Management capital is required to plan and manage a competitive business and create strategic value

Rule No. 6 of the 10 rules of 21^st century management with R-pM: Plan and govern the transition from today's value to approved strategic value. All management planning, directing, control, reporting, and governance is against the current and strategic business, with no overlaid structures. Management capital produces solutions to support management at all levels of the enterprise to plan and execute a strategy and protect shareholder value.

Management capital today uses structures laid over the business

Few enterprises have a disciplined set of management capital, particularly as related to the actual business. 20^th century management and governance problems start as soon as an organization structure is laid over the business, instead of organizing the business so that the business can be managed. Management structures for strategy, planning, accounting, processes, reporting, etc. must be laid over the business as well, creating business and information complexity.

R-pM manages management capital as part of the actual business to support informed management

R-pM organizes the business in results needed for business success, capital invested in the business to provide solutions to be utilized, and performance in the utilization of solutions to produce results. R-pM develops and maintains management solutions to produce management results through three categories of capital: management strategy to plan and manage strategic result value, management tactics to guide and optimize results and performance, and management intelligence to inform of strategic and tactical status and forecasts.

Management capital specialists in each category develop professional capabilities in management analysis, research, and judgment to lead the enterprise in 21^st century manageme [more...]

R-pM organizes business results, capital, and performance in one business structure

Result-performance Management (R-pM) organizes and manages one integrated enterprise business structure. The business structure is comprised of the result structure to organize and relate results to be produced, the capital structure to organize the capital that is available to produce specific results, and the performance structure that shows specific performance solutions deployed with rules and exceptions to produce specific results.

The capital structure organizes capital available as performance solutions

A key component of the business structure is the capital structure that organizes enterprise capital as specific performance solutions that are available to produce specific results. Capital is categorized to be managed properly by the specific human capabilities needed. Capital is classified by the way it must be integrated and utilized to produce results effectively. Organized capital is defined as modules for easy deployment to a new result and replication to define capital needed for a similar result set.

Performance Management manages the deployment of qualified solutions to produce results

R-pM replaces administration, undefined capital, and intangible assets with Capital Management get the most out of all capital and know and manage the return on all capital investments. Performance Management manages the deployment of capital from the capital structure to the performance structure to provide qualified solutions needed to produce specific results effectively, to know all costs against result value, to manage the capacity producing a volume of results, and to manage the effectiveness needed for high-quality results.

A well-managed enterprise must manage the cost, capacity, and effectiveness of all capital in order to produce value-quality results. The enterprise can use R-pM to reduce costs significantly, know and improve capital worth, and ensure beneficial capital development investments [more...]

20^th century management contrives a chart of accounts and follows fixed principles to record the enterprise

20^th century management does not organize, manage, record, or govern the business. Organization and management structures, such as budgets and the chart of accounts, are laid over the business to manage the enterprise. Accounting posts arbitrary enterprise accounts set up in the account structure. The business continually changes, while accounts may be periodically updated when there is no account to charge. The focus of accounting is on following accounting principles, rather than recording the actual business to provide complete, consistent, and accurate business management records and reports.

21^st Century Management records the actual business for one set of complete, consistent, and accurate management information

Result-performance Management (R-pM) organizes the actual business for 21^st Century Management. R-pM records the entities that comprise the business in the capital investments made in the business to provide one set of performance solutions of known worth, the one set of economic output results of known value that must be produced for business success, and the performance of the solutions to incur costs to produce total result costs and known result value-added. The one current and one strategic business structure is used to plan and record the complete business. Results record income, performance records expenditures, and capital records solutions of positive capital worth as assets and solutions of negative capital worth as liabilities. R-pm uses the business itself to plan and control all financial and non-financial business transactions and status against business plans [more...]

Redefining BPM: Why Results and Performance Must Be Separated

BPM Business Performance Management magazine is the authority on new developments in business management. The lead article in the June 2008 issue of BPM magazine explains the new breakthrough to R-pM to organize the actual business for 21^st century management to replace all 20^th century management structures laid over the business like business performance management and business processes. R-pM is the only way to organizes and manage the actual business to clear away the 20^th century organization structure and need to lay 20^th century management structures over the business.

Learn more about R-pM in BPM Magazine

Learn more by reading the article by Harry Greene, the developer of R-pM, "Redefining BPM: Why Results and Performance Must Be Separated". The article can be reviewed and printed at the BPM management magazine website bpmmag.net [more...]

Information systems gather corporate data that is irrelevant to the business

20^th century information systems do not capture business data or provide the information needed to manage the actual business. 20^th century information systems manage organization and management structures laid over the business. Management structures are arbitrary and define inconsistent data entities. Data on hundreds entities must be recorded throughout the corporation, and then processed and managed creating information complexity and providing mountains of confusing information.

R-pM organizes the business to capture actual business data

The objective of 21^st century management is to organize and manage the business of the corporation. Result-performance Management (R-pM) directly organizes and manages the business to record actual business data and report business management information that is not available today. Timely integrated information solutions are delivered to produce specific business and management results. The business is defined by three information entities and managed through six information sets.

Business management information is used to manage the business directly

R-pM provides actual business management information on the worth and return of capital investments, utilization of capital in performance to incur costs and produce results, and results of value produced by the business. Once actual business information is provided, corporate information provided by overlaid 20^th century structures becomes irrelevant and can be abolished. 21^st century management can then concentrate on managing the business [more...]