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...]

20^th century management does not provide competitive differentiation and advantage for the 21^st century

Management structures laid over the business in today’s enterprises cannot create competitive differentiation and advantage from utilization of technology, the Internet, and intellectual capital. A new business structure is required to enable competitive advantage in the 21^st century. The obstacle is conventional thinking that prevents a complete new definition of the business and continues to improve obsolete management structures laid over the business.

The 21^st century presents new requirements for competitive differentiation and advantage

In the 21st century, business competition and collaboration can come from anywhere in the world. Competitive differentiation and advantage in the 21^st century requires that the business is simplified for fast and flexible change, is organized to utilize technology effectively and enable business communication and collaboration, and is managed to provide customer value and quality.

R-pM provides significant new competitive differentiators and advantages for the 21^st century

21^st century competitive differentiation and advantage is provided by Result-performance Management (R-pM). R-pM uses information technology to organize the actual business for significant competitive advantage in the 21^st century. R-pM organizes business capital invested, performance to utilize capital, and output results produced to provide competitive differentiation in high value and quality customer results. R-pM makes the unorganized business burdened by overlaid structures a distinct competitive disadvantage in the 21^st century. [more...]

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...]

Enterprises today are organized and managed using many structures

Throughout the 20^th century, we have implemented organization, process, account, performance management, and other structures. These many structures, and the different entities used, produce business and information complexity and many other problems. There has long been recognition of the problems. Many books have been written and additional management structures have been devised, but the problems remain.

Enterprises and management developers have been looking for one integrating structure

There are many efforts to replace these structures with one simple and consistently-defined structure for business collaboration, reliable management information, use of common solutions, and other needs. Until now, no one has defined the one integrated structure that can be used to organize and manage any enterprise in any industry. Each new structure is laid over existing structures compounding the problems.

The one integrating structure exists; it is the business itself

There is one structure. It has been there all along! That structure is the business itself!

The enterprise business is defined as “the utilization of capital of worth in performance to incur costs and produce value in results”. The business consists of three components:

• Business results produced as economic outputs of value from the business
• Capital in the specific performance solutions invested in the business
• Performance in the utilization of performance solutions to produce results

These components of the business are organized into the current and strategic business structures that replace all structures laid over the business for transparent management of strategic result value creation.

R-pM provides the only method to organize and manage the actual business

Today's unsolvable business problems are caused by conflicts between the actual business and structures laid over the business. Result-performance Management (R-pM) organizes the business, as current and strategic structures, for 21^st century management. R-pM replaces all overlaid structures with the appropriate business structure and leaves unsolvable 20^th century problems behind [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...]

Leaders tend to be satisfied with the methods that got them leadership

Current industry or competitive leaders likely are satisfied with 20^th century management that brought them to a leadership position. It is the followers, who have the most to gain by using a new breakthrough to overtake the leaders. R-pM enables the followers, be it a country, corporation, or business association to become a leader.

R-pM enables the capable follower to overtake the complacent leader

The first to implement R-pM will implement R-pM because they want to and will instill 21^st century management throughout the business. They become the leader and gain an unassailable business advantage that continues to grow over time. The followers will have to implement R-pM as well. But, they will implement R-pM because they have to. The followers, who use R-pM because they have to, will continue to fall behind the leaders, who use R-pM because they want to.

R-pM is a breakthrough to manage the business and a one-time opportunity to gain significant advantage

R-pM is a breakthrough for 21^st century management to abolish the enormous overheads, costs, and inefficiency of 20^th century management. R-pM provides an one-time opportunity for followers to become leaders. If you are a follower, as an enterprise, group, or nation, research R-pM to learn how to leap over the competition and become a leader [more...]

Information Technology is a high-cost corporate overhead today

The typical corporation spends enormous sums on Information Technology and has many complex enterprise information systems, but still does not have an information system to manage the actual business, The corporation has much capital administered as IT instead of being managed for corporate benefit, and has much information administered as technology instead of being managed to provide information solutions for business and management results.

R-pM reduces enterprise information systems to essential business processing and management

Result-performance Management (R-pM) uses IT to manage the actual business as one simplified Result-performance Management System. R-pM manages system processing routines or simplified application programs as performance solutions integrated with the business process, where needed, to produce a specific result. R-pM eliminates other overlaid 20^th century information systems, duplicated and irrelevant information, and the need for a large IT overhead. R-pM organizes all capital, including IT, for capital management to produce results.

R-pM manages data, knowledge, records, and intelligence as information capital

R-pM manages all information as capital to produce data, knowledge, record, and intelligence solutions needed to produce specific business results. All information in the enterprise references a business data entity as part of one integrated Business Information Base. Information technology capital, support, and capabilities are integrated as part of normal 21^st century business capital management, replacing the IT organization and eliminating excessive IT costs [more...]

R-pM is natural and the only way to organize a business

Result-performance Management (R-pM) is the natural way you organize your personal business. You produce results in the things you accomplish. To produce results, you utilize your capital as performance solutions in your capability, tools, equipment, money, plans, instructions, etc. You manage your business through common sense. You use R-pM instinctively because R-pm is the only way to organize and manage your personal business or any other business.

Your company organizes and manages the company, rather than the business

But on your job, you no longer naturally utilize performance solutions to produce results. Your company does not organize or manage the business. The company lays contrived structures over the business to manage the company. All business schools, management books, packaged solutions, consulting advice, professional bodies, and on-the-job experience teach us to lay contrived structures over the business. You cannot manage or perform using common sense. You must follow various rules, regulations, and procedures to utilize arbitrary processes, systems, accounting, and other structures.

Use your natural method to organize your company business

Use your natural method of utilizing specific performance solutions to produce specific business results. You will see improvement in the job you do today, and understand the potential in organizing your company business for the breakthrough advantages of 21^st Century Management [more...]

20^th century accounting does not keep complete or accurate financial records on the business

Rule No. 4 of the 10 rules of 21^st century management with R-pM: Keep accurate financial and non-financial records on full business operations and development.

Today's enterprise faces many obstacles to professional record capital management because of several 20^th century problems. Financial accounting is often seen as enterprise records management, but maintains a professional view of what it will record, and acts as an administrative function rather than professional records management. Financial accounting records some financial data against a chart of accounts laid over the business. Financial accounting does not keep complete and accurate financial and non-financial records of the actual business. Most other enterprise records are not maintained as enterprise capital to be available to provide needed performance solutions. Records management is a growing problem in today's enterprise requiring a comprehensive professional records management solution.

R-pM enables complete and accurate financial and non-financial records against the actual business

R-pM maintains all business management information against one business structure to integrate organization, planning, directing, control, and reporting. Structures laid over the business are removed. Management information includes result value, capital worth, performance costs, and result investment returns that are "unknown" today. Tangible information capital is maintained as facility records to record all financial and non-financial business transactions and activity in computer records, documents, images, archives, etc. Accounting is one sub-set of professional records management.

R-pm provides an opportunity for accounting to broaden to professional records management

R-pM provides a unique opportunity for the accounting profession to expand to professional records management. R-pm eliminates unsolvable accounting and financial management problems. Professional facility records management maintains financial and non-financial facility records of the actual business, and provides information capital solutions from records, where needed to produce results at all levels of business management [more...]

20^th century management lays strategic structures over the business

20^th century management contrives structures to define the corporate strategy in corporate plans, maps, investment plans, and other structures laid over the business. The strategic business is not planned. The overlaid structures do not relate to the actual business and may conflict with structures used to manage the corporation. Strategic value numbers are pulled out of the air. There is no good method to govern the transition from the current corporate status to the strategic objective. Corporate governance cannot govern the actual business, so it governs through compliance with arbitrary rules and regulations.

Rule No. 6 for 21^st Century Management states: Plan and govern the transition from today’s value to approved strategic value.

R-pM defines the current business to know result value, capital worth, performance costs, and investment returns to provide the foundation for planning the strategic business. The strategic business structure shows results to be produced and capital to be utilized at a 2-5 year strategic horizon. Strategic result value is substantiated in specific period by period result goals requiring growth in value of current results and the value of new results enabled by implementation of capital of worth.

R-pM provides information on the current to strategic business for management and good governance

R-pM enables good management and governance of the transition to the strategic business by reporting financial and non-financial status against result goals and performance expectations, updating strategic estimates, providing result evaluations and performance assessments, and providing management information on anticipated opportunities, threats, and developments. Good corporate governance ensures responsible business management and planned progress to the approved strategic business [more...]