Archive for the 'Collaboration Methods' topic

20^th 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 20^th 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.

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

Result-performance Management (R-pM) provides the knowledge, concepts, and procedures for 21^st 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...]>

20^th century enterprise management has no consistent conventions, definitions, and standards

20^th century enterprise management, used by all enterprises today, lays a wide variety of organization and management structures over the business, and, therefore, cannot manage the business. A different set of conventions, definitions, and standards is used for each of the structures laid over the business. The many 20^th century enterprise management books contain different conventions, definitions, and standards. The many different business processes, information systems, IT architectures, costing and accounting, performance reporting, and administration structures each have their own set. The enterprise employs a wide variety of conventions, definitions, and standards to manage the enterprise, rather than one limited and consistent set to manage the business.

20^th century management does not support common solutions, collaboration, or measurement across enterprises

The lack of consistent conventions, definitions, and standards prevents business collaboration and integration, common solutions that any enterprise can use, business measurement for comparison across enterprises, common learning that can be applied to any business, educated and trained personnel that can fit into any business, and other long-unfulfilled business needs.

Rule No 10: Employ 21^st century business management conventions and standards

Rule No. 10 of 21^st century business management eliminates the problems of conflicting and confusing business conventions, definitions, and standards by providing one set related to directly organizing and managing the actual business. Terminology that is not related to the actual business and conventions and standards established to maintain structures laid over the business are not continued.

21^st century business management provides one set of consistent conventions, definitions, and standards for the actual business

21^st century business management is documented in the knowledge and procedures provided by Result-performance Management (R-pM). [more...].

Business collaboration is a 20^th 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 20^th 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 21^st century business management: Collaborate to maximize shared value and minimize shared costs

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

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...].

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...]

Corporate quality is not in business process performance quality

Conventional business process re-engineering and management emphasizes the importance of performance quality. But the re-engineered business process mixes results produced in the process with the performance across the process. In an article posted on 16 February 2006, Striving for quality performance, we discussed how many enterprises emphasize performance quality in their business processes. This became the conventional method, after enterprises reengineered their business processes to manage performance quality.

Our conclusion was that we need a better way to understand quality consistently across the whole enterprise, to understand the impact of bad quality, and to isolate problems producing bad quality. To find out how Join the R-pM community to review the download “How to Build Result Value-quality Chains”

Do you look for performance quality when you buy an input to your value-quality chain?

Does “performance quality” make sense to you? When you buy something, are you concerned about “performance quality”? Even for a service, what is more important, the performance quality in delivering the service or the quality of the result of the service? The result of the service is your input result, which you expect to be of high-quality and to which you add value. [more...].

Many methods have been contrived and much is written these days about value management, value chains, value propositions, value creation, strategic value, etc. But, in all this has anyone precisely described where enterprise value really lies?

The problem creating value management and value chains

What is value an attribute of? What in your enterprise contains your value? When we create value, where does the value go? Is value an attribute of performance, the customer, the supplier, the proposition, the employee, the department, the function, the process, the system, a chain, the business, the enterprise, management, the strategy, or what? Can we manage value when we do not know what contains value?

There many contrived formulas to calculate value. But often the formulas calculate a value for entities that do not contain the value created by the enterprise. For example, there are many formulas to calculate different values of the business, but does the business contain the value we create.

There is a lot of talk about business collaboration in value chains across enterprises. But, what comprises a link in a value chain? What are the components that define a link in your value chain? If we cannot define a link, how can we create a chain?

There is only one solution to manage value creation and to link value chains

We cannot manage the value created in the business, if we do not use Result-performance Management (R-pM) to manage the business. The business is comprised of two entities:

• Results: The economic outputs from the business that actually contain the value created and are specifically defined to manage value
• Performance Solutions: The capital of worth, consumed in performance to produce result value, which are specifically defined to manage costs and the value added

The only way to manage value creation and link value chains is through R-pM as is introduced in the article Use R-pM to Make Value Really Valuable. [more...]

Much is written about business collaboration through value chains. But the value chains are contrived one-off chains for the particular situation. Have you ever seen an example of a value chain model that any enterprise can use to collaborate with any other enterprise?

The conventional enterprise cannot build managed value chains

In order to construct a value chain you need to know where your value lies. You must manage the value at each link in the chain in order to manage the chain. A value chain is not worth much unless you can precisely define and compare all costs incurred to create the value at each link for alternative collaborators in the chain. You must manage the utilization of capital as specific performance solutions that produce a cost for all tangible and intangible capital utilized. The costs for each link in the chain must be charged against the value created to determine the value-added at each link in the chain.

Can you do this with the 20^th century methods you use today? The 20^th century enterprise cannot collaborate in true value chains because it can not manage the value created and costs incurred at each link in the chain. [more...]

Today, there are many books and methods for competitive differentiation strategies, product differentiation, and implicit differentiation. Most methods being contrived are very industry or functional-specific. Conventional wisdom and sales hype says that this is good. But, these methods are not built on the fundamentals of the business and serve to separate and isolate the enterprise.

Competitive differentiation does not come from being different

Is it possible to define the one right way to organize and manage the business in any company, corporation, institute, agency, or other enterprise in any industry?

There are two important factors to know:

• The fundamental commonalities of all enterprises in any industry
• The fundamental definition of the business

Result-performance Management (R-pM) defines the enterprise as an business that utilizes capital in performance to produce value in results. This definition applies to any form of enterprise in any industry; even government, non-profit, or informal endeavors.

R-pM differentates for advantage and standardizes for low-cost and collaboration

One key to understanding and applying R-pM is to understand the fundamental commonalities of all enterprises that R-pM builds on to standardize and enable collaboration. R-pM differentiates enterprises only in product, service, industry, or other results, where there is significant competitive advantage that justifies differentiation.
The commonalities of the enterprise that provide the basis for R-pM are described in the article The Commonalities of all Enterprises Build the Foundation for the 21^st Century Enterprise. Just understanding these commonalities and the way enterprises should differentiate will give you a new perspective to view your business as an integrated business structure, even without using R-pM. But, more and more enterprises are considering R-pM, in order to standardize for collaboration and common solutions and to differentiate for competitive advantage in the 21^st century.

Review the articles under Learn the Basics of R-pm or click on the R-pM banner to download information to learn more about R-pM.

21^st Century Management eliminates 20^th century problems

Result-performance Management (R-pM) eliminates costly 20^th century problems. Slash costs, simplify business management, and boost competitive advantage through R-pM, the conventional method for 21^st Century Management.

Download your 21^st Century Management Manual today

Your 21^st Century Management Manual, The R-pM Toolkit, is available today and is under continual development to expand and refine 21^st Century Management. Get your R-pM Toolkit, and future updates, at result-performance-management.com.

The Business Transformation Problem

Over the past 10 years or so, business enterprises spent large sums on business transformation in such areas as business process reengineering, enterprise resource planning, supply chain management, and customer relationship management in expectation of enormous benefits and competitive advantage. We discussed this in the article of 22 May 2006, Going for true business transformation.

In the article, we explained how business transformation is just a big word for rearranging and upgrading conventional business processes, information systems, and other structures overlaid on the business to perform the same operations, administration. and development. Instead of transforming the enterprise to organize and manage business reality and solve problems, we kept creating bigger problems, requiring additional solutions. Now, business transformation conjures up “out of the frying pan into the fire”.

But, business transformation does convey the objective if we want to properly organize and manage our business.

The Business Transformation Solution

We define business transformation as redefining and restructuring the enterprise to organize and manage the business, to provide the one fundamentally-sound right way for business success. Once the business has been transformed, it will change naturally with the times and never need further transformation.

There is one fundamentally right way to organize the business for true and beneficial business transformation. [more...].