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How can you measure partnership performance in a fair and transparent way?

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Partnerships are a powerful way to grow your business, reach new customers, and create value. But how do you know if your partnerships are working well and delivering the expected results? Measuring partnership performance can be challenging, especially when each partner has different goals, expectations, and metrics. In this article, you will learn how to measure partnership performance in a fair and transparent way, using a simple framework and some best practices.

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Asha Kanta Sharma

Manager - Finance & Accounts @ Opendoors Fintech | Financial Accounting

1 Define your partnership objectives

Before you can measure anything, you need to define what you want to achieve with your partnership. What are the strategic goals of each partner, and how do they align with each other? What are the specific outcomes or deliverables that you expect from the partnership? How will you communicate and report on your progress? These are some of the questions that you should answer together with your partner, and document them in a clear and concise partnership agreement.

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Asha Kanta Sharma

Manager - Finance & Accounts @ Opendoors Fintech | Financial Accounting
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To measure partnership performance in a fair and transparent manner, establish clear objectives, mutually agreed-upon metrics, conduct regular performance reviews, provide transparent reporting and communication, share data, gather 360-degree feedback, develop performance scorecards, implement continuous improvement initiatives, maintain adaptability and flexibility, and celebrate successes. These methods foster trust, collaboration, and mutual success, driving mutual success and value creation. By implementing these methods, partners can foster accountability, collaboration, and trust, ultimately driving mutual success.

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2 Choose relevant and measurable indicators

Once you have your partnership objectives, you need to choose the indicators that will help you track and evaluate your performance. Indicators are the measurable aspects of your partnership that reflect your objectives, such as revenue, customer satisfaction, market share, or social impact. You should choose indicators that are relevant to both partners, and that can be quantified and verified with data. You should also agree on how often and how much data you will collect and share, and what tools or methods you will use.

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3 Set realistic and mutually beneficial targets

After you have your indicators, you need to set the targets that will define your success. Targets are the specific values or levels that you want to achieve or exceed with your indicators, such as a certain amount of revenue, a percentage of customer retention, or a number of new leads. You should set targets that are realistic and attainable, based on your current situation and your potential growth. You should also set targets that are mutually beneficial, meaning that they create value for both partners, and that they do not conflict or compete with each other.

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4 Monitor and report on your performance

Once you have your targets, you need to monitor and report on your performance regularly and consistently. Monitoring and reporting are the processes of collecting, analyzing, and communicating your data and results to your partner and other stakeholders. You should monitor and report on your performance according to the frequency and format that you agreed on with your partner, and use the same tools or methods that you chose for your indicators. You should also be honest and transparent about your performance, and highlight both your achievements and your challenges.

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5 Review and improve your partnership

Finally, you need to review and improve your partnership periodically and proactively. Reviewing and improving are the processes of evaluating, learning, and adjusting your partnership based on your performance and feedback. You should review and improve your partnership at least once a year, or more often if needed, and involve your partner and other stakeholders in the process. You should also celebrate your successes, acknowledge your failures, and identify your opportunities for improvement.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How can you measure partnership performance in a fair and transparent way?

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1 Define your partnership objectives

2 Choose relevant and measurable indicators

3 Set realistic and mutually beneficial targets

4 Monitor and report on your performance

5 Review and improve your partnership

6 Here’s what else to consider

Business Development

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How can you measure partnership performance in a fair and transparent way?

1

2

3

4

5

6

1 Define your partnership objectives

2 Choose relevant and measurable indicators

3 Set realistic and mutually beneficial targets

4 Monitor and report on your performance

5 Review and improve your partnership

6 Here’s what else to consider

Business Development

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