Page 237 - Performance Leadership

226 • Part IV Implementing the Performance Leadership Framework

out that there are more competitive factors than just price and
discount. Both the supplier and the procurement department
have a more equal position, since the scorecards provide a
discussion platform. It also gives the suppliers more insight up
front as to what their client is looking for. Sharing performance
indicators creates a win-win situation, when positioned as a
collaboration-and-communication instrument.
• Customers. The killer business case comes from being able to
share information with customers, as this is related to customer
retention, lifetime value, and competitive position. A European
asset management firm has introduced individual personalized
annual reports for their highest-valued customer segments. In
these reports the performance for that specific customer is
benchmarked.

There are many examples of “information as the product.” Compet-
itive differentiation for car lease companies does not come from the cars,
but from the management information the company shares with their
customer’s fleet managers. HR departments that outsource benefits pro-
grams to insurance companies demand solid management information.
One telecoms provider offers a Web page where consumers can view
simple personal reports. The list of the most-dialed numbers helps make
better use of the discount program. There are hardly any vertical rela-
tionships in which “information as the product” is not relevant.
Within transactional relationships, transparency consists of opera-
tional and financial information exchange, derived from the flow of
transactions. The operational information would typically consist of
status information on transactions: for instance, tracking and tracing
information within logistical environments or approval status within
backoffice departments in administrative environments. The financial
information would typically be contained in invoices and other pay-
ment records.
When managing added-value relationships, in addition to the oper-
ational information, there is also management information, aimed at
enabling the stakeholder to manage the relationship better. The exam-
ples all focus on creating added value on top of the core product or
service.