We have been “managing for results”, but we need to “manage results”
The 20th century method is to manage for results
For years, managers have been “managing for results” as discussed by Peter Drucker and others. “Managing for results” manages performance within separate organization units across the enterprise to produce a final result that goes to the customer and produces revenues or profits. “Managing for results” says results are not produced within the enterprise business as an internal business entity, but that results are an economic indicator of final results that go outside the enterprise. Results are in revenues as viewed from outside the enterprise.
“Managing for results” provides an economic perspective, but has also been used to guide enterprise management. This has prevented companies from defining the chain of results within the business that lead to the final results that leave the enterprise, and organizing the actual business as “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results”.
We have managed for results, but we have never managed results
While we have managed for results; we have never managed results. We have never managed results along result chains and in separate organization units across the enterprise in order to produce the final result in revenues or profits.
If we are truly going to manage our enterprises and businesses well, we must manage results. But, as we described in a recent article, those who contrive “managing for results” and other 20th century management methods define the actions executed in utilization of capital as performance and results accomplished by performance as performance. Results are not performance! We need to get rid of this flawed 20th century definition, and all of the methods that build on the definition, once and for all.
We need to manage specific results, capital as specific solutions, and the utilization of a solution to produce a result as performance
We need to manage results as all the economic outputs produced by performance, capital as specific solutions available, and performance as the utilization of the capital solutions to produce the result. Managers in an organization unit can only manage the performance of solutions as utilized to produce their results, but not the utilization of the same capital solutions in performance by many managers across organization units. Therefore, results must be managed in our units and capital solutions utilized in performance must be managed and supported across the enterprise.
Results are managed in the organization unit that produces them and capital utilized in performance is managed across the enterprise
But, we cannot do this until we define all the results that must be produced in each unit for enterprise success, all the capital investments that must produce results of value in order to return the investment, and the performance across the enterprise that utilizes solutions and produces the results. Then, finally, we can manage results produced by utilizing capital in performance in each separate units and develop, improve, and support capital solutions utilized across the enterprise to really manage and optimize the final results in revenues and profits.
Result-performance Management (R-pM) is the answer to manage results and performance
“Managing for results” focused on final results that left the enterprise. Final results are not produced by the utilization of capital in performance along a chain of results within the enterprise. Final results are produced by monolithic performance that mixes capital solutions utilized, performance in the utilization of the solutions, and the results produced together under the label “performance”, using performance management methods. “Managing for results” prevents 21st Century Management of the enterprise business in separate capital management, performance management, and result management.
The answer to managing results is Result-performance Management (R-pM). R-pM organizes and manages the enterprise business in results produced from performance by managers in each unit and organizes and manages specific capital across the enterprise to be utilized in performance to produce multiple results.
21st Century Management eliminates 20th century problems
Result-performance Management (R-pM) eliminates result management and other costly 20th century management problems. Slash overheads and costs, simplify business management, and boost competitive advantage through R-pM, the conventional method for 21st Century Management.
The R-pM Toolkit, is available today and is under continual development to expand R-pM and refine 21st Century Management. The R-pM Toolkit is offered at a nominal price to encourage wide use of R-pM. Subscribe to your R-pM Toolkit, and future updates, at result-performance-management.com.
May 1st, 2006 at 01:09
[…] In an article on 12 April we discussed how we managed for results but never managed results. We have never managed results, because we have always confused results and performance. If we define results as performance, we can never separate and separately manage the performance and the result produced from performance. […]
November 5th, 2006 at 19:42
[…] In an article on 12 April we discussed how we managed for results but never managed results. We have never managed results, because we have always confused results and performance. If we define results as performance, we can never separate and separately manage the performance and the result produced from performance. […]