Value has no value in 20^th century management used today

Value is an impressive word. People talk of value propositions, strategic value, value chains, value creation, and value management as if they were actually measuring and utilizing value as a day-to-day business metric. But looking further, we find that value is calculated from a contrived business overlay or formula.

20^th century enterprise organization and management prevents the utilization of value as a day-to-day business metric.

R-pM organizes the business to make value a manageable and valuable result metric

We must organize the business through Result-performance Management (R-pM) for day-to-day 21^st Century Management. Value is an attribute of output results produced by the utilization of capital in performance across the business. The value of input results from suppliers, plus each result in the business result chain, equals the value imparted to customer results in customer willingness to pay. [more...]

Capital development and support and capital utilization in performance is not managed today

Capital, utilized to produce results, cannot be managed if it resides in a responsibility center, is administered by a function, or is labeled as an "intangible asset". Some capital may be defined as an asset for depreciation, but capital is not managed as the solutions needed by the business. Enterprises make large investments in capital and then fail to manage the utilization of the capital to create known value in results and provide the known return on the capital investment.

21^st Century Management requires Capital Management and Performance Management

One key element of 21^st century management is proper capital management to define all capital as specific solutions. Capital Management manages solutions for planning, development, support, and operation.

Within Capital Management is Performance Management, so that a performance manager manages the utilization of each solution in performance to deploy and maintain a qualified solution that meets expectations, to be utilized by a result manager to produce results.

R-pM manages capital and performance as components of the business to produce results

Result-performance Management (R-pM) organizes and manages the actual business as “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results”. Capital is managed to be of high-worth, by being developed to add specific result value and then being utilized in performance for a managed performance cost and effectiveness to create greater value and quality in the results produced. The return on the capital investment and the capital solution worth can be known only by measuring the value-added to results attributable to the solution over its useful life. [more...]

Many managers are interested in R-pM, but are concerned about the authenticity of R-pM

People ask how R-pM originated. Some people are concerned about the authenticity and viability of R-pM.

20^th century management problems were encountered and the need for R-pM was conceived piece by piece over 30 years, on business organization, management improvement, and system development projects with such firms as Booz Allen and Hamilton, Multinational Management, Price Waterhouse, A.T. Kearney, and Arthur D. Little.

R-pM was originally developed as aids to capital solution development and management improvement projects

R-pM first evolved as an aid to business and information systems design and later to manage business change projects, both the project and the changes to the business as the results of the project. It became clear that the only solution to business organization and management problems was to organize and manage the business. Contrived organization and management structures laid over the business had to be eliminated.

Formal development of Result-performance Management began in 2002

After retiring from active consulting, work began in 2002, to develop and document Result-performance Management (R-pM) as the one structure to organize and manage the business. The R-pM Toolkit is now available, and continues to be developed as R-pM evolves. R-pM is now launched for use in business change applications and for use in forward-looking enterprises that want to learn their actual business, and then organize and manage the business for breakthrough cost reductions and competitive advantages. [more...]

Today we have many generally-accepted accounting problems

Accounting is a major problem in the 20^th century enterprise. Management is faced with generally-accepted accounting problems. Financial records are missing for much of the business cycle. Management financial information is inconsistent, inaccurate, and incomplete. Many well-known problems like intangible assets, unknown costs, unknown capital worth, unknown investment returns, unknown value creation continue unsolved. Accounting is often equated to records management. Most enterprise non-financial records are scattered, missing, and mismanaged.

R-pM builds professional records management to manage all financial and non-financial facility records capital

Result-performance Management (R-pM) builds professional records management to provide complete financial and non-financial facility record capital solutions for 21^st Century Management. R-pM manages the full business cycle to keep accurate records on all performance costs, performance effectiveness, result volumes, result quality, result values, result value-added, tangible and intangible assets of positive capital worth, liabilities as specific solutions of negative capital worth, and accurate enterprise business net worth. R-pM provides one set of accurate management information on the strategic, planned, actual, and historic business. [more...]

Today's enterprise cannot manage the business in capital, performance, or results

Today’s enterprise cannot manage the business, since organization, process, account, activity, human resource, and other rigid management structures are laid over the actual business. The business consists of capital invested as solutions in the business, business performance in the utilization of capital solutions, and output results produced by business performance. Structures laid over the business conflict with the real changing business causing unsolvable 20^th century management problems.

Capital, performance, and results must be organized to organize the business

Result-performance Management (R-pM) organizes the business for 21^st century management. R-pM organizes capital as business, human, facility, and management solutions. R-pM organizes results to produce revenues, manage and support capital, and manage and develop the current to strategic business. R-pM organizes performance to utilize specific solutions to incur costs to produce value in a result.

R-pM manages the business in three dimensions: result, performance, and management

R-pM manages results produced across the business to provide value and quality to customers and reach revenue result goals. R-pM optimizes performance for each capital solution utilized to produce results to provide high-worth solutions that produce result value and quality at a controlled cost to reach profit margin result goals. R-pM provides management over time to manage and collaborate in value-quality chains, to plan and manage capital development and result value-added benefits, and to govern the business to reach strategic value result goal [more...]

Financial management used today has never solved financial management problems

Why do we have unsolvable financial management problems like intangible assets, unknown costs and value, distorted capital worth, un-managed investments and returns, and ill-informed corporate governance? The problems exist because we do not organize and manage the business and we do not organize and manage the capital utilized in the business. Financial management of cash and accruals does not provide accurate business financial management, and is separated from other tangible capital creating capital management problems.

R-pM manages financial and other capital as part of the business

The solution is Result-performance Management (R-pM) to organize the business and the capital utilized for 21^st Century Management. Financial facilities are part of facility capital that manages traditional tangible assets. Financial management is part of facility capital management to integrate and manage all facility financial and equipment assets, facility supply, and financial and non-financial facility records. R-pM eliminates unsolvable financial management problems and manages and reports all financial and other capital as part of actual business operation and development.

R-pM develops specific capital solutions, utilizes all solutions to produce value in results, and manages all investment returns

R-pM provides comprehensive facility capital management to manage all financial and non-financial reusable facility equipment, consumable facility supply, and facility record capital to produce value in results. R-pM manages all capital as part of the business to be developed and supported, and to be utilized in performance to produce output results of value. R-pm uses information technology to manage all capital solutions to know capital worth, development costs, un-amortized balance, performance costs, attributable result value-added, and return of the solution investment. [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...]

Enterprises today do not know costs or worth of all capital utilized

Enterprises may capture some known costs for some known capital items like fixed assets or employees. But many capital items and costs remain unknown. Development costs may be captured for some other big-ticket capital items. In this case, costs usually include costs for other undefined solutions developed in the same project. Capital worth may be assessed for some tangible items, but cannot be done for all capital to know actual enterprise net worth.

Capital costs and worth are an integral part of the business and actual business management

The enterprise business consists of output results produced, capital deployed to be utilized for the result, and performance in the utilization of capital to incur costs and produce value in results. When the business is managed, results value and quality are managed, capital worth and investment returns are managed, and performance costs and effectiveness contributing to result value-added are managed. Results and capital are managed in result-capital development to plan and manage the result value-added to cover capital development costs and provide the return on investment.

R-pM is the only way to capture capital and performance costs and assess capital worth

Result-performance Management (R-pM) is the only way to organize and manage the actual business. All capital is managed to eliminate intangible assets, unknown costs, unknown capital and enterprise business worth, and unknown return on investments. Human and other capital is managed to control costs, invest only in capital needed, develop capital to create value, and maintain and increase capital worth [more...]

Key performance indicators measure the enterprise and not the business

Key performance indicators produced today measure the various organization, process, system, performance management, and other structures laid over the business, rather then the actual business. To measure and manage the business, the attributes of capital utilized as performance solutions, output results produced, and performance in the utilization of a performance solution to produce a result must be measured and managed.

Key performance indicators mix capital, results, and other entities together under the heading performance

Performance is defined to include both the actions executed and results accomplished. This prevents the actual business from being organized and managed. Many performance indicators measure capital, results, and other entities. Very little actual business performance is measured of managed. Most actual business performance in costs, effectiveness, problems, uncertainty, value creation, etc remains unknown.

Result-performance Management (R-pM) measures and records the actual business

R-pM organizes results and capital as performance solutions in one business structure. R-pM organizes the business by deploying specific performance solutions to produce specific results. At this point, performance records are set up to capture the performance of the specific solution to produce the specific result in capacity, expectations, and other indicators. Performance transactions record actual performance costs, effectiveness, etc producing result value, quality, etc. Performance records and performance solution and result totals are updated, as needed, for each instance of performance [more...]