How to Gain Business Collaboration in True Value Chains
Much is written about business collaboration through value chains. But the value chains are contrived one-off chains for the particular situation. Have you ever seen an example of a value chain model that any enterprise can use to collaborate with any other enterprise?
The conventional enterprise cannot build managed value chains
In order to construct a value chain you need to know where your value lies. You must manage the value at each link in the chain in order to manage the chain. A value chain is not worth much unless you can precisely define and compare all costs incurred to create the value at each link for alternative collaborators in the chain. You must manage the utilization of capital as specific performance solutions that produce a cost for all tangible and intangible capital utilized. The costs for each link in the chain must be charged against the value created to determine the value-added at each link in the chain.
Can you do this with the 20th century methods you use today? The 20th century enterprise cannot collaborate in true value chains because it can not manage the value created and costs incurred at each link in the chain. This is explained in the article Business Collaboration in a True Value Chain with R-pM.
Result-performance Management is applied to produce value chains
Result-performance Management (R-pM) is the conventional method to organize the business for 21st Century Management. The solution is to employ R-pM to organize and manage the results that contain the value in a chain and all of the performance solutions that are utilized, to know all the costs of producing the result. By managing results and performance you can know value added, starting from your supply chain, and re-link the chain until you gain the highest shared value for the lowest shared cost. Then you collaborate for high shared result value-added in a true value chain.
Review the articles under Learn the Basics of R-pm or click on the R-pM banner to download “How to Build Result Value-quality Chains” with R-pM.
21st Century Management eliminates 20th century problems
Result-performance Management (R-pM) eliminates the business collaboration problems and other costly 20th century problems. Slash costs, simplify business management, and boost competitive advantage through R-pM, the conventional method for 21st Century Management.
Download your 21st Century Management Manual today
Your 21st Century Management Manual, The R-pM Toolkit, is available today and is under continual development to expand and refine 21st Century Management. Get your R-pM Toolkit, and future updates, at result-performance-management.com.
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