Category Archives: the How

The detailed actions that need to be undertaken to make your PBC a success.

Inputs, Output and Outcomes – Part 2

In the previous article (see Inputs, Output and Outcomes – Part 1) I looked at the difference between inputs, outcome and outcomes from a Performance Based Contracting (PBC) perspective in order to highlight the benefits and pitfalls of this approach.  … Continue reading

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Inputs, Output and Outcomes – Part 1

Much has been said about outcomes recently.  Indeed, many buyers seek to use Performance Based Contracts (PBCs) to contract for outcomes, because they are attracted by the simplicity of using a PBC.  But this could be a costly mistake if … Continue reading

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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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How to Successfully Manage a Performance Based Contract (PBC) – the Prequel

I get many questions from readers of the blog on how to successfully manage a Performance Based Contract (PBC) including what are the critical areas that they need to be aware of. While many of my posts including discussion points … 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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How to Nudge a Performance Based Contract (PBC) – Part 1

Commercial instruments, especially sophisticated ones such as Performance Based Contracts (PBCs), have the ability to shape the behaviour of both buyer and seller.  While many commercial practitioners see contracts in their simplest form, an explicit and directive agreement between buyer … Continue reading

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Perverse Incentive Follow-up

In earlier articles (see Perverse Incentives – Part 1 and Part 2,  and Unintended and Perverse Outcomes) I discussed the importance of checking the Performance Management Framework (PMF) within your Performance Based Contract (PBC) to watch for perverse incentives.  Those … Continue reading

Posted in Behavioural Economics, Book, Case Study, Incentives, Nudging, perverse incentives, the How, Uncategorized | Tagged , , , , , , , , , | Leave a comment