Logo: Feedburner Archive for the 'Costs and Value' Category

How to Manage and Integrate Information Capital

February 13th, 2007

Enterprises have much to gain by properly organizing and leveraging information to provide value. Information is not managed properly for support, integration, and utilization in today’s enterprise.

Information capital must be managed from two perspectives:

  • Information capital development, support, and maintenance to increase capital worth
  • Information integration and provision as solutions to create value in results

Today's enterprise manages information as technology or an administrative function, rather than as specific data, knowledge, record, or intelligence information capital.

The enterprise also lacks the integrating entities to create an enterprise information base and deliver information solutions to be utilized by the business. Information is maintained on a wide variety of entities in various systems and solutions creating a large data reconciliation and integration problem [more...]

Results: the Internal Economic Output from Enterprise Performance

February 9th, 2007

Results have historically been defined as a component of performance, or as economic outputs that reside outside of the enterprise. These definitions prevent the enterprise from managing the result as internal economic output.

Results must be separated from performance and defined as the internal economic outputs produced by enterprise performance. Results then are the basic building blocks of the enterprise, since all that the enterprise does must be focused on producing specific results. Result-performance Management (R-pM) defines and organizes the specific results produced by every human capital solution across the enterprise. This enables the enterprise to manage quality and value and the other attributes of each result [more...]

Charge Performance Costs to Results produced to manage Value-added

February 8th, 2007

Many of the ten rules for 21st century management require that the enterprise manage performance costs and result value. The 20th century enterprise and conventional cost accounting and management methods capture "known costs" for various entities and then charge the costs to a contrived center, process, object, or activity and not against the value created. The 20th century enterprise is not organized to determine performance costs and result value.

In order to manage performance costs and result value the enterprise must organize the business for 21st century management. The enterprise cannot know and manage performance costs unless performance solutions are organized and managed. The enterprise cannot know and manage result value unless results are organized and managed. The enterprise cannot know and manage result value-added as a metric to optimize operations and the return on capital development investments, unless performance costs are managed against the result value created. [more...]

Organize with R-pM for 21st Century Management

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