How the Accounting Manager Benefits from R-pM
Accounting Managers are important facility capital managers
Are you a accounting manager? How do you approach your work? As a routine financial accounting function? As responsibility for the enterprise records to ensure that the business is recorded properly and that business record solutions are provided on time to support the business and management to produce enterprise results?
If your answer is closer to the latter, you will clearly benefit from R-pM. The impact of R-pM on accounting is explained in the article “Broaden Financial Accounting to provide Professional Records Management” in 21st Century Management Magazine. R-pM goes beyond accounting to provide professional facility records capital management.
Result-performance Management (R-pM) organizes the business for 21st Century Management
The means to understand the actual business that you record and support is through Result-performance Management (R-pM). The enterprise business and your 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
Even as facility records manager, you manage only these two entities in your business, as a sub-set of the enterprise business. Planning, gathering information, and managing other entities like activities, tasks, functions, positions, etc. diverts your time away from managing your business.
The 20th century enterprise has never managed the business
The dilemma that you face is that your enterprise has never organized or managed the business. Therefore, you could never maintain accounts on the actual business in terms or results produced to create value and performance solutions utilized to incur costs.
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. Some of the results you produce may be defined today as separate entities such as accounts maintained, financial reports produced, etc. You have one set of results that you are responsible for. 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.
R-pM incorporates accounting in Facility Records Capital Management
R-pM manages three groups of results:
- Revenue results: the results produced by the line business to produce revenue results and meet enterprise 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 the accounting function into Facility Records Capital management. Facility records capital management produces capital results to provide facility records performance solutions to produce other results. Facility records capital is one class of Facility Capital, which includes:
- Facility Equipment Capital: Reusable facility assets including equipment, infrastructure, buildings, computer and communication networks, financial investments, etc. as Readiness Capital
- Facility Supply Capital: Consumable supplies and working capital provided as Production Capital
- Facility Records Capital: Financial and non-financial records on the full business cycle of results and performance as Information Capital
Facility records capital includes the recording of the total business including all results produced by the business, documentation of all performance solutions utilized to produce results, recording of actual business transactions, and production of records capital performance solutions to produce business and management results. Facility records capital may include accounts receivable processing, as part of the revenue result value chain, if the processing is not done by the appropriate revenue result unit.
Facility Records capital management provides information capital as facility records performance solutions
Facility Records Capital is Information Capital that documents actual results produced and provides information solutions to produce results, as needed. Information Capital includes:
- Business Data Capital: Maintenance of business data on the actual business and business transactions and integration of information solutions with business data delivered to produce a result
- Human Knowledge Capital: The specific human knowledge and instructions to utilize a specific solution or produce a specific result
- Facility Records Capital: The record of new results and solutions and of business transactions utilizing solutions and producing a result and solutions to produce new results based on previous results
- Management Intelligence Capital: The competitive and business intelligence from external research and internal information analysis
Information capital is integrated with the business data and utilized together to produce actual results.
The facility records manager role is different than 20th century accounting
As accounting manager you devise a Chart of Accounts that is laid over the business to record known income and expenditures and known assets and liabilities. The Chart of Accounts does not record the actual business. Most results of value and capital and performance solutions of worth are not recorded. Actual business data on full performance costs, result value, and capital worth is not developed or captured.
20th century accounting may have to continue under 21st Century Management to the degree needed to comply with 20th century regulatory requirements. R-pM does not try to change accounting. That is up to the industry and regulatory bodies. The chart of accounts is changed to match with the actual business.
R-pM introduces professional records management as a part of business organization and management. So, internally the enterprise is managed by managing the business. The business is recorded and reported against the actual business structure, a business organization solution maintained as business organization capital. Facility records capital employs professional records management to manage all financial and non-financial records of the actual business. This includes non-financial record capital that should be managed, but is not maintained as enterprise capital assets. Today, this capital may be maintained in administrative or revenue units, be labeled as intangible assets. or never be developed at all.
With R-pM, all computer or document records capital that may be needed to produce future performance solutions is professionally managed or archived. Records performance solutions are produced as required by the business or management or outside authorities.
As the Accounting Manager, you have the opportunity to adjust to R-pM and be responsible for Facility Record Capital Results.
R-pM provides the solutions needed to produce value-quality capital results
R-pM enables you to focus on producing facility records results. Unneeded or low-value results are discontinued. As records 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 final results as solutions that go to the internal and external customers who utilize record performance 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 business, human, facility, and management 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 records 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 records 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 for the solutions you need. 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.
21st Century Management eliminates 20th century problems
21st Century Management is coming in 2008. Your enterprise will have to eliminate costly 20th century problems by organizing the business for 21st Century Management. Your enterprise can slash costs, simplify business management, and boost competitive advantage through Result-performance Management (R-pM), the conventional method for 21st Century Management.
Download your 21st Century Management Manual today
This article included only pieces of R-pM, and may have left you confused. Go to result-performance-management.com to learn more under What is R-pM?.
Your 21st Century Management Manual, The R-pM Toolkit, is available today and is under continual development to expand and refine 21st Century Management. Learn more about the R-pM breakthrough for 21st Century Management and subscribe to your 21st Century Management Manual, including free updates through 2009, at result-performance-management.com.
