The only Way to Organize and Manage your Business
Manage Result Value, Volume, Cost, Value-added, Quality, and Risk
Results produced from performance contain value, quality, volume, and risk.
Every enterprise business produces economic outputs. These outputs are results, even though they are not called results and are not managed as entities in a set of results. Process and performance management and "Managing for Results" say results are economic outputs that leave the enterprise.
In fact, results are economic outputs produced by the business, leading to final results that leave the enterprise. Business management defines the relationships between results and organizes all results in a Result Structure.
Why manage results?
Many essential business attributes and data elements are not recorded or managed today, because results are not managed. Results must be managed as one information set for effective 21st century management, since:
- Results are the economic outputs of value that must be produced to fulfill business objectives
- Results are one of the three components of a business
- Results must be managed to manage the business and achieve result goals
- Results must be managed to utilize qualified capital solutions properly in performance to produce the result
- Results like fulfilled order, product produced, service delivered, maintained equipment at a high level are produced by a set of lower-level results
- Results embody business volumes, value, quality, and risk
- Results have common attributes and metrics like identifier, description, value and quality determinates, customer, group, quality standards, units of measure, volume, value-added, etc. that form result sets
- Results relate to each other in precedence, impacts, cost and value contribution, common management, and place in a value-quality chain
- Results provide the links in the value chain from supplier input results to final customer results
- Results have value and absorb costs to show value added by result along a chain of results
- Results describe quality to show the qualifications of solutions utilized and effectiveness of performance
- Results create strategic value and must be managed to manage strategic value creation
- Results value-added provides capital development benefit and return, which must be known to manage investments and projects
Some outputs are defined as entities, but Results are not defined as a set
Results are the economic inputs to and the economic outputs from performance. Some results are managed today as separate entities, not part of one set, such as; design completed, material item received, machine maintained, product produced, customer service rendered, production waste recovered, order delivered, etc. Other results often are not defined or managed, such as capability developed, knowledge created, record transaction processed, strategy approved, pricing policy developed, market study completed, investment justified, etc.
Results are structured to manage the commonalities of business outputs
It is very important for the enterprise to manage results. Results are distinct accomplishments that can be planned, counted, and measured. Results are defined at some level across the business, so that all capital utilized in performance produces results. The level of definition is flexible to balance the benefit of business management control, with the cost and effort involved. Results have common attributes, such as customer, alternative identifiers, group, objective, quality and risk determinates, and specific metrics that can select out manageable result sub-sets. Plans and goals can be set for results by time period.
Results are organized in the business Result Structure as key results produced at the highest level across the business and as end-results produced directly from performance at the lowest level across the business. Set-results are defined to organize end-results and other set results that produce a key-result. Some result details, like product or order, continue to be managed as subordinate entities related to the result structure.
Results create strategic value
If we want to create strategic value, we must manage results. Results are the economic outputs from the business that contain value. Customers pay a value for results. The value of every result must exceed the cost of performance to produce the result, to justify its production. The strategic business structure plans future results needed for development and growth. Strategic result value creation is managed through result goals by period to the strategic business structure. Corporate governance manages the convergence of the current period business structure toward the strategic business structure with new strategic result value estimates.
Result relationships define how results interact and are structured
The relationships between results are defined so that results can interact and be processed. Result relationships define results that must be produced before other results, results that add cost and value to other results, set-results that incur costs allocated to end-results, results that must be managed together, results that comprise a value-quality chain, etc. Result relationships are used to organize and process results in the result structure.Results are transformed in value chains to produce final result value
Certain results are transformed by utilization of capital solutions in performance result by result to reach a final result. This forms a result value-quality chain. Performance costs are charged to result value for each result in the chain to manage result value-added. The value-added by each result in the chain totals the final result value-added. The results in the chain are linked by the natural result relationships, and not by a contrived work flow.
Results embody corporate quality, volumes, and risk
Process and performance management structures used today, try to manage performance quality, but quality is an attribute of the result. Even for a business service, the quality is in the result that is input into the customer result value-quality chain. We must manage the qualifications of capital solutions implemented and the effectiveness of solution utilization in performance to produce a quality result. We must manage the quality of each result along a chain that goes into the final result. One unqualified or ineffectively utilized solution can produce a low-quality result. One low-quality result in the chain can produce a low-quality final result.
Results are counted and measured to manage the volume produced, capital solution capacity provided, and the utilization of capacity in performance. There is a risk that results will not be produced as planned, which is managed along with capital solution reliability and performance uncertainty. Every unit or person justifies their costs by producing results of greater value, not by performance of functions, tasks, activities, jobs, or work.
Result value-added is the objective of capital development
It is important to manage results for capital development and business change. The results to be improved or added must be defined in order to define the qualifications required for specific capital solutions to be developed. The objective of development must not be to develop and implement capital. The objective must be to add value to the specific results produced by specific new or improved capital solutions. We must define and manage results to plan, measure, and manage result value-added and the return on all of our investments.
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