Archive for October, 2007

We get questions concerning the background and development of R-pM

People ask how Result-performance Management (R-pM) originated. Some people are concerned about the authenticity and viability of R-pM.

Result-performance Management was developed by Mr. Harry Greene, as personal tools used in business organization and management in process and information systems design and implementation projects, during 40 years, as a management consultant with such firms as Booz Allen and Hamilton, Multinational Management, Price Waterhouse, A.T. Kearney, and Arthur D. Little.

R-pM tools were developed to aid systems development and business change

R-pM first evolved as an aid to business process and information systems design. Later R-pM was expanded to manage business change projects, both the project and the changes to the business as the results of the project. During this experience, it became clear to Mr. Greene that the only solution to business organization and management problems was to organize and manage the business. [more...]9.

20^th century management does not provide a means to directly manage capital development or business change projects. The results enabled by development and the capital developed are mixed together as performance and are not managed properly. There is no way to itemize investment and business change benefits, plan and control actual development costs, plan the return on investment, or measure the actual return. There is no way to integrate the project and capital development with the actual business. There is no way to manage the enterprise properly as a business, or to manage projects properly as a subsidiary business.

These problems are eliminated by Result-performance Management (R-pM), a breakthrough to enable you to manage projects properly. It is all explained in the download “How to Manage Projects in the 21st Century”, available at result-performance-management.com. The download explains how to plan and manage the new performance to be developed and results of value to be produced by the enterprise business. The download also explains how to plan and manage project performance to produce project results, which are the solutions to improve and add value to enterprise results.

R-pM manages one integrated Enterprise Business Structure

R-pM is a significant breakthrough with one simple objective: to organize the enterprise business for 21^st Century Management, in an easy-to-manage Enterprise Business Structure, defined by only two entities:

• Results: Specific economic outputs that must be produced by business performance
• Performance Solutions: Specific capital that must be utilized in performance to produce results

Results are the inputs to and the outputs from performance. [more...]

The Result-performance Management Group at ma.gnolia.com contains bookmarks and a short synopsis of articles on R-pM posted at Business Change Forum, the 21st Century Management Magazine, and other internet sites. Browse the articles to read and print those of interest to assist you to get the most from your business change and improvements.

New R-pM articles will be appearing in on-line and print media and will be bookmarked in the Result-performance Management Group, so bookmark the group yourself for easy access to the latest on R-pM.

Result-performance Management (R-pM) organizes the actual business for 21^st Century Management. 21^st Century Management is based on directly organizing and managing the enterprise business.

The primary differences between R-pM and current 20^th century management are:

• R-pM separates 20^th century performance into two separate entities; results, the economic outputs of value produced by the business, and performance, the utilization of capital in the business
• R-pM defines and organizes the enterprise business rather than the business enterprise by structuring the results produced across the business and the capital utilized as performance solutions to produce results
• R-pM organizes the enterprise business, each part of the business, and all enterprise undertakings, such as projects, through an integrated business structure to replace all 20^th century structures
• R-pM replaces 20^th century administration with capital management to provide the capabilities to professionally manage all capital in development, implementation, operation, and support
• R-pM plans, records, reports, and manages actual business data in result value-quality, performance cost-effectiveness, result value-added, and capital worth, rather than reporting inaccurate contrived structures laid over the business
• R-pM manages the business in three dimensions, result management responsible for each result produced, performance management responsible for each performance solution utilized, and corporate management responsible for creating strategic result value over time in operations and development

These differences are discussed in the following paragraphs.

R-pM separates results from performance

20^th century management defines “performance” to include not only the performance, such as human performance, that produces a result but also the result produced, such as sales performance. This definition prevents results and performance from being managed properly as separate entities. 20^th century performance management, business processes, information systems, etc mix results with performance.

R-pM separates results from performance to manage results as one set of results produced by the enterprise business and to manage the capital employed by the business in performance as one set of performance solutions. Results have different attributes from performance. Therefore, result data is captured and reported separate from performance data.

R-pM organizes the enterprise business, rather than the business enterprise

20^th century management organizes the enterprise by laying an arbitrary organization structure over the business. [more...]

There are many business management articles and a lot of talk about value, be it value creation, value propositions, value management, or value chains. With 20^th century management all we can do is write articles and talk. We cannot build actual 21^st century value-quality chains as explained in the new download “How to Build Value-quality Chains“, available now at Result-performance-Management.com.

20^th century management cannot build or manage value or quality chains

20^th century management mixes performance and the output results together as “performance” and manages “performance quality”. 20^th century business process and information systems are directed at a final result and do not specifically define or manage the results leading to the final result. So, there is no way to manage value or to build value or quality chains.

The link in the value-quality chain is the economic output result

Value-quality chains form naturally by organizing the business for 21^st Century Management using Result-performance Management (R-pM). The business consists of two entities.

• Results: The economic outputs from business production that form the links in the chain
• Performance solutions: The capital utilized in business production to produce a result at each link

Any area of the business can be organized by defining the results produced and the performance solutions utilized.

Each result in the value chain has a value, costs, and a value-added

Results form a natural chain of results that starts with input results from suppliers. [more...]

What is management capital? Management capital is not the capability of our managers. That is part of our human capital. Management capital is the capital provided by management so that the enterprise can develop and execute a successful strategy.

You hear of management strategies, management tactics, and management intelligence; but do think of it as management capital? You likely do not, because 20^th century management does not organize and manage management capital as the capital that is utilized to plan, and direct the enterprise business. 20^th century management has functions like corporate planning, internal audit, public relations, legal, marketing, etc. that may administer some management capital, but few, if any, really manage management capital. Many enterprises have problems due to inadequate management capital.

Logically all capital must be defined as performance solutions to be deployed and utilized to produce a specific result. [more...]