How a Performance Manager Benefits from R-pM
There are a wide variety of performance managers in 20th century management. Performance managers may be responsible for human performance management, business performance management, capital performance management, or management performance. Similar performance management responsibilities remain under 21st Century Management. But under 21st Century Management, performance management responsibilities are precisely defined.
20th century management mixes results with performance and manages both as performance
One serious flaw of 20th century management is the definition of performance. Performance is defined to include not only the activity of performance but also the results produced from performance. This definition prevents 20th century management from managing the business defined as “the activity of providing goods and services”. Both the activity and the goods and services are defined as “performance”. Performance management systems, business performance management, business process management, and other 20th century management methods employ this definition.
The performance manager must work in a poorly defined environment. Much of the capital he is responsible for is not defined and managed as capital. He tries to manage performance quality, rather than providing effective solutions to produce result quality. The performance reports are against structures overlaid on the business rather than managing actual performance of capital utilized by the business.
21st Century Management defines performance management to provide qualified solutions to produce results
21st century management uses Result-performance Management (R-pM) to organize and manage the business. The business is organized in the economic output results produced across the business and the specific performance solutions utilized to produce the results. R-pM separates result management from performance management to manage the daily business in two dimensions:
- Result Management: To manage the production of results of value to the business
- Performance Management: To provide and support the performance solutions needed to produce results.
21st Century Management precisely defines performance management as “the responsibility for monitoring, improving, acquiring, replacing, and implementing performance solutions for assigned performance capital, to meet performance expectations in producing results that utilize the solutions”.
Performance management is a subset of capital management
21st Century Management replaces administration with capital management. Capital utilized by the business requires different professional capabilities to be professionally managed, which organizes four categories of capital:
- Business organization, process, and data capital to manage capital that directly produces a result and cannot, generally, produce another result. Business capital requires business knowledge and analytical capability
- Human personnel, capability, and knowledge capital to support and develop the worth of human capital. Human capital requires human handling, development, and coaching capabilities
- Facility equipment, supply, and record capital to manage reusable and consumable tangible assets and records. Facility capital requires expertise with the specific capital and administrative ability
- Management strategy, tactics, and intelligence capital to plan results and performance investments, to keep on course, and to know opportunities and ward off threats. Management capital requires management analysis and research capabilities
All capital must be professionally managed as capital utilized to produce results. Capital management manages the overall operation, development, and support for the capital. The performance manager is responsible for a sub-set of capital management results at the point that the capital is utilized by the business to produce results.
Performance management is responsible for providing qualified solutions to produce business results
In general, each category of capital has a performance manager. So there are specific business, human, facility, and management performance managers, each with their own set of capabilities. The performance manager provides and supports the performance solutions in the particular category of capital to produce results across the business.
The performance manager has particular results to produce in the result-performance development continuum. The performance manager:
- Works with result managers to define requirements and potential result value-added for new solutions
- Prepares solution specifications to meet requirements and solution cost estimates for development
- Leads performance teams developing new solutions in coordination with user result teams
- Follows the result-performance development methods to acquire, develop, and implement new solutions
- Works with result management to utilize new solutions to add planned value to results for the return of performance solution investments
The performance manager understands the business and the application of his capital to meet business needs by producing specific results.
The performance manager benefits from the 21st Century Management environment
21st Century Management organizes and manages the business through one integrated business structure that guides the performance manager in his work. The performance manager’s responsible solutions are precisely defined and deployed to produce results in the business structure. This provides a framework for performance management success.
The performance manager benefits from:
- Precise capital categorization to apply business, human, facility, or management performance management capabilities
- Precise role to work with and support result managers
- Detailed and precise information on performance indicators and expectations and the utilization of performance solutions to produce business results
- The tools to optimize performance cost, capacity, effectiveness, and expectations to increase result value, volumes, and quality and meet result goals
- The operation-development continuum and result-performance development to develop performance solutions that add value to results
- The ability to meet performance expectations and increase result value to add to the worth of capital managed and own worth as human capital
- The opportunity to provide a documented contribution to the success of an organized and managed business
Performance management is a new role in Result-performance Management and 21st Century Management. If you manage performance today, you have the opportunity to develop and practice your skills to contribute to the business success of your enterprise.
