We shouldn't confuse two things, compliance and performance management.
You need to have a good performance management system in place, but compliance-based oversight has always been, “Okay, you've signed the contract, and there are these 25 KPIs. There are these things you're supposed to do, and all I'm going to do right now is sit and watch you do that. If you don't do that, then I'm going to report that you didn't do that.”
I'm not spending any effort, really, to try to improve the outcome as things change over time. Since I'm a watchdog, I'm just watching to make sure. I'm going to hold your feet to the fire, and all this other stuff. It's a very non-collaborative approach.
In a good relationship management framework, you would see a good performance management component to it. You need to have KPIs. You need to have those metrics. You need to have them as targets so that you can both work together towards achieving those, because when they fail, you fail too.
Together, you need to really realign those KPIs from time to time, and that's the problem with performance-based contracts these days. They tie the continuity of the contract to meeting the KPIs, but everybody knows as soon as they sign that deal that 18 months or two years later, those KPIs are no longer good anyway.