Intermediate Courses

Developing Service Level Agreements (SLA) and Key Performance Indicators (KPI)

The aim of the workshop is to equip participants with the ability to design and draft contract management plans and service level agreements.


This workshop explores planning to manage provider performance through the creation of a plan. Contract management plans may or may not be shared with the provider, while service level agreements are usually legally binding.

This course is designed for:

The workshop will benefit managers who are responsible for post award contract management, and who need to identify who is responsible, and how the contract management is managed once it is ‘on foot’. This may be relevant to contract managers and other managers responsible for provider performance.

Course structure

A practical one-day workshop consisting of nine session involving exercises, case studies, presentations and trainer-facilitated discussions. Each of the sessions will be led by an experienced facilitator and will feature the key principles and practical methods which may be used in the procurement process, together with practical case study sessions to maximise the transfer from the workshop to the workplace.

Benefits of attending

This workshop will help managers to plan the ‘what’, the ‘how’ and the ‘when’ of contract management. It will also explore the structure and contents of contract management plans and service level agreements.

As well as this delegates will gain three key benefits from attending:

  • More capability to design the contract management plan in the light of the complexity of the category and the challenges in ensuring performance meets the contractually-agreed standards
  • More likelihood that the performance of contract management will align with the business need
  • Less likelihood that contract management will fail due to lack of role clarity or lack of resource or lack of management of provider performance

Key learning outcomes

  • Design a contract management plan that matches the challenge in the category and the rights and obligation in the contract
  • Drafting performance standards and KPIs and relating them to the key contractual deliverables
  • Critically analyse the key clauses of a contract management plan
  • Design and execute a performance management regime that allows the contract manager to manage the provider’s performance
  • Manage variations and revisions to the agreement and ensure that the contract management plan adapts to any changes in the contract


Course Content


“Agreements” in general/types of agreements

  • Memorandums of Understanding
  • Goods agreements
  • Service agreements
  • Service Level Agreement
  • Service Charters
  • Contract Management Plans

Drafting obligations or expectations

  • What is an obligation?
  • What is an expectation?
  • Essential terms (Conditions)
  • Warranties

Legally Binding Obligations

  • Terms essential to a contract
  • Intermediate terms
  • Enforcing legality

How do we measure performance?

  • Who/what/when/how
  • Objective or subjective measures?
  • Including measurement in a contract

Enforcing the essentials

  • Identify and manage risks
  • Communicate with stakeholders
  • Establish and sustain contract management capability
  • Establish systems and procedures
  • Management reporting on contracting activity
  • Quality assurance of contracting activities
  • Managing panel arrangements

Building a Contract Management Plan

  • Relationships
  • Transition arrangement
  • Skills and experience required
  • Responsibilities
  • Contract start-up
  • Administration of the contract
  • Contractor performance
  • Variations
  • Extension options
  • Disputes
  • Record Keeping
  • Lessons learned

Structure, content and purpose of SLA elements

  • Articulating the expectations of the parties to the agreement
  • Acting as a scorecard against which to examine performance and result
  • Vision or Purpose Statement
  • Declaration of Key Principles
  • Services and Activities
  • Service Bundles/Service Inventory
  • Tiered Service/Delivery Channels
  • Relative Roles and Responsibilities
  • Key Service Assumptions

Key Performance Indicators (KPIs)

  • KPI’s verses Metrics
  • KPI Metric Flow
  • How to Know what to Measure
  • Common Performance Metrics


  • Commercial and performance risk
  • Reward as an incentivisation
  • Incentivise delivery of outputs and performance
  • Incentivise long term thinking
  • Pricing models
  • Incentivise innovation and transfer of best practice
  • Incentivise knowledge transfer and sharing



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