Fundamentals in Writing Scopes & KPIs

The scope is one of, if not, the most important documents to form and manage contracts. If it is vague, difficult to use, or overly complex (or overly simplistic), its value is severely compromised – for both parties to a contract.

This course takes you through the high-level issues and solutions down to the detailed ones. First, we examine a dispute to assess the role of the scope and KPIs in allowing two parties to form two completely different views.

We then dedicate a significant portion the course to writing a scope, and related KPIs, that are clear and dispute-proof. We pay close attention to ensuring appropriate structure, clear responsibilities, and the right language. The financial and non-financial means to drive good performance are explored in detail.

Throughout the two days, there are numerous examples of good and bad practice that we compare. By the end of the course, you’ll be able to pass or fail scopes and KPIs in seconds.

Note: You must bring in a scope and KPI that you have written, need to review, or need to manage. We exchange these in the class and analyse them so that you have a much-improved one for the future.

For more information please contact us on 02 9080 4028 or email us at [email protected]

Understanding the importance of the scope

• Statistics from the field
• The specification’s role in the contract
• Understanding the lifecycle and bargaining power –shortcuts are playing with fire

Exercise

• You decide this dispute (about a scope and the KPIs)

Drafting the scope

• The importance of words – why they matter, getting rid of ‘weasel words’ / ambiguity
• Responsibility Matrix – know who is to do what
• Glossary (reserved words / defined terms)
• Scope writing – avoid misinterpretations and make it easy to use

Scope exercises

• Warm up – a bit of practice
• Banned words and a word hunt
• Responsibility table – case work
• Glossary definitions – case work
• Detailed work specifications – case work

Performance specifications (KPIS)

• Brief overview of the Contract Scorecard – a holistic view of performance
• Performance measures – how you will measure success and failure
• Recourse / reward schemes – what you will do about good / bad KPI performance

KPI exercises

• Assess a KPI – case work
• Prepare good KPIs – case work
• KPI recourse / reward schemes you’ve seen
• Prepare a KPI scheme that will work – case work

Apply what you’ve learnt – assess each other’s specifications

Exercise

• Apply what you’ve learnt – assess each other’s scope s and KPIs (note: bring one of yours in). Does it pass good practice?

Wrap up and evaluation

With over 30 years of experience, Dr Cullen is a contracts expert having negotiated over $18 billion of contracts in various industries in Australia and globally. Sara has trained over 6300 professionals worldwide and published 19 books and 126 papers.

Sara is the founder and Managing Director of the Cullen Group, a boutique firm specialising in creating high-performance contracts and commercial relationships between buyers and sellers.

She is also a lecturer and Honorary Fellow at Melbourne University and Research Associate at the London School of Economics and Political Science. Previously, she was a National Partner at Deloitte in the consulting practice and the firm’s global thought-leader on outsourcing.

Sara has a PhD in contracts, a Master of Management (Technology), and a BSc in Accounting. She is also a Certified Mediator and Chartered Accountant (US).