The ‘Fixed Performance Contract’ is a coherent part of the ‘Command and Control’ management model, widely used today but now outmoded. In a fast changing economy and under high competitive pressures, managers are driving the traditional approach well beyond its design limits, and the cracks are becoming evident. So why do we still engage in it? Because we have all grown up with it, we have until now failed to question its fundamentals, and we have lacked an alternative vision. What is needed is a radical rethink of the whole management model. The solution proposed by the BBRT is not merely the abolition of budgets and other fixed performance contracts (e.g. Balanced Scorecard ‘fixed’ commitments), but a coherent alternative management model based on the ‘Beyond Budgeting’ principles.
