Tag Archives: Performance Management Framework

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 →

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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 →

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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 →

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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 →

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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 →

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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 →

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PBC Penalty Shoot-Out!

Posted on Sat 25 Jul 2015 by

In recent months I have been involved in a number of Performance Based Contracting (PBC) discussions between buyers and sellers. One consistent point of heated discussion is around the application of a reduction in seller payment as part of the … Continue reading →

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