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...]

Business processes and information systems laid over the business prevent management of costs, value, and quality

20^th century management lays monolithic business processes and information systems over the business to manage business performance. Results produced by the business are defined as performance and are not specifically identified and managed as a set or chain leading to final results that go to the customer. This prevents to business from managing the cost of producing a result, the result value, the result quality, and the result value added. Much time and money is wasted trying to reconcile ill-defined processes and systems for business collaboration.

Rule No. 2 of the 10 rules of 21^st Century Management: Generate profits from a chain of managed value and quality

Result-performance Management (R-pM) organizes the performance producing each result and organizes results as value-quality chains to manage cost-effective performance producing value-quality results to provide high value and high quality customer results.

R-pM produces customer business results from result value-quality chains

R-pM redefines business processes and information systems by the results produced and manages each result in the result value-quality chain starting from input results from the supplier, result value added along the enterprise result chain, and the final result to the customer. R-pM manages result value-added to contribute directly to the profit result. R-pM enables the business to integrate and manage the chain to help suppliers meet enterprise needs and to add more value by meeting customer needs [more...]

Today's business enterprise uses a myriad of management structures and information systems creating enormous information complexity. Each structure and system defines its own set of data entities and reports separate information. Enterprise management information systems attempt to reconcile data and integrate information into meaningful reports for management. But, no system today captures actual business data and no management information system reports actual business management information.

Result-performance Management (R-pM) organizes the business for 21^st Century Management. The one integrated business structure is used for a comprehensive and consistent Result-performance Management System to capture data on the utilization of capital in performance solutions to produce economic outputs in business results. Data is captured on performance capacity, cost, and effectiveness and the volume, value, and quality of results produced. Strategic results and the solutions needed are maintained in the strategic business structure with plans for time periods and updated strategic estimates. Complete and comprehensive management information is reported on the actual business for effective 21^st Century Management and good corporate governance. [more...]

20^th 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.

21^st 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 21^st 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...]

20^th century management does not manage capital. Certain capital is administered and other capital is neglected. Facility capital includes all reusable and consumable assets and business records. But, the stress is on administering financial capital at the expense of other capital of increasing importance and worth. Financial management and accounting have developed their own principles and practices that isolate financial management from the business and often conflict with the needs of general business management.

R-pM manages all financial and non-financial facility capital as one category containing three classes in facility equipment reused to produce a set of results, facility supply consumed in producing specific results, and facility records for complete documentation of the business in solutions utilized and results produced. This enables integrated planning of the solutions needed to produce results, integrated utilization of solutions that produce the specific result, and integrated record-keeping and record extracts as performance solutions to produce new results. [more...]

The 20^th 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 20^th 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:

1. "The activity of providing", which is performance in the utilization of human and other capital, such as equipment, supplies, processes, and tactics
2. "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:

1. The performance solutions that provide the capital utilized by the business to incur costs and produce the results
2. 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 20^th century organization structures laid over the business that prevent actual business management. [more...]

20^th century management provides many methods of cost accounting. None of the methods has been able to capture all costs and charge all costs to the proper entity to absorb costs. Known costs are captured from separate entities, such as employee, fixed asset, cash, and supplies. Costs are charged to entities like center, activity, station, etc, that show where the cost was incurred, but were not produced by the cost.

Management needs one entity that contains all the costs incurred by the business and one entity that was produced by the cost to absorb the cost properly. Result-performance Management (R-pM) provides the one entity "performance solution" that produces all costs. R-pM provides the one entity "result" that was produced by the cost to create value, and can properly absorb costs to know result value-added. Result-performance costing is the only method to know all performance costs, and to charge costs properly to the value of the specific result produced. [more...]

Many enterprises have invested in quality management with TQM, ISO 9000, BPR, etc. But, how many are satisfied that they have the solution needed to manage quality across the enterprise? Many enterprises put a large effort into managing performance quality in their business processes.

Result-performance Management provides the means to know and manage the quality produced by everyone in the enterprise. The only way to manage enterprise quality is to manage the quality of results produced across the enterprise. Quality is an attribute of the result, not performance. Each performance solution utilized must be effective to produce a quality result. The quality in a business process cannot be managed by managing "performance quality". The business process must be replaced by a result quality chain to manage the effectiveness of performance producing each result and the quality of each result along the chain [more...]

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 and the performance structure to organize the capital that is deployed to produce specific results.

The key component of the business structure is the result structure that organizes economic outputs to be managed for the volume, value, and quality that lead to revenue, profit, and stakeholder value results. All enterprise management responsibilities are to produce specific results. Strategies are organized by the strategic results to produce in the strategic result structure. A well-managed enterprise must manage the value and quality of all results produced by all capital in the enterprise [more...]

Enterprises have much to gain by properly organizing and leveraging information to provide value. Information is not managed properly for support, integration, and utilization in today’s enterprise.

Information capital must be managed from two perspectives:

• Information capital development, support, and maintenance to increase capital worth
• Information integration and provision as solutions to create value in results

Today's enterprise manages information as technology or an administrative function, rather than as specific data, knowledge, record, or intelligence information capital.

The enterprise also lacks the integrating entities to create an enterprise information base and deliver information solutions to be utilized by the business. Information is maintained on a wide variety of entities in various systems and solutions creating a large data reconciliation and integration problem [more...]