These deliverables must relate to volume, training and quality of the output (see examples below). Importantly:
- These deliverables have to be buttoned down; otherwise ambiguities will later become apparent.
- If existing performance definitions do not exist, you need to establish a baseline through stakeholder perception analysis or by linking expected performance to benchmark performance of other service providers.
- Establish clear contractual key performance indicators (KPIs) to define the expected level of operational performance from the contract
- Consider contractual measures for dealing with success and failure; that is, withholding payments as service levels fall or providing bonus payments if performance levels improve. Whatever the regime, a regular reporting schedule is necessary, including indices of performance and progress meetings.
- There should be an escalation clause in the contract to resolve disputes and ultimately terminate the contract if things have degraded to a profoundly unsatisfactory level.
Service item
|
Service descriptor
|
Service measure
|
|---|---|---|
Resourcing services
|
Permanent employee — time from receipt of an approved hiring request form to offer acceptance
|
Average time to offer acceptance: within 20 business days
|
Resourcing services
|
Non-PAYE contractor — time from receipt of an approved hiring request form to offer acceptance
|
Average time to offer acceptance: within 6 business days
|
Learning services
|
L&D projects customer satisfaction
|
90% customer satisfaction based on post delivery survey
|
Reward services
|
Action authorised contractual salary adjustments by agreed cut off dates
|
90% of adjustments to be processed accurately for pay runs
|
Reward services
|
Ensure statutory compliance in all processes
|
100% compliance
|
Figure 1: Illustrative contractual KPIs
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