Performance Contracting

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Performance contracting is a freely negotiated performance agreement between a government, acting as the owner of a public agency and the management of the agency. It is used by the Kenyan public to measure performance. Local authorities face pressure to improve service delivery, lower costs become more accountable, customer focused and be responsive to stakeholder needs.

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Performance agreements offer a practical means of including performance data focused on results in the executive’s performance appraisal. The agreements have a significant impact on executive performance evaluations and bonus calculations. continuity of the program’s objectives throughout leadership changes.

Performers’ contracts should include policies regarding cancellations and unforeseen circumstances, expectations for the performance, and payment amounts, including deposits. They should also include details such as the time and location.

Performance contracting is an alternative for public sector organizations to use for construction delivery that has been around for more than 25 years and offers a lot of advantages to those that adopt it.

Advantages of Performance Management

  • Performance Based Conversations
  • Targeted Staff Development
  • Encouragement to Staff
  • Rewards Staff for a Job Well Done
  • Documented History of Employee Performance
  • Allows for Employee Growth

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    Performance contracting aligns execution to priorities identified and fast-tracks achievement of the set goals. It unlocks to the latent potential for organizations, teams and individuals to play their role towards provision of competitive services. Implementation of performance contracting to enhance own source revenue will establish performance standards to be achieved, strengthen performance contracts implementation, help in rationalizing, clarifying and facilitating continuous follow-up, monitoring and reporting, link planning, budgeting and execution of county priority projects and programs, and link county priorities to national development priorities.
    Job Ireri Ngari - Consultant

      William Motari

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