All business decisions involve results and performance
All business decisions boil down to “what result must be produced as output by the business, what human capital should be responsible, and what other capital should be utilized to produce the result?” Strategic decisions involve the strategic results needed in the future and the capital investments to acquire or develop the capital as performance solutions to produce the strategic results. Management goals involve results to be produced within a certain time. Performance expectations involve the level of performance expected from the human and other capital utilized as specific performance solutions.
Business decisions can be managed only by separately managing results to be produced and the performance solutions to be utilized.
20th century management does not support business decisions
20th century management does not define the results to be produced by the business or the performance solutions utilized in business activity as specific managed items, to support business decision-making. Both results accomplished and actions executed have been defined as performance, dating from the 15th century.
Management decisions are often stated in terms of performance as tasks, activities, jobs, work assignments, etc instead of output results to be produced by when. If management makes a decision to produce a result by whom and by when, the decision can not be implemented and managed as part of the business.
Decisions must be implemented and managed through separate structures laid over the business. The organization structure is updated to say who should carryout the decision. The budget structure is updated to provide funds; the account structure is updated to show responsibility; and performance management and reporting structures must be updated and used to report progress. But, none of these structures manages the actual result to be produced or the actual capital utilized. Management is presented with mountains of information related to the various structures, but no information is directly related to the actual business or the decision made. The value of the decision, the cost of implementing and operating the decision, and the value added to the business remains unknown.
21st Century Management manages the decisions to utilize performance to produce results
Result-performance Management (R-pM) separates results from performance to organize the business for 21st Century Management. All business organization, planning, directing, control, and reporting focus on business decisions to manage the specific results produced through the utilization of capital as performance solutions.
The responsibility for all business results is organized and managed. The responsibility for providing qualified performance solutions to produce the results is organized and managed. Every management decision involves a result goal. Every performance solution has a performance expectation. All management decisions are planned, implemented, directed, controlled, and reported through one business structure that organizes and manages all results produced and capital utilized as performance solutions. Management information is related directly to the business and decisions made. The value created by the decision and the cost of implementing and operating the decision can be known and managed to show the value added to the business by the decision.
Use R-pM to organize and manage your business decisions
R-pM is supported by the website result-performance-management.com and The R-PM Toolkit. Get your copy of The R-PM Toolkit and organize your business for 21st Century Management. Then, manage all strategic and operational decisions as part of your business.
