Archive for the 'Business Collaboration' forum

Logo: Feedburner What is the strategic business?

Submitted by bcfc on October 30th, 2009

20th century enterprise management plans the future enterprise and does not plan the business

20th century enterprise management used today develops strategies and plans using maps, corporate plans, budgets, etc that are laid over the business. Corporate plans plan the corporation and are unable plan the strategic value to be created by the business and the capital development needed to create strategic value. The business is not planned and strategies and plans become invalid as the business changes. New plans try to bring the enterprise plans in closer alignment with the current and future business.

The business strategy plans the actual future business needed for success

Business management defines the enterprise business as “the utilization of capital of worth in performance to incur costs to produce value in results”. This definition includes the current business that must be conducted every day to utilize capital the enterprise invests in to produce results needed for business success. The definition also includes the future business that must be the objective or the business strategy to produce strategic results utilizing capital that must be available when needed?

The management strategy plans the business at the strategic horizon

The strategic business is “the utilization of capital of worth in performance to incur costs to produce value in results at the strategic horizon”. The strategic business is described as management strategy capital. The business strategy, strategic business structure, and business plans to execute the strategy are management strategy solutions.< [more...].

Logo: Feedburner Value Chains are Built from Results and the Capital Solutions Used to Produce Each Result

Submitted by bcfc on September 11th, 2009

20th century enterprise management cannot define and organize real value chains

Much is written about the theory of value chains and various structures have been contrived to lay value chains over the business. But, value chains cannot be defined and organized today, because 20th century enterprise management organizes and manages the enterprise, but does not define or organize the actual business. The actual business is defined as “investments in capital as solutions of worth utilized for cost and effectiveness of performance to produce value and quality in results”. A value chain consists of a chain of results of value produced in sequence to provide a final result of value to an enterprise customer. In order to build a value chain results, capital solutions that produce results, and the performance of each solution to produce each result must be defined and organized as a sets.

21st century business management organizes the business to provide natural value chains

Result-performance Management (R-pM) provides the knowledge, concepts, and procedures for 21st century business management. We cannot build natural value chains, until we organize and manage the business. Business management organizes results as the links in the chain, capital solutions to deploy and implement the capital solutions needed to produce each result, and performance in the utilization of one solution to produce one result. Each link in the chain consists of one result and the capital solutions utilized in performance to produce the result. Result relationships link results in sequence and manage the complete chain.< [more...]>

Logo: Feedburner The Ten Rules of 21st Century Business Management

Submitted by bcfc on August 4th, 2009

Over the past three months, the Business Change Forum published a series of articles on the “Ten Rules to Organize the Business for 21st Century Management” to guide business organization for competitive 21st century business management.

The ten rules of 21st century business management are:

  1. Organize and manage the business
  2. Generate revenues from a chain of known value and quality
  3. Organize and manage capital for high utilization and return
  4. Keep accurate financial and non-financial records on the full business cycle in operations and development
  5. Operate to optimize operations, result value-added, and the profit result
  6. Plan and govern the transition from today’s value to approved strategic value
  7. Manage all capital investments to gain a planned return through results
  8. Manage human personnel, capability, and knowledge capital to increase human worth
  9. Collaborate to maximize shared value and minimize shared costs
  10. Employ 21st century business management conventions and standards

The ten rules are described in the linked article and under the forum “Ten Rules for Business Management”. [more...]

Logo: Feedburner Rule No. 9 of 21st Century Business Management: Collaborate to maximize shared value and minimize shared costs

Submitted by bcfc on July 24th, 2009

Business collaboration is a 20th century management problem

Business collaboration and outsourcing is recognized as a major problem today. Businesses cannot collaborate if the actual business of each partner is not organized or managed. There is need to organize the business of each partner, to integrate suppliers and customers with the enterprise business, to integrate business partners and outsource providers in value chains, and to consolidate business operations. There is a need to know the specific business requirements of customers. There is a need to know the costs incurred and value created by partners in a value chain.

Business collaboration solutions require expensive IT investments

The solutions proposed for 20th century business collaboration involve heavy investments in common information technology to capture and report consistent information across partners, or to reconcile and recast inconsistent data maintained by partners. Often another structure is laid over the business for activities to capture known costs or contrived “value chains’ to estimate values. Even with these investments, no method has been found for real flexible and accurate business collaboration, since the business is not organized or managed.

Rule No. 9 of 21st century business management: Collaborate to maximize shared value and minimize shared costs

Business collaboration and integration is an important requirement of 21st century business management. [more...].

Logo: Feedburner Rule no. 2 of 21st Century Business Management: Generate profits from a chain of managed value and quality

Submitted by bcfc on June 2nd, 2009

Rule no. 2 of 21st century business management: Generate profits from a chain of managed value and quality

21st century business management manages economic outputs from the business as results, manages investments in the business as specific capital solutions, and separately manages performance in the utilization of specific capital solutions to produce specific results. Separating results and capital from performance enables the enterprise business “the activity of providing goods and services” to be managed directly.

Goods and services are final results that go to the customer and have value in the customer willingness to pay and must be of the quality to satisfy the customer. The final goods and services results are produced by a chain of results of value starting from input results from the supplier. Business activity is the utilization of human and other capital in performance to produce a given result. So the business in “the activity of providing goods and services” must be managed by managing the performance producing each result of managed value and quality in a chain of results from supplier input results, through internal result transformation, to the final customer results. The result value-added in excess of performance costs across the chain contributes to the profit result.

20th century management manages performance across processes and information systems

20th century enterprise management, used by all enterprises today, does not recognize or manage output results from the business as a business entity. Results or accomplishments are managed as a component of “performance” along with the business activity in utilizing capital in performance to produce the result. [more...].

Logo: Feedburner Why define your business?

Submitted by bcfc on May 1st, 2009

The economic crisis arises from “failure to manage the business”

Many articles in the Business Change Forum cite “failure to manage the business” as the cause or the current and previous financial and economic crises and corporate governance scandals. What precisely is the business and why is the business not managed today?

What is the definition of your business?

Have you organized your business? Do you manage your business day by day? What is the definition of the business that you have organized and that you manage? Most managers think that they are organizing and managing their business. But when asked they cannot define the business that they have organized and are managing. They usually define the enterprise, rather than the business, since they have actually organized and are managing the enterprise, and not the business.

It is important to have a clear definition of the enterprise business

It is important to have a precise definition of the enterprise business that is organized and managed. [more...]s.

Logo: Feedburner Business Collaboration and Outsourcing through Value Chains with R-pM

Submitted by bcfc on September 16th, 2008

Result-performance Management (R-pM) replaces business process management with value chain management to enable business collaboration

Result-performance Management (R-pM) replaces business process management with result-performance management and re-engineered business processes with result value-quality chains. This enables the enterprise to manage result value-added and to collaborate with business and outsourcing partners, who use R-pM, to re-link value-quality chains for shared value. Review the article “Business Process Management that Prevents Value-quality Chains” to learn more about result value-quality chains.

R-pM manages the result value and performance costs for each result in the chain, to manage result value-added across the chain

R-pM can do this because R-pM defines and manages the result, which provides the specific economic output of value that forms each link in the chain. R-pM also manages each capital solution utilized to produce the result to determine the total performance cost and value-added at each link in the chain. Capital solutions are classified and categorized to have comparable and benchmarked costs for alternative solutions used to produce a result. This enables comparison of alternative linking of value-quality chains with business collaboration and outsourcing partners to produce the highest shared value-added. [more...].

Logo: Feedburner Eliminate information complexity through organized and managed information capital

Submitted by bcfc on March 25th, 2008

Structures laid over the business produce enormous information complexity

20th century management does not manage the actual business, but manages the enterprise using a multitude of organization, process, account, performance, system, administration, etc structures laid over the business. The structures are rigid and do not change with actual business change. No structure captures consistent, complete, and accurate business data. The various structures use different names for the same entity and different definitions for the same part of the enterprise. Information systems computerize the various structures producing enormous amounts of incomplete, inconsistent, and inaccurate information. This causes the exploding information complexity and information management problems enterprises are experiencing today.

Information generally is not organized and managed as capital

Information capital management is not well organized. Accounting is responsible for financial records, information technology may perform data management and record retention, there may be a function for knowledge management, record management, or business or management intelligence. Even with this, there is little management of information for application to improve the business. There is no structure to relate information directly to the business and no data is collected on the actual business as a related set.

The explosion in enterprise information problems and investments demands a basic rethink

These problems are aggravated by the proliferation of IT use for email, Internet information storage and downloads, information exchanges, imaged documents, etc. New corporate governance requirements demand a solution to these problems. [more...]s.

Logo: Feedburner Beyond Drucker: Manage for Results within the Enterprise

Submitted by bcfc on April 18th, 2007

We must organize the enterprise to manage results and objectives as guided by Peter Drucker

Peter Drucker influenced management thinking with his fine works “Management by Objectives” and “Managing for Results”. Drucker showed that strategic objectives are defined by the future strategic results that the enterprise must produce. Near-term objectives are achieved by producing final results from business performance.

Peter Drucker showed that results contain economic value

Drucker showed that results contain the economic value created by enterprise performance. Drucker said to focus on the result not the activity, a sound concept that largely is ignored today. Goods and services and other results must be organized first and activity or performance must be organized to produce the results.

Managers lacked a method to organize the business and put Drucker’s principles into practice

Drucker’s principles require that the business be organized in terms of results produced and the performance producing the result. But, there was no method available to organize results and performance. So, Drucker’s results could only be valued as they left the enterprise. Result-performance Management (R-pM) provides the means to put Drucker’s principles into practice, and the guidance needed in the R-pM Toolkit.

Result-performance Management (R-pM) enables application of Drucker’s work to manage for results within the enterprise

R-pM organizes the enterprise by the results that must be produced to produce the final results that are managed enterprise objectives. R-pM manages the economic value created in results produced within the enterprise to manage result value, performance costs producing the result, and the result value added. Managing for results within the enterprise, enables result value chains, managed result benefits of development, managed creation of strategic result value, collaboration for shared result value, and the many other benefits of managing for results.

21st Century Management eliminates 20th century problems

Eliminate the result management 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.nagement.com.

Logo: Feedburner Impact of the Internet on Business Performance and Collaboration

Submitted by bcfc on January 3rd, 2007

In an article on 18 January 2006, we discussed managing the impact of competition and collaboration from around the world. We said that the Internet has had major impact on how we conduct business.

Corporations and companies worldwide must organize the business to be more flexible to take advantages of the opportunities and to meet the competition from the Internet. The Internet opens opportunities for business information and collaboration. Enterprise need a method to standardize output results and performance costs to simplify the business and enable collaboration. The answer is Result-performance Management (R-pM) which organizes the business for flexibility and collaboration, and explained in R-pM community downloads like “R-pM Applications to Improve your Enterprise Today”

R-pM organizes Corporations for Internet impact to gain competitive advantage through opportunities and to thwart competitive threats

Customers, collaborators, and competition can come from anywhere in the world. With the Internet, we must deal with enterprises around the world with differing organizations, standards, and ideas on how business is done. We must be able to anticipate and react quickly to change. We must be able to produce products to meet precise customer needs. Those of us in this situation, have problems leveraging the Internet and handling threats from the Internet. [more...]