Page 277 - Performance Leadership
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266 • Part IV Implementing the Performance Leadership Framework
as within an organization’s own hierarchic structures. Getting it “right”
is measured by joint success in the market, with a good market share,
and by building brand preference.
The economics need to be right too. The margin should be higher
than CPG-supplied brands, but, more important, in a joint-value rela-
tionship, the price for the end consumer needs to be right, typically
lower than a CPG brand. Although in added-value relationships ease
of doing business is measured in terms of value-chain integration, in
joint-value relationships the bar is raised again. Within a partnership
there should be an easy crossover of resources. The more capital, staff,
material, use of facilities, and information exchange that cross organi-
zational borders, the more depth and meaning the relationship has.