Archive for the 'Planning and Control' Category
Manage Result Quality, not Performance Quality
November 12th, 2007Today's business processes emphasize managing performance and "performance quality". But, people have difficulty defining "performance quality" and in identifying and correcting poor performance. If the business process output is not up to standard, it is difficult to identify what happened within the process and to prevent the problem from recurring.
"Quality" is not an attribute of performance. "Quality" is an attribute of the output result produced by performance effectiveness. We can see and determine the quality of the output result, where we cannot see or determine the quality of performance, if it is not witnessed. In order to manage quality we must manage each output result produced in the chain of results leading to the final process result. In order to manage the effectiveness of performance, we must manage the human and other performance solutions utilized to produce the result. A defective result in the chain it is caused by either a defective input result or ineffective performance. The chain is traced back to identify the defective result. Since performance solutions are managed, the ineffective solution can be corrected or replaced. But, this can only be done by managing result chains with Result-performance Management. [more...]
Good Corporate Governance of the Strategic Business Structure
October 1st, 2007Corporate governance is an unsolvable 20th century management problem. The problem arises from managing and governing structures laid over the business that prevent direct business management. Since the corporation business cannot be managed, we govern by enforcing rules and regulations.
Good corporate governance is a fundamental part of 21st Century Management. R-pM organizes the current business as one integrated business structure and sets the corporate strategy in a strategic business structure. The strategic business structure plans strategic value creation by increasing the value-added to current results, and by capital development to produce new results of value. Good corporate governance manages the transition time period by period from the current business structure to create the result value planned in the strategic business structure. [more...]
Use Information Systems to Process the Business
August 30th, 200720th Century Management lays organization and management structures over the business. Information systems are implemented over the business to process the data produced by the various structures. The information often conflicts with the business and causes information complexity. The systems require large IT processing overheads, Since the business is not organized the systems cannot capture actual business data or report actual business management information.
21st Century Management defines the actual business first as chains of results that must be produced across the business. Information system processing is integrated with business processing to produce each result required by the business. Performance cost, effectiveness, capacity, expectations are captured for each solution utilized. Result value, quality, volume, goals, etc. are captured for each result. Information is updated to one business management system to report the consistently-defined business structure for actual and accurate business information.
Existing processing that does not produce a needed result and that reports irrelevant or inaccurate business information is deactivated. Eventually 21st century information systems evolve into a series of linked business-system processing modules that produce specific results and that update one business management system that accurately reports business performance and business results. [more...]
Manage Information Capital to Provide Performance Solutions
August 2nd, 200720th century management does not capture actual business data and does not provide the information to manage the actual business. 20th 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. 20th century management provides management information to manage structures laid over the business, rather than managing the actual business.
21st 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...]
Redefine “Performance” to Organize your Business
July 30th, 2007The 20th century definition of performance used in business management defines not only the activity of performance but also the output results produced as performance.
The impact of this definition is that the actions of performance and the results produced by performance are mixed together in business performance management methods. The definition of performance prevents the 20th century enterprise from organizing the business. Organization structures are laid over the business and require periodic reorganizations to align with the business.
The generally accepted definition of business is "the activity of providing goods and services". The definition shows that the business has two components:
- "The activity of providing", which is performance in the utilization of human and other capital, such as equipment, supplies, processes, and tactics
- "The goods and services provided", which are the outputs or results produced from performance that can be counted and measured
The definition of business shows that results must be separated from performance in order to organize directly the only two entities that describe the business:
- The performance solutions that provide the capital utilized by the business to incur costs and produce the results
- The results produced as economic outputs to create value from the business
R-pM organizes results produced and performance that produces results into one integrated business structure to gain advantages not possible with 20th century organization structures laid over the business that prevent actual business management. [more...]
Generate Profits from an Chain of Known Value
June 21st, 2007The 20th Century Corporation has a problem defining value and managing value creation. Value is not organized and managed within the corporation as part of the routine. Methods and formulas are contrived to calculate numbers called "value". Business collaboration for shared value remains an elusive goal.
Result-performance Management (R-pM) organizes the business as results, the economic outputs that contain value, and as performance solutions, the capital consumed to incur the cost of producing the value. Value is an attribute of each result and is determined and utilized as a routine management metric.
R-pM is the only to way to redefine monolithic business processes as manageable result value-quality chains. R-pM enables value-quality chains, value and value-added management, strategic value creation, business collaboration for shared value, and integration with supplier and customer value-quality chains. [more...]
R-pM is true “Business Transformation” to an Organized and Managed Business
May 7th, 2007Business transformation got a bad name when it was misapplied to business process re-engineering and implementation of enterprise resource planning.
True "Business Transformation" moves an enterprise, organized and managed through structures laid over the business, to an enterprise that directly organizes and manages the business and never needs further transformation.
Result-performance Management (R-pM) provides the methods and guidance for true transformation to an organized and managed business. [more...]
R-pM for Capital Development Project Management
April 30th, 2007The many development project management methods cannot plan and develop specific project benefits, capture development costs for specific performance solutions, nor measure development costs against actual result value-added to find the return on investment.
Rule No. 7 of the 10 rules of 21st century management is Manage Investments to gain a planned result value return. The enterprise cannot manage benefits unless the specific results to be produced by the developed capital are organized and managed. The enterprise cannot manage costs to know return on investment, unless the specific performance solutions being developed are defined and managed.
R-pM uses unique bottom-up Result-performance Development to develop both the costs and benefits of development, so that they can be tracked into operation to provide the planned and managed return on investment.
R-pM provides a business structure for capital development project results produced and performance solutions utilized for effective project management and to capture of costs of new solutions developed as project results.
Do not attempt any capital development project without studying and understanding the benefits of R-pM. [more...]
Getting Management Involved in Business Change
March 5th, 2007Management rarely fills the proper role in conventional business change. The change is up to consultants and the administrative department. Management will often resist using new enterprise structures and continue to manage the business in his own way. This is possible, because conventional business change is not change to the business, but change to enterprise structures overlaid on the business.
Result-performance Management is the final business change to organize the business, so that all future business change is part of the enterprise routine. Enterprise management must take the lead and participate in the change to R-pM, since the fundamental performance utilized and results produced by the business are being organized and managed. R-pM becomes the daily routine of managers at all levels and all overlaid enterprise management structures are removed. R-pM simplifies the business to six consistently defined information entities to remove information complexity and enable 21st century management.
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Is Your Capital Worth Restricted by Conventional Thinking?
February 19th, 2007R-pM is a new breakthrough to organize and manage the business of the enterprise. Conventional thinking says we base any improvements on the way that things have always been done. This creates a barrier to using R-pM for conventional thinkers, because nobody has ever organized and managed the business before.
Conventional thinking is an increasing problem because people absorb more and more of what they know from television and the Internet, rather than learning from thought and discovery. Problems are addressed by looking up and applying conventional solutions, rather than by analysis and problem-solving to find the best solution.
This trend conflicts with the needs of the 21st century enterprise to develop high-worth intellectual capital, apply today's intangible assets to create value, harness technology for advantage, manage and leverage information, and compete and collaborate in a world of fast change. R-pm provides the enterprise the means to accomplish this, and to develop high-worth human capabilities to produce high value-quality results.
R-pM also provides the environment for human capital to break loose of the restrictions of conventional thinking, to develop and apply knowledge and capabilities to produce high value-quality results, and thereby to improve human capital worth and justify a higher human capital performance cost on the part of the enterprise [more...]


