Lesson 5: Performance Management

Performance management is where you show the client how you will fulfil your offering and actually do what you have promised in a practical and actionable way. 

Tender Tip

KPIs can often be found in the tender contract documents. 

When reviewing the contract, it’s important to agree on KPIs and incorporate them into the final contract. KPIs need to not only cover contract and service-level compliance, but also measure actual performance. 

KPIs are generally built into an overall Service Level Agreement (SLA). These are then monitored and reported on, usually monthly, and often form the basis of a monthly meeting. Demonstrating that you do actually measure your performance, and how you do it, will provide you with a serious edge over the competition.  


If a service is being measured, the objective of the KPIs will be to measure the effectiveness of the supplier of that service, as well as the way the services are being delivered.  


If a product is being measured, the objectives of the KPIs will be to measure the effectiveness of the product, as well as delivery and quality. 

List the KPIs that will be used to measure the services or products you offer. 

Key Performance Indicators 

You should also remember to review the relationship between the KPIs and reporting outputs and outcomes. This well help you highlight to the client you are delivering what is expected, and it can also be used to monitor your progress. 

It’s essential when developing KPIs that you work with the client so you can determine their needs and requirements, and likewise understand their benchmarks of service. You will often be asked to propose KPIs in a tender response. Below are some sample ideas: