Contract Performance Management

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ATCO Electric
2020-01-10 21:52:47

KPI's for Contract Management

Has anyone been using KPI's for contract management especially during the project execution & service delivery stage. If someone can share their experience of effective KPI's they would have used from Owner's team perspective. Thanks
 •  Fire and Emergency NZ  •   2020-01-16 08:23:18
Hi Navdeep - look this forum is looking a bit devoid of advice, isn't it ? So here goes....
A few years ago, like you, I turned my mind to some KPI's in this area - these were purely time bound. We've ditched them now. For mine, it sent the wrong message that the outcome we were looking for was efficiency. Sure, it's important to be timely, but what is more important is getting the right outcome for the business - and sometimes being focussed on timeliness can run contrary to that focus. Instead, we have an automated email that we're now piloting that is sent 3 months after contracting to an end user representative asking them how things went and how they're going.
Will it be a better measure ? Who knows. It's certainly different to what some others with a different focus have used. But for us, it fits with our philosophy of first and foremost getting the right outcome.
I hope this helps to start some good discussion in this post.
 •  Ngamuru Advisory  •   2020-02-02 07:37:40
Hi Navdeep,

How did you go with this? Did you find any? Having started my Performance Based Contracting (PBC) journey in 2004, including the design, implementation and management for performance measures (not just KPIs!). Over this time I have seen many, many performance measure that can be used depending on what you are trying to achieve. Indeed, over the years we have actually formed the opinion that there are more than simply KPIs, since most humans can only handle 3 - 5. Therefore, having dashboards of 20 it too much information. So while there are a number of websites that can give you a variety of performance measures, can I suggest you have a look at why you want to measure; what is the outcome you are trying to achieve? Is it the standard project ones (scope, schedule and cost), or are there other things such as the health of the relationship, the culture of safety, etc. So best to work that out first.

To help, as an IACCM Fellow I write on blog where I write about this (www.performancebasedcontracting.com), which sometimes become articles for IACCM (part of the role of an IACCM Fellow). Therefore, I'd suggest you have a look here and see if this helps. There is probably a lot of content (all free!), but hopefully it helps.
f these PBC elements.

Anyway, I hope this helps you on your journey. And don't be afraid to ask for help!

Dr Andrew Jacopino - IACCM Fellow
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