Today's definition of the enterprise business is "the activity of providing goods and services". But, we cannot organize or manage the business because today's definition of performance defines both the activity of providing and the goods and serviced provided as performance.

As shown in the article of December 13, 2007, the R-pM definition of the business is "the utilization of capital as performance solutions to produce value in specific results". Therefore, results must be separated from performance. Two components of the business must be organized the performance solutions utilized in "the activity of providing" and the results produced in "the goods and services provided". Only then can we capture actual business data of the cost and effectiveness of performance and the value and quality of results to report to management on cost-effective performance producing value-quality results. [more...]

Knowing and managing costs has been a major management concern, since the beginning of business. We have faced two major problems in managing costs:

• We do not have one entity that incurs costs and includes all costs
• We do not have one entity that meaningfully absorbs costs for good management

Many methods have been contrived for costing and cost accounting. The methods try to gather "known" costs for separate entities like employees, fixed assets, cash, and supplies. The other capital utilized has never been defined or is labeled "intangible assets" with "unknown costs". All costs come from consumption of tangible and intangible capital. This is performance and all capital utilized must be organized and defined as one entity "performance solution".

Costing methods charge costs against contrived entities like center, station, activity, and product. Product is the only entity actually produced by the cost. However, many other outputs also are produced by costs. Products and other outputs produced by costs are part of one entity "result". The result is the entity that contains the value created by the costs and is the only entity that can absorb costs to show the value added by performance.

The only way to know all of our costs and to charge costs properly to manage value added is Result-performance Costing. By establishing result value-quality chains, we can know the cost and value of each result in the chain leading to the final product or service result that leaves the enterprise to produce our revenue and profit results. [more...]

20^th century management reports a wide range of information against the various organization and management structures laid over the business, producing business and information complexity. Since the actual business is not managed, actual business information is not captured. There is no framework to properly manage and support the body of information in the enterprise as capital. There is no framework to deliver information related to the actual business to the point needed to be utilized in the actual business.

R-pM organizes the business for 21^st Century Management. R-pM organizes information used in the business into four categories for professional development and support; business data to describe the entities that comprise the business, human knowledge to drive business performance to produce results. facility records to document results and performance and business transactions, and management intelligence to direct the business with management information against performance expectations and result goals. Each category has a precise and defined role in the business to cover complete information needs and to eliminate conflicting and duplicating information. Information is developed as specific performance solutions and integrated and delivered where needed to utilize other specific performance solutions and to produce specific business results [more...]

We all have our personal business in the things we accomplish in life, and may work for a business enterprise. But, what is the definition of the business, be it our personal business or the enterprise business?

In our personal business we naturally utilize our time, capability, knowledge, cash, tools, outsourced services, a process, etc to produce a result, such as prepared dinner, arrived at destination, cleaned suit, repaired house, completed report, purchased product, enjoyed night out, etc. The value of the result we produce must exceed the cost of producing the result, in order for us to be happy with the result.

The enterprise business is the same. The enterprise business utilizes capital in performance solutions, such as human time and capabilities, cash and supplies, equipment, a process or system, etc to produce economic output results, such as a product produced, a service delivered, payment received, a completed report, etc. This is reflected in the common definition of the enterprise business as “the activity of providing goods and services”. This enterprise business definition can be reworded as “the utilization of capital in performance to produce value in results”. Therefore, in order to organize and manage the business, we must organize and manage the utilization of capital in performance to produce value in results. [more...]

Human capital is integrated with the business through human capability capital, which is the capability rather than the human personnel solution that possesses the capability. Human capabilities are defined and designed into the business process to utilize and execute the process to produce the specific result. Capability specifications and utilization of the capability are described as human knowledge solutions to support human capability development and capability utilization.

Human capability is the performance solution that most determines result quality and value. 21^st Century human capital development plans and projects primarily are directed to human capability development needed by the business to produce higher-value results and to develop higher-worth human capital. [more...]