Advanced Courses

Outcome Based Contract Management

This workshop aims to develop awareness and understanding of managing outcome based relationships.


This one-day workshop explores the role of the client in managing outcome based relationships.

This course is designed for:

The workshop will benefit those who are responsible for managing relationships which are focused upon rewarding outcomes rather than outputs or processes. It is assumed that participants in this workshop have some familiarity with results based accountability, and that they wish to further develop their understanding of managing relationships where the focus is upon rewarding outcomes.

Course structure

There will be pre- and post-workshop activities totalling about 90 minutes additional workload, as the workshop is founded upon 70/20/10 principles. The pre-workshop activity will stimulate thought about the role of a category manager in contributing to organisational results. The workshop will be led by an experienced facilitator, and will include nine sessions involving exercises, case studies, presentations and facilitated discussions. The post-workshop activity will seek to reinforce the learning and to maximise the transfer of knowledge from the workshop to the workplace.

Benefits of attending

Attendance will help build capability in managing effective relationships.
As well as this participants will gain three key benefits from attending:

  • More knowledge and capability in managing outcome based agreements throughout their lifecycle
  • More knowledge and capability in applying tools and techniques of contract management to outcome based contracts
  • Less likelihood of the contract outcomes failing to meet expectations in terms of cost and value

Key learning outcomes

  • Build and manage appropriate relationships
  • Manage the performance of the provider and demonstrate appropriate behaviours in a range of performance management situations
  • Manage provider performance during the agreement so that contract outcomes are consistent with expectations
  • Comply with the contract management framework and reduce the impact of uncertainty upon contractual results


Course Content


Relationship analysis

  • Why outcome based relationships are special
  • Value risk approach to managing relationships
  • Roles and responsibilities in outcome agreements

Service performance management

  • The scope and standard of services
  • Intended outcome(s) of the contract/s
  • Managing changes to scope

Performance regime

  • The performance management framework
  • Performance measures in the contract
  • Trigger threshold/s for rewards

Monitoring and reporting mechanisms

  • Designing governance mechanisms
  • Reporting by the provider
  • Scheduling review meetings

Remuneration regime

  • Payment mechanisms
  • The basis for additional payments
  • The basis for limiting payments

Continuous improvement mechanisms

  • Creating a culture of improvement
  • Client role in results based accountability
  • Managing the creation of new IP

Resolving disputes and issue resolution

  • Issue identification and exploration
  • Escalation process
  • Evaluating a provider recovery plan

Managing contract set up

  • Program for contract establishment process
  • Building person to person relationships
  • Building trust and collaboration in outcome relationships

Managing review meetings

  • Agenda for review meetings
  • Dealing with performance variations
  • Setting targets and joint planning processes
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