Outcome Based Agreements Typically Include Sla

To maximize customer success and the value of a results-based agreement for service organization, one must first understand how the new contract structure works, what benefits it has and how this model can be implemented. With a results-based service partnership, the service moves from a break-fix model – in which service teams are called upon to fix machines, system failures, component failures, etc. – instead of working proactively to help customers achieve their goals, optimize efficiency and get a return on investment. However, given the potential for misunderstanding and confusing results by clients, will we see an increase in problems arising from results-based contracts? However, many do not introduce or introduce a debate on the management organization that facilitates management, nor do they indicate sufficient tasks, lines, levels of authority or standards of conduct. Others rely too much on processes and structures, while they overlook the importance of real people in obtaining value, fail to get a buy-in, which has a negative impact on results. In many cases, suppliers and customers sign a contract and have no guidance to the contrary, return to normal activity and return to traditional methods, roles and responsibilities. In other cases, both parties are adopting new methods that they hope will bring benefits, but without coordination. These situations often place participants, including client and supplier staff, in a vacuum of assumptions and create barriers to success. Relationships between individuals on both parties are the key to the success and longevity of contracts, so a solid foundation and framework for these relationships must be developed. For the purposes of this article, we are primarily interested in the wide range of results-based services, which are themselves based on performance contracts.

Risk exposure is highest because the supplier assumes responsibility for turning inputs into outputs. The integration of the value chain is also the highest, since the supplier assumes responsibility for the execution of parts of the customer operation. This is much more than the parties that outline and agree on the concrete results of the contract. A well-developed and robust business case should be put into circulation to ensure internal orientation. In return, the service provider must want to direct its business with the customer and trust the customer to engage in a true model of risk and reward. The focus on the company`s results focuses on outsourcing directly to the customer and customers and stakeholders – those who evaluate and measure customer performance. The results of an outsourcing commitment to the operation are more complete than simple transactions, such as the time it is running on the website or the number of invoices processed, invoices or claims. Like a health care company, it might be important for a health payer to keep its members in their plans today, which means that KPIs that could include member satisfaction notices and ALS such as Pay site operating time, claims throughput and accurate supplier data are included. Conclusion: it is not a question of moving away from KPIs or SLAs in a contract, but of using them as building blocks to achieve real results that make a difference compared to the customer`s business objectives… and in a way that can be flexed and changed so that the partnership between the service purchaser and the service provider remains relevant over time.

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