The Principal – Agent Relationship: Where Is the Value Created?
22 September 2018
13:45 – 14:45
The principal-agent relationship is a common form of association in the production system in which the former legally appoints (or permits) the latter to act on its behalf to deliver service to end-customers. Sounds complicated? Well it is even messier in practice. We will explore examples from the Georgian market to show how the end-users suffer when the principals’ and agents’ interests clash.
Our special interest lies in two particular forms of the principal-agent relationship, not commonly considered as a typical case of the relation:
- “Licensor – Licensee” relationship, when the regulated service is delivered to the end customer; and
- “Franchisor – Franchisee” relationship, when the branded service is delivered through the franchising chain.
During an hour-long journey, we will discuss how common tools can be used when analyzing and managing performance of the value creation chain for mentioned two forms of the principal-agent relationship. We are ready to share our experience on real examples such:
- National financial regulator and financial institutions (MFO, payment system operator);
- National energy regulator and natural gas supplier;
- Franchising of the cosmetology clinic.
Partner, JSC GEC
George is an active performance improvement practitioner with solid executive management experience in different industries. He is a Partner at GEC Corp.—a consulting company, which helps organizations to improve their business performance. In addition to his consulting and executive management experience, George has over 15 years of experience teaching and training at leading Georgian and international universities and business schools.
Partner, JSC GEC
Eka is an active performance improvement practitioner with extensive experience in business process efficiency management within both private and public organizations. Ekaterine is a Partner at GEC Corp.—a consulting company, which helps organizations to improve their business performance. In addition to her consulting and management experience, she has over 20 years of experience teaching at leading Georgian universities and business schools.