Outcome Based Specification Writing and Pricing for Health and Social Care (inc Payment by Results and the Impact of Social Value)

"An excellent day!!! Vast amount of information on a wide range of topics."
"Really know the subject area to a great depth. Impressive breadth of areas covered."

Venue: LONDON – Holiday Inn, Bloomsbury, London

Workshop Dates: 26th March, 2015


How sure are you that you are using the most up to date techniques in specification and pricing design?

With increasing interest in using outcome based commissioning approaches to improve public services and develop innovation, there is a need to develop skills and understanding in the field. A number of professional functions have been using Outcome Based Specifications as part of the commissioning process across diverse areas such as Health and Social Care and Engineering functions. Our research has shown that issues of pricing outcomes have not progressed as expected. Failures to change pricing models accordingly is leading to unsustainable service offerings.


With the emphasis of efficiency programmes on delivering Outcomes, the management of contractual relationships (or SLAs) with suppliers is being examined to make these more outcome focused. Alongside a thrust towards Commissioning, the National Occupational Standards for Commissioning and Contracting recognise that commissioners require competences in the development of service specifications and their contents. This course is based on successful workshops Barony has been running since 2007. An outcome based approach has been shown to deliver improved efficiency and act as the driver for innovation in many areas.

The 2014 National Procurement Strategy on developing public procurement also recommended that Councils should encourage wider use of outcome-based specifications across the public sector as a means of driving innovation. Specific recommendations are made for Districts, Single Tier and County Councils. Therefore there is a need to learn about Outcome Based Specifications, how they can and can’t be used and how to write and price them.


In addition, the full impact of the Public Services (Social Value) Act has yet to be fully translated into effective change within the public sector and this workshop outlines its key pressure areas for  the commissioning and procurement process.


Looking to the future, the movement towards Commissioning and the new draft EU Procurement Directive which will remove the difference between Part A and Part B services will result in more contract notices being published and a requirement for more robust specifications in areas of hard and soft service provision.


So all these pressures for change will lead to an increased use of outcome based specifications for many services.


From surveys of many current exercises, there is a need to improve the levels and standards of outcome based specification writing. After this workshop, delegates will:

  • Understand the need for outcome based specifications;
  • Consider the impact of Social Value in specification development;
  • Understand how to produce a professional specification;
  • Understand the benefits of sourcing quality suppliers to ensure value for money;
  • Have an overview of pricing models; and
  • Use practical examples to draft specifications.

This Workshop is designed to improve the delegates’ Outcome Based Specification Writing and Pricing skills. You will know how important that skill is in contractual dealings.


So if you are responsible for any of these areas including assessment and care management, finance, commissioning, procurement, HR and IT, then attendance will help to ensure that you are helping to contract sustainable services.


Our goal is to update and inform delegates on the best methods of producing specifications. In order to reinforce learning, delegates will be expected to participate and undertake short learning exercises.


This is run as a small group of up to 20 delegates in order to do exercises, enable questioning and undertake skills transfer.


We will show you what to do in order to write excellent specifications. The delegates will receive checklists which will help them to complete specifications.


Barony Consulting is on London Council’s Personalisation and HMG’s G Cloud III Framework agreements.


Who should attend?


The course is designed for managers and staff involved in producing outcome based service specifications. It is aimed at those involved in the commissioning, award or management of contracts so they understand the key issues involved in outcome based specification writing, social value, pricing, tendering, award and management of contracts.


Whilst this is being held on an open basis in London, we are open to approaches from organisations who wish this to be mounted locally or on a regional basis in 2013. Increasingly complete inhouse teams are being trained in this approach.


If this has been sent to a named individual, it has been sent as the representative of your organisation and should be forwarded to the senior responsible officer. To unsubscribe, please email Ken.tait@baronyconsulting.com with unsubscribe in the title.


9.30 Introduction to Course

9.45 Delegate Introductions
Why you are here, responsibilities, types of specifications used and what you hope to achieve from today

10.00 Why Specifications?
Background to Commissioning
Commissioning strategy;
Impact of Social Value legislation on specifications;
Purchasing Services;
Conditions of Contract and Specifications - the differences;
How do you recognise an excellent specification?
Tender evaluation;

10.30 Types of Specifications
Product Standards;
Specification Hierarchy;
Outcome; and

11.00 Coffee

11.15 Methods of Writing Specifications
What are outcomes?
Examples will be used from different services;
Technical Standards and Product use;
Intellectual Property;
Critical analysis;
Links to Pricing Documents;
Links to Method Statements;
Role of the SLA; and

12.30 Lunch


Methods of Writing Specifications

Exercises continued

14.30 Risk control and pricing mechanisms linked to Outcomes

  • Risk in a contract environment
  • Risk Transfer;
  • Pricing strategy
  • Why link payments to outcomes?
  • Invoicing
  • Input based pricing – the limits;
  • Outcome based pricing;
  • Pricing models;
  • Payment by results;
  • Contract management; and
  • Exercises;
15.00 Afternoon Tea

15.45 Public Procurement Issues and the new Procurement Directive?

  • Summary of Proposals;
  • Brief resume of all 27 key changes
  • Changes in skills requirements
  • Timescale and Impact.
16.15 Plenary




Doug Forbes

Doug Forbes BSc hons, DMS, MIHM, Director
Barony Consulting Group

With Barony being at the forefront of Public Sector modernisation, we have assisted over 80 organisations in complex service procurement over nearly 20 years. This expertise has been distilled into this series of seminars which are designed to prepare and inform delegates to help prepare for the development of an outcome based culture and improved efficiency.

Doug has written the highly successful 'Guide to Procuring Public Services' which provides commissioners with up to date advice on 'How to' procure highly complex and sensitive services. In addition, he wrote ‘Achieving Commissioning Excellence’ and has trained and advised extensively on specification writing. He will describe the challenges for commissioners and highlight common concerns. Doug is former Chair of IHM Commissioning Division and has advised on a programme for the new Commissioning Academy.

Barony has been at the forefront of Services procurement for nearly 20 years, providing help and assistance to the public sector in dealing with the challenges of commissioning and procurement. Lately, Barony has been considering the impact of Social Value on specification content.

Doug has spoken at a number of successful conferences on eProcurement, Best Value and innovative approaches for the public sector in UK, for Professional Associations, local and central UK government, in Europe and the UN. He brings a broad approach and specific sector knowledge which will provide a number of insights for delegates.

spacerAndy Wotherspoon

Andy Wotherspoon BSc, MIET

Andy is a former Telco Director who brings his commercial expertise and knowledge of risk management and pricing models to this essentially public sector workshop. He will outline how risk is priced into contracts and Payment by Results systems and develop a generic pricing model for use in a wide range of contracts.

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