The 20^th century definition of performance used in business management defines not only the activity of performance but also the output results produced as performance.

The impact of this definition is that the actions of performance and the results produced by performance are mixed together in business performance management methods. The definition of performance prevents the 20^th century enterprise from organizing the business. Organization structures are laid over the business and require periodic reorganizations to align with the business.

The generally accepted definition of business is "the activity of providing goods and services". The definition shows that the business has two components:

1. "The activity of providing", which is performance in the utilization of human and other capital, such as equipment, supplies, processes, and tactics
2. "The goods and services provided", which are the outputs or results produced from performance that can be counted and measured

The definition of business shows that results must be separated from performance in order to organize directly the only two entities that describe the business:

1. The performance solutions that provide the capital utilized by the business to incur costs and produce the results
2. The results produced as economic outputs to create value from the business

R-pM organizes results produced and performance that produces results into one integrated business structure to gain advantages not possible with 20^th century organization structures laid over the business that prevent actual business management. [more...]

20^th century enterprises do not manage the business, so capital development cannot be managed as part of the business. Capital development develops new capital as performance solutions to create value in new or improved results. 20^th century enterprises do not manage their capital and do not manage their results. So, capital development is managed as an isolated undertaking. This makes it difficult to manage the relationship between the project and the business, gain business user acceptance of new solutions implemented, and plan and measure return on the capital development investment.

Result-performance Management (R-pM) is a new project management breakthrough. R-pM organizes the operational results produced and performance solutions utilized as one Enterprise Business Structure. This provides the framework to describe and plan the new result value to be created, and to describe and plan the new capital in performance solutions needed to create new result value.

The new enterprise results and performance solutions to be developed are set up as Project Results in the Project Business Structure. Internal and external capital assigned to the project is managed as specific Project Performance Solutions to produce specific Project Results. The new enterprise results and performance solutions are developed, documented, and implemented as specific project results.

The project is closed out as project results are put into operation as new enterprise results and enterprise performance solutions in the developed Enterprise Business Structure. The new solutions are utilized to produce new result value over the payback period to provide the return on the capital investment [more...]

20^th century management provides many methods of cost accounting. None of the methods has been able to capture all costs and charge all costs to the proper entity to absorb costs. Known costs are captured from separate entities, such as employee, fixed asset, cash, and supplies. Costs are charged to entities like center, activity, station, etc, that show where the cost was incurred, but were not produced by the cost.

Management needs one entity that contains all the costs incurred by the business and one entity that was produced by the cost to absorb the cost properly. Result-performance Management (R-pM) provides the one entity "performance solution" that produces all costs. R-pM provides the one entity "result" that was produced by the cost to create value, and can properly absorb costs to know result value-added. Result-performance costing is the only method to know all performance costs, and to charge costs properly to the value of the specific result produced. [more...]