How Corporate Planners Benefit From R-pM
Corporate Planning Managers are important capital managers
Are you a Corporate Planning manager, responsible for strategic planning, alignment of corporate and lower-level plans, and reporting against the plan. Corporate planning is defined and organized differently from enterprise to enterprise. You likely provide top management support such as planning research, intelligence analysis, option analysis, and other functions. How do you approach your work? As a routine function? As a responsibility for corporate or enterprise strategy development, and to ensure that corporate strategy is coordinated and executed properly?
If your answer is closer to the latter, you will clearly benefit from R-pM.
20th century management does not provide a framework for Corporate Planning
20th century management manages the enterprise by laying organization and management structures over the business. One of the structures laid over the business is the corporate plan. 20th century management does not provide a framework or a capability to plan the actual corporate business. Corporate planning must plan corporate or enterprise objectives, structures, functions, etc. A popular management method, such as strategy maps may be used, but the method does not plan the business. It is an aid to creating a corporate strategy and plan to lay over the business.
21st century management organizes and manages the actual business
21st century management manages the corporate business as one integrated structure. The means to understand the actual business that you plan is through 21st century management. The corporate business is defined by only two entities:
- Results: The economic outputs that create the value from the business
- Performance Solutions: The capital consumed in performance to generate the costs incurred by the business to produce result value
Results and performance solutions are organized in the corporate business structure, to record actual business data on result value, performance costs, and capital worth.
You manage only these two entities in your corporate planning business, as a sub-set of the corporate business. You plan these two entities as part of strategy capital management. Planning, gathering information, and managing other entities like activities, tasks, functions, positions, etc. diverts your time away from managing your business and planning the corporate business. The corporate business is planned through a strategic corporate business structure set at the strategic horizon. You plan the actual business, and no-longer plan artificial structures laid over the business.
The 20th century corporation has never managed the business
The dilemma that you face is that your corporation has never managed the business. Some of the results you produce may be defined as separate entities such as research report completed, planning statistics compiled, corporate plan issued, etc.
Results are the economic outputs that can be counted and measured that you and the human capital working under you must produce, and that you must manage. You have one set of results under your responsibility. Some results may be completed and new results may be added. Many of these results likely are not defined today, but they are part of your business.
Your business also includes your capabilities, the capabilities of those you manage, the processes you follow, the information you use, and other performance solutions you use. You might be identified as an employee and your office and equipment may be fixed assets or property. but likely most of the performance solutions you utilize are not defined and may be classified as “intangible assets”. The set of performance solutions you need to produce your results is likely not defined or managed. Some capital like human resources and equipment may be administered, but no one is responsible to provide the performance solutions you need to produce high value-quality results.
Result-performance management (R-pM) is the conventional method of 21st century management
Result-performance Management provides the tools and guidance for 21st century management. With R-pM, you quickly become used to thinking of your corporation in terms of results produced across the corporation and the value of results, performance solutions utilized and performance costs, and the worth of enterprise capital. You plan for result value and quality, understand performance costs and effectiveness, and can appreciate result value added by planned results.
R-pm organizes and manages three groups of results:
- Revenue results: the results produced by the line business to produce revenue results and meet corporate objectives
- Capital results: the results that manage capital utilized and provide specific performance solutions to produce all results
- Investment results: the results in development to produce new capital and performance solutions
R-pM incorporates corporate planning as capital result management to manage management capital. Management Capital management produces capital results to provide performance solutions to produce other results, particularly management results at all levels. Management Strategy Capital is one class of Management Capital, which includes:
- Management Strategy Capital: The management strategy, plans, and reporting solutions as Readiness Capital
- Management Tactics Capital: The policies, directives, and other solutions that guide results produced as Production Capital
- Management Intelligence Capital: External and internal derived intelligence solutions to support management strategy and tactical decision-making as Information Capital
As a corporate planning manager, you could be responsible for overall Management Capital management or Management Strategy Capital management.
Management Strategy Capital Management includes the analysts and planning of the future economic outputs of value in strategic results, the analysis and planning of strategic investment required to develop the specific performance solutions needed to produce strategic results, and the result goals to reach and performance expectations to meet by time periods to the strategic horizon. Strategic Capital management coordinates the definition and organization of results with result managers across the corporation; the definition and organization of performance solutions with capital result managers for all categories and classes of capital; and the planning of capital development projects and other corporate investments with investment result management.
There is one strategic business structure and strategic plan. Separate strategies and plans for such functions as financial management, information technology, human resources, etc. are built into one result-performance plan.
Management Strategy Capital is Readiness Capital that is integrated and utilized to be ready to produce specific result sets that employ the same general performance solutions. Readiness Capital includes:
- Business Organization Capital: The responsibility to maintain the current business structure and to organize and integrate readiness capital to produce results
- Human Personnel Capital: The specific human capital assignments and time consumed to produce results in the set
- Facility Equipment Capital: Reusable facility assets including equipment, infrastructure, buildings, computer and communication networks, financial investments, etc., including that specific to the result set
- Management Strategy Capital: The management strategy sub-defined into the specific result-performance plans by time period
Readiness capital is integrated with the business organization and utilized together to produce actual results.
As the Management Strategy Capital Manager, you use R-pM to provide Strategy Capital Results. Strategy capital results develop and maintain the strategy and plan performance solutions to management across the corporation, so they can utilize specific performance solutions over time to produce planned results to meet corporate goals. In smaller enterprises, you could also serve as Strategy Capital Performance Manager to provide the strategy and plan solutions to produce specific results.
R-pM provides the solutions needed to produce value-quality capital results
R-pM enables you to focus on producing Management Strategy Capital results. Most of today’s corporate planning, related to 20th century structures is eliminated. Unneeded or low-value results are discontinued. As Strategy Capital manager, you produce capital results as a sub-set of enterprise capital results. You have your own result-performance business structure to manage. Your results may form a result value-quality chain to produce the final Strategic Business Structure and related solutions.
R-pM enables you to manage the performance that produces each result
With R-pM, you quickly become used to managing the results and performance solutions under your responsibility. A performance manager is responsible to provide the solutions you need to produce results. Solutions have performance expectations to qualify solutions provided and manage the adequacy of solutions. Your normal set of performance solutions is defined as a performance module to be managed as a whole. The management strategy solutions you provide are also part of your performance module
You have a wider span of result responsibility and specific result goals to achieve. Goals can plan the volume, timing, costs, or quality of your results. You use information technology to quickly add and deactivate results and the solutions you use. You define specific results and goals to be produced by those you manage.
You set the value of your results with the internal customer who wants you to produce results. You and the customer can evaluate the result and know the cost of producing the result. This lets you know and manage the value you add.
You manage performance costs against result value for result value-added
You and those you manage enter personnel and capability time against the results produced. Other performance costs are preset or are captured against results produced in facility records capital management. This enables you to manage the result value-added. If a result value-added is negative, you must reduce the performance costs or work with customers to increase the value of the result and decrease the value of another result in your chain. Or else, the result should not be produced.
Even as a Strategy Capital manager, you manage the effectiveness of the solutions you utilize to produce quality results. The business process and other solutions are utilized result by result. If a defective result is produced, it is brought up to quality or replaced in the result value-quality chain.
You optimize your performance to produce value-quality results
The information you use to manage focuses on the results produced and the performance solutions utilized. The impact between others results and your results can be managed. You can optimize the costs, effectiveness, and capacity of performance solutions you utilize against the value, quality, and volume of results you produce. You can see the value you add to the value of enterprise capital results.
R-pM provides the environment to increase your capital worth
R-pM enables you to eliminate wasteful activities performed today. You can focus on producing value-quality results. You are supported by performance managers for the business, human, facility, and management solutions you utilize. The integrated information solutions you need are delivered by result and performance solution. You are able to increase the known result value you provide to the total enterprise result value. You increase your human capital worth and the worth of those you manage.
The R-pM Toolkit is your 21st Century Management Manual
21st Century Management is the future of business management. R-pM is the only method that supports 21st century management. This article covered only small bits of R-pM and like have left you confused. Go to result-performance-management.com to learn more under What is R-pM?. The guidance you and your enterprise need to gain immediate advantage from 21st century management is provided in the R-pM Toolkit.
Even if your corporation does not move to 21st Century Management, understanding 21st Century Management will benefit you immensely as a Corporate Planner and will provide the needed framework for effective corporate planning in the 20th century corporation.
