Is value a metric for enterprise accounting and management information
What is value in the enterprise?
If we can understand value, is it possible to manage value? There is value-based management, but what value is this management is based on? We have value-added, value creation, value propositions, etc. What does the value mean? Value seems have a contrived definition for each situation. Can we standardize the definition of value and use value and value-added to help manage the enterprise? How can we do that?
What is the cost of creating value?
Every day we perform in our enterprises. This performance incurs cost. How do we justify the performance cost? The performance is needed to create value. Now, where is that value? What is it related to? We hear of value-added in terms of taxes and production stages. What about the difference between the value created through performance and the cost incurred in performance? What is the potential if we can account for the difference?
What is the value added over the cost?
We can account for value when we separate performance activity from performance results. Performance activity incurs costs. Performance activity also creates value in the results of the performance. The result of performance also absorbs the costs of performance for all the performance solutions utilized to produce the result. The difference between the value of the result and the total cost of the result is result value-added.
Value can be a metric for accounting and management information?
Once we understand the enterprise in terms of results and performance, we can make value a metric for enterprise accounting and management. Think of what it could mean to know the value added to each result in your enterprise value chain.
Result-performance Management provides the means to determine and manage value
The answer is Result-performance Management (R-pM) to manage the business: the activity of providing goods and services. Managing the activity in performance manages costs. Managing goods and services and other results in the chain manages value.
21st Century Management eliminates 20th century problems
Result-performance Management (R-pM) eliminates the value management problem and other costly 20th century problems. Slash overheads and 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. The R-pM Toolkit is offered at a nominal price to encourage wide use of R-pM. Get your R-pM Toolkit, and future updates, at result-performance-management.com.
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