The method underlying the development of the Partnership Scorecard™ is Value Network Analysis (VNA). This business modelling method creates a value network map:

The map identifies the key roles which exist within your partnership arrangement and then maps both the tangible and intangible value flows between them.

• Tangible flows typically represent the "contracted" deliverables between the roles.
  
  
• The intangibles are the complementary value adding elements that are not strictly contracted, but without them the partnership would struggle.

Examples of intangibles may be early advice on emerging situations, informal business intelligence, referrals or recommendations and the like. The maps are developed in a workshop setting with representatives of each of the identified roles present.

The resulting value network map is completed by ensuring that all participants are comfortable with the meaning and accountabilities represented by each value flow. The criticality of each value deliverable along with its perceived cost or risk to deliver as well as an assessment of current performance can identify "quick wins" where performance gaps exist and the perceived cost/risk of delivery is low.

The Partnership Scorecard™ is developed from the VNA maps.

• Each value flow will have a value creator and receiver associated with it.
  
  
• Each role therefore will have a number of value deliverables that it is responsible for creating and similarly, value deliverables that it will be assessing.

Once established, the Partnership Scorecard™ becomes a measurement and monitoring vehicle for the partnership. At periodic levels each identified role will be surveyed for an assessment of the value flows it is receiving. These periodic assessments are then used to highlight emerging issues in the partnership and specifically where they exist so that corrective action can be taken.

1. Identify the Key Roles

• Identify the key roles existing in the partnership, or the key roles designed to be part of a new partership.

2. Conduct Value Network Workshop.

• Invite representatives for each role to participate in a value networks workshop. The objective of the workshop is to identify the key tangible and intangible value flows that exist between the roles. During the workshop, value flows may be negotiated to ensure that an equitable and sustainable partnership arrangement exists.

Step 3 - Generate the Scorecard

• Generate the Partnership Scorecard™ from the value network map. The scorecard makes explicit the accountabilities of each role for value creation and value assessment. Conduct an initial survey to assess current performance. The survey will identify the criticality and current performance of the value flows from the perception of the recipient. It also identifies areas where performance gaps can be closed for minimal cost

Step 4 - Fine tune "value deliverables"

• The initial assessment survey will expose gaps in perception between the roles. Organise "one on one" discussions where this exists to ensure that there is an agreed understanding of the deliverables being assessed

Step 5 - Put the Partnership Scorecard™ into Operation

• Periodically (usually monthly or quarterly) survey each role to assess the performance of each value flow it received over the past period. The data is then exported for performance reporting. Optimice Pty Ltd provides a hosted service for scorecards or organisations may choose to have it hosted internally.

Step 6 - Consider extensions to the Partnership Scorecard to other roles

• Once the initial Partnership Scorecard™ is established, for larger partnerships, consideration should be given to extending the scorecard to other roles in the partnership that may be complementary or subsidiary to the initial roles identified.

Read more in our Partnership Scorecard™ Whitepaper.