Being different is not the same as competitive differentiation. Being different just adds costs and complications and hampers collaboration. So in most cases, we differentiate competitively by being the same to simplify the business, reduce costs, and collaborate. Competitive differentiation by being different, must add to customer, partner, or public value. But, differentiating by being the same is not a matter of copying what others are doing. We must simplify the business down to the commonalities of all enterprises and build on the commonalities, rather than the differences. We must identify and focus competitive differentiation on the differentiators that make a real difference in enterprise profits and success.
This is the purpose of Result-performance-Management (R-pM), a new breakthrough to organize the actual business for 21st century management. R-pM enables any enterprises to gain competitive differentiation by using the same principles to understand the business, to organize the business through the one business structure, and focus on the components of the business that provide real competitive differentiation.
R-pM organizes capital investments in solutions, the utilization of solutions in performance and the results produced by performance in order to manage the business
R-pM defines the 21st century enterprise business as "investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results". The business of all enterprises is defined by investments in capital to provide solutions, utilization of solutions in performance, and results produced. R-pM structures results in a result structure, capital solutions in a capital structure, and solutions deployed to produce a result in a performance structure.
The business is structured by the results that it must produce and the relationship between results for results that contribute to a bigger result, results that are part of a chain leading to a final results, results that add costs or value to another, etc. The business is structured by capital organized as solutions by the capabilities needed to develop and support solutions and by the way solutions are integrated and utilized in performance. By structuring results and solutions R-pM can organizes the business of any and all enterprises by deploying solutions with rules to produce results in a manageable business structure.
R-pM provides competitive differentiation by organizing the business in one standard business structure and using the same structure for all business planning, direction, control, and reporting.
R-pM standardizes capital and differentiates in the cost-effectiveness of solutions producing specific results
The enterprise differentiates by standardizing capital in four categories for effective development and support.
1. Business: To provide organization, processes, and data to directly produce a result 2. Human: To provide personnel, capability, and knowledge to utilization solutions to produce results 3. Facility: To provide reusable equipment, consumable supplies, and keep complete records 4. Management: To provide strategy and plans, tactics, and intelligence to support management results Capital is managed and developed to provide qualified solutions to produce specific results. The basic competitive differentiator in any business is in the cost-effectiveness of solutions utilized to produce results across the business. The attention on differentiation must be on identifying and understanding results to be produced by the business and acquiring and developing human and other solutions with the capabilities to design and produce value-quality results. Once effective solutions are deployed, the enterprise differentiates by standardizing performance management for cost-effective solution utilization to produce value-quality results. Performance solution utilization is on the cost side and must be controlled, to produce profit margins. The business differentiates by standardizing results in three groups
The enterprise gains competitive differentiation by standardizing three groups of results on the value side:
1. Capital results that manage and support performance solutions. The enterprise differentiates by standardizing these results and the performance supported, to use the best solutions.
2. Revenue results that generate revenues and create greatest value. The enterprise differentiates in results appreciated by customers by utilizing especially effective solutions to increase value and reduce costs in the customer value chain.
3. Investment results that manage change over time. Here again the enterprise differentiates by standardizing these results and utilizing the best solutions in managing investments, projects, and shareholder value.
R-pM manages differentiation in the cost and effectiveness that produce the value and quality of revenue results that must meet strategic value-quality objectives
The only place the enterprise differentiates by being different is in the value and quality created in specific results appreciated by the customer, partners, or public. The differentiation is not in the R-pM utilizing capital as solutions in performance to produce results. The differentiation is in the cost and effectiveness of solutions utilized in performance to design, produce, market, and deliver the result to the customer. The enterprise should manage differentiation by acquiring, developing, and deploying especially capable and high worth solutions to be utilized to design, produce, market, deliver value-quality in specifically-defined results appreciated by the customer, partners, or public.
R-pM provides the value creation in differentiated revenue results and cost reduction and collaboration through standardization
Therefore, all enterprises should emphasize competitive differentiation through their commonalities to simplify the business, and use common best practices to reduce costs, share solutions, outsource, and collaborate. The real competitive differentiation by being different and providing excellence needed is in the capability of solutions utilized in the result chains from initiation and design of a product or service result and the result chain through to delivery of the value and quality product or service result that satisfies and delights the customer. This can only be done by utilizing result-performance management (R-pM) to acquire, develop, deploy, and utilize cost-effective solutions in performance to produce value and quality in results, particularly those revenue results along the customer value-quality chain. For more information visit
http://www.result-performance-management.com
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