Archive for November, 2006

The challenges and changes of the 21^st century

In the 21^st century, we face different business management challenges and are able to do many things that we could not do through the 20^th century.

For example, technology has made it imperative that the enterprise quickly change and adapt to serve worldwide customers and markets. Technology also enables us to focus on the specific economic output and input results that form a value-quality chain from within our suppliers, through our enterprise and business-partner-collaboration, and on into our customer’s value-quality chain. The capital we utilize is moving from tangible to intangible assets. Technology enables many changes in the way we manage capital to move the focus from cash and accruals to the total worth of tangible and intangible assets. The world in which we operate is becoming more complex. But, technology enables us to simplify the enterprise to directly organize, plan, and manage business reality.

The problem is that the enterprise is handicapped by the conventional methods adopted in the 20^th century that do not provide a foundation to meet the challenges and changes of the 21^st century.

Build the enterprise to meet 21^st century corporate management challenges

The way forward to compete in the 21^st century is provided by a new breakthrough, Result-performance Management (R-pM). R-pM defines and organizes the enterprise business to utilize capital in performance to produce value in results. R-pM enables the enterprise to build the foundation needed for the 21^st century and to leave behind 20^th century business and performance problems. This is described in the article The Benefits of R-pM for the 21st Century Enterprise.

Result-performance Management (R-pM) provides the only way to actually organize and manage the business for the 21^st century.

Organize the business, not people

R-pM organizes the business, rather than organizing people into contrived organizational units, positions, functions, and jobs. The business structure consists of only two entities:

• Business outputs, which are identified and organized as results
• Capital utilized, which is identified and organized as performance solutions

This is it. The enterprise business organization becomes very simple when every unit, position, or responsibility is defined only by performance solution utilized and result produced.

Manage the enterprise in three dimensions

Once the business is simplified and organized properly, R-pM manages the business in three dimensions.

• Result: To manage business outputs to create value and achieve goals
• Performance: To manage capital utilization to control costs and meet expectations
• Management: To manage by time period for development and strategic value

The first two dimensions are the result dimension and performance dimension in the business structure. The third dimension is the management dimension to manage the business structure each time period to reach the strategic business structure as described in Result-performance Management: Three Dimensions of the 21^st century Enterprise.

Learn more about R-pM and the three dimensions of the 21^st century enterprise in order to improve the organization and management of your current enterprise business and enter the transition to a 21^st century enterprise.

21^st Century Management eliminates 20^th century problems

Result-performance Management (R-pM) eliminates costly 20^th century problems. Slash costs, simplify business management, and boost competitive advantage through R-pM, the conventional method for 21^st Century Management.

Download your 21^st Century Management Manual today

Your 21^st Century Management Manual, The R-pM Toolkit, is available today and is under continual development to expand and refine 21^st Century Management. Get your R-pM Toolkit, and future updates, at result-performance-management.com.

All enterprises face fundamental problems that are impossible to solve. So, we spend a lot of time working around the problems and continuing to get things done in spite of the problems. The only things that keeps us competitive is that all companies use similar 20^th century methods and face the same unsolvable problems.

20^th century business and performance management problems

The problems of the 20^th century enterprise are summarized in the article Eliminate 20th Century Problems by Becoming a 21^st Century Enterprise. Once you understand the problems, you will wonder how your enterprise has managed.

Become a 21^st Century Enterprise

The article explains that 20^th century problems cannot be solved, but they can be eliminated by going back to properly organize and manage the business for the 21^st century, instead of using contrived 20^th century methods. The 21^st century enterprise organizes the results to be produced and the performance solutions utilized, into one integrated business structure. The 21^st century enterprise manages in three dimensions:

• Result
• Performance
• Management

Learn more about Result-performance Management (R-pM) to see how your company can use 21^st century techniques to address current management and performance problems and eventually become a 21^st century enterprise.

R-pM provides a new 21^st Century Management Consulting Model

Management consultants use R-pM to provide professional business change and management improvement services, based on directly organizing and managing the business. Review the article “Put Professionalism back in Business Change Management Consulting with R-pM” to learn how your management consulting firm can offer 21^st century services as an R-pM management consultant, using the breakthrough R-pM 21^st  Century Management Consulting Model.

21^st Century Management eliminates 20^th century problems

Result-performance Management (R-pM) eliminates costly 20^th century problems. Slash costs, simplify business management, and boost competitive advantage through R-pM, the conventional method for 21^st Century Management.

Download your 21^st Century Management Manual today

Your 21^st Century Management Manual, The R-pM Toolkit, is available today and is under continual development to expand and refine 21^st Century Management. Get your R-pM Toolkit, and future updates, at result-performance-management.com.

If you do not plan and manage your business, you cannot plan and manage investments in developing and improving the business.

Conventional corporations cannot itemize the benefits of investments

You likely invest in corporations. As an investor, you try to identify precisely how you are to gain a return on your investment and have some idea of what that return should be. Do you realize that the corporations that you invest in have no way to do the same when they use the money you have invested, particularly for internal capital development?

Corporations do not have a fundamentally strong means to itemize benefits and plan and manage the return on their investments, from initiation through to measuring the return. So corporations rarely really invest, they either spend or speculate. Corporations often turn capital development over to consultants to plan and manage. But the methods used by the consultants are no better than those that the corporation uses. [more...]

Many methods have been contrived and much is written these days about value management, value chains, value propositions, value creation, strategic value, etc. But, in all this has anyone precisely described where enterprise value really lies?

The problem creating value management and value chains

What is value an attribute of? What in your enterprise contains your value? When we create value, where does the value go? Is value an attribute of performance, the customer, the supplier, the proposition, the employee, the department, the function, the process, the system, a chain, the business, the enterprise, management, the strategy, or what? Can we manage value when we do not know what contains value?

There many contrived formulas to calculate value. But often the formulas calculate a value for entities that do not contain the value created by the enterprise. For example, there are many formulas to calculate different values of the business, but does the business contain the value we create.

There is a lot of talk about business collaboration in value chains across enterprises. But, what comprises a link in a value chain? What are the components that define a link in your value chain? If we cannot define a link, how can we create a chain?

There is only one solution to manage value creation and to link value chains

We cannot manage the value created in the business, if we do not use Result-performance Management (R-pM) to manage the business. The business is comprised of two entities:

• Results: The economic outputs from the business that actually contain the value created and are specifically defined to manage value
• Performance Solutions: The capital of worth, consumed in performance to produce result value, which are specifically defined to manage costs and the value added

The only way to manage value creation and link value chains is through R-pM as is introduced in the article Use R-pM to Make Value Really Valuable. [more...]

The 20^th Century Enterprise does not organize and manage the business

The 20^th century enterprise organizes people and positions and is influenced by power and politics. This creates a rigid organization structure that is overlaid on the business. People manage the organization units and think that they are managing the business. But, they cannot be managing the business, because they have never defined the entities that make up the business.

The business utilizes capital in performance to create value in results

The business utilizes capital in performance to produce outputs in results. All outputs like products, services, reports, maintained machines, project completed, etc. are results. Inputs procured like components are results to be transformed along a result value-quality chain into a final product. In order to manage the business, results must be organized and managed. [more...]d.

Administration is one of the top ten problems in the 20^th century enterprise

The big problem with administration is that it prevents comprehensive capital management. We administer capital through functions rather than measuring and managing capital for utilization, improvement, and development. This gives us such situations as:

• Emphasis on recording and managing money as financial capital which prompts neglect of other capital of high worth
• Accounting for cash and accruals and neglecting capital cost, worth, and value produced
• Administration of information as technology rather than management of information as capital
• Human resource administration as employees instead of managing human capital to increase result value provided and capital worth to justify added performance costs
• Emphasis on tangible assets which allows unmanaged high-worth intangible assets
• Failure to manage and gain benefit from business, management, and information capital
• Failure to identify specific performance solutions which are utilized to consume capital and incur costs, resulting in incomplete cost accounting and many unknown costs
• Investment in capital and failure to manage the utilization of capital to produce the return on investment
• Unsupported utilization of capital in the organization units
• Business complexity due to poorly utilized and unmanaged capital
• Assignment of capital to organizations to reside rather to results to be utilized
• Inflexibility and unresponsiveness to change because each item of capital is not managed for utilization, change, and improvement

These and other situations occur because those who should be managing capital in the business are performing administrative functions and allowing important performance solutions that could provide much more benefit at lower costs to languish unmanaged.

Administration must be replaced by Capital Management

The need is described in the article Replace Administration with R-pM Capital Management. Every enterprise has much to gain by using Result-performance Management (R-pM) to know what capital is used where to produce results and ensuring the most cost-effective utilization to produce high value-quality results in the enterprise business structure.

Review the articles under Learn the Basics of R-pm or click on the R-pM banner to download information about R-pM.

21^st Century Management eliminates 20^th century problems

Result-performance Management (R-pM) eliminates the top ten problems and other costly 20^th century problems. Slash costs, simplify business management, and boost competitive advantage through R-pM, the conventional method for 21^st Century Management.

Download your 21^st Century Management Manual today

Your 21^st Century Management Manual, The R-pM Toolkit, is available today and is under continual development to expand and refine 21^st Century Management. Get your R-pM Toolkit, and future updates, at result-performance-management.com.< [more...]>

Most companies find it difficult to implement new information systems and management solutions and to implement the benefit of business change. Business change is a mysterious unknown that is very difficult to manage.

Reasons for problems with solution implementation and business change

There are several reasons for the problems in business change, mainly:

• The company does not organize and manage the actual entities that change
• The company does not have a good method to ensure beneficial business change
• We do what everybody else does and employ conventional wisdom, which ensures that we have the same problems as everybody else and that we make bad decisions
• We implement change on a rickety foundation of uninvolved management, resistant users, administrative objectives, consultant methodologies, no goals for return, etc.

This situation is explained in the article Implement the Benefit of Business Change. The article outlines a typical business change situation for an information system implementation.

How to manage information system implementation and business change

The article also introduces Result-performance Management (R-pM), the only method that manages the actual entities that change as one integrated business structure, provides the foundation for change, and implements both the cost and benefits of change. Join the R-pM community and download “How to Manage Business Change” to take the mystery out of business change and learn how to implement the benefit of new systems, solutions, and business change.

Review the articles under Learn the Basics of R-pm for an introduction to R-pM.

21^st Century Management eliminates 20^th century problems

Result-performance Management (R-pM) eliminates business change and system implementation problems and other costly 20^th century problems. Slash costs, simplify business management, and boost competitive advantage through R-pM, the conventional method for 21^st Century Management.

Download your 21^st Century Management Manual today

Your 21^st Century Management Manual, The R-pM Toolkit, is available today and is under continual development to expand and refine 21^st Century Management. Get your R-pM Toolkit, and future updates, at result-performance-management.com.

Much is written about business collaboration through value chains. But the value chains are contrived one-off chains for the particular situation. Have you ever seen an example of a value chain model that any enterprise can use to collaborate with any other enterprise?

The conventional enterprise cannot build managed value chains

In order to construct a value chain you need to know where your value lies. You must manage the value at each link in the chain in order to manage the chain. A value chain is not worth much unless you can precisely define and compare all costs incurred to create the value at each link for alternative collaborators in the chain. You must manage the utilization of capital as specific performance solutions that produce a cost for all tangible and intangible capital utilized. The costs for each link in the chain must be charged against the value created to determine the value-added at each link in the chain.

Can you do this with the 20^th century methods you use today? The 20^th century enterprise cannot collaborate in true value chains because it can not manage the value created and costs incurred at each link in the chain. [more...]