Page 232 - Performance Leadership

Chapter 12 Performance Networks • 221

Table 12.1
Performance Network Relationship Examples

Type of Relationship Examples
Transactional relationship • Outsourcing company cafeteria, cleaning services
• Leasing contracts for company cars
• Minimal healthcare insurance or car insurance
• Internet ordering service for branded consumer
electronics
Added-value relationship • RFID-tagged supply chain integration
• Management reporting as a service from leasing
companies for fleet managers of their business-to-
business customers
• Usage reporting of mobile phone companies
• A travel agent allowing corporate customers direct
access to their flight booking systems
Joint-value relationship • Companies from different industries codeveloping
a new product, such as Nike and Apple (Nike+),
Douwe Egberts and Philips (Senseo), Adidas and
Goodyear (sports shoes with special soles)
• Complementary companies from the same industry
offering a joint service, such as airline alliance
loyalty programs (OneWorld, Skyteam, StarAlliance)
• Competing companies collaborating on a common
objective, such as competing insurance companies
starting a trusted third party, collectively having a
majority market share, to entice car repair shops to
adopt standardized processes, systems, and pricing,
driving average claim size down.

In joint-value relationships there is no clear supplier/customer rela-
tionship anymore. This means that both partners aim at managing the
profit and growth of their combined activities. There are shared objec-
tives toward a joint target audience, to which they are cosuppliers. On
the basis of equality, switching is not an option. Table 12.1 provides a
few examples of each type of relationship.
In each of these relationships, there are different strategic themes
(see Figure 12.3). Within a transactional relationship, we focus on the
organization itself and its standard products and services, which we seek
to sell in a profitable way to as many customers as possible, making use
of standard processes. This doesn’t mean there isn’t a lot of innovation.