Performance management
buying a share in the provider organisation and/or taking a seat on the board
attaching a number of conditions to an investment, such as rights to take control of or terminate the project in the event of sustained under-performance
engaging an intermediary to manage provider performance throughout the contract
Social investors may use performance management techniques to make sure projects are rigorously managed according to strong social values. This may include:
a rigorous data collection system
basing decisions on data
tracking and reporting impact
detailed periodic financial and performance reporting
If providers are not achieving outcomes, there are several potential ways commissioners can intervene:
providing training and support to help the provider develop their skills and systems
redistributing the workload to share with another provider
replacing providers if outcomes aren’t being achieved (depending on the terms of the contract)