How the Chief Executive Officer Benefits from R-pM
The Chief Executive Officer is responsible for the quality and value of results produced by the enterprise from suppliers to the customer, value creation in the enterprise strategy, the return from capital development projects, the worth of human and other capital employed, and creation of shareholder value. The CEO must do this in spite of the fact that 20th century management used today, does not provide the means to manage any of these CEO responsibilities.
But today, there is a new management breakthrough Result-performance Management (R-pM). R-pM organizes the actual business for 21st Century Management. R-pM establishes management results and provides the CEO the full set of solutions needed to manage the current and strategic business.
The CEO must overcome the unsolvable problems of 20th century management
If you are a CEO, you know that you face many problems with current management methods. You have one fundamental problem. 20th century management used today does not organize and manage your business. You lay an organization structure over your business, instead of organizing the business. This is a fatal error, since an unorganized business cannot be managed. So, your enterprise and consultants lay other management structures over the business for strategic or corporate planning, business processes, information systems, accounting, performance management, administration, etc.
These structures conflict with your actual business and prevent direct business management. You are faced with many unsolvable problems:
- You are hampered by a rigid organization when you need to produce new results and provide the proper resources
- You have problems with suppliers and complaints from customers to solve but find a monolithic business process that hides internal symptoms and problems
- You receive mountains of financial statements and management reports that report the wide variety of structures laid over the business, but provide only incidental information on the actual business
- You have a strategy in mind for the future business, but you cannot relate the strategy to the business and manage strategic value creation
- There are difficult-to-control empires that incur high costs and do not show commensurate value, but you cannot document this or find an alternative solution
- You have no way to optimize enterprise operations. Capital utilization means that an asset is assigned somewhere, but you do not know what actual capital you have or what it is producing
- You have expensive costing systems that only show partial known costs and do not charge the costs to the result value produced for actual cost management
- You are responsible for shareholder value but have no way to manage the business to manage shareholder value
- You are pushed to approve capital development and business change projects, but know of past problems, and no one can provide quantified lists of benefits and specific development costs
- You want to develop your human and other capital to increase the worth to the enterprise but have no means to know specific development needs and capital worth. Much of the capital you want to leverage is labeled as “intangible assets”
These are a few examples of the many unsolvable problems faced by every CEO.
R-pM enables direct management of the enterprise business
R-pM organizes your business for 21st Century Management to replace high-cost overlaid structures and eliminate unsolvable problems. R-pM enables you, as CEO, to manage your current business directly, your strategic future business, and the changes and development required. R-pM collects direct business data on five entities to provide management information that describes the complete business.
- Results: All economic outputs produced by the business organized into management sets, value-quality chains, and subsidiary items like product
- Performance Solutions: Capital organized by the support required and subsidiary items like employee and utilized to incur the cost of producing specific results of value
- Capital: The capital of worth that supports enterprise worth in revenue capital, performance capital, and investment capital
- Enterprises: Your main enterprise, superior or subordinate enterprises or projects, suppliers, customers, and other business partners
- Time periods: The historic or future periods to the strategic horizon that record goals and expectations and report on operations and development
These five entities are all that is required to manage the business. Other entities such as organization unit, responsibility, region, product group, etc are attributes of specific results and performance solutions.
R-pM provides the CEO the capability to manage the business
R-pM eliminates 20th century problems by directly organizing and managing the business:
- R-pM organizes business results and performance in one integrated business structure, so results can be added and closed easily and the performance needed can be redeployed, to continually reorganize the business
- R-pM replaces complex business processes with basic result value-quality chains that can be integrated with supplier, customer, and partner chains and show cost, value, and quality at each result link
- R-pM provides professional facility records management to capture financial and non-financial data on actual costs, value, and other metrics and provide accurate management information solutions
- R-pM provides a strategic business structure to project future result value and plan new results and performance solutions needed, to manage value creation from the current to strategic structure for good governance
- All results produced are justified by the value of customer willingness to pay for the result that must exceed the cost of producing the result
- Result and performance managers optimize the capacity, cost, and effectiveness of solutions provided to produce a volume of high value-quality results
- R-pM provides full result-performance costing to know the cost of performance against result value for important results and result value-quality chains
- Value is managed for results throughout the business related to the revenue and profit results and can manage accumulated or expected shareholder value results
- R-pM properly manages all capital development and business change to develop the results and specific performance solutions needed to produce result value-added benefits
- R-pM converts administration to professional capital management to manage solution operation, development, and improvement; provide and maintain qualified solutions to produce results, and to increase the worth of solutions by producing high value-quality results
These are but a few examples of how R-pM simplifies the CEO environment and provides the solutions needed to produce specific management results. This is not new work added to what you do today, but replaces the ineffective efforts of trying to manage with 20th century management.
You may be successful with 20th century management, and see no need to improve
Many enterprises have grown and become successful using 20th century management. This is of credit to their management. In the past, the enterprise competed with other enterprises that were burdened with the same costs and problems. The future playing field will no longer be level. The enterprise will have to compete with enterprises that use R-pM to organize the business for 21st Century Management.
The R-pM Toolkit, your 21st Century Management Manual, is available now at Result-performance-Management.com. Get a copy of the Toolkit and research R-pM. You will see the great advantage of 21st Century Management over those enterprises still burdened with unsolvable 20th century problems.
