STRATEGIC PERFORMANCE MANAGEMENT

Complex Procurement and Contract Management Case Study

Project Name: Strategic performance Management Process Design
Date: July 2020 - Jun 2021
Services Provided: Contract Management

Scope

The effectiveness of the Strategic performance Management process in influencing contract outcomes and behaviours throughout the contract term is an outcome of the initial Contract management design and implementation stage. Designing and establishing the SPM management processes in the initial contract management phase is the responsibility of individual Project Offices. K39 Consulting identified no documented process existed, that could be utilised as a guide to aid in establishing these activities, within the Defence Contract Management Landscape.

Whilst charged with designing a Contract management framework for a long-term strategic contract, K39 Consulting developed a generic guide for the management processes for Strategic Performance Measures (SPM). The SPM management process Guide utilises a Capture, Record, Assess, Consolidate and Report methodology. Also documented are the SPM management risks and mitigations, and tools to aid in facilitating the documented methodology. The tools include Questionnaire examples, capture and consolidated summary sheets, presentations and report templates.

Two soldiers in fog
Two soldiers in fog

Outcomes

The development of the Strategic performance Management process guide and tools was instrumental in designing and establishing a fit for purpose contract performance management framework that:

  • Maintained the integrity of the high-level contract strategic outcomes and ensured the parties behaviours directly relate to fulfilling the contracts strategic intent.

  • Enhanced communication between the contract parties via an underpinning philosophy of encouragement and collaboration rather than criticism and punishment which, in-turn, improved strategic outcomes.

  • Through the following performance cycles, saw an improvement to performance outcomes and ratings.

In addition, the guide and tools have been provided to Defence Industry Division for inclusion within a best practice guide and is being utilised by other Defence Project Offices.

What Our Clients are saying

K39 Consulting were engaged to develop and deliver a $900 million strategic contract on behalf of Explosive Material Branch. This required delivery within a significantly truncated time period due to critical schedule risks. Despite this, the K39 consultants, led by Darren Owen, formulated a solution that surpassed our expectations with the delivery of greater value for money, enhanced proficiency in the use of the Commonwealth facilities and an increase in Defence manufacturing capability and capacity. They definitely earn their reputation as Defence procurement experts.” Name, Department

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