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Performance Based Program

Gilbane and DSG established a performance-based relationship. Gilbane wanted a partner that would put skin in the game. DSG reduced fees significantly and earned performance bonuses based on the client's success, impact on behaviors, and business results.

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Video Transcript

Something we've been doing more and more in recent years is establishing performance-based relationships, and that was critical from Gilbane's perspective. They wanted a partner that was not going to just establish services for a fee, but that we would put our fees at risk, we would put skin in the game, and we did.           

Over the initial 2 years of the program, we reduced our fees significantly and we earn performance bonuses in the backend based on Gilbane's success and based on the impact on behaviors and the impact on their business results. That structure and that type of relationship was very satisfying both ways.

We wanted a partner that had skin in the game and was vested and was in bed with us in the foxhole as a true partner. I think we had a very collaborative effort in terms of defining metrics that were both important to us, that were a challenge, but yet achievable, but were fair at the end of the day.

When you look at the value that DSG has been through this program and the insight that we brought, much of it is about how do you drive the necessary behavior change at a doer-seller level.

Permanent behavioral cultural change was the language that we used. We translated that into a performance based structure. It gave us incentive, incentive to see them succeed and incentive to see, obviously, us receive that additional performance basis. In that case, a classic win/win.

 
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