Tag Archives: PBL

Carrot and Stick (Part 1)

Posted on Fri 17 Jul 2015 by Andrew Jacopino

I am currently reading Richard Thaler’s new book, “Misbehaving – The making of Behavioural Economics” which has again brought up an interesting and long running debate on the application of positive incentives (gains or “carrots”) or negative incentives (losses or … Continue reading →

Posted in Behavioural Economics, Behaviours, the Why | Tagged Behavioural Economics, carrot, negative incentive, PBC, PBL, Performance Based Contracting, Performance Based Logistics, positive incentive, Richard Thaler, stick | 1 Comment

History of Behavioural Economics

Posted on Sun 26 Apr 2015 by Andrew Jacopino

For those you have read my thoughts on the use of Behavioural Economics as a method of optimising our approach to Performance Based Contracting (PBC) (see earlier posts on Is Your Contract Fun? and Designing Successful PBCs) I wanted to … Continue reading →

Posted in Behavioural Economics, Nudging | Tagged Behavioural Economics, Choice Architecture, Nudge, PBC, PBL, Performance Based Contracting, Performance Based Logistics, Performance Management Framework | Leave a comment

When to use a Performance Based Contract?

Posted on Sun 19 Apr 2015 by Andrew Jacopino

While advice has been written (see the United States Department of Defence Product Support Business Case Analysis (BCA) Guidebook) on when to use a Performance Based Contract (PBC) (or Performance Based Logistics (PBL) contract) my colleagues and I have recently … Continue reading →

Posted in the Why | Tagged Cost Benefit Analysis, PBC, PBL, Performance Based Contracting, Performance Based Logistics | Leave a comment

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 →

Posted in Performance Measure, the How | Tagged Key Performance Indicator, KPI, PBC, PBL, Performance Based Contracting, Performance Based Logistics, performance indicators, performance management, Performance Management Framework, Performance Measure, performance measure hierarchy, performance measures, SHI, SPM, Strategic Performance Measure, System Health Indicator | 13 Comments

Objective vs Subjective Performance Measures

Posted on Wed 18 Mar 2015 by Andrew Jacopino

No sane person should believe that something is subjective merely because it cannot be settled beyond controversy . Hilary Putnam, American Philosopher In choosing ideal performance measures to be used in Performance Based Contracts (PBCs) there is much debate on … Continue reading →

Posted in Definition, Performance Measure | Tagged contractor performance, PBC, PBL, Performance Based Contracting, Performance Based Logistics, Performance Measure, performance measures, subjective performance measures | 5 Comments

Nudging Performance

Posted on Tue 24 Feb 2015 by Andrew Jacopino

For those that found my previous post that compared PBCs with the notion of nudging interesting I would highly recommend you read this insightful question and answer (Q&A) session with Richard Thaler, co-author of the book Nudge: Improving Decisions About Health, … Continue reading →

Posted in Behaviours, Nudging | Tagged Behavioural Economics, Cass Sunstein, Choice Architecture, Nudge, PBC, PBL, Performance Based Contracting, Performance Based Logistics, Richard Thaler | Leave a comment

Is Your Contract Fun?

Posted on Sat 21 Feb 2015 by Andrew Jacopino

Katherine Milkman, an associate professor at Wharton, University of Pennsylvania, starts her behavioural economics class with the following video. . Having watched this you may be wondering what this has to do with PBC? Let me explain. If you agree … Continue reading →

Posted in Behaviours, Definition, the Why | Tagged Behavioural Economics, Cass Sunstein, Choice Architecture, Katherine Milkman, Nudge, PBL, Performance Based Contracting, Performance Based Logistics, performance management, Performance Management Framework, Richard Thaler | 2 Comments

Defining a Performance Based Contract (PBC)

Posted on Mon 09 Feb 2015 by Andrew Jacopino

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 contractor performance, PBC, PBL, Performance Based Contracting, Performance Based Logistics, Performance Management Framework | 5 Comments

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 →

Posted in Definition, the How | Tagged Ian Ayres, PBC, PBL, Performance Based Contracting, Performance Management Framework | 7 Comments

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 Consequence Analysis, Fair, PBC, PBL, Performance Based Contracting, Performance Based Logistics, Risk Management | 1 Comment