The Logic of Result Relationships
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 have attributes that define the quality, value, and other characteristics of the result.
Result organization and relationships are business organization capital to represent the actual business
The business organization is not produced by a management study or decision. Management decides on strategic results needed and the performance solution investments needed to produce results.
The business organization is enterprise capital that must be managed by professionals like any other type of capital. The logic of result relationships do not need to be understood by everyone. The business organization professionals must define result relationships to build and maintain the enterprise business structure to represent the actual business accurately.
Results can be related to each other in several ways
Many results are not produced in isolation. The results the enterprise produces can relate to each other in different ways. Some add costs and value to other results, such as order item results that add up to a product sales result. Some must be organized and managed together, such as those assigned to the same human and other capital performance module. Some must be produced before another can be produced, such as customer contact results proceeding sales results. Some are produced by an impact of another result, such as a returned sale result, due to a defective product or sale result.
Some comprise a chain of results that are transformed or produced to reach a final result. For example, a fulfilled order result is produced from a chain of results starting with the received order, availability confirmed, credit checked, order picked, invoice prepared, order delivery and invoice receipt confirmed. Each result incurs its own performance costs and creates its own value, and also adds the costs and value to the final fulfilled order result.
Result relationships define the actual business and are used to manage the way one result relates to another result.
Result relationships go from one result to another result
Normally, there is a result that occurs first, the result from, and another result that is affected by the result, the result to. There are eight potential relationships between a result from to a result to that are defined:
- Organization relationship: The organization relationship between results that defines the enterprise organization. The manager responsible for the lower level result from is responsible to the manager of the higher level result to. The relationships are established for described results that form the organization to utilize common performance solutions
- Cumulative relationship: A relationship between specific metrics shared by each result. The relationship is established where the metric for each occurrence of the result from adds into the same metric for another result to. A sale line item result adds into the product sold result
- Allocation relationship: A portion of the cost, value or other measure of the result from is allocated to another result to. Performance costs, known only for total sales, may be allocated to individual sales results based on portion of sales value
- Chain relationships: The relationship defines a value chain where the result from occurs before the result to. The relationship simply defines the sequence of the chain. The metrics in the chain must be supported by other relationships
- Chain control relationship: The result from is part of a result chain that produces a final result managed through the result to. The result from adds costs or value to the result to.
- Dependent relationship: A relationship between results that show the dependency where one result from must occur before another result to can occur. The relationship is defined, as needed, to manage performance capacity and result goals. A proposal submitted result must occur before the contract executed result can occur
- Impact relationships: Relationships that show the impact of one result from on another result to for analysis or setting goals. The quality of the product produced result and the sales result impacts the level of the product returned result
- Capital group relationship: The structural relationship for results that support a capital group. The result from is related to a result to that accumulates goals and information for the capital group. The maintained machine result by a Revenue Capital Group organization supports Facility Equipment in the Performance Capital Group.
Result relationships are defined to manage results through information technology. Result relationships are defined and used as needed to define the actual business accurately.
Result relationships can be defined in a result relationship file
Results and result relationships are defined to be managed by information systems. Result relationships describe the related processing required to process a result transaction fully. Result relationships are defined when a new result is set up to be produced, if management wants to manage the result in conjunction with other related results. Normally, a result relationship file is maintained by result from, result to, relationship type, and relationship rules.
Result relationships define the relationship, interaction, or interdependency of a result from and a impacted result to
The logical definition says result relationships precisely define the relationship, interaction, or interdependency that a result from has on the impacted result to. Result relationships are defined to reflect the actual relationships between business results produced by business performance in the business result structure.
