Performance monitoring and quality outcomes in contracted services

The increased use of contracting for service delivery involves new challenges in ensuring that quality is maintained. Performance monitoring involves both efficiency (costs) and effectiveness (quality) measures; however, there is little guidance from the literature to indicate the best approaches in different contexts. This paper therefore reports on an exploratory study in which approaches to performance monitoring, and respondents’ views on best practice, were explored in contracted services. Key findings are that organisations rely on inspections by their own employees or contractor checklists, but that these practices are in conflict with their views on best practice. However, the respondents agreed that performance monitoring has a large effect on quality outcomes. Using both the literature and the study, a model has been developed that provides managers with a framework for improving their performance and quality monitoring practices, and highlights areas for future academic research.