Result-performance Management Summary
R-pM organizes and manages the business as one structure
If you look up “business” in on-line dictionaries, an enterprise business is commonly defined as “the activity of providing goods and services“. Therefore, to organize and manage the business, the enterprise must organize and manage the activity of providing goods and services.
Result-performance Management (R-pM) is a simple innovation to organize and manage the business. Business activity is the performance of the business in the utilization of capital. Business goods and services are the results produced from business performance. This article summarizes the R-pM basics as shown in R-pM.net, the host for 21st Century Management magazine.
The 20th century enterprise cannot organize and manage the business directly, creating unsolvable problems
Conventional 20th century business organization and management structures do not organize and manage the business; the activity of providing goods and services. Instead, people are organized into an organization structure that is an overlay on the business. Since the business is not organized, the enterprise is forced to manage through other overlaid structures for strategy, plans, processes, accounts, information systems, performance management, etc. Each overlaid structure defines a variety of entities to describe the business, such as unit, object, activity, code, duty, position, etc. creating an enormous information integration problem. Since the business is not organized or managed, there are other unsolvable 20th century problems like reorganizations, intangible assets, misalignment, unknown costs and worth, business collaboration, unknown benefits and value, corporate governance, and on and on.
R-pM clears away overlaid structures and unsolvable problems to organize and manage business performance and results
R-pM removes overlaid 20th century structures that prevent direct business management to eliminate unsolvable problems. R-pM organizes the business by the only the two entities that define the business:
- Results: Measured economic outputs, such as goods and services, produced by the business that create value
- Performance Solutions: Measured tangible and “intangible” capital utilized in business activity to incur costs and produce results
Results are outputs that can be counted. The objective of all in the business is to produce results. Performance solutions are categorized by capital that requires specific capabilities to manage, and are classified to be integrated to produce results. Human capital solutions are deployed to manage and produce specific results, using other deployed solutions like processes, knowledge, supplies, and tactics.
R-pM manages five entities for transparent 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 five precisely-defined sets and subsidiary entities:
- Results: Outputs of value organized into result structures and value-quality chains
- Performance Solutions: Specific qualified performance capital deployed to produce specific results
- Capital: To manage positive or negative revenue capital worth from revenue results, performance capital worth assessed from result value added, and investment capital worth from project results in development
- Enterprises: The business enterprise with superior and subordinate units, plus suppliers, customers, business partners, solution providers, and others that interact with the business
- Time Periods: Specific historic and planned future periods 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. Entities such as manager, region, product group, account, unit, etc. are attributes to identify result sets or solution modules. Reporting only business entities enables comparison and collaboration.
R-pM has comprehensive management in three dimensions
R-pM manages the enterprise, and each result produced, in three dimensions:
- Result: Responsibility to produce specific planned and measured results to reach goals
- Performance: Responsibility to provide performance solutions that meet expectations
- Management: Responsibility to manage by time period to create strategic result value
This is Result-performance Management. R-pM provides transparent 21st century management with one integrated structure for organization, planning, operations, development, and reporting.
R-pM enables 21st century management, not possible with overlaid 20th century structures
R-pM can simplify and organize the business of any enterprise for 21st century management. R-pM enables governance of strategic value, result-performance costing, system-process integration, value-quality chains, value-added management, itemized investment benefits, result-performance development, human capability business application, result-performance optimization, integrated information capital, capital worth assessment, aligned outsourcing, business collaboration, managed enterprise information base, supplier-customer integration, and other advances now prevented by 20th century structures.
Learn more about R-pM at result-performance-management.com.
21st Century Management eliminates 20th century problems
Result-performance Management (R-pM) eliminates costly 20th century problems. Slash costs, simplify business management, and boost competitive advantage through R-pM, the conventional method for 21st century management.
Download your 21st Century Management Manual today
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.
