The Logic of Business Results
The business is the utilization of capital as business solutions in performance to produce business results. The objective of all human capital utilized as business solutions must be to produce business results. Business results are the specific economic outputs of value. Results can be counted and may be measured in other ways.
Results are managed as separate entities in today’s enterprise
Results include a wide variety of output entities that are separately defined or remain undefined today. The enterprise may have records on material, products, orders, invoices, etc. Each of these separate entities is part of one set: results. The enterprise manages each identified result separately as its own entity.
Many valuable results are produced but are not recorded or managed as something of value that incurs the performance cost of utilizing business solutions.
Defining results as one set enables management of result commonalities
Defining all outputs as results enable the enterprise to manage the common attributes of all results, such as:
- The identifier and description
- The manager responsible to produce the result
- The result customer
- The volume of results planned and produced
- Quality determinates for the result
- The value of the result
- The total performance solution charges against the result
- Result metrics to measure the quality and impact of the result
- Result goals
- Result relationships
- Access to knowledge on producing the result
- Result risk factors and incidents
- Result symptoms encountered
Results are defined down to the level of detail desired by management in order to manage all of the economic outputs produced.
Results define enterprise value, quality, volumes, goals, and value-added requirements
Results produced across the enterprise represent the value of economic output from enterprise performance. Results have customers who must be willing to pay to have the result produced. Quality is an attribute of the result. Quality is not an attribute of performance. The performance of every business solution utilized must be effective to produce a quality result. The volume of enterprise productivity is measured in the results produced. Sufficient capacity is required in business solutions to produce a volume of results. The objective of all performance improvement or capital development must be to add value to the result produced by improved performance. Goals can be set to produce a certain volume of results in a particular time period.
Higher level results are produced by a set of lower level results
Results have a hierarchy. Certain results are end results produced directly from performance, such as a report, a product, a sale, an invoice, a maintained machine, completed training, etc. Higher level results may require the completion of a set or chain of lower-level results. A fulfilled order result requires the completion of a sale, picked inventory, invoice, exception handled, delivery, and customer confirmation results. Results can be organized and managed at various levels. A closed project result requires completion of all project results. Revenue and profit results are produced from all enterprise results.
Results are organized in a result structure to manage all economic outputs from the business
All results that must be produced by the business must be organized in the result structure to manage the complete business. The structure consists of key results that must be produced at the highest level for a successful business. Sets of results are defined as needed to manage results together, define result chains, and group results needed for a higher-level result. End results produced directly from performance provide the lowest level in the structure.
Results must be organized and managed to plan strategies, set goals, determine value, control costs, assure quality, manage productivity, manage business solution outputs and benefits of capital development, manage risk from risk factors and performance uncertainty, manage value-quality chains, optimize performance, and other management needs.
Business results are economic outputs of value produced through the cost of business solutions
The logical definition of a business result is an economic output produced through the costs of business solutions utilized to add value to the business.
