Archive for the 'Differentiation or Standardization' topic

Minimize capital investments and business performance to produce essential business results

Many socially-responsible enterprises are looking for methods to utilize capital assets effectively to reduce waste, conserve energy, and provide an innovative work environment. The basic way to do this is to directly organize and manage the business in the utilization of capital assets in business performance to produce valuable economic outputs in business results. Result-performance Management (R-pM) provides the knowledge and procedures to organize the business for socially-responsible 21^st century management

Capital assets are managed directly to produce results

The managed business replaces administration with capital management and organizes all tangible and intangible capital assets as specific capital solutions to be utilized to produce specific business results. All capital is organized to be professionally-managed by those with the capability. The objective is to minimize performance and to maximize the value and quality of results. So, all capital is utilized effectively to prevent waste. All performance costs and captured and charged to the result value produced from the performance. Capital not required by the actual business is placed with another enterprise that can make use of the capital.

The managed business reduces overheads and waste

The managed business eliminates 20^th century enterprise management structures laid over the business. The most costly structures are the monolithic business processes and information systems laid over the business. [more...].

What does it mean to be competitive? Is it an attitude or a situation? Being competitive is both an attitude to strive to improve continually and a situation where performance enables better results than the competition.

Being competitive in business is not just companies competing in a market. It is people within the companies competing to increase their worth to the company. It is nations competing to improve the performance of their industries and companies. And then it is companies having an attitude to be even more competitive continually in a changing world market with new sources of competition.

In order to be more competitive you must improve performance to produce better results

If you want to be more competitive as a situation, you need ways to improve your performance to produce better results. In sports, your performance must produce a score result that beats the competition. If your company wants to be more competitive, the company also must improve performance to produce better results. [more...]

We have many different kinds of enterprises in companies, business, corporations, institutions, government agencies, etc. We have defined many different industries. We have defined different legal structures like public, private, partnership, etc.

We try to differentiate by being different

We define different ways of organizing and managing each of the different kinds of enterprises. We usually think that is good to be different and demand industry-specific or custom solutions to show that we are different.

Being different is not the same as competitive differentiation

Being different just adds costs and hampers collaboration, so that differentiation comes from being the same. Differentiation by being different must add customer, partner, or public result value and quality.

Result-performance Management builds on commonalities and differentiates customer result value-quality

So, we should define the commonalities of all enterprises and build on the commonalities, for differentiation. We are different only where specific result value-quality is created for the customer, partner, or public.

This is the purpose of Result-performance-Management (R-pM), a new breakthrough to manage the 21^st century enterprise. View the article “The Commonalities of all Enterprises Build the Foundation for the 21^st Century Enterprise” to differentiate by being the same as well as by being different.

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.

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.

In an article on 5 April 2006, we discussed the need to Differentiate for revenues and standardize to cut costs.

Competive differentiation does not come from being different

Most enterprises are concerned about competitive differentiation. Often enterprises want custom solutions rather than standard solutions for competitive differentiation. We discussed areas that really differentiate the enterprise and other areas that do not differentiate enterprises and could benefit from standardization across enterprises.

We said that revenue-producing results differentiate the enterprise, and that the enterprise should stamp their identity on these results. But, how can your enterprise differentiate itself by stamping its identity on revenue-producing results?

Differentiate the corporation through value-quality results

In an article on 12 June 2006, we said replace business processes with result value chains. You need to think of your results as a value chain that produces the final result that goes to your customer. In order to differentiate your result, you need to think further to understand the final result from your enterprise as an input result into your customer value chain. Then think further still. [more...]

How do enterprises gain competitive differentiation?

Most enterprises are concerned about competitive differentiation. Many are very secretive about how they do things. Often enterprises want custom solutions rather than standard solutions for competitive differentiation. What are the important areas and factors that really differentiate the enterprise? What other areas do not differentiate enterprises and could benefit from standardization across enterprises?

What are customers looking for that differentiates their suppliers?

The basic thing that differentiates enterprises is their appearance in the eyes of potential customers and partners. Customers are not concerned with inner workings or other things they do not see. Customers and partners may be concerned when they need to interact. [more...]>