Tag Archives: Performance Based Logistics

Setting the Performance Levels (Part 3)

In the previous two articles (see Setting a Performance Level (Part 1) and Setting a Performance Level (Part 2) we discussed the general requirements for setting performance levels in a Performance Based Contract (PBC). In this final part we are … Continue reading

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2017 International Performance Based Contracting (PBC) Conference

For those you are not aware, the Australian Department of Defence is holding it’s biannual International Performance Based Contracting (PBC) Conference 2017 from 15–16 May 2017 here in Canberra, Australia. Attendance is free of charge, however, registration is essential and … Continue reading

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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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Setting the Performance Level (Part 1)

“You get what you measure. Measure the wrong thing and you get the wrong behaviours.“ John H. Lingle In our experience one of the most challenging steps in establishing a Performance Based Contract (PBC) is setting the performance levels for … Continue reading

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Changing Performance Measures

I recently read an article by Robert Wolcott in the Harvard Business Review (HBR) titled “Don’t be Tyrannized by Old Metrics”. The article discussed the virtue of companies continuously reviewing, and where necessary, changing performance measures especially where there was … Continue reading

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Payment Curve (Part 3) – Alternate Payment Curves

In a previous post we looked at the common types of Payment Curves used in a Performance Based Contract (PBC). These were the All or None Payment Curves, Linear Payment Curves and the Non-Linear Payment Curves. In this post we … Continue reading

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Payment Curves (Part 2) – Common Performance Curves

In an earlier post we described the role and common features of a Payment Curve used in a Performance Based Contract (PBC), including the difference between Achieved Performance and the Adjusted Performance Score. In the first of two posts we will … Continue reading

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Payment Curves (Part 1)

Changes to Contractor payments based on Contractor performance is one of the fundamental tenets of the Performance Based Contracting (PBC) approach. While changing payment uses a variety  of methods, all typically use a Payment Curve to describe how to change the payments. But, before we look at … Continue reading

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Performance Measure Gate

One advanced, yet uncommon, approach to performance management in a Performance Based Contract (PBC) is the concept of a performance measure ‘gate’ which modifies the overall Weighted Performance Score (WPS) based on specific criteria. A gate can be used where … Continue reading

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Performance Measure Weighting

Up until now we have spoken about single performance measures. However, typically a Performance Based Contract (PBC) will use more than 1 performance measure. Therefore, the question is how do we amalgamate two or more performance measures into one overall … Continue reading

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