Budget-tightening and program accountability are trends in government funded programs that no agency or organization can afford to ignore. These trends have made “pay for success” initiatives an increasingly attractive funding model for a variety of publically funded initiatives and programs.
Pay-for-success is just what the name implies; also known as social impact bonds, pay-for-success initiatives are initially funded partly with public funds and substantially with funds from private investors. The effectiveness of these programs, as determined by their delivery efficiency and measured impact on the target population, translates to government funding at the back end. This funding is then parceled out to the private investors as a return on their initial investment – the more effective the program, the better the return for the investors.
Obviously, timely and accurate outcomes measurement is critical to these pay-for-success programs. Your Performance management software needs to be able to document the success of a program as well as providing rapid, frequent and accurate insight into what’s working and what isn’t. Both so that providers can apply continuous quality improvements as needed and so that investors can track the status of their investments.