Performance Management is used by funders and Government as a heading about how well contracts are managed. From a financial perspective, ensuring that you document and measure your key contract targets, outputs and outcomes is essential to your financial sustainability and viability. Contracts are often very complex, legalistically wordy and contain information that isn’t always understood by all. Organisations should always read these thoroughly and refer to the issuing authority if there are unclear or non-acceptable clauses or expectations.
For providers who do not have a legal resource within the business, it is helpful to extract all the targets, data, response dates, expectations and obligations to ensure you do not under-perform, which can lead to a reduction in your contract value, or have it revoked.