KPIs from a prison


Some PPPs die before they start.
Others collapse under the weight of construction.

And then there are those that rot from within — strangled by their own KPI regime.

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Take the Peterborough Prison PPP in the UK.
On paper, it was innovative: the first privately financed prison with a focus on rehabilitation.

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The government loved the concept.

The innocent believers in human nature wet dreamt about it.
The financiers lined up.
The operator thought they could make it work… if not, they would still receive some bonuses.

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Then came the contract.

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The KPI framework was a bureaucrat’s dream — and an operator’s nightmare.

Thousands of service specifications.

Zero-tolerance compliance rules.

Deductions triggered for things completely outside the operator’s control: prisoner profile changes, government policy shifts, even volume fluctuations.

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It didn’t take long for the dream to turn into a never-ending dispute.

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Every month, new arguments over what “compliance” actually meant.

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Operators felt punished, not incentivized.

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Government officials weaponized the deductions regime instead of managing a partnership.

How typical!

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The result?
The project bled trust, energy, and money.

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The “rehabilitation” component of the contract was eventually terminated early.

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The private operator was paid off to walk away.

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And taxpayers?

They paid for a system that couldn’t possibly work.

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The lesson?
If you design a KPI regime that looks like a punishment manual, don’t expect performance.

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Expect disputes.
Expect arbitrations.
Expect failure.

Don’t go to prison.

In PPPs, a contract nobody can comply with is a contract doomed from day one.

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​100 Q&A About PPP that you MUST KNOW​

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Vicente Valencia

I talk about Personal Growth, Management, Infrastructure and More | C-Suite Executive | Mentor, Coach, Strategic Consultant | Real Estate Investor | 👇JOIN +2k readers 👇

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