cking of links into a chain.

To understand where value is added we need to understand costs for each link and across the chain. The costs must be defined for all tangible and intangible solutions utilized at each link of the chain and must add up to the total cost for a link. The total costs of each link must add up to the total costs of the chain. R-pM meets this need by identifying all the specific performance solutions utilized to produce each result and the rules for utilizing the solution. This allows the cost of each solution utilized

Collaboration involves massive investments in systems, redefined processes, and data reconciliation. Collaborate by linking with your partner's value-quality chain for the best value-added.

We hear a lot these days about problems with business collaboration. There is talk of a business chain to create shared value. I see contrived methods to link raw materials to a finished product that are called value chains, but they are chains with no value links. I have never seen a working example of successful business collaboration across a defined value chain. I have never even seen a real value chain established within the confines of a company. Does any company have a value chain linking all they do across the company that manages value, cost, and value-added at each link in the chain to come up with their own shared value at the end? If we cannot create a value-chain within one company, how can we hope to create a value-chain across companies?

Conventional 20th century methods prevent definition of true value chains

Conventional methods do not provide a way to define the precise links in the chain. Collecting costs is difficult even within one company since the high-worth capital is “intangible”, many costs are “unknown”, and capital is rarely managed as capital that incurs costs to create value. Costing is even more difficult across companies, since partners structure the capital consumed differently, and charge costs to different wrong things.

To create shared-value, we need to understand value across a value chain. To understand value across the chain, we need to understand the links in the chain and how costs are incurred and value is created. We must understand the relative value of the links to the total value of the chain. Conventional methods prevent us from doing this, by managing contrived entities rather than the components of a value chain.

R-pM enables definition of true value chains

Result-performance Management (R-pM), enables value chains by defining and managing the components of a chain. R-pM creates value chains by defining results as links in the value chain and the relationships between results as the interlocking of links into a chain.

To understand where value is added we need to understand costs for each link and across the chain. The costs must be defined for all tangible and intangible solutions utilized at each link of the chain and must add up to the total cost for a link. The total costs of each link must add up to the total costs of the chain. R-pM meets this need by identifying all the specific performance solutions utilized to produce each result and the rules for utilizing the solution. This allows the cost of each solution utilized

alue chain. I have never even seen a real value chain established within the confines of a company. Does any company have a value chain linking all they do across the company that manages value, cost, and value-added at each link in the chain to come up with their own shared value at the end? If we cannot create a value-chain within one company, how can we hope to create a value-chain across companies?

Conventional 20th century methods prevent definition of true value chains

Conventional methods do not provide a way to define the precise links in the chain. Collecting costs is difficult even within one company since the high-worth capital is “intangible”, many costs are “unknown”, and capital is rarely managed as capital that incurs costs to create value. Costing is even more difficult across companies, since partners structure the capital consumed differently, and charge costs to different wrong things.

To create shared-value, we need to understand value across a value chain. To understand value across the chain, we need to understand the links in the chain and how costs are incurred and value is created. We must understand the relative value of the links to the total value of the chain. Conventional methods prevent us from doing this, by managing contrived entities rather than the components of a value chain.

R-pM enables definition of true value chains

Result-performance Management (R-pM), enables value chains by defining and managing the components of a chain. R-pM creates value chains by defining results as links in the value chain and the relationships between results as the interlocking of links into a chain.

To understand where value is added we need to understand costs for each link and across the chain. The costs must be defined for all tangible and intangible solutions utilized at each link of the chain and must add up to the total cost for a link. The total costs of each link must add up to the total costs of the chain. R-pM meets this need by identifying all the specific performance solutions utilized to produce each result and the rules for utilizing the solution. This allows the cost of each solution utilized

e precise links in the chain. Collecting costs is difficult even within one company since the high-worth capital is “intangible”, many costs are “unknown”, and capital is rarely managed as capital that incurs costs to create value. Costing is even more difficult across companies, since partners structure the capital consumed differently, and charge costs to different wrong things.

To create shared-value, we need to understand value across a value chain. To understand value across the chain, we need to understand the links in the chain and how costs are incurred and value is created. We must understand the relative value of the links to the total value of the chain. Conventional methods prevent us from doing this, by managing contrived entities rather than the components of a value chain.

R-pM enables definition of true value chains

Result-performance Management (R-pM), enables value chains by defining and managing the components of a chain. R-pM creates value chains by defining results as links in the value chain and the relationships between results as the interlocking of links into a chain.

To understand where value is added we need to understand costs for each link and across the chain. The costs must be defined for all tangible and intangible solutions utilized at each link of the chain and must add up to the total cost for a link. The total costs of each link must add up to the total costs of the chain. R-pM meets this need by identifying all the specific performance solutions utilized to produce each result and the rules for utilizing the solution. This allows the cost of each solution utilized

w costs are incurred and value is created. We must understand the relative value of the links to the total value of the chain. Conventional methods prevent us from doing this, by managing contrived entities rather than the components of a value chain.

R-pM enables definition of true value chains

Result-performance Management (R-pM), enables value chains by defining and managing the components of a chain. R-pM creates value chains by defining results as links in the value chain and the relationships between results as the interlocking of links into a chain.

To understand where value is added we need to understand costs for each link and across the chain. The costs must be defined for all tangible and intangible solutions utilized at each link of the chain and must add up to the total cost for a link. The total costs of each link must add up to the total costs of the chain. R-pM meets this need by identifying all the specific performance solutions utilized to produce each result and the rules for utilizing the solution. This allows the cost of each solution utilized

cking of links into a chain.

To understand where value is added we need to understand costs for each link and across the chain. The costs must be defined for all tangible and intangible solutions utilized at each link of the chain and must add up to the total cost for a link. The total costs of each link must add up to the total costs of the chain. R-pM meets this need by identifying all the specific performance solutions utilized to produce each result and the rules for utilizing the solution. This allows the cost of each solution utilized to be charged to the result and added to the cost of each result link. The value-added is then known for each link and can be totaled across the chain.

Each company in a potential business chain must first simplify the business to set up a true result-performance value chain, within the company:

- Structure the company by defining results, including results links in the value chain, and results that manage or depend on the chain

- Define relationships between results that link results into a chain

- Define the relative value of results in the chain to the total value of the chain

- Structure capital so that costs can be standardized and utilization of capital to create value can be known for each link in the chain

- Develop a management capability to optimize the value-added for each result in the chain by managing value against the costs incurred to create the value

Once companies establish result-performance value chains within the company and have gained management experience with the value chain, they can think of extending their value chains to customers, suppliers, and business partners.

R-pM enables collaboration by relinking value chains

Once we have value chains established in each of the companies that must collaborate, it is straight forward to re-link the value chain across the companies to determine what chain provides the greatest shared value for the lowest shared cost. Then business partners, using R-pM , can make the transition to the 21st century to collaborate in a real value chain.