R-pM for Simplified 21st Century Management
The enterprise business is “the activity of producing goods and services”
The common definition of a business enterprise is “the activity of producing goods and services”. If the enterprise is to organize and manage the business, it must organize “the activity of producing goods and services”. Business activity is business performance and goods and services are business results. Performance is the utilization of enterprise capital to produce results. Therefore, to organize the business the enterprise must organize capital, performance, and results.
The enterprise must abolish all the outdated organization, strategy, process, account, performance management, information architectures, and other structures now laid over the business that create enormous overheads and prevent the business from being organized and managed.
R-pM organizes the business to simplify 21st Century Management
Result-performance Management (R-pM) goes back to the basics to organize the business to utilize capital in performance to produce value in results. R-pM structures the results to be produced to create value and the capital in performance solutions available for deployment in as a business structure. The business is organized when specific performance solutions are deployed to produce specific results. The responsible organization unit is deployed as a business organization solution and the responsible manager is deployed as a human personnel solution to produce the specific result.
R-pM structures future strategic results needed and the new capital required as performance solutions in the strategic business structure. Result goals and performance expectations by time period link the current to the strategic business structure. The current and strategic business structures are used to organize, plan, develop, measure, operate, record, and govern the enterprise business. All 20th century management structures are left behind.
R-pM defines the minimum entities for 21st Century Management
R-pM is designed to utilize modern information technology to organize the business for 21st Century Management. R-pM uses only the information that defines business activity in six precisely-defined sets and subsidiary entities:
- Results: Outputs of value organized through result relationships into result structures and value-quality chains
- Capital: Capital of positive (asset) or negative (liability) worth defined as specific performance solutions available to be deployed to produce specific results
- Performance: The deployment of specific performance solutions to produce specific results with rules for cost and effectiveness determination, and to incur costs and create value in performance solution, result, and facility record transactions
- Enterprises: The business enterprise with superior and subordinate units, plus suppliers, customers, business partners, solution providers, and others that interact with the business
- Business Descriptors: The attributes of results, capital, and enterprises used to relate entities and other business information
- Time Periods: Specific historic and planned future periods, such as month, with result goals and performance expectations to create strategic value or develop new performance solutions and results
Subsidiary records detail results, like products and orders, solutions, like assets and employees, and result and performance transactions. Business descriptor entities such as region, product group, industry, unit, etc. are attributes to identify result sets or solution modules. All business information, including emails, downloads, and file transmissions must reference a business entity for inclusion into the official Business Information Base. Reporting only business entities enables comparison within the business and collaboration among businesses.
R-pM provides transparent 21st Century Management
R-pM simplifies the business to be managed by an existing general ledger or relational database management system to reduce information system overheads. R-pM organizes and manages the business through the current and strategic business structures for strategic result planning and management, value-quality chains, result-performance development projects, result-performance costing and optimization, and other features for transparent management reporting and corporate governance.
21st Century Management eliminates 20th century problems
Result-performance Management (R-pM) eliminates costly 20th century management problems. Boost competitive advantage through R-pM, the conventional method for 21st Century Management.
Your 21st Century Management Manual, The R-pM Toolkit, is available today and is under continual development to expand and refine 21st Century Management. Get your R-pM Toolkit, and future updates, at result-performance-management.com.
