How does R-pM differ from your current management?
Result-performance Management (R-pM) organizes the actual business for 21st Century Management. 21st Century Management is based on directly organizing and managing the enterprise business.
The primary differences between R-pM and current 20th century management are:
- R-pM separates 20th century performance into two separate entities; results, the economic outputs of value produced by the business, and performance, the utilization of capital in the business
- R-pM defines and organizes the enterprise business rather than the business enterprise by structuring the results produced across the business and the capital utilized as performance solutions to produce results
- R-pM organizes the enterprise business, each part of the business, and all enterprise undertakings, such as projects, through an integrated business structure to replace all 20th century structures
- R-pM replaces 20th century administration with capital management to provide the capabilities to professionally manage all capital in development, implementation, operation, and support
- R-pM plans, records, reports, and manages actual business data in result value-quality, performance cost-effectiveness, result value-added, and capital worth, rather than reporting inaccurate contrived structures laid over the business
- R-pM manages the business in three dimensions, result management responsible for each result produced, performance management responsible for each performance solution utilized, and corporate management responsible for creating strategic result value over time in operations and development
These differences are discussed in the following paragraphs.
R-pM separates results from performance
20th century management defines “performance” to include not only the performance, such as human performance, that produces a result but also the result produced, such as sales performance. This definition prevents results and performance from being managed properly as separate entities. 20th century performance management, business processes, information systems, etc mix results with performance.
R-pM separates results from performance to manage results as one set of results produced by the enterprise business and to manage the capital employed by the business in performance as one set of performance solutions. Results have different attributes from performance. Therefore, result data is captured and reported separate from performance data.
R-pM organizes the enterprise business, rather than the business enterprise
20th century management organizes the enterprise by laying an arbitrary organization structure over the business. The business changes while the organization structure remains rigid, requiring periodic reorganization to align a new organization structure with the business. Since the business is not organized management structures must be contrived and laid over the business for strategy, processes, information systems, performance management, accounts, administration, etc.
Every business is defined solely by the economic output results produced and the capital employed to produce results. R-pM organizes the business as one integrated business structure. The business structure shows the results that must be produced to create value from the business and human and other performance solutions that must be utilized to produce a high value-quality result. A strategic business structure at a strategic horizon shows results needed to create strategic value and the existing and new performance solutions required to produce strategic results. The business structures are professionally-maintained solutions. R-pM manages the enterprise business rather than the business enterprise.
R-pM uses one business structure for all organization and management
Each 20th century organization and management structure is contrived arbitrarily for its own purpose. Each structure must be separately reported and managed causing business and information complexity. None of the contrived structures accurately describes the business introducing inaccuracies and preventing the collection and utilization of actual business data.
R-pM organizes and manages the business as one integrated business structure that replaces all the contrived structures laid over the business. The one business structure is used for all management organization, planning, directing, reporting, and control. Projects and campaigns undertaken by the enterprise use their own business structure to produce the results needed to produce one enterprise-level result for the completed project or campaign.
R-pM replaces administration with capital management
20th century management does not manage the capital utilized by the business. Much capital is unknown or is labeled as intangible assets. Known financial assets, fixed assets, and human capital is administered to keep it operating rather than managed to be developed and employed properly by the business.
R-pM organizes all capital utilized by the business including intangible assets, intellectual capital, and capital developed ad-hoc as performance solutions to produce results. Capital is structured by the human capabilities required to develop and support the capital, and by the way capital must be integrated and utilized to produce results. Performance management ensures that qualified performance solutions are provided and utilized to produce results across the business.
R-pM reports and manages actual business data
20th century management does not report and manage actual business data. Data is collected against structures laid over the business. Each structure defines different data entities that conflict with the definition of other structures. This produces mountains of conflicting information, but does not produce the one set of information that accurately reflects business status and progress to the strategy.
R-pM captures actual business data on results produced by the business to know result volumes, value, quality, and other result metrics. Data on performance utilized is captured to know performance capacity, costs, effectiveness, capital worth, and other indicators. Strategic estimates are updated and maintained against the strategic business structure. Management uses one set of consistently-defined management information on the business, related enterprises, time periods, and capital status.
R-pM manages the business in three dimensions
20th century management is ad-hoc with no consistent framework. Many managers operate their own empires with no confirming management knowledge. Business management depends on the capabilities of individual managers to operate in an undisciplined management environment. Much management is by regulation rather that informed decision-making. There is no consistent method for good corporate governance and other management needs.
R-pM manages the business in three dimensions; result, performance, and management. The day-to-day business is managed in the result dimension by result managers responsible to produce results that reach goals, and by performance managers responsible to provide solutions that meet expectations. Each domain in the enterprise is managed from the result and performance dimensions. Corporate management manages in the management dimension to manage results and performance over time in operations and development to create strategic result value defined in the strategic business structure. A framework is provided for good management and corporate governance.
R-pM provides many other advantages over current 20th century management
These are just the main differences between R-pM and 20th century management. R-pM provides many other advantages of an organized and managed business to eliminate the unsolvable problems of 20th century management. This is explained further at result-performance-management.com and is detailed in The R-PM Toolkit, your 21st Century Management Manual.
