The Value Creation Model:
Capabilities that drive success

For over a decade, we have worked closely with companies across industries and studied their practices through research consortia, surveys, and interviews. The objective: To explore how companies create joint financial value, strengthen their business relationships, and improve network competitiveness with their customers of strategic importance. The premise: Value creation is not something you do for customers, but with customers, and purposeful collaboration is not something that happens naturally in this context.

The result of this research is what we call The Value Creation Model™. It captures those organizational and individual capabilities that impact the joint performance outcomes of the firm and its strategic customers. It accounts for those capabilities that can be influenced and shaped by the firm.

Achieving sustainable performance outcomes that neither firm could achieve alone is a result of the ability to repeatedly create new value and to distribute this value accordingly. Value creation and distribution are either fostered or hampered by the ability of the organizations to collaborate purposefully both internally and with each other, as well as by the ability of those at the firm interface to achieve impact without authority.