Category Archives: Behaviours

Commercial Special Sauce – Trust

Posted on Sat 29 Jan 2022 by Andrew Jacopino

In a recent Commitment Matters article, Tim Cummins said: My hope for 2022 is that the commercial community raises its voice and promotes the ethical standards and supporting systems that alone can move us along the path to making trust-based collaboration a … Continue reading →

Posted in Behavioural Economics, Behaviours, Collaboration, Collaborative Contracting, Formal Relational Contract, Relational Contracting, the What | Tagged Collaborative Contracting, Dr Andrew Jacopino, Formal Relational Contract, PBC, PBL, Performance Based Contracting, Performance Based Logistics, Relational Contracting | Leave a comment

Comparing Performance Across Cultural Divides

Posted on Sat 09 Feb 2019 by Andrew Jacopino

As part of teaching in the United Kingdom (UK) one of the attendees mentioned a common issue found in Performance Based Contracting (PBC); the wish to compare performance across cultural boundaries. In this case the attendee mentioned their organisation was … Continue reading →

Posted in Behaviours, Case Study | Tagged Case Study, Dr Andrew Jacopino, Net Promoter Score, PBC, PBL, Performance Based Contracting, Performance Based Logistics | Leave a comment

Perverse Incentives – Part 2

Posted on Sat 19 Jan 2019 by Andrew Jacopino

In the previous article (see Perverse Incentives – Part 1) I discussed why PBC practitioners need to be aware of the potential for perverse incentives in our PBC arrangements. In this article let’s look at how PBC practitioners, both buyers and … Continue reading →

Posted in Behavioural Economics, Behaviours, the What | Tagged Behavioural Economics, cobra effect, Dr Andrew Jacopino, PBC, PBL, Performance Based Contracting, Performance Management Framework, perverse incentives, Perverse Outcomes | Leave a comment

Perverse Incentives – Part 1

Posted on Sat 05 Jan 2019 by Andrew Jacopino

“Common sense is not so common.” Voltaire In a previous article (see Designing Successful Performance Based Contracts) I highlighted three tests for a highly successful Performance Based Contract (PBC). These were: Does the PBC drives the right behaviour in the … Continue reading →

Posted in Behaviours, Incentives, the What | Tagged Behavioural Economics, cobra effect, Dr Andrew Jacopino, PBC, PBL, Performance Based Contracting, Performance Based Logistics, perverse incentives, Perverse Outcomes | 2 Comments

Revisiting Performance Based Contracts vs. Outcome Based Contracts vs. Relational Contracts

Posted on Sun 11 Mar 2018 by Andrew Jacopino

When a man’s suit fits, when the construction is beautiful, when the sewing and fabrics are there… in the end, you’ll look the best in it. John Varvatos, American Designer In a previous article (see Performance Based Contracting vs Outcomes … Continue reading →

Posted in Behaviours, Definition, Outcome, the How | Tagged Outcomes Based Contracting, PBC, Performance Based Contracting, Relational Contracting | 1 Comment

Treatment of Safety in a Performance Based Contract

Posted on Sat 07 Oct 2017 by Andrew Jacopino

One topic that has constantly come up over the years is how to treat safety in a Performance Based Contract (PBC). In a previous article (see Designing Successful Performance Based Contracts) we described a PBC as having two main parts; … Continue reading →

Posted in Behaviours, Consequence Analysis, safety, the Why | Tagged LTIFR, PBC, PBL, Performance Based Contracting, Performance Based Logistics, Performance Management Framework, performance measures, PMF, safety | Leave a comment

Process for Developing a Performance Based Contract (PBC)

Posted on Sat 10 Jun 2017 by Andrew Jacopino

Many years ago when preparing to teach a 1-day Performance Based Contracting (PBC) workshop it occurred to me that while we had an 8-step process for developing it wasn’t entirely accurate. In fact of the 100+ PBC that I have … Continue reading →

Posted in Behaviours, Outcome, Performance Measure, the How | Tagged PBC, PBC Process, PBL, Performance Based Contracting, Performance Based Logistics, Performance Management Framework, performance measure hierarchy, performance measures | Leave a comment

Stretch Goals

Posted on Sat 27 May 2017 by Andrew Jacopino

“The greater danger for most of us isn’t that our aim is too high and miss it, but that it is too low and we reach it.” Michelangelo In writing the articles on setting performance levels I came across a … Continue reading →

Posted in Behaviours, payment curve, Performance Measure, the How | Tagged incentive, PBC, PBL, Performance Based Contracting, Performance Based Logistics, performance level, stretch goal | 3 Comments

Performance Based Contract vs. Outcomes Based Contract vs. Relational Contract

Posted on Sun 06 Dec 2015 by Andrew Jacopino

My colleagues and I, probably like a number of you, have been to a number of presentations recently that have spoken about future of contracting being ‘outcomes’ based contracting. There are also a number of people talking about relational contracting. … Continue reading →

Posted in Behaviours, Definition, Uncategorized | Tagged behaviours, PBC, PBL, Performance Based Contracting, Performance Based Logistics, performance indicators, Performance Measure, performance measures, subjective performance measures | 1 Comment

Understanding Behavioural Economics

Posted on Thu 08 Oct 2015 by Andrew Jacopino

In a previous post I had suggested those interested in Behavioural Economics should have a look at a free online course via http://www.edx.org titled Behavioural Economics in Action from the University of Toronto. While you can do this course at any … Continue reading →

Posted in Behavioural Economics, Behaviours, Nudging, the Why | Tagged Behavioural Economics, PBC, PBL, Performance Based Contracting, Performance Based Logistics | Leave a comment