Tag Archives: Performance Management Framework

Perverse Incentives – Part 2

Posted on Sat 19 Jan 2019 by

In the previous article (see Perverse Incentives – Part 1) I discussed why PBC practitioners need to be aware of the potential for perverse incentives in our PBC arrangements.  In this article let’s look at how PBC practitioners, both buyers and … Continue reading →

Posted in Behavioural Economics, Behaviours, the What | Tagged , , , , , , , , | Leave a comment

Reliability in Performance Based Contracts (PBCs) – Part 2

Posted on Sat 09 Dec 2017 by

In the previous article (see Reliability in PBCs – Part 1) we defined how reliability of a system or service could be used in a Performance Based Contract (PBC) including defining whether we were measuring success or failure, and whether … Continue reading →

Posted in Performance Measure, the How | Tagged , , , , , , | 1 Comment

Treatment of Safety in a Performance Based Contract

Posted on Sat 07 Oct 2017 by

One topic that has constantly come up over the years is how to treat safety in a Performance Based Contract (PBC). In a previous article (see Designing Successful Performance Based Contracts) we described a PBC as having two main parts; … Continue reading →

Posted in Behaviours, Consequence Analysis, safety, the Why | Tagged , , , , , , , , | Leave a comment

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

Posted on Sat 23 Sep 2017 by

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 →

Posted in Incentives, the How, the What | Tagged , , , , , | 1 Comment

Process for Developing a Performance Based Contract (PBC)

Posted on Sat 10 Jun 2017 by

Many years ago when preparing to teach a 1-day Performance Based Contracting (PBC) workshop it occurred to me that while we had an 8-step process for developing it wasn’t entirely accurate. In fact of the 100+ PBC that I have … Continue reading →

Posted in Behaviours, Outcome, Performance Measure, the How | Tagged , , , , , , , | Leave a comment

Changing Performance Measures

Posted on Sun 23 Oct 2016 by

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 →

Posted in Contract Management, Performance Measure, the How, the What | Tagged , , , , , , , , , | 3 Comments

The Role of a Performance Measure

Posted on Sat 02 Apr 2016 by

“Measurement is the first step that leads to control and eventually to improvement. If you can’t measure something, you can’t understand it. If you can’t understand it, you can’t control it. If you can’t control it, you can’t improve it. … Continue reading →

Posted in Performance Measure, the How | Tagged , , , , , , | 6 Comments