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Chapter 12 Performance Networks • 231


            should be performance indicators that point out how much in costs was
            saved for the stakeholder, how much return was generated, and how
            much opportunity was created, as well as any other measure of success.
              Within joint-value relationships, organizations measure what they
            would measure for themselves as well. With shared objectives, all par-
            ties involved look for the same measure of success. The difference is
            that the organization does not measure what it has achieved for the
            other, but what it has achieved for the joint relationship. Table 12.5




            Table 12.5
            Performance Indicators

                        Transactional Relationship Added-Value Relationship  Joint-Value Relationship
            Supplier
            Requirements
            Profit      Shareholder value   Partner margin  Revenue and profit
                        and profitability                   joint initiative,
                                                            compared to
                                                            internal profit
            Growth      Market share      Share of wallet   “Blue Ocean”growth*
            Opinion     Customer          Personal, more    Continuous
                        satisfaction survey  qualitative, feedback   operational and
                                          partner           management
                                                            feedback
            Trust       Cross-sell ratio  Percent process   Growth in investment
                                          integration       in joint initiative
            Customer
            Requirements
            Fast        Average time own  Average time overall   Time to market
                        process           process
            Right       Percent transactions   Meeting partner   High asset specificity
                        “first time right”  requirements through
                                          customization
            Cheap       Price benchmark   Cost savings for   Low transaction
                                          partner           costs
            Easy        Channel availability  Channel preference  Crossover resources
                                                            (capital, staff,
                                                            material, use of
                                                            facilities, information
                                                            exchange)
            * A “blue ocean strategy”is a strategy aimed at creating a completely new market, as opposed to a “red ocean strategy,”which
            aims at competing in an existing market. See Kim, W.C., Mauborgne, R. (2005), Blue Ocean Strategy: How to Create Uncontested
            Market Space and Make Competition Irrelevant, Harvard Business Press, Cambridge, MA.
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