Rate Charged/Paid

When a context delivers value to a peer context, this exchange of value to an internal customer will rarely result in a financial transaction. But the cost is not free. Some organizations (especially IT departments) have started to model the cost-for-value in the exchange, to create more of a market dynamic, and encourage smarter consumption by these internal customers. If desired, all value exchanges between contexts could attach a rate-per-unit to quantify the approximate cost-for-value, and use this exchange to fund the delivering context (either directly or indirectly). Another advantage of exploring the cost-for-value in a peer-to-peer value exchange is that it enables a comparison to external 3rd party offerings, to evaluate outsourcing opportunities for some business functions.

‍

Example Syntax:

"<Context A> delivers value to <Context B>. <Context B> estimates the cost-per-unit for each <value-unit> to be <rate charged>. Once a year, <Context A> conducts benchmarking by comparing the rate from <Context B> to the rate of equivalent 3rd party sources."

‍

For more:

• "Better Simpler Strategy: A Value-Based Guide to Exceptional Performance", Felix Oberholzer-Gee (2021).