Outcome-Based Commissioning
Outcome-Based Commissioning
This briefing is primarily intended for commissioners but will be of wider interest.
Public and private agencies who fund others to achieve health and social benefits often moan about the lack of progress in a given field. "If only our providers would become more innovative, more efficient, more effective...maybe then we would see more results!"
Outcome Based Commissioning suggests that the spotlight must go to the commissioner. The starting point for change is not the behaviour of the provider; it is the behaviour of the commissioner. You have the money!
The tender proposals you request, your selection methods, your service contracts and monitoring all powerfully condition what you get. Indeed, the wording of the request for proposals or contracts in conventional funding not only establishes what you will soon be reading but what projects/services and results you will get as well.
The Centre for Public Innovation trains commissioners using a 3 step approach to preparing for investing:
Step 1
Step 1 starts with Context, defined as those assumed or fixed points that are not only useful and fair to disclose to those seeking investment. You want to hear only from those who understand and can accept all constraints you offer. And you want providers to spend their time and energies focusing on those matters under their control.
Step 1 asks you to specify all important "givens" that guide what you can and cannot do. Whether coming from a statutory act, law, or agency policies you cannot reasonably change, they are important to state. One rule emerges: when givens are explicitly defined, a surprising amount of flexibility remains.
Provider assumptions come next. These are your thoughts on what works and what does not for your product (the Programme and services offered to customers), gleaned from your look at the evidence base over time. The final part of context concerns your portfolio-the pattern or mix of investments that you wish to make. This is a matter which must be considered before-not after-you have proposals before you.
Step 2
Step 2 focuses on the lifeblood of Outcome Based Commissioning: RESULTS!
If investors are murky on their intents, it is unreasonable to ask applicants to be clear on theirs.
In Step 2, we explore the end state that you wish to bring about through investing in a range of projects. Then we look at your targets i.e. what you, the investor, hopes to accomplish in customer behaviour terms with this investment. We move on to ask you to suggest areas of behavioural change for your providers to address. These will be very helpful in guiding providers in the development of their Performance Targets.
Step 3
Finally we ask you to consider the returns which can be realised if a Provider achieves their target. Experience is clear that when positive impacts are anticipated, they are much more likely to be brought about.
