Minimum Contract Level Support Programme Lead Providers and Performance Management Michael Gray, LSIS Adviser Jim Austin, Head of Adult Education Service, Gloucestershire County Council, October 2011 1

Outcomes You will be aware of the key issues in managing subcontractor performance You will have reflected on your own practice or plans You will be able to plan to manage the performance of subcontractors effectively Emphasise that this stimulates questions and reflection and action – it doesn’t give you a ‘manual’ 2

What is top of your agenda? Agreeing learner numbers and targets with subcontractors Carrying out due diligence checks Meeting Agency requirements in respect of subcontracting Ensuring compliance by subcontractors Getting timely and accurate information from subcontractors Reallocating contract values between subcontractors Identifying high quality potential subcontractors Quality assurance and improvement of subcontractors For the poll; gather up other issues too Use Agency due diligence checklist to elaborate on the compliance issues: Legislation H and S, and safeguarding Resources of subcontractor

Some Performance Management Issues The monitoring process between lead provider and subcontractor – how you do it specifically, and the cost Auditing Compliance v support How the subcontractor is involved in the Agency’s quarterly or other review processes How under- and over-performance are managed, and rewarded or penalised How changes to contract value (up or down) are managed How contract values might be reallocated between the lead provider and the subcontractor and/or between the subcontractor and other subcontractors of the lead provider Point 1: this is the first part of the equation; some lead providers adopt the same words as the Agency uses in its contract with lead provider; others talk more about processes 2: elaborate on auditing options: what sample size? How often? Invite sharing of comments later 3: what’s the balance? How do you use risk assessment? Does it depend on the maturity of the relationship? 4: explain that the Agency contracts only with the lead provider; numbers can be moved around between subcontractors; the lead provider has to have ways of involving the subcontractor; explain that in Agency note 8 the profile and tolerances are explained; the lead has to make sure the subs understand these and any implications, for example for cash flow 5: are there penalties and rewards/ 6: tough decisions; sort early on 7: what criteria do you use? What about new work? Who gets that? Give examples of what lead providers are doing.

Questions to ask yourself Have we defined exactly how we monitor performance? Do all subcontractors understand and agree the results of over- or underperformance? Do we monitor and take action in a supportive and robust way? Questions to ask yourself First and second point: about clear agreements in a contract, and commitment Third point: About robust actions when needed but also about providing support when things go a bit wrong. Remember also that the Agency doesn’t guarantee to fund overperformance!

Best practice for lead providers Ensuring compliance without micro-managing Building relationship beyond the contract and the fee Ensuring there are clear agreements about who does what and by when, and about cashflow Ensuring the subcontractor(s) is/are a part of the lead contractor’s quality improvement process– e.g. that they measure impact on learners, not just improvement actions Dealing with the trickier aspects – redistributing or clawing back monies, for example, or distributing new funding This is much more than the Agency requirements How do you build a better and broader relationship? Does it matter?

Any questions?

Over to Jim… Jim Austin… 8

Resources Support for Collaborative Contracting Case Studies Toolkits: Managing Risk Partnership Planning and Working Shared Leadership and Governance Shared Services Sub-contracting Quality Management Sub-contracting (Nov 2011) Annual planning and operations cycle (Nov 2011) http://www.excellencegateway.org.uk/page.aspx?o=MCLsupport

Wrapping Up We’ll send you evaluation form and a link to the recording Slides from the seminar will be on the Excellence Gateway You may be be interested in further support from the LSIS MCL Support Programme. A range of resources are available on the Excellence Gateway site www.excellencegateway.org.uk/MCLsupport  Further web seminar events are planned,  you can find details and registration on events.lsis.org.uk/Pages/Event/Stage1/Events.aspx If you would like to talk to an MCL Partnership Adviser please send an e-mail to mclsp@lsis.org.uk