Tag Archives: incentive

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

Reliability in Performance Based Contracts (PBCs) – Part 1

“I can predict things. I can improve the uptime and the reliability. I can intervene and cause a better outcome before there’s a problem. ” Michael Dell In previous articles I described how to consider availability in Performance Based Contracts … Continue reading

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Performance Based Contracting (PBC) Incentive Regime (Part 2)

In the previous article (see PBC Incentive Regime (Part 1)) I described the various benefits to both buyer and seller of having an incentive regime in a Performance Based Contract (PBC). In this article, let’s look at how to successfully … Continue reading

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Performance Based Contracting (PBC) Incentive Regime (Part 1)

“Incentive – a thing that motivates or encourages someone to do something.” Oxford Dictionary There is a lot of debate on the use of incentives in Performance Based Contracts (PBC). Some argue, especially buyers from public sector organisations (e.g. state … 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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