Live Instructor-Led Designing and Implementing Commercial Contract Performance Management Regimes
Aims
Research indicates that many organisations are suffering from value leakage of up to 15% of the contract value. Many of these losses occur during post-award. To ensure effective contractor performance, requirements must be considered and designed from the outset so that the resulting contract provides clear, measurable and commercially effective mechanisms for managing contractor performance. The course will place particular emphasis on the practical skills required to design and draft Service Level Agreements (SLAs) and Key Performance Indicators (KPIs)
The programme is highly practical. Participants will work through realistic contracting scenarios and progressively construct a Contract Performance Management Regime, culminating in a final exercise requiring them to design and defend an SLA and KPI framework.
Target Audience
This course is designed for all those who are responsible and accountable for measuring, managing and improving contractors’ performance. The course will focus on the practical design and drafting of SLAs, KPIs and contract performance management regimes.
This could include contract management practitioners, contract administrators, contract managers, focal points, contract officers, team leaders, commercial managers, end users, technical experts, proponents, project managers, finance, internal customers, commercial managers, contract officers, customer success managers, supplier relationship managers, facilities managers, procurement, IT service delivery managers, category managers, vendor managers, escalation managers, contract governance officers, project managers, team leaders and finance managers
Learning Outcomes
By the end of the programme, participants will be able to:
- Explain why contract performance management needs to be designed during the procurement process rather than after contract award.
- Translate business requirements into measurable supplier performance obligations.
- Design a proportionate Contract Performance Management Regime appropriate to the risk, value, complexity and criticality of a contract.
- Design and draft clear and measurable Service Level Agreements.
- Design and draft effective Key Performance Indicators.
- Establish appropriate performance targets, thresholds, tolerances, measurement methodologies and reporting frequencies.
- Determine suitable data and evidence requirements for measuring performance.
- Identify and correct poorly designed SLAs and KPIs.
- Establish appropriate contract governance and supplier-performance review arrangements.
- Apply escalation, remediation and contractual remedies appropriately when suppliers underperform.
- Understand how contract changes and performance-management decisions can interact with procurement compliance requirements.
- Maintain appropriate commercial records and decision trails to support accountability and defensible decision-making.
