If your organization is unable to set up a program for identifying and resolving contractual issues even before they arise, then you will almost certainly make a bad decision that will end up negatively impacting on your company. This article will go over some of the general principles and issues that could possibly be considered as part of a business IT project.

There needs to be agreement about dispute resolution. Of course you are hoping that your IT service provider will not give you causes to run after them or to doubt their professionalism but nevertheless you need to be aware that these things happen all the time.

One method can be to set up contracts that are paid on completion of a certain aspect of the project or to even agree penalties for not doing work up to standards. It is better to avoid the money back guarantee schemes because they are usually built on false hopes.

It is also very important to establish who is going to take responsibility for the project. This might involve meeting the staff and interviewing them individually to check their credentials and references. It pays to be weary of the company that double outsources after you have given them a contract.

You might want to make it a specific aspect of the contract that no further outsourcing is allowed other than the relationship between you and the provider. Double outsourcing creates control issues and will dilute accountability.

Where possible try to look at the services that they propose to use. It might be possible to check their software providers. This information can be cross checked against your own intelligence and you might be in a position to object to certain contracts which violate the law or even have a bad reputation when it comes to providing business IT solutions. There is possibility of negotiating discounts if you are able to direct the provider to certain other contacts of yours which can facilitate their work.

Experience will have a role to play in the quality of the work output and the ease with which your contractor can embed within your organization. If they have worked for a similar organization to yours or an industry related to yours, there are advantages that can be transferred to your working relationships. Make sure that any claims about experience are checked and substantiated. You also need to coax the provider into informing you if there are any problems that they envisage working for you so that you can resolve them even before they start work.

Finally it is important to appraise yourself about the important contractual issues such as the costs, the methods of payment and the schedule of payments to ensure that you are not being taken advantage of. Once you explore all the issues, then the business IT project is ready to begin.

These include but are not limited to operational performance management (OPM), business performance optimization (BPO), corporate performance management (CPA) and enterprise performance management (EPM). Despite the difference both operate on one principle which attempts to increase the efficiency and profitability of the organization right up to the optimum level.

In order to achieve this aim, the organization has to muster all its resources whether it is human capital or technology aids with the overriding aim of reducing costs, increasing output and growing profits. The challenge is getting all departments to understand their work in times of increasing efficiency and profitability. Many of them will have vested interests and their own agendas. The institutional culture that you have encouraged in your company will also have an impact in terms of the extent to which staff members are willing to join your efforts at performance management.

Evidence shows that performance management process does go hand in hand with change management. In order to prioritize the company’s core objective, there will have to be significant period of organizational change. Where there is change culture resistance is not far off. It will take a lot of work to get the whole organization to work in sync. The larger the organization the greater the complexity of effecting change.

Performance management by its very nature seeks to create minimum performance standards. It can create rewards and sanctions depending on the level of compliance. The strategic nature of its operations means that it often takes precedence over the day to day routine. It also creates a fear of management as people may believe that their jobs are being restructured and will eventually disappear from the payroll.

Performance management is a process and not just an incident. It is imperative that there is a continuous assessment in order to ensure that the changes and performance standards are not a one-off administered in haste but part of a well planned strategy to improve performance. Staff members should be encouraged to record the results of their own work and review their own performance in line with the standards that have been set.

There is always a risk that business performance management is created and supervised as a top-down activity. This is an approach that is likely to attract the stiffest resistance from members of staff who may feel that they are being dictated to by management. Rather efforts should be made to ensure that even the lowest employee believes that performance management is in their best interests. If they are to do well then the rewards will go to them in terms of promotion and better conditions.