R-pM requires Discipline compared with 20th Century Management Structures
The biggest complaint about 21st Century Management with Result-performance Management (R-pM) is that it requires more discipline to document and manage what the enterprise is actually doing compared to conventional structures. R-pM requires more discipline, but not more work, when the enterprise directly manages a simplified and organized business.
20th Century structures are contrived and may or may not reflect the real business and may or may not be used
20th Century enterprises can contrive any organization structure as an overlay on the business. Charts of accounts are contrived to meet accounting needs and may not accurately record the business. Business processes are contrived workflows that may not be followed. Management reporting can be contrived to report anything. Results are added or completed and capital is redeployed, but the organization structure, chart of accounts, or other structures do not have to change, and just become further removed from the changing business.
These overlaid structures and the lack of discipline also give us the unsolvable 20th century problems discussed in the Business Change Forum.
21st Century Management has only one requirement: The enterprise must organize and manage the business
Result-performance Management (R-pM) is the conventional method to organize and manage the 21st century enterprise. R-pM organizes and manages the business with one integrated business structure to manage economic business outputs in results and the invested business capital utilized to produce the result in performance solutions. R-pM requires that the enterprise define and accurately maintain six entities: strategic and current results to produce, capital developed and utilized as performance solutions, time periods to be managed to the strategic horizon, suppliers of input results, solution providers for external or outsourced solutions, and customers who utilize final results. Other entities are removed with the overlaid structures or redefined as specific results or performance solutions.
Each new result to be produced must be recorded and managed. Performance solutions, or multiple-solution modules, to be utilized, including the responsible human capital, must be deployed and recorded. Result goals and performance expectations are set for the time periods to be managed. Deployed solutions must be redeployed, and charged elsewhere, before a result can be completed or deactivated.
Most financial management systems can handle the basics of R-pM, until the Result-performance Management System is available. Current systems keep details on certain results like products and services and certain performance solutions like employees or equipment.
If you are a business owner or investor, is an undisciplined and unmanaged business preferable to an organized and managed business?
Conventional structures give us reorganizations and “change management”, intangible assets, unknown costs and capital worth, unmanaged value, estimated capital investment benefits, and on and on.
It is only when the business is organized and managed that the enterprise can have managed value-quality chains, planned and managed return on investments, managed strategic value creation, accurate and professional records management, fully utilized and managed capital, good corporate governance, and the many other benefits of R-pM.
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.
