The performance contract
Do you prefer the performance obligation to the best efforts obligation ? We too !
This is why we associate with successful implementions by indexing the level of our variable remuneration of the measured effectiveness of our delivery :
We therefore follow 5 steps :
Immersion and quantified formalization of the goals and measurement indicators selected,
Validation of the intervention mechanism and of the variable pricing schedule,
Execution of the service,
Assessment of the level of achievement of the objectives,
Invoicing the variable based on the established schedule.
With this performance contract, our motivation to succeed is as important as yours and will determine our invoicing. This guarantees a win-win partnership !
We thus work for our respective performance !
The Performance Contract by MANEGERE
Choose a measurable "win-win" relatinship.
Beyond its social goal, any business aims at creating wealth and to that effect ensures as much as possible that its investments are relevant.
The guiding principle is that the amount invested should yield, either directly or indirectly, the highest dividend possible (the famous Return on Investment: ROI).
In this context, the choice of a consulting firm, regardless of its area of expertise, is always a critical step as it will largely determine the ROI.
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The selection criteria are often multiple and varied : the notoriety, the quality of references, the quality of actors, the intervention modalities, the possible guarantees (certifications, contractual commitments, etc.) as well as the perception of decision makers often conditioned by their sensitivity and past experiences in the area.
Some consulting firms have opted to provide guarantees of their effectiveness by going beyond the common best efforts obligation (which does not actually facilitate empowerment and involvement) by implementing a partial or full performance obligation.
It is the case for most consulting firms specialized in reducing costs and tax optimization. These remunerate themselves using a percentage of the amounts saved.
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We are experts in performance management and very often our services include a staff training section: training is an area where firms are increasingly asking questions about the ROI and consequently the effectiveness of interventions.
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Notwithstanding the above, most training firms are content with the best efforts obligation, arguing that they intervene only occasionally and do not have the mandate or resources to ensure that the trainees concretely and effectively implement the lessons learned (this part being the prerogative of the Management team of the client company) and thus the quality and relevance of their intervention may not be subjected to a performance obligation: this position is generally accepted by originators since on the one part, the arguments presented are right, and on the other hand, the ROI measure is often complex.
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What should be measurable to objectively ensure the return on investment of a training mechanism ?
The satisfaction of participants regarding the relevance of the training, whether it was executed just after the intervention or later,
The level of learning new knowledge or skills by participants,
The effective implementation of target practices by participants,
The level of achievement of objectives targeted by the intervention (financial, operational, HR, …),
The ROI amount in figures.
For client companies, this involves investing in a new organization of their training approach both upstream and downstream, mainly in the areas of identifying needs, expected outputs, resources allocated, intervention modalities, follow up and control modalities.
Of course, it is possible to select only a few items from the list above to avoid transforming a training intervention into a complex project that is difficult to execute if the client company has not established a comprehensive process, and considerably modified its approach to training.
In view of the perceived difficulty in implementing a specific measure, most businesses measure only participant’s satisfaction, eventually completed by that of their managers in order to decide on the relevance of the intervention and thus decide to continue collaborating with the consulting firm or not: thus, the performance obligation exists for training firms if only informally.
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Based on the above observations, we have prepared a performance obligation formalized through our performance contract which indexes the level of our remuneration to the effectiveness of our services.
In a bid to be efficient, we have focused on our main areas of expertise which are: management and client relation in all its commercial dimensions.
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In view of the elements mentioned above, we have designed a methodology that enables to :
Meet precisely the expectations of our customers on the notion of ROI,
sizing and organizing a realistic system integrating the objectives and constraints set,
propose a win-win partnership.
In this context we suggest a mechanism including all the dimensions of a training intervention and helping to achieve the objectives jointly determined at the onset of the intervention.