skip to primary navigationskip to content

Cambridge Service Alliance

developing new understanding and approaches to complex service systems

Studying at Cambridge

 

Webinar - Outcome-oriented Contracts and Outsourcing relationships

last modified Dec 11, 2017 10:09 PM
Webinar by Florian Urmetzer on 'Using outcome-oriented contracts to foster performance improvements in logistics outsourcing relationships', held on 11 December 2017

Torston and Florian discussed the paper on 'Using Outcome-oriented Contracts to Foster Performance Improvements in Logistics Outsourcing Relationships'. Outcome-oriented contracts are used for an increasing range of private and public services. In view of the importance to involve service providers in continuous improvement efforts, this paper helps managers to better understand how outcome-oriented contracts should be designed and managed to instigate proactive improvement. Following a quantitative research approach, empirical data was collected on logistics outsourcing relationships in Germany. Results reveal the potential of outcome-oriented contracts to improve the provider’s performance. Specifically, bonus payments foster the efforts of the service provider to achieve above-standard performance levels while penalties do not instigate proactive improvement efforts. Furthermore, practitioners should be aware that linking the compensation of the service provider management to the achievement of customer goals (i.e., the remuneration obtained by the customer) fosters proactive improvements. Lastly, customers and service providers are advised to allow frequent adjustments of the performance metric system (i.e., changing the target values and/or introducing new KPIs), for example, to reflect lessons learned during the contract management phase, in order to maximize the contract’s potential to stipulate proactive improvement efforts. In sum, outcome-oriented contracts can increase proactive improvement behaviour by the service providers when they are designed and implemented effectively for which this paper provides a guideline.

Webinar I Presentation

Filed under: ,

RSS Feed Latest news

New thinking about the future of services

Apr 14, 2019

New thinking about the future of services - Connecting the digital, physical and social

2018 Robert Johnston Award

Apr 03, 2019

Congratulations to Mohamed Zaki, Professor Janet McColl-Kennedy and co-authors for receiving the 2018 Robert Johnston Award of the Journal of Service Management

Webinar on High-Value Manufacuring (HVM)

Mar 18, 2019

In this webinar, Luisa Huaccho Huatuco presents the Alliance February 2019 paper on High-Value Manufacturing.

February 2019 Paper - High Value Manufacturing (HVM) in the UK: Case studies and focus group insights

Feb 28, 2019

High Value Manufacturing (HVM) in the UK: Case studies and focus group insights by Luisa Huaccho Huatuco, Veronica Martinez-Hernandez, Thomas F. Burgess and Nicky E. Shaw

February 2019 Webinar - Business Ecosystems Mapping

Feb 12, 2019

In this webinar, Florian presents the Alliance January 2019 paper on Business Ecosystems Mapping.

View all news

Upcoming events

Shift to Services Executive Education Programme

May 14, 2019

IfM, Cambridge, UK

Upcoming events