What is result-based management? This is an emerging concept in today’s business environment and is used by many businesses to increase productivity. Results-based management (sometimes called performance-based management) is a method for tracking and managing an organization’s implementation of a specific strategy, most often preferred by smaller organizations and agencies which are relatively part of or related to the United Nations or similar international organization. A simple example of how this works could be the case of a clothing manufacturing company, which has several factories all operating within a large industrial complex.
Each factory would need to obtain a variety of raw materials in order to produce each product. If one factory did not receive a particular item quickly enough, it might have to “backorder” the needed item from another factory. This scenario would cause significant delays in the process and could potentially cost the company a significant amount of money due to overtime costs. An example of what would need to be tracked in this situation would be the delivery of items, as each item would need to be delivered on a specific date in order to meet certain deadlines.
So, how can what is the result based management be applied in this situation? The first step is for each company within the overall organization to develop a strategy. Teams within each department would then begin to discuss the steps they will take to achieve the desired goals of the company. One example of what would be done in this situation would be a sales team “planned buy-in” at a factory which would immediately increase sales for the entire month. In addition, the planning process would also need to include what would be done if the company encountered a situation where it did not meet its goals. Some companies may choose to implement what is called a corrective action plan, which is simply a plan that outlines what steps to take in the event of a negative outcome.
There are many benefits to what is result based management, which makes it very useful. One huge benefit would be cost reduction. If each company could calculate what they needed to do in order to achieve a particular goal, and then budget accordingly, a large portion of what is spent each year can be avoided. By doing this, the company is able to provide more services or products to consumers at a reduced cost, while at the same time meeting all of their production goals.
Another benefit to what is result based management is the possibility of reducing waste. Many companies are constantly wasting money when it comes to the way they produce products and goods. An example of this would be the need to purchase more materials which are used in order to produce a particular product. With what is the result based management, the company would know what to purchase in order to reduce waste. After all, everyone likes to save money, especially in these times.
Yet another benefit would be increased profitability. By knowing what is result based management, companies can budget for certain expenses so that they can increase their profitability. They no longer need to spend money on advertising which only produces a certain amount of results. Instead, they can maximize the use of what is result based management and allow it to be used for their own gain. Once they have maximized profitability, they can then go back over their budget and cut down even more on what is unnecessary expenses.
What is result-based management is something that every company should consider. Not only does it help them save money, but it also allows them to increase their profitability, and reduce waste. However, a company cannot go into what is the result based management until they have mastered what is actually necessary for success. Only then can they really make an impact on the world around them and on how they are received.
So, if you want to know what is the result-based management, then begin by mastering the basics. From there, you can then move into the more advanced topics that pertain to what is result based management in your industry. By mastering these topics, you will then be able to increase the profits of your business while at the same time reducing your company’s costs. You will be able to run your business smoothly and without worrying about how much money is left over at the end of the month.