In a central government department project, we were asked to construct a payment mechanism with the supplier by which the department would make proportional payments based on measurable results achieved.

What We Did

From benefits already identified we designed metrics which represented value (benefit) for the department and over which the supplier had some control in terms of the level of performance achieved.  We facilitated substantial discussions between the supplier and the department in agreeing these metrics and then identifying measurement processes by which we would obtain numbers on these metrics for the baseline and throughout delivery.  We collated the performance data and facilitated assessment workshops where the user community scored the results achieved, taking into account factors beyond the suppliers control, and this lead to final payment calculation.

The Outcome for the Client

The whole process was open between the department and the supplier which enabled early clarification of any misunderstandings and development of an honest relationship.  It concluded with a less than maximum payment saving money for the department for a level of service not delivered, but accepted by the supplier.