Business Collaboration and Outsourcing through Value Chains with R-pM
Result-performance Management (R-pM) replaces business process management with value chain management to enable business collaboration
Result-performance Management (R-pM) replaces business process management with result-performance management and re-engineered business processes with result value-quality chains. This enables the enterprise to manage result value-added and to collaborate with business and outsourcing partners, who use R-pM, to re-link value-quality chains for shared value. Review the article “Business Process Management that Prevents Value-quality Chains” to learn more about result value-quality chains.
R-pM manages the result value and performance costs for each result in the chain, to manage result value-added across the chain
R-pM can do this because R-pM defines and manages the result, which provides the specific economic output of value that forms each link in the chain. R-pM also manages each capital solution utilized to produce the result to determine the total performance cost and value-added at each link in the chain. Capital solutions are classified and categorized to have comparable and benchmarked costs for alternative solutions used to produce a result. This enables comparison of alternative linking of value-quality chains with business collaboration and outsourcing partners to produce the highest shared value-added.
20th century business processes do not provide a framework, making business collaboration difficult
Business processes used today do not organize and manage the business. Instead they are contrived structures that are laid over the business. Business processes are re-engineered to produce an output at the end and mix together business, human, facility, and management capital in a monolithic process. 20th century organization units execute the process and are responsible for “performance quality”. This is difficult for organization units who must find their part in a process that goes across units and try to understand the quality of process performance.
Business collaboration is an unsolvable problem today because businesses that wish to collaborate are not managed. With no framework for business collaboration, collaborators try to employ the same information system or use data reconciliation or enterprise information management systems to rationalize the different terminology and definitions used by each enterprise.
R-pM provides the actual business collaboration framework in the business structure
Result-performance Management (R-pM) provides the framework and definitions for business collaboration by organizing and managing the actual business in consistently-defined capital solutions, consistently-defined output results from the business, and consistently-defined performance utilizing capital to produce results. Every business organized and managed with R-pM is defined consistent with any other business organized and managed with R-pM.
R-pM provides common result and value definitions
R-pM defines individual output results produced as end-results from performance, set-results that are produced by a chain or related end-results, and key-results that organize set-results to meet business objectives. Each output result has an internal or external customer who must pay a value in order to receive the result for his process. End-results from performance are produced in sequence as part of a chain to produce a final external customer product or service result. The total value of all results in the chain cannot exceed the value of the final external customer result.
R-pM provides common capital solution and performance cost definitions
R-pM identifies and breaks down all capital investments in tangible or intangible assets into specific solutions of worth. Capital solutions are consistently organized by category to provide business, human, facility, or management support. Capital solutions within each category are organized as readiness capital to provide the essential solutions so that a business organization unit solution is ready to produce assigned results, as production capital to provide the solutions only utilized when directly producing a result, and as information capital to provide information solutions and to document results produced. Solutions in each class are implemented and integrated to be utilized together to produce specific results in the chain. Performance costs generated in utilizing each solution to produce results are consistently-defined as compensation costs over a planned period for human personnel capital, actual costs incurred for facility supply capital, and amortization costs for other developed solutions as solution worth declines over the life of the solution.
R-pM manages each result in a value chain, results produced by business organizations participating in the chain, and all results across the chain
R-pM separates the results produced in the business process and capital utilized in the process from performance across the process. Business organization units are defined by the results they are responsible to produce. Each result also has a human personnel solution implemented as the result manager, who is responsible for utilizing all implemented solutions to produce the result. Result managers are supported by performance managers, who are responsible for performance costs and effectiveness for their particular solutions utilized across the chain. Each business organization unit set-result manager is responsible for the value, quality, and volume of results produced within the unit as a part of the chain of results. Another result manager is responsible for all the results in the chain across all business organizations and ensuring that high value-quality final results are delivered to the external customer.
Any business or outsourced result provider that has the capital required can produce a result in the value-quality chain
Any enterprise, which has organized the business for 21st Century Management can participate in any result value-quality chain for results the enterprise has the capital to produce. The criterion for a business organization to be utilized to produce results in a chain is the cost-effectiveness of performance in the solutions utilized and the value-quality of the result produced. Business collaboration and business result outsourcing is a matter of assessing performance options and evaluating results produced to produce the highest value-quality results for the most cost-effective performance for the greatest shared value-added.
The exhibit above shows business collaboration along a value chain of results for a component maker to integrate results provided by a supplier and the final result delivered to a manufacturer. The chain shows opportunities to rationalize results for inspection, testing, etc and to improve solutions utilized for invoice results etc to optimize the chain for shared result value-added
Use R-pM for value chain management to gain competitive advantage over conventional business process management
Once the enterprise uses R-pM, the enterprise can build internal value-quality chains, re-link chains with partners, and gain competitive advantage over 20th century enterprises that are not able to define and manage result value-quality chains.
Result-performance Management eliminates unsolvable business process management, business collaboration, outsourcing, value and quality management, 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.
To learn more about business collaboration and outsourcing. download your R-pM Toolkit today
Your 21st Century Management Manual, The R-pM Toolkit, is available today and is under continual development to expand and refine R-pM and 21st Century Management conventions and standards. Get your R-pM Toolkit, and future updates, and download the R-pM Management Guide “How to Build Result Value-quality Chains” at result-performance-management.com.
