Monthly Archives: January 2015

Designing Successful Performance Based Contracts

Posted on Sun 25 Jan 2015 by

Successful contracts deliver the desired outcomes of both the buyers and seller through a form of commercial construct. This is the classic “win-win” outcome that we all strive for. In Performance Based Contracting (PBC) our goal is the same; delivering … Continue reading →

Posted in Definition, the How | Tagged , , , , | 6 Comments

When the Fair Comes to Town

Posted on Sun 18 Jan 2015 by

One of my favourite quotes when talking about fairness of commercial arrangements comes from a US friend of mine which goes: “. . . the only fair I have seen is the one that comes to town twice a year.” … Continue reading →

Posted in Consequence Analysis, Risk Management, the How | Tagged , , , , , , | 1 Comment

Measuring and Incentivising Sustainment in the Age of Asset Management

Posted on Mon 12 Jan 2015 by

In the early 1990’s when various western defence organisations started outsourcing the sustainment of complex materiel[1] they focused heavily on measuring and incentivising the four related “ilities“; that is availability, reliability, maintainability and supportability. Through the “ilities” we make sure that … Continue reading →

Posted in Asset Management, Behaviours, Definition, Performance Measure, the How | Tagged , , , , , , | 1 Comment

The Cost of Measuring Performance

Posted on Wed 07 Jan 2015 by

Peter Drucker famously said, “What gets measured gets managed.” TIn this light, many practitioners in the field of Performance Based Contracting (PBC) attempt to apply large numbers of performance measures in trying to cover the entirety of the contract scope … Continue reading →

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Understanding Behavioural Economics

Posted on Wed 07 Jan 2015 by

Previously, I mentioned using Behavioural Economics as one technique to make sure that the Performance Management Framework (PMF) drives the desired behaviours. For those of you who want more information on this fascinating topic, can I suggest a free online … Continue reading →

Posted in the Why | Tagged , , , , | 1 Comment

How Much is Enough?

Posted on Wed 07 Jan 2015 by

When developing a Performance Based Contract (PBC) one of the questions consistently asked is, “so how much should be put at risk?”. Notwithstanding the fact that highly successful PBCs use a combination of both financial and non-financial rewards and remedies, … Continue reading →

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