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Align Strategy, Organization, Systems, Assets, Processes, and Outsourcing with The Business

September 11th, 2008

Many methods and books have addressed the alignment problem, but the problem remains unsolvable

The 20th century enterprise has contrived many methods and spent enormous sums to solve the alignment problem inherent in aligning performance with performance. Even after all this, the unsolvable alignment problem remains. In an early Article, we identified alignment as one of The Top Ten Problems with 20th Century Management.

The alignment problem can be solved only by organizing the business to align capital utilized in performance with the result produced

The solution to the alignment problem is very simple. Follow the first rule of 21st Century Management; organize and manage the business. Result-performance Management (R-pM) organizes the business in economic output results produced, investments in capital solutions to produce results, and the deployment, alignment, integration, and utilization of specific solutions to produce specific results. Capital solutions utilized to produce the same result are aligned. [more...]

Organize the Business, then deploy Human Capital

July 17th, 2008

Re-organizations are unnecessary 20th century management problems

Re-organization, one of the top 10 problems of 20th century management, occurs because we organize people and power, and not the business. If 20th century business organization methods organized the business, the organization would change with business change.

The organization structure is the fatal error that prevents business organization and management

The organization structure is not a management prerogative or political football. The business organization is a business capital solution that provides the foundation for 21st century management. Once an organization structure is laid over the business, the business cannot be organized or managed.

Use R-pM to organize the business for 21st Century Management

Organize your business results, your capital investments in solutions, and utilization of solutions in performance to produce results. Then deploy human capital, where they are qualified to manage and produce results, for 21st century management, and leave 20th century re-organizations and other unsolvable problems behind. [more...]

Take the Mystery out of Business Change

July 14th, 2008

Business change is a mystery because the business is not managed

Business change is a mystery in 20th century management today with “intangible assets”, “unknown costs”, unmanaged value, and “ad-hoc projects”. In order to manage change to the business, the enterprise must first organize and manage the business to manage all capital solutions utilized in performance to produce specific results.

"Business change" does not change the business, but changes structures laid over the business

20th century "business change" changes organization, business process, information system, account, and performance management structures laid over the business. The actual business lies buried under the structures and changes continually with each result or capital solution change. "Business change" is periodic to align overlaid structures with the business and to lay new structures over the business.

R-pM directly changes an organized business as part of the daily routine

Result-performance Management (R-pM) organizes the business to take the mystery out of business change. R-pM manages the results and capital solutions that change day to day to continually reorganize the business. Business change projects use R-pM to implement specific new capital solutions to add value to specific results, provide effective project management, set operational responsibilities for results against goals and solution performance against expectations, measure the return on change investments, manage costs arising from change, manage solution and business worth, and enable beneficial business change management consulting services. [more...]

Professionally-Managed Management Capital

June 30th, 2008

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

Rule No. 6 of the 10 rules of 21st 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. 20th 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 21st century manageme [more...]

The Many Ways R-pM can Benefit You as Human Capital

May 1st, 2008

R-pM organizes human capital as part of the business

Human capital can benefit from R-pM by understanding R-pM conceptually to increase personal productivity and worth to the 20th century enterprise, by understanding themselves as human capital to know how to increase their capital worth, and by leveraging human capital capabilities in the organized and managed business with R-pM.

R-pM manages human capital worth against performance expectations and result value-added produced

The 20th century enterprise organization structure places human capital into positions, jobs, functions, etc. Human capital justify their cost by the time spent in their place in the organization structure. R-pM replaces the enterprise organization structure with the business result-performance structure. R-pM provides a different perspective of human capital as specific human personnel, capability, or knowledge performance solutions deployed to meet performance expectations and produce specific results. R-pM assesses the worth of all capital on performance expectations met and the contribution to result value-added.

R-pM enables humans to improve capabilities, meet increased expectations, produce higher-value results, increase capital worth, and justify higher performance costs

R-pM benefits those who want to increase their reward by increasing result value produced to justify increase in human capital costs incurred by the enterprise. This is supported by Rule no. 8 of the 10 rules of 21st century management; to manage human personnel, capability, and knowledge capital to increase human worth. R-pM provides one integrated organization and management structure so that humans understand the roles and responsibilities for results they produce, the other solutions they use, and the relationships to other enterprise results. Humans have opportunities and a framework to develop new capabilities and knowledge to produce higher-value results, meet increasing expectations, and increase human capital worth. For human personnel capital, human capital worth must justify human personnel costs and cost increases [more...]

21st Century Management Conventions and Standards

April 24th, 2008

R-pM defines actual business organization and management

R-pM provides the concepts, procedures, and learning so that any enterprise can organize and manage the actual business. Part of R-pM is 21st Century Management to provide the framework for business operations, education, services, and solutions that can be utilized effectively by any business.

21st Century Management provides the framework for collaboration and common solutions

R-pM is designed to simplify the business and to provide the foundation for business collaboration and common education, services, and performance solutions that any business can use. This requires a minimum set of fundamentally-correct and consistent 21st Century Management conventions, definitions, and standards that are followed by R-pM users, educators, business management software and solutions, and service providers to reduce business costs and enable effective communications and collaboration.

21st Century Management is documented in The R-pM Toolkit.

21st Century Management descriptions are included in all R-pM Toolkit documentation. The 21st Century Management conventions, and definitions are included in the current R-pM Toolkit. Additional 21st Century Management conventions will be refined and included in future R-pM Toolkit updates. 21st Century Management standards will evolve as R-pM is employed in practice.

The R-pM Community can provide inputs into 21st Century Management

The intention is to make 21st Century Management a product of the R-pM community so that anyone can contribute their ideas and requirements to be reviewed for inclusion in the continuing development and refinement of 21st Century Management [more...]

Ten Rules for 21st Century Management

March 24th, 2008

How to ensure you gain the benefits of 21st Century Management

20th century management causes many unsolvable problem like unknown business costs, value, worth, and investment returns that are easily left behind by using Result-performance Management (R-pM) for 21st Century Management. Any responsibly-managed business must investigate totally new R-pM to organize the business into one business structure for integrated 21st Century Management and significant competitive advantage.

Follow the ten rules for 21st Century Management

Ten rules are provided as a guide to organize and manage results and performance as one integrated business structure to ensure effective 21st Century Management. Each rule provides new approaches and advantages never possible before with 20th century management. These ten rules are supported by the R-pm Toolkit. Become an R-pM Community member and download the R-pM Toolkit at result-performance-management.com and then organize your business to follow the ten rules for 21st Century Managemen [more...]

Rule No 10: Employ 21st Century Management conventions and standards

March 17th, 2008

Conventions, definitions, and standards used in 20th century management are inconsistent and confusing

20th century management does not organize the natural business or apply common-sense management, as we do in our personal business. Arbitrary contrived structures are laid over the business. Each structure has its own set of conventions, definitions, and standards. Added together this produces an inconsistent hodge-podge of conventions, definitions, and standards that are applied separately for organization, planning, processes and systems, accounting, administration, IT architectures, performance management, reporting, and other parts of enterprise management.

Rule No 10 of 21st Century Management: Employ 21st Century Management conventions and standards

The 21st century business must avoid the problems inherent in 20th century management. This is done by organizing the business with R-pM for 21st Century Management. 21st Century Management uses one set of conventions, definitions, and standards that are applied to the actual business and used for all management organization, planning, directing, control, and reporting. Common conventions, definitions, and standards enable business collaboration and education, solutions, and services that can be applied to any business.

R-pM provides one consistent set of conventions, definitions, and standards for 21st Century Management

21st Century Management conventions, definitions, and standards are defined, updated, and maintained in the R-pM Toolkit to support the application and use of R-pM. The conventions, definitions, and standards can be followed by any education institution, solution developer, or service provider to meet the needs of any 21st century enterprise [more...]

Rule No 9: Collaborate to maximize shared value and minimize shared costs

March 10th, 2008

Effective business collaboration is prevented by 20th century management

Each enterprise today lays a different collection of structures over the business, and each structure defines the enterprise differently and captures inconsistently-defined data against the various structures. The 20th century method of business collaboration is for businesses to lay the same process, information system, or data reconciliation and information reporting structure over the business. This is very expensive and still does not provide a satisfactory solution, since none of the collaborators actually organizes or manages the business.

Rule No. 9 of 21st Century Management: Collaborate to maximize shared value and minimize shared costs

Effective business collaboration and outsourcing requires that the business of each collaborator be managed. If the business is managed, there are common definitions, value creation, performance costs, and quality levels that can be managed for each business and across businesses. 21st century management requires that businesses be managed to enable collaboration by maximizing shared value and minimizing shared costs.

R-pM is one simple business structure used by all businesses to enable collaboration and integration

Result-performance Management organizes the business for 21st Century Management to define the results, result quality, result value, result costs, and result value-added across the business. The capital utilized to produce each result is defined as performance solutions to know performance costs against the result. The business structure can be managed within a business or across businesses to create result value-quality chains where each result is produced for the highest value and quality for the lowest cost [more...]

Rule No. 8: Manage human personnel, capability, and knowledge capital to increase human worth

March 3rd, 2008

20th century management administers human resources as employees

20th century management administers human resources and is unable to manage human capital as capital utilized by the business. The business is not organized to produce specific economic output results and human capital is not organized as capital, within the full set of capital utilized to produce the results. Human capital management addresses general human resource development, rather than specific development to add value to the business and increase human capital worth.

Rule No. 8 of 21st Century Management: Manage human personnel, capability, and knowledge capital to increase human worth

Human capital must be managed as readiness capital to keep personnel ready to produce results, production capital to provide the capabilities to produce specific results, and information capital to provide the knowledge required to produce high value-quality results. The objective of human capital management must be to increase human capital worth by producing results of higher value to the business.

R-pM organizes the business to utilize human capital to produce business results

Result-performance Management (R-pM) organizes the business to utilize human and other capital in performance to produce high value and high quality results. Human capital is maintained to be ready to produce results. Human capital is developed as capability solutions to utilize specific business processes to produce specific results. Human personnel and capabilities also are supported with the knowledge needed to produce specific results [more...]

Organize with R-pM for 21st Century Management

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