Three-step approach for implementing a contract

In this section you will learn:

  • The steps needed for successful implementation of a contract

The contract is the basis for defining the roles, responsibilities, and expectations of both the ministry of health (client) and vendor (service provider). It is what the ministry of health uses to ensure that the vendor performs and delivers what is expected. The starting point of implementation is the development of a transition plan to ensure effective transfer of the relevant assets, processes, systems, knowledge and/or skills to the outsourcing partner. This is followed by the establishment of the right performance measures that the ministry of health will use to hold the supplier accountable for delivery and execution. Once that is completed, the governance procedures that establish clear expectations and routines for managing the supplier relationship are then put in place.

Critical success factors for contract implementation:

  • Have a business continuity plan if some level of the transition fails in the event that there is a disruption in the vendor’s ability to provide service
  • Recognise that implementing and managing the new contract with an outsourced company will require a different set of core competencies to that of doing the work in-house

The three steps to be followed in implementing a contract

Transitioning the organisation

4 to 6 weeks

Performance management

2 to 3 weeks

Governance procedures