2.3  Service or Project Objectives

•  What is the current position in terms of service performance (against benchmarked position?), technology, external assessments, demand for services, establishment?

•  Having identified the current position in terms of performance and inputs, what is the desired level of performance which needs to be achieved?  The Authority must have a significant amount of confidence about what needs to be achieved.

•  Are legislative factors driving new service objectives?

•  What demand / business drivers are affecting the services? e.g. demographics?

•  If the aim is to reduce costs this should be explained along with the degree of cost savings are required.  This needs to be balanced with the fact that increased performance usually comes at a price.

•  What fit is there with broader organisational objectives e.g. does more efficient processing of benefits applications assist in combating social exclusion?

•  Are they SMART?

The emphasis must be on what EXACTLY does the Authority want to achieve in terms of outputs.  These must be SMART and should be kept in mind as any procurement advances to avoid scope creep and a final solution which is not fit for purpose.

It should be noted that to existing performance must be baselined to assess the extent of any improvement which is required.  Existing performance assessment mechanisms may be sufficient for this but additional reviews may be required including:

•  user satisfaction surveys, user consultation

•  measurement of additional PIs / KPIs

•  reviews against organisational strategy

The existing level of performance needs to be carefully assessed to ensure that the required improvement can be measured exactly.  This is fundamental as any procurement specification will be defined in terms of "outputs" and not "inputs."  Quality is also an important factor and KPIs in the mould of "getting it right first time" etc should be considered.

Authorities should be aware that the assumption that a strategic partner / PPP procurement can deliver improved performance, private sector up front investment, lower cost and no sacrifices (e.g. redundancies) is often unrealistic.  Efficiencies and improved performance may well be achievable but bearing in mind that the private sector requires a profit for delivering services, these need to be substantial before any savings are passed onto the Authority.  Authorities therefore need to be realistic about what is achievable.