Clearly, as a customer, you want to motivate your service provider in the desired direction with bonus and penalty payments. Measurements of service quality are the basis for this. The results are used to determine the amount of remuneration.

Under certain circumstances, it is easier for both parties to perform a bonus/penalty calculation approximately quarterly instead of monthly. In order to cover its running costs, the service provider receives a basic remuneration every month. After three months, the actual settlement takes place.

Measurements of service quality form the basis for the level of remuneration.

What's good? What's bad? 

Describe as precisely as necessary what is good and what is bad. Stay as open as possible to accommodate all eventualities.

A concrete example illustrates this: for example, define an appreciative and polite name address, but do not set the frequency quantitatively. The default "three times appreciative name address" is not very useful in a 30-second dialogue. Better is the specification: The name address is appreciative, polite and appropriate to the conversation.

A sound definition of the service helps both sides. Formulate as precisely as necessary and as openly as possible.

Find out more right now.

It's an old wisdom of managers. It does not only apply internally to employees. Unrealistic goals also make little sense in outsourcing. Of course, contractors sometimes stack deeper than they actually could.

Motto: Better safe than sorry, and low-hanging targets are easier to achieve.

But this does not mean that clients should have over-ambitious ideas.

Experienced consultants know what is realistically possible.

The event can be described quickly. In 2013, a health insurance company selects a new service provider for the patient programme. The first six months are used for the transfer, in which a zero measurement is also to take place for the joint determination of the service quality. Then, according to the plan, the bonus/penalty system applies.

The change to the new service partner is taking longer. A new IT system is expected to be launched in early 2014. This will probably involve longer task times and other processes. Both parties therefore postpone the zero measurement until mid/end of 2014. The IT introduction is stalling and the new contribution rates are already available at the end of 2014. The insurance company fears that many insured persons will change their health insurance. All concentration is on the premium adjustment and the zero measurement can wait a little longer.

In mid-2015, the outsourcer is training a swing of new employees. A zero measurement would be quite unfair. At the end of 2015, rumours of an impending cash merger waft through the corridors. Everybody wants something heard. In addition, one of the big players on the market is currently merging with another. No time for a measurement!

As time goes by, there is another year around and we are writing in mid-2016. After the holiday period, the zero measurement will take place. Without fail. Both parties promise to do that at the meeting table.

If it were not for the procuring entity that is already issuing the new call for tenders for the next five-year contract... But 2018, then we will measure! Unquestionably. And then the bonus/penalty regulation will apply.

There are often good reasons to postpone a zero measurement.

Just measure. Your service continues.

Inwardly, you probably agree when you read the headline. But why do so many clients act in the opposite direction? After analysing various combinations, our conclusion is as follows:

• In most cases, the controlling contact of the outsourcer simply does not have the required detailed knowledge.
• A simple sentence like "This is industry standard!" of the contractor's representative is often sufficient to fuel uncertainty.
• The service provider's target proposal is quickly included in the bonus/penalty agreement, which the outsourcing company gratefully accepts.

Among other things, this results in these consequences:

• Clients deprive themselves of the opportunity to successfully differentiate themselves on the market, e.g. via service. Example from a project for a health insurance company: Instead of shrilling alarm bells, the person controlling the service provider agrees to a service level for email processing of three working days. "This is what all our customers do," the outsourcer's project manager assures. In contrast, the slogan of the health insurance company is: "We give you quick, uncomplicated advice."
• The service provider knows immediately which parameters it will certainly achieve and for which aspects it may have less commitment.
• The bonus/penalty scheme protects the interests of the service provider, if applicable.

Clients set goals. If you are unsure, consult a specialist consultant. This saves you money because you get the service you need.