Problem with the flawed Definition of Performance
How do you define performance?
A recent article in 21st Century Management magazine “Years of Management Problems because of the flawed Definition of Performance“ expands on a problem that we have discussed several times. The article explains how the flawed definition of performance prevents us from following the first rule of 21st century management: organize and manage the business.
The accepted definition of performance, to include results, prevents organizing and managing the business
The generally accepted definition of “Business” is “the activity of providing goods and services”. The problem is that the generally accepted definition of “Performance” labels not only execution of actions in business activity, but also business accomplishments or results, such as goods and services, as performance.
In order to organize and manage the business, we must split business activity apart from business goods and services to organize and manage performance separate from results. We cannot, however, because both business activity and business results are defined as performance and are mixed together in key performance indicators, business processes, and performance management structures.
Result-performance Management (R-pM) properly defines performance
Result-performance Management (R-pM) solves the problem by defining performance as solely business activity, and by defining results as business goods and services and other economic outputs. R-pM organizes the business as “the activity of providing goods and services” for 21st Century Management. To learn more review the article Performance: Cost-effective Capital Management and Utilization.
R-pM organizes the business to eliminate 20th century management problems
Result-performance Management (R-pM) eliminates the performance definition problem and other costly 20th century problems. Slash costs, simplify business management, and 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 R-pM and refine 21st Century Management. Get your R-pM Toolkit, and future updates, at result-performance-management.com.
