Category Archives: payment curve

The Mathematics of a Performance Based Contract (PBC) – Part 2

In the previous article (see The Mathematics of a Performance Based Contract (PBC) – Part 1) I described how a standard Australian Department of Defence Non-Linear PBC Payment Curve could be described by 2 equations for straights lines of the … Continue reading

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The Mathematics of a Performance Based Contract (PBC) – Part 1

Over the 15 years of applying and teaching Performance Based Contracting (PBC) I have always had trouble trying to describe the mathematics of PBCs, especially to those who Reminded by my family’s current viewing of the US TV Series, Numbers, … Continue reading

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Stretch Goals

“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

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Setting the Performance Levels (Part 3)

In the previous two articles (see Setting a Performance Level (Part 1) and Setting a Performance Level (Part 2) we discussed the general requirements for setting performance levels in a Performance Based Contract (PBC). In this final part we are … Continue reading

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Setting the Performance Levels (Part 2)

In the earlier article (see Setting the Performance Levels (Part 1)) we defined the four performance levels used in Performance Based Contracts (PBCs). They were the Required Performance Level, Minimum Performance Level, Inflection / Elbow Performance Level and the Incentive … Continue reading

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Setting the Performance Level (Part 1)

“You get what you measure. Measure the wrong thing and you get the wrong behaviours.“ John H. Lingle In our experience one of the most challenging steps in establishing a Performance Based Contract (PBC) is setting the performance levels for … Continue reading

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Payment Curve (Part 3) – Alternate Payment Curves

In a previous post we looked at the common types of Payment Curves used in a Performance Based Contract (PBC). These were the All or None Payment Curves, Linear Payment Curves and the Non-Linear Payment Curves. In this post we … Continue reading

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