How to Create Value Management and Value Chains
Many methods have been contrived and much is written these days about value management, value chains, value propositions, value creation, strategic value, etc. But, in all this has anyone precisely described where enterprise value really lies?
The problem creating value management and value chains
What is value an attribute of? What in your enterprise contains your value? When we create value, where does the value go? Is value an attribute of performance, the customer, the supplier, the proposition, the employee, the department, the function, the process, the system, a chain, the business, the enterprise, management, the strategy, or what? Can we manage value when we do not know what contains value?
There many contrived formulas to calculate value. But often the formulas calculate a value for entities that do not contain the value created by the enterprise. For example, there are many formulas to calculate different values of the business, but does the business contain the value we create.
There is a lot of talk about business collaboration in value chains across enterprises. But, what comprises a link in a value chain? What are the components that define a link in your value chain? If we cannot define a link, how can we create a chain?
There is only one solution to manage value creation and to link value chains
We cannot manage the value created in the business, if we do not use Result-performance Management (R-pM) to manage the business. The business is comprised of two entities:
- Results: The economic outputs from the business that actually contain the value created and are specifically defined to manage value
- Performance Solutions: The capital of worth, consumed in performance to produce result value, which are specifically defined to manage costs and the value added
The only way to manage value creation and link value chains is through R-pM as is introduced in the article Use R-pM to Make Value Really Valuable.
Result-performance Management is breakthrough to build and manage real value chains
The conventional 20th century enterprise has never organized and managed business results and business performance in one integrated business structure. Instead we contrive organization structures, monolithic business processes, separated information systems, charts of accounts, and various performance management methods that we lay over the business and organize and manage instead of the business. We re-engineered contrived business processes that lump our capital, results, and performance together in a process. Business process management is not able to manage value, so that we have to contrive formulas to calculate a number in order to think that we are managing value.
The corporation now has the breakthrough innovation needed in Result-performance Management
Use R-pm to analyze the business with partners and build value chains for business collaboration
If you are interested in managing the worth of your capital, the costs you incur to consume capital in performance, and the value produced in your results, in order to manage value in your enterprise and to collaborate with your business partners in workable and re-linkable value-quality chains, look into Result-performance Management, the one right way to organize the business into one integrated structure for 21st century management and leave 20th century organization and management problems behind.
21st Century Management eliminates 20th century problems
Result-performance Management (R-pM) eliminates the value management problem 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.
