Category Archives: the How

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

PBC Penalty Shoot-Out!

Posted on Sat 25 Jul 2015 by Andrew Jacopino

In recent months I have been involved in a number of Performance Based Contracting (PBC) discussions between buyers and sellers. One consistent point of heated discussion is around the application of a reduction in seller payment as part of the … Continue reading →

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When is KPI not a KPI?

Posted on Wed 25 Mar 2015 by Andrew Jacopino

A Key Performance indicator is a quantifiable measure used to evaluate the success of an organization, employee, etc. in meeting objectives for performance.” Oxford Dictionary In the previous post I compared objective and subjective performance measures. However, we didn’t discuss … Continue reading →

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Designing Successful Performance Based Contracts

Posted on Sun 25 Jan 2015 by Andrew Jacopino

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 →

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When the Fair Comes to Town

Posted on Sun 18 Jan 2015 by Andrew Jacopino

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 Andrew Jacopino

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 →

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The Cost of Measuring Performance

Posted on Wed 07 Jan 2015 by Andrew Jacopino

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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How Much is Enough?

Posted on Wed 07 Jan 2015 by Andrew Jacopino

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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Averaging Performance Measures

Posted on Thu 27 Mar 2014 by Andrew Jacopino

During the development of a Performance Based Contract (PBC) one area that consistently trips people up is the concept of averaging.  Typically, performance measures take into account multiple timeframes (e.g. days in a month), multiple events in a time period … Continue reading →

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The Why, the What and the How

Posted on Fri 03 Jan 2014 by Andrew Jacopino

As part of this blog I intend to cover the Why, the What and the How of Performance Based Contracting (PBC). So what do I mean by these 3 terms? the Why – using this term I want to discuss … Continue reading →

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