Which agreement is negotiated between internal business units within an organization?

The operational-level agreement (OLA) is negotiated between internal business units within an organization to define the specific responsibilities of each unit in delivering services that meet the overall service level agreements (SLAs) established with external customers or stakeholders. OLAs ensure that each internal group between units understands their roles and obligations, which facilitates coordination and enhances service delivery.

In the context of an organization, OLAs are particularly important because they provide clarity on performance expectations and support the achievement of broader service commitments. By detailing the internal processes and the interdependencies among various departments, OLAs help organizations avoid misunderstandings and ensure that resources are allocated to meet service performance criteria consistently.

Service-level agreements (SLAs), on the other hand, typically formalize the expectations between a service provider and an external customer. Underpinning contracts relate to agreements that support SLAs but involve external parties like vendors or suppliers. Business-level agreements encompass a broader perspective, often focusing on high-level service aspects between an organization and its stakeholders rather than internal operations.