3.1 What is the scope for an analysis of value for money to date against • improved value for scenarios for future service use money? commercial intelligence the supplier’s track • Can more be done for record on other projects and/or comparison with less? supplier’s offering similar services Could the provider details of efficiency gains, both expected and • deliver better service achieved quality at the same price? Can maintenance costs be reduced? 3.2 Has the agency benchmarking assessments of processes such as: • benchmarked its demand management • contract-related service planning and development processes by comparing • them with other service quality • equivalent investment decisions/project justification • organisations involved benefits management in similar relationships? • 3.3 Are commercial evidence could include: • mechanisms providing payments to the provider are dependant on • appropriate incentives? benefits derived from implementing a particular programme of change the provider has incentives to deliver and to • ensure that individual investments are well planned, achievable and will deliver value a business case with robust benefits identified • on each occasion target incentive mechanisms, where work is • based the provider is incentives to submit optimum • resource estimates for a task, with equitable sharing of risks and benefits, between the agency and supplier, in exceeding or undercutting those original estimates 4. Plans for Ongoing Improvements in Performance to probe Evidence expected 4.1 Is the agency setting understanding and use of key techniques such as • realistic targets for Balanced Scorecard, ongoing stakeholder analysis, continuous benchmarking etc. improvement from this service? 4.2 Is the agency tracking documented performance information which is • its progression to clearly linked to planned outcomes and enables improved performance ready assessment of effectiveness, efficiency and and the flow of results service quality through key milestones core sets of performance information that meet • and the business multiple purposes, are consistent and planning complementary ongoing assessment of the appropriateness of • performance information responsibilities for performance management are • defined and understood by the agency and supplier
based 3.1 What is the scope for improved value for money? Can more be done for less? Could the provider deliver better service quality at the same price? Can maintenance costs be reduced? • an analysis of value for money to date against scenarios for future service use • commercial intelligence the supplier’s track record on other projects and/or comparison with supplier’s offering similar services • details of efficiency gains, both expected and achieved 3.2 Has the agency benchmarked its contract-related processes by comparing them with other equivalent organisations involved in similar relationships? • benchmarking assessments of processes such as: • demand management • service planning and development • service quality • investment decisions/project justification • benefits management 3.3 Are commercial mechanisms providing appropriate incentives? • evidence could include: • payments to the provider are dependant on benefits derived from implementing a particular programme of change • the provider has incentives to deliver and to ensure that individual investments are well planned, achievable and will deliver value • a business case with robust benefits identified on each occasion • target incentive mechanisms, where work is • the provider is incentives to submit optimum resource estimates for a task, with equitable sharing of risks and benefits, between the agency and supplier, in exceeding or undercutting those original estimates 4. Plans for Ongoing Improvements in Performance to probe Evidence expected 4.1 Is the agency setting realistic targets for continuous improvement from this service? • understanding and use of key techniques such as Balanced Scorecard, ongoing stakeholder analysis, benchmarking etc. 4.2 Is the agency tracking its progression to improved performance and the flow of results through key milestones and the business planning • documented performance information which is clearly linked to planned outcomes and enables ready assessment of effectiveness, efficiency and service quality • core sets of performance information that meet multiple purposes, are consistent and complementary • ongoing assessment of the appropriateness of performance information • responsibilities for performance management are defined and understood by the agency and supplier
A_Handbook_for_Conducting_Assurance_Reviews_FMR_7.docx