20^th century management administers human resources as employees

20^th 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 21^st 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...]

20^th century management cannot manage investments, development, or returns

20^th century management develops capital as a tangible asset or project outcome. The specific capital items to be developed and the specific business improvements to be made are not defined or managed. So, it is impossible to plan and manage capital development to provide a measured return on investment.

Rule No. 7 of 21^st Century Management: Manage investments to gain a planned result value return

The investment management problem is solved by rule no 7 of 21^st Century Management. All capital investments must manage the results to be produced as well as the capital needed to produce the results. The investment results and capital to be developed in specific performance solutions must be planned to justify the investment, managed in the development project results to implement solutions to create value, and measured in operations know actual added result value-added for the return on investment.

R-pM plans and develops both the results and performance solutions needed in Result-performance Development.

R-pM replaces capital development with Result-performance Development to actually plan and manage investments and development for a measured return on investment [more...]

20^th century management information is inaccurate and incomplete

20^th century management used today can report enormous amounts of information against organization and management structures laid over the business. Large information systems process information on the various organization, planning, process, system, account, project, administration, performance, and reporting structures. Additional systems try to make sense of the information for management use.

But, since the actual business is not organized or managed, no information is reported on details of the actual business. Business data in value created, costs incurred, return on capital investments, business value-added, capital worth, and enterprise business worth remain unknown.

R-pM reports accurate and complete information on the actual business

R-pM organizes one business structure for one set of accurate, complete, and consistent management information on the actual business for organization, planning, direction, control, and reporting. Existing processes and systems are rationalized for use in the actual business. R-pM reports the actual business across the breath of the business in business results produced and to the depth of the business in the capital utilized in performance solutions to produce results.

R-pM reports result value-added, quality determinates, and capital worth

R-pM reports business management information not available today in result value, strategic result value creation, result value-added, performance costs, capital development costs and value-added and returns, capital worth, and many other performance indicators and result metrics that are not known today. R-pM provides complete and accurate information on the actual business and phases out the inaccurate, inconsistent, and incomplete management information provided today. R-pM enables management to use common sense to manage the actual business rather than trying to follow arbitrary rules imposed by structures laid over the business [more...]

20^th century management lays many organization and management structures over the business

20^th century management used today starts with an organization structure that is laid over the business, instead of organizing the business. This prevents integrated business organization and management. Additional structures are laid over the business for planning, directing, control, and reporting. Separate operation structures are used for the various functions and activities of the business. Different structures are used for investment planning and capital development. The proliferation of structures creates business and information complexity. Rigid overlaid structures conflict with the actual business causing the wide range of unsolvable 20^th century management problems.

21^st Century Management integrates business organization, management, operations, and development

R-pM organizes the actual business for 21^st Century Management. One business structure defines the current business and another defines the desired strategic business, so that management organization, planning, directing, control, and reporting are focused on the transition from the current to strategic business structure. Business operations are organized by result groups within the business structure to produce specific chains of results. Capital development is organized and managed through sub-sets of the structure for results and performance solutions to be developed. Projects are managed through a project business structure that organizes new results and solutions being developed and the capital assigned to the project as specific performance solutions. R-pM uses the actual business as one structure for all organization and management needs [more...]

Administration is one of the top ten 20^th century management problems

Administration is one of the top ten management problems with 20^th century management. Enterprises have large sums invested in the capital that is utilized in performance, but most have not organized capital, so that it can be managed.. Capital is assigned to a center, labeled as “intangible assets”, or administered by an administration function. Since capital is not identified and organized to be part of the business, capital cannot be managed for operation, development, and utilization.

Rule No. 3 of the ten rules of 21^st Century Management: Organize and Manage Capital for High Utilization and Return

The administration problem is eliminated by Result-performance Management (R-pM). R-pM follows Rule No. 3 of the 10 rules of 21^st century management: Organize and Manage Capital for High Utilization and Return. Capital management is essential to manage the business, the utilization of capital as performance solutions to produce value in results. R-pM manages information capital to eliminate the emerging information complexity and management problems

R-pM organizes performance solutions for professional support and to be integrated to produce results

Capital is organized by the professional capabilities needed to properly manage and support the capital as business, human, facility, or management capital. Capital is organized further by the way it is utilized to produce results as readiness, production, or information capital

Capital is managed to be of high-worth, by being utilized for a managed performance cost to create greater value in the results produced for a known value-added. New capital is developed as specific performance solutions of a known cost to add known value to specific results to manage the return on investments. All enterprises can improve profit margins by using R-pM to organize and manage capital for high utilization and return.

But, enterprises can never manage capital while it lies in centers hidden from view, while it is classified as “intangible assets”, and while those who should be managing it are performing administrative functions [more...]

Human resource and capital management of today essentially administer human resources as employees and develops human capital to meet general performance needs. Human capabilities required by the business are not defined or managed as capital. Knowledge solutions to develop human capital or for human capital to utilize solutions to produce results are not defined or managed as capital.

R-pM develops all capital, including human capital, to produce specific result value-added. Human capital in personnel learning, specific human capability development, and knowledge development is managed to add value to specific business results. Management knows the personnel, capability, and knowledge solutions utilized to create result value and the value-added to results. Management can assess the worth of human capital and plan human capital development to meet needs to increase the value of specific results or to produce valuable new results. Human capital has a stake in the enterprise business and knows that increasing result value-added increases human capital worth and justifies increases in human capital performance costs. [more...]

20^th century management does not capture actual business data and does not provide the information to manage the actual business. 20^th century management gathers mountains of information, which are mostly irrelevant to the business, related to structures laid over the business. This creates the enormous IT overheads and information complexity problems. 20^th century management provides management information to manage structures laid over the business, rather than managing the actual business.

21^st Century Management manages the actual business through two integrating entities, capital utilized as performance solutions and economic output results produced. This enables data to be gathered on all actual business activity. Actual business management information solutions can be delivered to utilize any specific performance solution to produce any specific result, anywhere in the business. Information capital is managed professionally by those with the capability to provide information performance solutions needed to create value in results. [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...]

Most companies still administer human resources as employees. They use organization structures, job descriptions, task plans, salary scales, rigid HR policies, performance management, and other measures that put human capital into boxes and manage the activities humans perform.

Result-performance Management manages human capital to produce results, to develop capabilities to produce higher-value results, to provide the specific knowledge needed to develop and produce results, to link the value added to results to the worth as human capital, and to compensate and reward relative the human capital worth. [more...]

The Business Change Forum presents a page Problems/Solutions, which many have found an enlightening summary of Result-performance Management (R-pM). The page is presented in this article for readers of 21^st Century Management.

The first step to 21^st century management is to recognize the problems with 20^th century management. The 20^th century enterprise works around many business organization and management problems that are accepted as normal business practice. The article summarizes a few of the problems and introduces the R-pM solution to organize the business for 21^st century management and leave the 20th century problems behind. [more...]