The following table outlines the issues, tools, and processes that can be used in developing the contract director's reporting on performance against the contractual KPIs. (The original KPIs are developed during the procurement phase.)
Issues to be considered | Tools or processes |
What are the current KPIs? The KPIs will be set out in the project agreement. However, as the project progresses and early in the service delivery phase, there should be sufficient flexibility in the contract to amend and review contract KPIs. In some projects, some of the KPI targets will automatically change over time. How is service performance measured? By whom? When? How is the contract director notified of any performance failures? Do the current KPIs adequately reflect the required service outcomes? | KPI template - standard approach to measuring and recording KPIs on a project SMART - good performance targets should be specific, measurable, achievable, relevant and timely (see Note 1 below) Regular payment reports - discussed in detail later in this appendix Physical measurement - the measurement of quantitative elements within individual specification standards Inspection - physical inspections of operational activities to determine the quality of performance of the service Logged failure/rectification time - that is, the time from when the government party makes a request to the time when the private party attends the incident User feedback - complaints and/or service user interviews Periodic review and audit - combination of spot check reviews of performance and regular audits of systems Exception reporting - may be appropriate, however there is also a need to identify whether KPIs are being missed due to poor performance or whether it is because the KPIs themselves are poorly defined. |
Note 1: SMART performance targets are: specific - clear, unambiguous and easy to understand by those who are required to achieve them; measurable - set a target for success that can be gauged by referring to a specific measure or measures; achievable - express specific aims that can realistically be achieved, bearing in mind that this may be a function of the level of performance that the government party is willing to pay for; relevant - to those personnel who will be required to meet the target. They must have enough control over their work to be able to meet their targets or motivation may suffer; timely - there should be a set timescale for achieving a target. Open-ended targets may not encourage focused effort on improving performance.