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

Webinar - Service Network and Service Matching

May 14, 2018

Our May Webinar on 'A Service Network Perspective to Evaluate Service Matching in Early Design' by Federico Barravecchia

Caterpillar Parts and Service Operations Summit

Apr 30, 2018

Dr Mohamed Zaki delivered a presentation on ‘Service Innovation in the Digital Era’ in the Caterpillar Parts and Service Operations Summit organised last week in Dubai

Facilitating Co-creation in Living Labs

Apr 27, 2018

On 20th April, Katharina Greve delivered a presentation on ‘Facilitating Co-creation in Living Labs’ at Carlo Cattaneo University (LIUC) in Castellanza, Italy.

Cambridge Service Alliance hosts the Service Community Event

Apr 27, 2018

The Cambridge Service Alliance hosted the 'Service Community Event' on the 19th April, where service professionals shared their experiences on a wide range of service topics.

How Can Hackathons Accelerate Corporate Innovation?

Apr 25, 2018

April paper on 'How Can Hackathons Accelerate Corporate Innovation?' by Myrna Flores, Matic Golob, Doroteja Maklin, Martin Herrera, Christopher Tucci, Ahmed Al-Ashaab, Leon Williams, Adriana Encinas, Veronica Martinez, Mohamed Zaki, Lourdes Sosa & Karina Flores Pineda

View all news

Upcoming events

Shift to Services Executive Education Programme

Nov 07, 2018

IfM, Cambridge, UK

Ecosystems Strategy One Day Course

Nov 15, 2018

IfM, Cambridge

Upcoming events