Although it’s been available for awhile, wanted to take a moment to encourage regular readers of this blog to (re-)read a most interesting and quite comprehensive November, 2008 article entitled, "A Rose by Any Other Name: The Tenets of PBL." In the article, the authors put forward four common key “success factors” they contend are found in successful Performance Based Logistics (a.k.a. Performance Based Life Cycle Product Support) product support and sustainment strategies, along with 20 underlying tenets they posit are required for PBL success. Regardless of whether the PBL arrangement (or Product Support Arrangement, as it is more currently referred to) at the platform or system level, subsystem, or component level, the authors contend, “the more thoroughly a PBL program incorporates these four success factors into its implementation strategy, the better the results that can be expected. The four success factors deconstruct into 20 key tenets, or principles, of a successful PBL program. In this document, we describe the tenets that facilitate the success factors in a framework that provides examples of PBL performance ranging from “Non-PBL: Traditional Approach” to “Best: Robust PBL”. This framework is an implementation tool to help assess PBL programs and to determine areas that need improvement. Applying the “best practices” will help a program drive PBL efforts to the next level.”  

The specific success factors and tenets the authors identified are:

Success Factor #1: Committed Relationship

• Champions for the PBL Business Model
• PBL Knowledge Base
• Stakeholder Analysis
• PBL Center of Competency

Success Factor #2: Alignment

• Organizational Alignment
• Develop a Win-Win Business Model
• Supply Chain Integration
• Asset Management
• Workload Allocation: Best Value
• Appropriate Risk Pricing, Management and Allocation

Success Factor #3: Contract Structure

• Pricing Model
• Incentives
• Contract Length
• Off-Ramps
• Workscope Flexibility
• Funding

Success Factor #4: Performance Management

• Establishing Top Level Desired Outcomes
• Performance Reporting
• Continuous Improvement
• Metrics Aligned to Suppliers

What do you think? Did the authors make a compelling case in your mind? Did they identify the right success factors and tenets? Is there something you believe they should have included?  If your program is using a PBL strategy, do these describe your program?

Lastly, would ask you to please note that this article is © 2008 by Supply Chain Visions. Unlimited reprints authorized, and reuse of the material, including citing it in this blog, is by permission of the authors.