I posted two articles on my blog recently that together explain why I recommend implementing a transition period into your performance-based contract (PBC) rather than starting all aspects of the contract immediately on day one.
A transition period gives buyers and sellers an early opportunity to better define what outcomes they want and tailor them to specifically meet their needs. Much time-consuming effort can be avoided.
Starting a Performance Based Contract (PBC) – Part 1 explains how a transition period will help your staff more efficiently record, score, report and review performance and uncover potentially hidden issues for buyers and sellers and avoid human error.
Starting a Performance Based Contract (PBC) – Part 2 expands the content of Part 1 and adds many other aspects like performance measures, like shaping profit margins and balancing risk and reward.