Capacity Building Workshops: Operational Considerations of delivering Outcomes-Based Contracts

In this session, our CEO, Richard Johnson explored the impactful nature of payment models on public service contracts, using examples of a range of different organizations transitioning from reimbursed budgets to outcome-based contracts. Stressing the need for a comprehensive cost operating model, Richard showcased how inadequate payment structures affected service delivery, underscoring their impact on outputs and financial strain.

Additionally, Anushree Parkeh and Rhea Miranda from the British Asian Trust highlighted the critical importance of outcomes readiness among service providers. They emphasized the preparatory steps essential for effective implementation and success in outcomes-based contracts. This was complemented by a panel discussion featuring Arun Nalavadi and Ritesh Agarwal of Magic Bus and Education Initiatives respectively, sharing insight from their experiences with outcomes-based contracts in India.

The discussion shed light on the pivotal role payment models play in shaping behavior and program success. Aligning expenditure with service delivery requires not just a clear and concise contract but also a harmonization of incentives for all involved parties. Beyond this, establishing a lasting performance-driven culture is key to sustained success, requiring robust performance management for continued excellence in service provision.

For those who couldn't attend or wish to revisit the session, the recording and presentation are available on our website.