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May 16, 2007
Introduction to Performance Networks
I just finished writing a paper. Due to its length and format, it is less applicable as an Expert Insight on http://www.hyperion.com/leaders/, yet I believe it is very interesting for you (assuming you are a performance management professional, if you take the time to read this). It will make you think very differently about performance management!
I have been working on the concept of performance networks, as I believe there is great value in using performance management to manage relationships between stakeholders, and not only within the business, towards a single stakeholder. Interestingly enough, there is not much thought leadership available on this topic.
Here is the summary of the paper:
There is a gap between the state of performance measurement and much of the innovation taking place in business models. Where business models are becoming increasingly networked due to outsourcing and various forms of inter-organizational collaboration, performance measurement remains a very hierarchical exercise. This paper discusses the use of transaction cost economics (TCE) in performance measurement. The paper introduces TCE - which is not traditionally well-known by performance management professionals - and applies it to performance measurement. It proposes a framework of three levels of relationships organizations can have with their stakeholders; transactional relationships, added-value relationships and joint-value relationships, and how to use these three levels to define better performance indicators.
You can download the paper here:
Download tce_in_pm_fabuytendijk_weblog.pdf
I will be writing much more on this topic in the weblog.
frank
Posted by Frank Buytenkijk at May 16, 2007 2:03 AM
