Value-Based Management in Government

CHAPTER SEVENResults Management

ONE OF THE THREE Rs scales to be balanced in seeking to maximize organizational stakeholder value under VBM is what the authors have termed “results management.” While this may be a new term to the reader, it will surely not be a new concept. Just as risk management is the management of risk, and resource and cost management are the management of resource usage and their costs, so, too, is results management the management of activities within the end-to-end business processes designed to set and achieve a particular result for stakeholders.

To be clear about the context of the word “results” in this chapter, we remind the reader that we are referring to a “result” as what an organization aspires to achieve through a particular decision and associated actions, and not the cost or risk of successfully achieving that result. In short, it is the “return” element of a risk-adjusted return on investment analysis as originally shown in Figure 2.3 and repeated here as Figure 7.1.

While the need to manage toward the delivery of desired results will surely be recognized, the authors present a new concept for how those results need to be achieved as part of a larger set of considerations. This larger set of considerations was discussed as part of enterprise performance management (EPM) in Chapter 5 and graphically presented in Figure 5.3. That figure is repeated as Figure 7.2. In this chapter we focus more specifically on one element of that EPM effort: ...