Archive for June, 2007

Corporate Planning Managers are important capital managers

Are you a Corporate Planning manager, responsible for strategic planning, alignment of corporate and lower-level plans, and reporting against the plan. Corporate planning is defined and organized differently from enterprise to enterprise. You likely provide top management support such as planning research, intelligence analysis, option analysis, and other functions. How do you approach your work? As a routine function? As a responsibility for corporate or enterprise strategy development, and to ensure that corporate strategy is coordinated and executed properly?

If your answer is closer to the latter, you will clearly benefit from R-pM.

20^th century management does not provide a framework for Corporate Planning

20^th century management manages the enterprise by laying organization and management structures over the business. One of the structures laid over the business is the corporate plan. 20^th century management does not provide a framework or a capability to plan the actual corporate business. [more...].

The business structure is the fundamental structure used to manage the business in 21^st century management. The business structure defines the business organization and is used for all aspects of business management.

The business structure is created by combining the business performance solution structure and the business result structure into one holistic structure that defines the complete business. The business is organized in the business structure when one specific solution in the business performance structure is deployed to produce a result in the business result structure. The business structure changes with each change to a performance solution in the solution structure or change to a result in the result structure.

The business structure is used to record business transactions for the utilization of a solution to produce a result or for progress on a specific result. The business structure is used to optimize the business by managing the performance utilized against the result produced. A strategic business structure defines the strategic and support results planned at the strategic horizon and the existing and new solution development needed to produce the results. A sub-business structure may be used to produce a project or campaign result in the enterprise business structure. Extracts may be made from the enterprise business structure to manage specific result sets for a result organization, product group, region, responsible manager or other attribute of specific results.< [more...]

Business owners have the most to gain from R-pM

Organizing the business for 21st century management with Result-performance Management (R-pM) slashes costs and compounds competitive advantage.

Business owners, from small businesses to corporate investors, have the most to gain by organizing and managing the business with R-pM. Owners reduce costs significantly by removing structures overlaid on the business that consume most of management and much personnel time. The business is simplified to essential outputs of value in results, performance solutions utilized that incur costs, revenue and performance and investment capital of worth, related enterprises, and management time periods. Information systems can be simplified to result-performance management systems. Owners eliminate the information mess and use real business data in the value of the results produced, full performance costs, the value added to results, and the real worth of their business and the capital they use.

Management and staff are focused on producing valuable business results. Routine administration is replaced by capital management to provide qualified performance solutions needed to produce results. A result manager is responsible for each result and a performance manager is responsible for each solution provided.

The business strategy is defined as a strategic business structure that defines the strategic result value to be created and the strategic performance solution investments needed that are justified by specific result value. [more...].

What is the unsolvable alignment problem?

We keep hearing about problems aligning the organization and the business, strategy with operations, information systems with the business, business processes with operations, accounting with the business, customer needs with product and service development, outsourced services with internal operations, human resources and business needs, financial and information technology and business strategies, tangible assets and intangible assets, etc. How many books have written and methods proposed for solving alignment problems? Despite all these books and methods, the unsolvable alignment problems remain.

We attempt to align our structures and solutions with the business, but to this day, we have never defined the business or how to align with the business.

The unsolvable alignment problem is simply: How do we align the multiple business performance solutions, which we must integrate and utilize together, to produce economic output in a specific business result?

Result-performance Management (R-pM) eliminates the alignment problem by organizing and managing the actual business

Result-performance Management (R-pM) does not attempt to align structures or solutions with the business. R-pM eliminates the alignment problem by organizing and managing the actual business, the utilization of capital in performance to produce value in results. R-pM separates results in a result structure and performance solutions in a performance structure. The structures create one integrated business structure when performance solutions are deployed and aligned to produce specific results. [more...].

The business is the utilization of capital as business solutions in performance 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 have attributes that define the quality, value, and other characteristics of the result. Results must be logically structured by the management responsibilities for results and by the overall objectives of results.

Results are organized into one enterprise result structure, containing all the results produced by the enterprise, and deactivated results that still have recorded value, costs, and other attributes. The result structure is managed by result organization relationships from end-results to set-results to key-results to show the reporting lines and relationships for managers responsible for results by level of management. The result structure is organized by result objective to organize revenue results, capital results, and investment results.

Special extracts from the result structure may use other result relationships and may be managed to focus on result sets, value-quality chains, result management or participation responsibility, result value evaluation, and other purposes.

The Result Structure is business organization capital to organize results produced by the actual business

The enterprise business organization consists of the business result structure and the business performance structure. [more...]

Business Change Project Managers have no foundation and little support

Have you ever managed or worked on a business change or business capital development project. If you have, and were successful, you deserve a big bonus. You deserve a big bonus, because your enterprise did not do its part to provide you with the foundation or environment for a successful project. Enterprises provide a “Rickety Foundation” for business change and capital development.

“Business change” projects do not change the business

“Business change” is a misnomer. “Business change” projects do not change the business. Business change projects change contrived organization and management structures laid over the business and capital development projects lay new systems, processes, facilities, or other structures over the business. Business change and capital development is not integrated with the business. Projects are ad-hoc endeavors that must be created out of nothing and somehow use reassigned personnel to improve the enterprise successfully.

Enterprises often turn business change projects over to consultants

Since there is no foundation for successful change, many enterprises turn the problem over to consultants. [more...].

Business Solutions are specific capital items that are utilized to produce specific business results.

Business solutions are the specific items of capital that are supported and are utilized to produce specific results. Business solutions are broken down to provide the specific management support capabilities needed, and to integrate with other solutions utilized to produce a specific result. The set of solutions is organized in the business solution structure. This means that the business solutions must be structured into two dimensions.

• The capital management and support dimension so that solutions can be supported by the proper human capability solutions
• The result management and utilization dimension to group like solutions that must be integrated to work together to produce a result

In the capital management support dimension, solutions should be categorized by the kind of human capability capital needed to develop, support, and provide cost-effective business solutions. In the result management and utilization dimension solutions should be classified by the way capital is organized to actually produce results.

Today, some capital is administered by functions, but most is undefined and unmanaged

In today’s enterprise, most capital is administered in different categories. Human capital is separated as human resource administration. Tangible facilities like financial and fixed assets and accounting records fall under finance and accounting or an administration department. [more...]s

Purchasing Managers are important capital managers

Are you a Purchasing manager, responsible for purchasing, maintaining supply inventories, and recording supply expenses? How do you approach your work? As a routine function? As responsibility for the enterprise supply line to ensure that the right supply capital items are provided on time to produce enterprise results?

If your answer is closer to the latter, you will clearly benefit from R-pM.

Result-performance Management (R-pM) organizes the business for 21^st century management

The means to understand the actual business that you support is through Result-performance Management (R-pM). The enterprise business and your 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

You manage only these two entities in your business, as a sub-set of the enterprise business. Planning, gathering information, and managing other entities like activities, tasks, functions, positions, etc. diverts your time away from managing your business.

The 20^th century enterprise has never managed the business

The dilemma that you face is that your enterprise has never managed the business. [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 have attributes that define the quality, value, and other characteristics of the result.

Result organization and relationships are business organization capital to represent the actual business

The business organization is not produced by a management study or decision. Management decides on strategic results needed and the performance solution investments needed to produce results.

The business organization is enterprise capital that must be managed by professionals like any other type of capital. The logic of result relationships do not need to be understood by everyone. The business organization professionals must define result relationships to build and maintain the enterprise business structure to represent the actual business accurately.< [more...]