This is the second of three posts regarding Performance Contracting. The first post can be accessed by clicking here. Keep an eye out early next week for the last installment..
One of my favorite questions is: Are your contracts performance based?
And a follow-up question for those who indicate their contracts are performance based: Do you contract for outputs, or for results?.
You may have read our statement that:
“If you can think it clearly, you can write it clearly;
If you can write it clearly, then you can measure it;?.
If you want results for your customers, outputs alone will not get you there.
If you want results, contracts will need to include clearly stated and measurable results.
If you want results, you will have to monitor and inspect what you measure.
To contract for results, the organization doing the contracting will need to become very clear about three things:
- Who is the customer?
- What result are we trying to achieve for this customer?
- What service or outputs will deliver that result?
Watch for our third and final post in this series, coming soon: How to Contract for Results.
Read the first post in this series by clicking here.
Check out Weidner's recent webinar on Performance Contracting — you can download the presentation by clicking here and listen to the webinar audio by clicking here.
And don’t miss this column – “Performance Contracting: Turning Talk Into Action” – by our friends Katherine Barrett and Richard Greene for the IBM Center for the Business of Government.