Tag Archives: Performance Management Framework

Introducing the Power By The Hour Approach

Posted on Sat 14 Mar 2020 by Andrew Jacopino

In designing a Performance Management Framework (PMF) for a new Performance Based Contract (PBC) the team asked about using a “Power by the Hour”™ approach and asked my opinion. Given the general similarity between Power by the Hour and PBC … Continue reading →

Posted in Performance Measure, the How, the What | Tagged availability, Dr Andrew Jacopino, PBC, PBL, Performance Based Contracting, Performance Based Logistics, Performance Management Framework, performance measures, Power by the Hour | Leave a comment

Perverse Incentives – Part 2

Posted on Sat 19 Jan 2019 by Andrew Jacopino

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 Behavioural Economics, cobra effect, Dr Andrew Jacopino, PBC, PBL, Performance Based Contracting, Performance Management Framework, perverse incentives, Perverse Outcomes | Leave a comment

Reliability in Performance Based Contracts (PBCs) – Part 2

Posted on Sat 09 Dec 2017 by Andrew Jacopino

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 PBC, PBL, Performance Based Contracting, Performance Based Logistics, Performance Management Framework, performance measure hierarchy, performance measures | 1 Comment

Treatment of Safety in a Performance Based Contract

Posted on Sat 07 Oct 2017 by Andrew Jacopino

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 LTIFR, PBC, PBL, Performance Based Contracting, Performance Based Logistics, Performance Management Framework, performance measures, PMF, safety | Leave a comment

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

Posted on Sat 23 Sep 2017 by Andrew Jacopino

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 incentive, PBC, PBL, Performance Based Contracting, Performance Based Logistics, Performance Management Framework | 1 Comment

Process for Developing a Performance Based Contract (PBC)

Posted on Sat 10 Jun 2017 by Andrew Jacopino

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 PBC, PBC Process, PBL, Performance Based Contracting, Performance Based Logistics, Performance Management Framework, performance measure hierarchy, performance measures | Leave a comment

Changing Performance Measures

Posted on Sun 23 Oct 2016 by Andrew Jacopino

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 ASDEFCON, Harvard Business Review, HBR, Metrics, PBC, PBL, Performance Based Contracting, Performance Based Logistics, Performance Management Framework, PMF | 3 Comments

The Role of a Performance Measure

Posted on Sat 02 Apr 2016 by Andrew Jacopino

“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 KPI, PBC, PBL, Performance Based Contracting, Performance Based Logistics, Performance Management Framework, Performance Measure | 6 Comments

PBC Penalty Shoot-Out!

Posted on Sat 25 Jul 2015 by Andrew Jacopino

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 →

Posted in Basis of Payment, Consequence Analysis, Definition, the How | Tagged Matt McDonald, negative incentive, PBC, PBL, penalty, Performance Based Contracting, Performance Based Logistics, Performance Management Framework | Leave a 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