Category Archives: Uncategorized

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

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

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

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Defining a Performance Based Contract (PBC)

Over the past 12 months articles[1] have discussed the virtues of Performance Based Contracting (PBC), but may have led the reader to believe that PBCs are neither well understood nor used. This is not entirely true since forms of PBCs … Continue reading

Posted in Definition, the What, Uncategorized | Tagged , , , , , | 5 Comments