Archive for May, 2007

An article at result-performance-management.com, “Business Change that does not change or benefit the Business” discusses how many of our business change projects are destined to fail before they start. The odds are stacked against successful business change in the 20th century enterprise.

Business change problems start when an organization structure is laid over the business

We start problems when we lay organization structures over the business and do not organize the business. Since the business is not organized, we are unable to manage the business, so we lay strategy and planning, business processes, charts of accounts, performance management, and other structures over the business. Since the business is not managed, we are not able to manage change to the business.

As the article shows, the enterprise business is defined by only two entities:

• Results: The economic outputs that create the value from the business
• Performance Solutions: The capital consumed in performance to generate the costs incurred by the business to produce result value

Business results and performance solutions change continually. In order to manage business change, we must manage business results and performance solutions continually.

If the business changes day by day, why is Business Change a separate periodic undertaking? It is because “Business Change” is not change to the business, but periodic change to rigid structures overlaid on the business to align them closer to actual business results and performance.

R-pM manages business change as the routine when the business changes

Result-performance Management (R-pM) organizes and manages the business through results and performance to change automatically with business change. Business change projects are replaced by result-performance development to develop the new and improved capital needed to produce future value-quality results. The approach is described in the R-pM Community download “How to Manage Business Change“. The download also is included in the R-pM Toolkit.

The 20^th century enterprise has situations that resist or undermine change

The odds of successful business change are stacked against 20^th century enterprises. Invariably, enterprises have situations that resist or undermine change, such as: [more...]

The business is the utilization of capital as business solutions in performance to produce business results. The objective of all human capital utilized as business solutions must be to produce business results. Business results are the specific economic outputs of value. Results can be counted and may be measured in other ways.

Results are managed as separate entities in today’s enterprise

Results include a wide variety of output entities that are separately defined or remain undefined today. The enterprise may have records on material, products, orders, invoices, etc. Each of these separate entities is part of one set: results. The enterprise manages each identified result separately as its own entity.

Many valuable results are produced but are not recorded or managed as something of value that incurs the performance cost of utilizing business solutions.

Defining results as one set enables management of result commonalities

Defining all outputs as results enable the enterprise to manage the common attributes of all results, such as:

• The identifier and description
• The manager responsible to produce the result
• The result customer
• The volume of results planned and produced
• Quality determinates for the result
• The value of the result
• The total performance solution charges against the result
• Result metrics to measure the quality and impact of the result
• Result goals
• Result relationships
• Access to knowledge on producing the result
• Result risk factors and incidents
• Result symptoms encountered

Results are defined down to the level of detail desired by management in order to manage all of the economic outputs produced.< [more...]

21^st Century Management can be a great opportunity for those who prepare

21st Century Management is coming. Result-performance Management (R-pM) is the conventional method to organize the business for 21^st century management, so R-pM will be used eventually by every competitive enterprise. R-pM requires high-worth human capability capital, but fewer human personnel capital. Those who work for the enterprise will have to face the prospect of R-pM.

Implementing and using R-pM offers a tremendous opportunity and advantage to those who understand and prepare for the change. R-pM requires that all in the enterprise learn how to utilize their own performance and performance solutions available in a cost-effective manner to produce high value-quality results. R-pM can introduce outplacement for those who just want to continue what they are doing today.

A new set of posts will explain the opportunities with R-pM

It may appear to some that certain positions lose out in an R-pM enterprise. The position name may not be continued under R-pM, but the need for the capabilities developed in the position continue. The secret is to understand R-pM, the human capabilities organized and utilized by R-pM, your own capabilities to apply, and where you can produce high-value results and increase your capital worth. [more...]h.

“Business Solution” is often used by Vendors to label their offerings

“Business solutions” is a word used by vendors of performance capital to group a combination of capital under a particular label to show how the solution can be utilized to produce business results. The logic is valid to the degree that it applies to the vendor offerings.

Business solutions are the individual items of capital that produce business results

The business is the utilization of capital in performance to produce value in results. The capital utilized in performance can be defined as business solutions. Therefore, the enterprise must take its own view of business solutions as the individual items of capital that are utilized to produce business results. Business solutions may also be called performance solutions to be utilized in performance.

The enterprise identifies some capital as separate entities today. Most enterprises maintain files on employees, assets, systems, cash, supplies, etc. Most other performance capital is not recorded or is labeled as “intangible assets”.

Defining business solutions as one set enables management of solution commonalities

Defining all performance capital as one set of individual business solutions enables the enterprise to maintain information on the commonalities of all capital utilized as business solutions, such as:

• The identifier and description
• The categorization and classification of the solution
• The costs of the solution in acquisition and support
• The charge for utilizing the solution to produce a result
• Time and costs of utilization
• Responsibilities for managing and providing the solution
• Performance indicators to measure the utilization and effectiveness of the solution
• Performance expectations from the solution
• Access to knowledge on utilizing the solution
• Performance problems encountered with the solution

Identifying and organizing business solutions within one set enables the enterprise to know all performance capital utilized in the business and to have the options to record solution development and improvement, account for solution utilization, know and charge out performance costs, evaluate the results produced by the solution, manage the effectiveness of the solution in producing a quality result, assess the worth of the solution, measure the return on the solution investment, and measure performance indicators against expectations.< [more...].

Some of the R-pM Community of R-pM Toolkit users are enthusiastic about R-pM, and have good ideas to contribute to the Toolkit. Experienced business professionals, who learn R-pM concepts, see the problems with current structures and can figure out how to eliminate the problems with R-pM.

The R-pM Toolkit should be an “R-pM Community” project

The R-pM Toolkit will benefit from input from Toolkit users and development as an R-pM Community project. We will consider designs, procedures, learning material, case studies, etc. for result group, capital category or class, R-pM implementation, capital development, or operations.

We are keeping the R-pM Toolkit price very low, so we depend on gaining a high number of R-pM Toolkit users. Gradually, we are breaking through the barriers to change.

We have drafted a potentially lucrative reward scheme, based on Toolkit sales, for original contributions published in the Toolkit. We will share the R-pM Toolkit outline under development with interested R-pM Toolkit users. We will make additional R-pM material available for an agreed area of contribution.

An opportunity for retired business analysts and consultants

If you are retired with extensive organization and management experience, and are able to grasp and build on R-pM, you have an opportunity to keep busy by participating in R-pM Toolkit development.

If you are interested in contributing to the R-pM Toolkit, please email the R-pM Toolkit customer-service address, subject: R-pM Toolkit Contribution. Tell us about yourself and your strengths that could contribute to the Toolkit. Give us your ideas about the Toolkit and suitable rewards for your published input.

The “R-pM Community” can work together to make R-pM a success for all

We are working hard to help all in the R-pM Community successfully organize the business for 21^st century management. The R-pm Community can help by explaining R-pM to partners and collaborators. The R-pM Community can also provide their ideas, experience, and lessons to improve the R-pM Toolkit for all. R-pM Toolkit contributors can help by publicizing R-pM to increase Toolkit sales. If we work together, we can make R-pM and the R-pM Toolkit a valuable success for all in the R-pM Community.

A business enterprise has a name and may have a legal structure

Every business has a name or some label to identify the business. There is usually a requirement to structure a legal business entity. The business enterprise provides a structure for a business as corporation, company, institute, government agency, association, partnership, individual proprietorship, etc. The enterprise can be named to identify the business and provides the structure within which to describe a business.

An enterprise defines the scope of results to be produced by a business

The logical definition of business is “the utilization of capital in performance to produce value in results”. A business enterprise then also should provide the business structure of results and performance solutions that define the business. The business enterprise then is a business structure that utilizes capital in performance to produce value in results.

The enterprise provides an identifier and label for an integral set of business results, and the performance solutions utilized, that form the enterprise business structure. Every result produced within a business is assigned to the enterprise that contains the business structure. Every performance solution utilized within the business is assigned to the enterprise that contains the business structure.< [more...]�

“Information Complexity” increases with each structure laid over the business

Information complexity is a common outgrowth of contrived organization and management structures laid over the business. The organization structure creates entities for unit, postiton, job, function, manager, etc. Management structures create entities for objective, process, center, account, group, activity, responsibility, object, station, and on and on. Each overlaid structure uses different entities and different names for the same entity, preventing information integration and reconciliation.

R-pM organizes and manages any business through five information sets

R-pM is designed to utilize modern information technology to organize the business for 21^st century management. R-pM eliminates information complexity by organizing and managing the business through five information sets to define business results, performance solutions, capital, enterprise interactions, and change over time periods.

Learn more through the article in 21^st Century Management Magazine “Eliminate Information Complexity”.

21^st Century Management eliminates 20^th century problems

Eliminate the information complexity problem and other costly 20^th century problems by organizing your business for 21st Century Management. Slash costs, simplify business management, and boost your competitive advantage through Result-performance Management (R-pM), the conventional method for 21st 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 21st Century Management Learn more about the R-pM breakthrough for 21^st century management and subscribe to your 21st Century Management Manual, including free updates through 2009, at result-performance-management.com.< [more...]>

The accepted definition of business is the “Activity of providing Goods and Services”

The generally accepted definition of business in on-line dictionaries is “the activity of providing goods and services”. If we start from this definition, we see that the business actually has two components:

1. “The activity of providing”, which is the action of business performance in the utilization of human and other capital
2. “The goods and services provided”, which are the outputs or business results produced from performance that can be counted and measured

So in order to manage the business, “the activity of providing” and “the goods and services provided” must be managed.

“Activity of providing” is the action of business performance in the utilization of capital invested in the business

“The activity of providing” is the business performance that utilizes capital. People perform using such business solutions as business processes, systems, knowledge, equipment, supplies, plans, tactics, and information. The people are human capital that are developed and paid by the business. People use business performance solutions provided by capital investments in the business. So, business performance utilizes human and other capital invested in the business.

The capital must be organized and managed as business performance solutions that can be utilized by people. The utilization of specific solutions to produce specific results can be explained through human knowledge solutions. The most important capital is human capital, but other capital must be managed properly to utilize capital available, to capture performance costs incurred in utilizing the capital, and to determine the returns on capital investments.< [more...].

Business methods were developed and adopted piecemeal during the 19^th and 20^th centuries. Those that were generally accepted became the business methods in use today. These methods were devised to organize and manage the business prior to the use of information technology.

Most users are not satisfied fully with business methods in use. We see continual efforts to improve business methods and practices. New solutions are proposed for such well-known problems as business and information complexity, business collaboration, alignment of capital with the business, value chains, quality management, reorganizations, change management, strategic value creation, corporate governance, and so on. Even with all this effort, fundamental business management problems, discussed at the Business Change Forum, remain unsolved.

The conventional approach is to add new methods and practices on to the body of existing methods. No one ever re-examines the logic of business management to enable one set of business methods that incorporate modern information technology to solve on-going problems and satisfy the needs for 21^st century management.

The Business Change Forum has added a new forum “Logic of Business Management” to provide a logical basis for business organization and management, and the use of information technology for logical business management methods. [more...]

21^st century management manages the enterprise business as one integrated structure. Result-performance Management (R-pM) is the conventional method to organize the business for 21^st century management. Many enterprises are planning 21^st century management with R-pM. There is a growing need for 21^st century management consulting. R-pM provides the 21st century management consulting model to assist customer enterprises moving to 21^st century management or utilizing 21^st century management.

R-pM management consultant firms and individuals assist enterprises implementing and utilizing R-pM. R-pM provides a new product for management consultants to supersede conventional organization and management methods. We are building a network of R-pM Consultants to assist the acceptance and utilization of 21^st century management with R-pM.

R-pM provides the right solution for today’s management consultant assignments

R-pM is the only way to organize and manage the business for new start ups, to plan and manage benefits of capital development and business change, to build value-quality chains, to eliminate business and information complexity, to implement information systems as part of the business, to analyze the value of mergers and acquisitions, and to create shared value in other applications.

21^st century management is explained through R-pM Websites, and download material. R-pm advantages, and the support provided by Business Change Forum and R-pM websites and products, provide a significant competitive advantage for the R-pM Consultant. Being an R-pM Consultant provides a network and affiliation for independent firms and individuals, as part of the growing R-pM community.

Management consultants, who purchase an R-pM Toolkit through July 2007, may request an R-pM Consultant License

To encourage management consultants to learn the power of R-pM, we offer valuable R-pM Consultant licenses, at no additional cost, to management consultants, who show their interest through the purchase of the R-pM Toolkit, through July 2007.

An application for an R-pM Consultant License and Directory Listing is provided with the R-pM Toolkit. The license will define a specific market or specialty for providing R-pM consulting and education services and will be renewable at no cost in July 2008, as long as the consultant shows a professional capability in R-pM.

The R-pM Toolkit, the 21^st Century Management Manual, is available today and is under continual development to expand and refine 21st Century Management R-pM Toolkit, updates with new procedures and solutions and the latest on R-pM are provided at no additional cost. The R-pM Toolkit supports the R-pM consulting model and guides both the consultant and the enterprise client to employ R-pM for shared result value-added benefit.

The R-pM Toolkit is the 21st Century Management Manual and supports 21st Century Management Consulting

All professional management consultants keep up with the latest thinking on business organization and management. The R-pM Toolkit provides original insights and alternatives that can be applied to a current consulting practice and alone are worth many times the reasonable R-pM Toolkit price. Join the R-pM Community to learn more about R-pM Consultants.