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

September 2018 Paper

Sep 24, 2018

September paper on 'Co-Creation in Practice: Objectives and Outcomes' by Katharina Greve, Veronica Martinez and Andy Neely

Land of Innovation Forum

Sep 23, 2018

Veronica delivered a presentation and a workshop at the 'Land of Innovation Forum' in Canacintra, Mexico.

Blockchain Results Delivered at Rolls Royce

Sep 20, 2018

Research project 'the impact of digital twins on the product development process' led by Veronica Martinez

Interview with Sander Kuik, Canon – for CSA Industry Day 2018

Sep 11, 2018

In a conversation with Sander Kuik from Canon we asked him about his planned presentation at the CSA Industry Conference on 3 October 2018, his thoughts on the theme of the conference, and his vision of the future.

Webinar 10 September 2018 - Enabling Digital Transformation: An Analysis Framework - by Thayla Zomer, Veronica Martinez and Andy Neely

Sep 10, 2018

In this webinar, Thayla Zomer presented the Alliance May paper on Digital Transformation.

View all news

Upcoming events

Industry Day - 3 October 2018

Oct 03, 2018

Moller Centre, Cambridge

Shift to Services Executive Education Programme

Nov 07, 2018

IfM, Cambridge, UK

Ecosystems Strategy One Day Course

Nov 15, 2018

IfM, Cambridge

Upcoming events