We have also seen examples of seemingly double performance ratios that have been set for the same service activity and the same exercise. While DHHS blames its dual performance ratios on the functionality of its SAMS2 system, it can be confusing for funded organizations. While both measures are directly relevant to the outcome of the system «Services are safe, of quality and provide a positive experience», they are not mandatory for all funded organizations that provide the corresponding services. While maintaining its relational management approach, DHHS is increasingly focusing on managing the performance of funded organizations. This follows a series of audits that highlighted gaps in DHHS`s monitoring and performance management of service agreements. This increased focus is in line with improved contract management principles, but different skills and sectoral depths will pose challenges for implementation. As with any acquisition, DHHS is required to actively manage these contracts to ensure that the suppliers provide the services purchased in accordance with the corresponding standards and that they represent cheap value for the investment of public funds. Managing service contracts requires different and more complex skills than managing commercial goods and services contracts. In particular, the management of service agreements requires that employees, supported by systems and processes, carefully set the objectives of providing quality services, diligence towards customers and maintaining a sustainable service system throughout Victoria.
Wen found that the performance indicators and targets we reviewed in Annex 2 of the 12 service agreements were not always practicable or easy to understand. For example, some performance indicators had a target of «0.1 new cases». The activity descriptions in Volume 3 (Human Services) and Annex 4.1 of Volume 2 (Health) of the Guidelines and Funding Guidelines contain performance indicators for each service activity. All performance indicators in activity descriptions are mandatory….