Design performance measures that work - Without relevant and workable measures, business outcomes may fail or perverse incentives may be created
We rarely see performance management mechanisms (which apply rewards or penalties, such as through key performance indicators) working as intended. Even where normal processes have been followed, we have seen clients happy despite measures not being met and unhappy when they are. As a result, we need to question not only whether the performance regime is right (does it incentivise the right behaviours, penalise poor performance and ensure that government gets what it wants?), but also whether government knows what performance is and can manage contractors to get what it wants. We develop this point further in client leadership.