Page 233 - Performance Leadership

222 • Part IV Implementing the Performance Leadership Framework

F igur e 12.3
Performance Network Themes*

Financial/
Profitability
Extended
Enterprise Customer/
Relationship Partner

Brand/
Supply Resources Process
Scope Chain Customer Solution Shared

Customized/
Integrated
Enterprise Standard
Product /
Service / Adaptive- Cocreation Innovation
Process ness

Transactional Added-Value Joint-Value
*Inspired by: Prahalad, CK.; Ramaswamy, V. (2003), “The New Frontier of Experience Innovation.”MIT Sloan Management Review,
Vol. 44, No. 4.

In fact, many highly innovative organizations focus on these types of
relationships, creating technological breakthroughs for others to use.
A prime example of this is the Dolby Surround system, which is
licensed by most consumer electronics firms.
Added-value relationships focus on the supply chain, moving from
product selling to solution selling, often involving multiple firms to
complement the solution. The solution should become part of the cus-
tomer’s everyday life or business processes, creating a high level of cus-
tomer loyalty and sustainable customer profitability. Not every
customer is the same. In many cases the solutions need to be adapted
to specific conditions. A partner network helps to create these adapta-
tions. Think of the Apple iPod product “ecosystem,” involving many
third parties offering accessories. Although every party may have its own
objectives, they are aligned, leading to mutual success.
Joint-value relationships focus on the extended enterprise. Multiple
parties collaborate to create a new product or service that they could
not have created on their own. They share the same objectives: joint