Manage value creation in results for value management and value chains
Earlier in the article Business Value — What is the value of all this value, we pointed out the problems defining value. We talk of collaboration in value chains, but we cannot even define a value chain within the enterprise much less across enterprises. We cannot define value chains because we have never defined what it is that contains value in our enterprises and the linkages between things of value that produces a value chain.
The answer is simple; we must organize the business to utilize our capital in performance to produce value in our results. Results are the inputs to and the outputs from our business performance. This answer is the foundation of Result-performance Management (R-pM). Learn about value creation in results in the R-pM community download “How to Build Result Value-quality Chains”.
Results contain the value created by the corporation
Results define business economic production or output, for any corporation or industry. Each time we produce a result, no matter how big or small, we consume capital in performance that incur costs. These costs have to be offset by what we produce as the output from our performance. In order to offset the cost, the result must have value. Each result must have a customer willing to pay more than the cost. If the result has no value or customer willing to pay, why are we wasting our time and money to produce it?
All enterprises manage the final product or service result that goes to the customer to produce the revenue result or fulfil other objectives. We do not call it a result; we call it something else like a consumer product or business service. But, this final result doesn’t just appear, it comes from result transformation.
Defining results as a set, and linking related result creates value chains
We have to produce many results to get to the final result. Each result we produce requires performance. Performance incurs cost and produces value in results. If we define and link all the results needed to produce our product and service result, we will have a value chain that has the value of the result, the cost of the result, and the value added for each result in the chain.
If you knew the cost and value of each result produced on the way to producing your final product or service result, would it help you manage your enterprise?
Result-performance Management measures result value and value-added as routine management information metrics
When we use Result-performance Management (R-pM) to measure and manage results and performance cost we have a completly new set of management metrics to manage result value, performance costs, and result-value added for strategic value creation, routine value management, and value-chain management and business collaboration.
To learn more about R-pM visit result-performance-management.com and download “How to Result Value-quality Chains with R-pM”.
21st Century Management eliminates 20th century problems
Result-performance Management (R-pM) eliminates value management problems 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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