The general population level progression from results to indicators to baselines, story, partners, what works and strategies, often leads people to ask next, "What performance measures will tell us if our strategies are working?" This, of course, is the wrong question. To tell whether our population level strategies are working, we must look to see if the indicator curves are turning. Indicators measure the extent to which strategies are working. Performance measures tell us if the individual components of our strategies are working.
For example, a partnership might come together to promote community safety as measured by indicators such as the crime rate or the percentage of people who feel safe. After working through the RBA/OBA process, they might settle on an initial three part strategy which includes community policing, improved lighting and a neighborhood watch program. To see if the overall strategy is working, we would look to see if the curves are turning on the selected indicators (i.e. crime rate and percentage who feel safe). As for performance, we would take each component of the strategy in turn and identify performance measures for that component. So for the neighborhood watch program, we might look at the percentage of neighbors signed up, or the crime rate for neighbors in the program compared to neighbors not in the program.
There is one other kind of performance measure relevant here, which may be the source of some of the confusion on this subject. For those managing the overall strategic planning process, there is a need to know the extent to which the strategy (or strategies) have been implemented, and how well they have been implemented. So a performance measure for the partnership managing the strategy might be the percentage of agreed action steps that are on track. Notice how this measure tells us how well the partnership is working, not how well the overall strategy is working. One could easily have a strategy that is implemented beautifully, but has no effect on the indicator baselines.
Friday, August 21, 2009
Saturday, August 15, 2009
Next Generation Contracting - Key Provisions
People have been asking me for more detail on what I mean by "next generation" contacting (or commissioning as it is sometimes called in the UK). Here are some additional thoughts. I welcome your comments and suggestions.
Next generation contracts will have three essential provisions. Provision 1 (Most important performance measures) and 2 (Continuous improvement process) are sometimes used in present generation contracts, but these two with the addition of provision 3 (Performance partnership between funder and contractor) create the "next generation" funder / contractor relationship. Provision 4, having to do with simplifying and standardizing contractor reporting, is a highly desirable but optional component. Clearly there are many other components of a complete contract genome (see Dawkins) that are necessary to have a fully functioning contract, so these are necessarily parts of a larger whole.
1. Most important performance measures (Provision 1) specifies the most important 3 to 5 How well did we do it? (Upper right quadrant) and Is anyone better off? (Lower right quadrant) measures by which the contractor's performance including its effectiveness on behalf of customers can be judged. If these measures are not identified in the contract itself, the contract should specify a process for quickly agreeing on the measures, with possible reference to the RBA 5 step process in Appendix G of the RBA book.
2. Continuous improvement process (Provision 2) specifies that the contractor will use a continuous improvement process (the RBA 7 Questions are naturally recommended) to monitor and improve performance over time. The contract must specify that this process takes place (usually monthly) at the highest level of overall contractor performance (usually agency or major program level) but should also, if possible, specify that the RBA 7 questions will be used (or phased in) to every supervisory relationship.
3. Performance partnership between funder and contractor (Provision 3) specifies that the funder and contractor will meet periodically (most likely quarterly) to jointly assess performance on the 3 to 5 measures, the story behind the baselines for these measures, and what each party can do to improve performance in the coming period. These meetings should be preceded by the submission of a performance report in RBA format (See Wyoming Part II and San Mateo budget formats) from the contractor to the funder. In these meetings, the funder and contractor act as co-equal partners in helping facilitate improvement. This means that the funder will also agree to tasks that can help the contractor improve, such as providing technical assistance, working to break barriers the contractor may be experiencing in getting access to necessary resources or cooperation from other agencies, essentially anything within the funder's means that can materially support the contractor's performance improvement. Nothing in this provision lessens the funder's usual responsibility for oversight of the contractor's performance and use of funds. Nothing in this provision substitutes for the grantee's ongoing improvement process in Provision 2 nor for the contractor's responsibility to pro-actively solve its own problems without the funder's help.
4. Coordination with other funders (Provision 4) - optional - The funder agrees to actively pursue agreement with other funders who also purchase services from the contractor for the purpose of simplifying and standardizing contractor reporting requirements.
These are conceptual descriptions of the contract provisions and must, of course, be translated into actual contract language. Suggested language or examples of such language are welcome.
Next generation contracts will have three essential provisions. Provision 1 (Most important performance measures) and 2 (Continuous improvement process) are sometimes used in present generation contracts, but these two with the addition of provision 3 (Performance partnership between funder and contractor) create the "next generation" funder / contractor relationship. Provision 4, having to do with simplifying and standardizing contractor reporting, is a highly desirable but optional component. Clearly there are many other components of a complete contract genome (see Dawkins) that are necessary to have a fully functioning contract, so these are necessarily parts of a larger whole.
1. Most important performance measures (Provision 1) specifies the most important 3 to 5 How well did we do it? (Upper right quadrant) and Is anyone better off? (Lower right quadrant) measures by which the contractor's performance including its effectiveness on behalf of customers can be judged. If these measures are not identified in the contract itself, the contract should specify a process for quickly agreeing on the measures, with possible reference to the RBA 5 step process in Appendix G of the RBA book.
2. Continuous improvement process (Provision 2) specifies that the contractor will use a continuous improvement process (the RBA 7 Questions are naturally recommended) to monitor and improve performance over time. The contract must specify that this process takes place (usually monthly) at the highest level of overall contractor performance (usually agency or major program level) but should also, if possible, specify that the RBA 7 questions will be used (or phased in) to every supervisory relationship.
3. Performance partnership between funder and contractor (Provision 3) specifies that the funder and contractor will meet periodically (most likely quarterly) to jointly assess performance on the 3 to 5 measures, the story behind the baselines for these measures, and what each party can do to improve performance in the coming period. These meetings should be preceded by the submission of a performance report in RBA format (See Wyoming Part II and San Mateo budget formats) from the contractor to the funder. In these meetings, the funder and contractor act as co-equal partners in helping facilitate improvement. This means that the funder will also agree to tasks that can help the contractor improve, such as providing technical assistance, working to break barriers the contractor may be experiencing in getting access to necessary resources or cooperation from other agencies, essentially anything within the funder's means that can materially support the contractor's performance improvement. Nothing in this provision lessens the funder's usual responsibility for oversight of the contractor's performance and use of funds. Nothing in this provision substitutes for the grantee's ongoing improvement process in Provision 2 nor for the contractor's responsibility to pro-actively solve its own problems without the funder's help.
4. Coordination with other funders (Provision 4) - optional - The funder agrees to actively pursue agreement with other funders who also purchase services from the contractor for the purpose of simplifying and standardizing contractor reporting requirements.
These are conceptual descriptions of the contract provisions and must, of course, be translated into actual contract language. Suggested language or examples of such language are welcome.
In the Beginning
Dear Friends,
The RBA / OBA Blog is devoted to the worldwide community of Results-Based Accountability (RBA) and Outcomes-Based Accountability (OBA) practitioners. It's a place for me to share notes on a daily, weekly or monthly basis that might be of interest. Your comments on these entries are most welcome. And if you prefer more private communication you can contact me at xfpsi@aol.com. If you're new to RBA/OBA you can find out more at http://www.resultsaccountability.com/ or http://www.raguide.org/ or http://www.resultsleadership.org/.
All the best. Mark Friedman 8/15/09
The RBA / OBA Blog is devoted to the worldwide community of Results-Based Accountability (RBA) and Outcomes-Based Accountability (OBA) practitioners. It's a place for me to share notes on a daily, weekly or monthly basis that might be of interest. Your comments on these entries are most welcome. And if you prefer more private communication you can contact me at xfpsi@aol.com. If you're new to RBA/OBA you can find out more at http://www.resultsaccountability.com/ or http://www.raguide.org/ or http://www.resultsleadership.org/.
All the best. Mark Friedman 8/15/09
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