Partnership and performance management are essential elements within a PPP operational environment. Analysis of interview data, gathered from appropriate experts, confirms that aspects of partnership management that are important for public partner governance during the operational phase of PPP include: organisational culture; management commitment and support; employee capability and expertise; and conflict management. The important issues for performance management remain as KPI modification; contract variation; and penalties and abatements. Risk pervades both management perspectives.
The most significant findings are two-fold. First, there is a link between the public partner's contract management style for achieving a positive organisational culture and satisfactory delivery of VfM. Organisational culture, however, is not always driven by the preferred contract management style of the public partner: 'you get what you pay for'. This suggests that the public partner's decision-making can be influenced by the size of the private partner's financial margins.
Second, sufficiently skilled and experienced public partner employees are critical for achieving satisfactory VfM outcomes. Failure of governments to attract and retain high calibre employees may undermine value for the state in the long term, or lead to an adverse change in the public partner's risk profile.
Only by effective management of these partnership and performance issues will the public partner, in its governance role, increase the likelihood that intended VfM outcomes are achieved during the operational phase of PPP projects. Further attention could usefully be given to exploring ways in which the public partner can drive operational performance, but not at the expense of irreparable damage to the partnership relationship.