Deciding to take a formal-relational approach

Do you need a more relational approach to contracting?

Ask yourself these questions to understand if a formal-relational approach to contracting could help you adopt a more collaborative and flexible approach to delivering complex public services.

Check the level of service complexity

1. Is the service concerned with achieving social outcomes for users?
2. Are multiple organisations needed to deliver the service?
3. Does the service user’s experience often differ based on their needs?
4. Is there agreement on what success looks like?
5. Is there widespread agreement on what works, with evidence to support it?
6. Is it easier to measure the service’s impact on outcomes rather than other factors?

The more you answer ‘yes’ to these questions, the more likely it is that you have a complex service – and could benefit from a more relational approach to contracting with your partners.

Check the level of environmental uncertainty

1. Is the wider social and economic environment for the service likely to change?
2. Are any wider changes likely to significantly affect demand?
3. Are any wider changes likely to significantly affect what is needed to deliver the service?
4. Are any wider changes likely to significantly affect the achievement of outcomes?

The more you answer ‘yes’ to these questions, the more likely it is you have an unstable and uncertain service environment – and a more relational approach might help you to achieve your outcomes.