9. Select outcomes-focused contracting arrangements

See screenshot below

See screenshot below

See Screenshot below

Visual approach to outcomes focused contracting

9. Select outcomes-focused contracting arrangements 

The outcomes logic  model can be used for outcomes-focused contracting and delegation.  

In any contracting or delegation it's important that all the players are clear about who is accountable for what.  Contracts will embody targets and success criteria as set out in Step 4c: Identifying targets and success criteria. In Easy Outcomes you need to first choose between one of three possible types of contracting:

1. Contracting for attributable indicators (outputs) only.

This is the traditional outputs-focused contracting.

2. Contracting for attributable indicators (outputs) and for 'managing for outcomes'.

In the second type of contracting or delegation those contracted are also contracted to 'manage for outcomes'.* This is different from them being held accountable for achieving high-level outcomes.

3. Contracting for not fully controllable outcomes.

In the third type of contracting or delegation, those contracted are just held accountable for changing indicators of high-level outcomes. For instance, in the example being used here, the Waiting Staff would get a bonus if the guests developed strong social networks and would lose money if they did not.  

It may seem strange that people can be contracted for 'not fully controllable outcomes' in this third type of contracting. This happens in the private sector when CEOs get rewarded or punished on the basis of changes in their company's share price. When using the third type of contracting, usually not all of a person's contract payment is at stake (i.e. the will receive a bonus on top of a basic payment). People usually demand a higher reward in those times when outcomes are achieved so they can 'insure' themselves against those times when they are not. You can find more detail on all this at the Systematic Outcomes Analysis site.

Working with a visualized model helps make contracting more transparent

Using a visualized outcomes logic model such as is used in Easy Outcomes lets all the players be clear about the type of contracting or delegation arrangement and who is going to be accountable for what. The visual outcomes logic model can be dataprojected in all contracting and delegation meetings. Agreements about accountability can be noted directly onto the model as in the screenshots above. A PDF of the relevant diagrams from the DoView model can be attached as an appendix to the contract. Using this approach means that all contracting arrangements are discussed in the light of  the steps and higher-level outcomes within the model and helps maintain an outcomes-focused discussion throughout. 

The first screenshot above shows Contracting Arrangement 1, the second Contracting Arrangement 2, and the third Contracting Arrangement 3. 

Check out the video on right to see how a visual outcomes model can be used to clarify accountability in outcomes-focused contracting and delegation.

*There needs to be some easy way to know whether or not someone is 'managing for outcomes'. One way is to accept that they are 'Managing for outcomes' if they have carried out an Easy Outcomes analysis and have had it successfully peer reviewed.

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