Value Chains are Built from Results and Performance Solutions Used
Much is written about the theory of value chains and various structures have been contrived to overlay value chains on the business.
21st Century Management organizes the business to provide natural value chains
Result-performance Management (R-pM) is the conventional method to organize the business for 21st century management. No one has ever organized the business to provide natural value chains, until Result-performance Management (R-pM). R-pM organizes results as the links in the chain and performance solutions to provide the capital utilized to produce each result. Result relationships link results in sequence and manage the complete chain.
Results are economic outputs that contain the value created
R-pM organizes and relates results from supplier input results, through results transformed by the enterprise, to final customer results. Customer payment confers final result value. Enterprise payment confers input result value. Internal customers confer value on internal results added to and transformed in the chain. The total input and internal result value cannot exceed final result value.
Performance solutions utilized add to the cost of results
Results are produced by specific human and other solutions deployed to the result. Each solution has a cost in the total cost of the result. Several methods provide the costs of solutions against a specific result.
Result value-added is managed to optimize value chains
Result value less total solution costs gives a manageable value-added. Results with a negative value-added are not produced unless costs are reduced or the customer increases the value, in which case the value of another result in the chain must reduce.
Result value chains enable business collaboration
Collaborators in a value chain use R-pM to define results consistently and to standardize performance solutions for comparable costs. Collaboration is a matter or re-linking the chain to achieve the highest shared result value added.
Build value chains and collaborate through 21st Century Management
The post How to put Value in Value Chains and Value Management provides background on value chains. The R-pM Toolkit document “How to Build Result Value-quality Chains” describes value chains in detail.
21st Century Management eliminates 20th century problems
Eliminate the value chain problem and other costly 20th century problems through 21st Century Management. Slash costs, simplify business management, and boost your competitive advantage through Result-performance Management (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 Learn more about the R-pM breakthrough for 21st century management and subscribe to your 21st Century Management Manual, including free updates, at result-performance-management.com.
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