Archive for 'How You Benefit From R-pM'

R-pM is a breakthrough to manage the actual business and leave 20^th century management problems behind

R-pM organizes and manages the actual business, “the utilization of capital of worth in performance to incur costs and produce value in results”, without 20^th century management problems with reorganization, business change, business and information complexity, complex and costly IT infrastructures, unknown costs and value, unknown capital worth and returns, excessive overheads and costs from overlaid structures, and on and on.

R-pM is a new natural business perspective requiring little investment or risk

R-pM minimizes capital to that required by the business, optimizes business performance to reduce performance costs and increase result value, and manages result value-quality chains to produce customer input results. R-pM provides enormous competitive advantage, while the investment and risk is minimal. R-pM is mainly a change in thinking, which requires time to take hold. Human capital learns to operate and manage the actual business, instead of structures laid over the business. Existing information systems likely can be utilized as business process solutions, if the business is properly defined and organized.

The existing business is gradually redefined into result value-quality chains and one integrated business structure. Obsolete structures laid over the business and unsolvable 20^th century management problems are gradually abolished. As the enterprise learns R-pM, implementation accelerates and the competitive advantage of R-pM increases until the complete business is organized for 21^st Century Management.

Owners, investors, shareholders, lenders and others with a financial interest must lead the way to manage the actual business

Business owners, shareholders, potential investors, lenders, etc have the most to gain by being among the first to use R-pM. [more...].

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 a wide variety of performance managers in 20^th century management. Performance managers may be responsible for human performance management, business performance management, capital performance management, or management performance. Similar performance management responsibilities remain under 21^st Century Management. But under 21^st Century Management, performance management responsibilities are precisely defined.

20^th century management mixes results with performance and manages both as performance

One serious flaw of 20^th century management is the definition of performance. Performance is defined to include not only the activity of performance but also the results produced from performance. This definition prevents 20^th century management from managing the business defined as “the activity of providing goods and services”. Both the activity and the goods and services are defined as “performance”. Performance management systems, business performance management, business process management, and other 20^th century management methods employ this definition.

The performance manager must work in a poorly defined environment. [more...]

The Chief Executive Officer is responsible for the quality and value of results produced by the enterprise from suppliers to the customer, value creation in the enterprise strategy, the return from capital development projects, the worth of human and other capital employed, and creation of shareholder value. The CEO must do this in spite of the fact that 20^th century management used today, does not provide the means to manage any of these CEO responsibilities.

But today, there is a new management breakthrough Result-performance Management (R-pM). R-pM organizes the actual business for 21^st Century Management. R-pM establishes management results and provides the CEO the full set of solutions needed to manage the current and strategic business.

The CEO must overcome the unsolvable problems of 20^th century management

If you are a CEO, you know that you face many problems with current management methods. You have one fundamental problem. 20^th century management used today does not organize and manage your business. You lay an organization structure over your business, instead of organizing the business. This is a fatal error, since an unorganized business cannot be managed. [more...]

Human Resource Managers are important capital managers

Are you a human resource manager? How do you approach your work? As a routine administration function? As responsibility for the enterprise human capital to ensure that human capital maintained ready to perform, is developed to acquire new capabilities to increase human worth, and provided with knowledge needed to provide value to the business?

If your answer is closer to the latter, you will clearly benefit from R-pM. The impact of R-pM on human resource management is explained in the Human Capital Management Forum, and in human capital articles, such as “Integrate Human Capability Capital with the Business” in 21^st Century Management Magazine. R-pM goes beyond 20^th century human resource administration to provide professional 21^st Century Human Capital Management.

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

The means to understand the actual business and the human capital 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 human and other capital consumed in performance to generate the costs incurred by the business to produce result value

Even as human capital manager, you manage only these two entities in your business, as a sub-set of the enterprise business. [more...].

Corporate Directors have a responsibility for best business management

Corporate Directors and other business governors need to ensure that a viable business strategy is in place to create planned future value, that capital investments provide itemized returns by creating strategic value, that the business is managed to create strategic value, that accurate financial and non-financial records are kept on the business, and that progress in executing the approved business strategy is maintained.

20^th century management prevents corporations and their directors from doing any of this. The actual business is not organized or managed, so most business data is not captured. Strategies are contrived overlays on the business, not actual business strategies. Corporate investments are based on guesses and estimates, not actual business measures. A contrived chart of accounts keeps partial financial records and does not record the actual business. Management information solutions provide enormous quantities of information on contrived structures laid over the business, but only incidental information to manage the actual business.

Result-performance Management (R-pM) organizes the business for 21^st Century Management to provide good corporate governance, as explained in the earlier post “Corporate Governance is a Small Part of the Big Corporate Management Problem”.

R-pM provides transparent business organization and management

As a Director, you approve the business and financial results in the economic outputs to be produced by the business. You approve capital investments and financial expenditures needed to provide the capital to produce results. [more...].

Accounting Managers are important facility capital managers

Are you a accounting manager? How do you approach your work? As a routine financial accounting function? As responsibility for the enterprise records to ensure that the business is recorded properly and that business record solutions are provided on time to support the business and management to produce enterprise results?

If your answer is closer to the latter, you will clearly benefit from R-pM. The impact of R-pM on accounting is explained in the article “Broaden Financial Accounting to provide Professional Records Management” in 21^st Century Management Magazine. R-pM goes beyond accounting to provide professional facility records capital management.

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

The means to understand the actual business that you record and 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

Even as facility records manager, 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. [more...].

Line Department Managers are the most important result managers

Are you a line department manager, responsible for contributing to enterprise revenues and profits? If you are, how do you define and organize the part of the business that you manage? What are the entities that you manage in your position? What are the entities you utilize to contribute to revenues and profits?

Most of you will answer based on the contrived structures that your enterprise has always used for organization and management. It is unlikely that you answered in terms of the actual business. You have much to gain by understanding the actual business that you are managing.

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

The means to understand the actual business that you manage 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. [more...]>

Business or Systems analysts work with structures laid over the business

Historically, the business or systems analyst has never had a good business framework for disciplined analysis. The analyst usually works with an isolated problem or set of user requirements and creates a business process or system solution. The solution does not actually manage the business, but is laid over the business. The business tends to change while the solution remains rigid, requiring continuing solution maintenance to align the solution with the changed business.

Most corporations do not understand the role of the business analyst and do not properly organize their business capital. Often the systems analyst is placed in IT, which removes him from the business and provides a computer processing focus, rather than a business requirements focus.

R-pM organizes the Business Structure to provide a framework for analysis

R-pM provides a new environment for the business or systems analyst. R-pM organizes and manages the business, “the activity of providing goods and services”. R-pM organizes the activity as business performance and the goods and services as business results in a simple, easy-to-manage 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 specific results

Results are the inputs to and the outputs from performance. A result is a specific accomplishment, like customer order recorded, that can be counted and measured. [more...].

Corporate investors invest in high overhead 20^th Century Corporations that do not manage the business

Last month, we discussed “How the Business Owner Benefits from R-pM“. This month, we take the different perspective of the corporate investor and shareholder.

Corporate investors invest in corporations that do not manage their business and are burdened with many unwieldy overhead structures. Corporate shareholders have to incur the costs of the many unsolvable 20^th century problems, described at the Business Change Forum. Every article posted shows different unnecessary costs absorbed by the 20^th century Corporation that ultimately reduce shareholder value.

Corporate investors benefit by investing in 21^st Century Corporations

Many corporations are researching Result-performance Management (R-pM) and making plans to move to 21^st Century Management, so corporate investors should watch for announcements.

21^st Century Management with R-pM provides many advantages to the Corporation and the Corporate Investor that no 20^th century corporation provides today, such as.

• An organized and directly managed business with one integrated and transparent business structure that shows capital in performance solutions utilized to produce results, at selectable levels of summarization or detail
• Abolished costs and overheads by removing the costly and irrelevant overlaid structures that prevent business management and cause unsolvable problems
• A clear value-creation strategy described in a strategic business structure showing strategic result value and the planned capital development for specific performance solutions needed to create result value, by time period as needed
• Complete and accurate financial and non-financial business records on relevant result value created, performance costs incurred, result value added, corporate and capital worth, result quality, performance effectiveness, result goals, performance expectations, result symptoms, performance problems, etc.
• Result value-added management to manage result value less all performance costs for all results between supplier-provided input results, through the enterprise result value-quality chains to final results that are customer input results
• Good corporate governance directed at period by period result and performance development and result value creation to achieve the approved result value established in the strategic business structure
• Managed shareholder value result that is continually updated from result value created and performance costs incurred
• Flexibility for fast change, since change is simply a matter of producing new results and utilizing new solutions in an updated business structure
• Streamlined information capital maintained on only those entities relevant to actual business management and timely information solutions to utilize performance solutions effectively to produce quality results
• Significantly reduced information technology overheads by focusing on those few information systems needed to directly manage the business and by properly managing capital that is now managed as information technology
• Eliminated administration overheads by managing capital management results, plus performance management results to provide qualified solutions
• Significantly reduced costs and capital requirements by focusing on only the performance solutions needed to produce value-quality justified results
• Optimized utilization of capital to produce results through professional capital performance management and result and performance optimization
• Planned and justified investment and capital development management to produce the specifically itemized result value from developed performance solutions, supported by result goals that are set to achieve the planned return on every investment and capital development project

These are just a few of the advantages of R-pM to the corporate investor that are not possible with rigid structures laid over the business of the 20^th century Corporation.

When will the Corporations you invest in now move to 21^st Century Management

There are two considerations for the corporate investor on moving to 21^st Century Management.

• When will the Corporations they invest in move to 21^st Century Management to gain competitive advantage and increased profit and shareholder value results
• When will the industry competitors move to 21^st Century Management, putting the Corporation and their shareholders at a significant disadvantage

Check with the Corporations in which you have invested. Chances are, you will find strong resistance to improvement and 21^st Century Management. But, maybe you will be fortunate enough to discover and invest in the forward-looking corporations that are working with R-pM to organize their business for 21^st Century Management. These corporations will have significant cost-effective performance and value-quality result advantages over 20^th century corporations, still held back by unsolvable problems.

The information to learn and use R-pM is in the R-pM Toolkit

R-pM is the future of business management. You likely still need a better understanding of R-pM. Go to result-performance-management.com to learn more under What is R-pM?. The guidance you, and the corporations you invest in, need to learn R-pM and gain immediate advantage from R-pM is provided in the R-pM Toolkit, the 21^st Century Management Manual, at result-performance-management.com. The R-pM Toolkit is offered at a nominal cost to encourage wide individual research into R-pM and wide corporate use of R-pM. .