Archive for the 'Value-chain Management' topic

There are many business management articles and a lot of talk about value, be it value creation, value propositions, value management, or value chains. With 20^th century management all we can do is write articles and talk. We cannot build actual 21^st century value-quality chains as explained in the new download “How to Build Value-quality Chains“, available now at Result-performance-Management.com.

20^th century management cannot build or manage value or quality chains

20^th century management mixes performance and the output results together as “performance” and manages “performance quality”. 20^th century business process and information systems are directed at a final result and do not specifically define or manage the results leading to the final result. So, there is no way to manage value or to build value or quality chains.

The link in the value-quality chain is the economic output result

Value-quality chains form naturally by organizing the business for 21^st Century Management using Result-performance Management (R-pM). The business consists of two entities.

• Results: The economic outputs from business production that form the links in the chain
• Performance solutions: The capital utilized in business production to produce a result at each link

Any area of the business can be organized by defining the results produced and the performance solutions utilized.

Each result in the value chain has a value, costs, and a value-added

Results form a natural chain of results that starts with input results from suppliers. [more...]

The business is the utilization of capital as business solutions in performance to produce business results. The objective of all human capital, utilized as business solutions, must be to produce business results. Business results are the specific economic outputs of value. Results can be counted and may be measured in other ways. Results have attributes that define the quality, value, and other characteristics of the result.

Result organization and relationships are business organization capital to represent the actual business

The business organization is not produced by a management study or decision. Management decides on strategic results needed and the performance solution investments needed to produce results.

The business organization is enterprise capital that must be managed by professionals like any other type of capital. The logic of result relationships do not need to be understood by everyone. The business organization professionals must define result relationships to build and maintain the enterprise business structure to represent the actual business accurately.< [more...]

The business is the utilization of capital as business solutions in performance to produce business results. The objective of all human capital utilized as business solutions must be to produce business results. Business results are the specific economic outputs of value. Results can be counted and may be measured in other ways.

Results are managed as separate entities in today’s enterprise

Results include a wide variety of output entities that are separately defined or remain undefined today. The enterprise may have records on material, products, orders, invoices, etc. Each of these separate entities is part of one set: results. The enterprise manages each identified result separately as its own entity.

Many valuable results are produced but are not recorded or managed as something of value that incurs the performance cost of utilizing business solutions.

Defining results as one set enables management of result commonalities

Defining all outputs as results enable the enterprise to manage the common attributes of all results, such as:

• The identifier and description
• The manager responsible to produce the result
• The result customer
• The volume of results planned and produced
• Quality determinates for the result
• The value of the result
• The total performance solution charges against the result
• Result metrics to measure the quality and impact of the result
• Result goals
• Result relationships
• Access to knowledge on producing the result
• Result risk factors and incidents
• Result symptoms encountered

Results are defined down to the level of detail desired by management in order to manage all of the economic outputs produced.< [more...]

As R-pM gains in popularity, there is a growing need for people with R-pM capabilities. This provides new career opportunities for those who want to be at the vanguard of 21^st century management.

R-pM offers opportunities within the enterprise or as an R-pM Consultant, Solution Developer, or Educator

The opportunities available through R-pM are detailed in the article “R-pM Creates new Career Opportunities” in the 21st Century Management Magazine. Read the article for insights on how you might benefit by starting now to learn and apply R-pM.

The R-pM Toolkit is the key for learning and applying R-pM

The R-pM Toolkit provides R-pM learning and procedures for implementing and using R-pM. Remember the R-pM Toolkit, plus perpetual updates, is low-priced so everybody can take advantage of R-pM. Join the R-pM Community at Result-performance-Management.com to download your R-pM Toolkit, and learn how to eliminate the 20th Century problems discussed at the Business Change Forum.

Much is written about the theory of value chains and various structures have been contrived to overlay value chains on the business.

21^st Century Management organizes the business to provide natural value chains

Result-performance Management (R-pM) is the conventional method to organize the business for 21^st century management. No one has ever organized the business to provide natural value chains, until Result-performance Management (R-pM). R-pM organizes results as the links in the chain and performance solutions to provide the capital utilized to produce each result. Result relationships link results in sequence and manage the complete chain.

Results are economic outputs that contain the value created

R-pM organizes and relates results from supplier input results, through results transformed by the enterprise, to final customer results. Customer payment confers final result value. Enterprise payment confers input result value. Internal customers confer value on internal results added to and transformed in the chain. The total input and internal result value cannot exceed final result value.< [more...]

The 20^th century enterprise has always had management problems, because we never managed the business “the activity of providing goods and services”. Instead, we overlaid organization, system, accounting, reporting, and other structures over the business. The business changes, while the overlaid structures remain rigid, creating problems with interfacing, communications, and generally managing the business. The organization structure created silos, which interrupted the flow of goods and services across the enterprise. The solution to the problem was to re-engineer business processes to facilitate the flow of goods and services across the organization units involved.

Business process re-engineering solved some problems, but created others

Business process re-engineering (BPR) put in business processes leading to one output at the end of the process. BPR generally sped up the production of the final output, but introduced another set of problems. Results and performance within the process are mixed together. Quality management focused on performance quality. The process crosses organization units, which are expected to manage performance and performance quality to produce a final output result to go to the customer. This made it difficult to manage value and quality of the results produced within the process leading to the final output. The main problem was that BPR did not address the fundamental problem that the enterprise did not manage the business. Instead BPR introduced another overlay on the business and increased business complexity. Enterprises needed further change management services to address the symptoms of the problems created by business process re-engineering.

The problems with business process management show the superiority of Result-performance Management

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...]

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

Result-performance Management (R-pM) enables the enterprise to replace business process management with result-performance management and to replace re-engineered business processes with result value-quality chains. This enables the enterprise to manage result value-added and to collaborate with business partners, who use R-pM, to re-link value-quality chains for shared value. Review the article “Un-reengineer Business Processes to Create Result Value-quality Chains“, and join the R-pM Community to download “How to Build 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 performance solution utilized to produce the result to determine the cost and value added at each link in the chain. Performance 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 to produce the highest shared value. [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...].