured reliably: define how results will be determined so the parties can assess performance consistently.
- Cover relevant dimensions: account for service utility, warranty, and experience where those dimensions matter.
- Have operational evidence: can be supported by monitoring and reporting that produce understandable results.
- Support governance and improvement: are reviewed and can lead to changes in the service or the targets.
These are practical evaluation questions, not an official scored framework published by ISO/IEC or PeopleCert.
What to call the system in practice
If you mean the full organization-wide arrangement, call it a service management system (SMS). If you mean the work of agreeing and managing service targets, call it service level management (SLM). An organization may manage SLM as one practice within its SMS; the terms describe related but different scopes.
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