Define performance properly to organize the enterprise business
The 20th century business organization is based on a flawed definition of performance
In an article on April 10, 2006, we discussed the years of bad management from mindlessly copying a bad definition, showing what we have endured because so many of our management methods and structures are based on a flawed definition of performance. Even today, performance is defined not only as the activity of performing to produce results, but also is defined as the result of the activity in goods and services and other outputs.
The flawed definition of performance prevents us from organizing and managing the business
Most on-line dictionaries define the enterprise business as “the activity of providing goods and services”. Business activity is performance and business goods and services are results. Therefore, in order to organize and manage the business, we must organize and manage performance and results. By defining performance to include both the activity and results of performance, we have prevented management of results separate from performance. In effect, we have prevented the organization and management of the enterprise business. Since we cannot organize and manage the business, we construct organization and management structures that are overlaid on the business.
We need to separate results from performance to organize and manage the business
When we separate results and performance, we can define the enterprise business as the utilization of capital in performance to produce value in results, and we can define results as the inputs and outputs of performance, not as a part of performance.
Results are the basic elements of economic output that embody the value created by the business. Performance is the consumption of capital that generates the costs incurred in producing value in results. By separating results from performance, we can optimize the performance that produces the result to maximize result value and minimize performance costs.
Result-performance Management (R-pM) enables organization and management of the enterprise business
Now, finally, after all these years we can organize and manage the enterprise business the way we should have been managing all along — by managing results separate from performance.
The answer is Result-performance Management (R-pM). R-pM simplifies enterprise organization and management based on the common definition of enterprise business as ‘the activity of providing goods and services”. To learn more about R-pM visit result-performance-management.com.
21st Century Management eliminates 20th century problems
Result-performance Management (R-pM) eliminates the performance definition problem and other costly 20th century problems. Slash overheads and costs, simplify business management, and boost competitive advantage through R-pM, the conventional method for 21st Century Management.
Download your 21st Century Management Manual today
Your 21st Century Management Manual, The R-pM Toolkit, is available today and is under continual development to expand and refine 21st Century Management. The R-pM Toolkit is offered at a nominal price to encourage wide use of R-pM. Get your R-pM Toolkit, and future updates, at result-performance-management.com.
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