Capital investments today are not managed as specific solutions to produce business results

20^th century management employed by all enterprises today does not identify specific capital solutions as an entity to be defined, measured, or managed. Some obvious capital assets like employees, fixed assets, and money are identified and managed as separate assets. Many high worth assets are never defined or are labeled as "intangible assets". The full amount invested in capital solutions, the decline in solution worth producing performance costs to amortize the investment, the return on investment in the solution, and the current capital worth or "asset value" of the solutions are unknown. Unknown and unmanaged capital is a major contributor to financial losses that led to the current economic recession.

Result-performance Management manages all capital investments in the business

Result-performance Management (R-pM) identifies all capital investments as specific solutions intended to produce specific results. The full scope of solutions needed to produce a result are defined, with the qualifications needed for each solution. The expected result value increase with the investment is planned and must exceed the development and implementation costs to justify the investment. Result value is attributed to solutions utilized by the contribution of the solutions to producing a good result. The attributed result value for each solution over its expected life and disposal is the planned solution worth that must cover the solution investment.

Capital solution performance to produce results and result value-added is measured and managed

Each capital solution is implemented to produce one or more results in performance. The solution worth declines as the solution deteriorates or becomes outdated. The decline generates performance costs that are spread across the results that utilize the solution. Utilization of the solution also creates result value that leads to customer revenues. The portion attributed to the solution covers the solution costs and provides the gain or loss for the return on investment in the solution. The expected future attributed result-value to cover the costs and gain in the solution over the remaining life, plus solution sale or disposal result value is the current solution worth, which must exceed the unamortized investment balance. These capital measures largely are unknown today, but are important for the proper management of the business and prevention of financial, capital, and economic problems. [more...]

Economic output results produced by the business today are not managed or are managed as an isolated entity

20^th century management employed by all enterprises today does not define economic output results as an entity to be defined, measured, or managed. Most results produced by the business are never defined or managed. Some important recurring results are identified and managed as an isolated entity such as an order, a service rendered, a payment received, etc. Results produced across the chain to produce the managed entity are not identified or managed.

Result-performance Management manages all results produced by the business

Results are outputs that can be counted and measured. Results contain enterprise value, quality, costs, risk, value-added, and other metrics that are unknown today. Results provide the important outputs that must be produced to meet business objectives and achieve business success. Result-performance Management (R-pM) focuses the enterprise on producing results and on managing the business result by result, and achieving result goals period by period.

Capital solutions utilized in performance are measured and managed for each result

Each result is produced by utilizing implemented capital solutions in performance to incur costs and create value and quality. Every result has a customer who must be willing to pay a value to receive the result. The total result value of each result in a chain cannot exceed the final result value paid by the external customer. The result value less the total performance cost for the volume of results produced is the result value-added, which must be positive to justify producing the result. Result value-added is the main management metric of 21^st Century Management. [more...]

The economic crisis is caused by the failure to manage the business and results as part of the business

The business is “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results”. In order to manage the business, three components of the business must be managed; the capital investments in the business as capital solutions of worth, performance of the business in utilization of specific capital solutions to incur costs and produce specific results, and output results of managed value and quality produced across the business.

20^th century management utilized by all corporations, financial institutions, and other enterprises today do not identify or manage specific capital solution investments as a complete data set and do not identify or manage specific output results produced as another data set. Financial institutions are not able to manage "asset value" in the worth of solutions in their investment portfolios. Corporations are not able to manage diverse businesses within the corporation as part of an integrated and managed corporate business. These are examples of causes cited for business failures and downturns that caused the economic crisis.

Result-performance Management organizes and manages the actual business and results as part of the business

R-pM organizes and manages one integrated enterprise business structure. The business structure is comprised of the result structure to organize and relate results required for business success, the capital structure to organize capital solutions available, and the performance structure to implement the capital that is utilized 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 business must manage the value and quality of all results produced by the utilization of specifically-qualified and cost-effective capital solutions. [more...]

The economic crisis shows the failure to manage capital investments and utilization

The economic crisis shows the importance of managing capital properly. But, businesses today use 20^th century management and cannot manage capital in the set of solutions utilized by the business in performance to produce output results. Capital is lumped together as a fixed asset, developed but never identified as capital, or is labeled as intangible assets. The business does not know the amount invested in solutions, costs of utilization of capital, the worth of capital available, the specific utilization of capital by the business, and the actual return on the capital investment.

Managed capital shows investments and return, performance costs, and worth by solution

All tangible and intangible capital must be identified and organized as the specific solutions available to the business to produce specific results and to record all investments in the solution. Capital solutions are implemented when deployed to a result to set up a performance domain to record business transactions. Capital solution utilization generates business data on solution performance costs, performance effectiveness, result value-added, and other data not captured today. Result value-added by solution provides return on investment and establishes the worth of the solution.

Capital must be managed as part of the managed business

The economic crisis is caused by failure to manage the business. Financial institution cannot manage asset-value, which is actually capital solution worth. Corporations cannot manage costs or margins, because capital solutions are not identified and result value-added is unknown. Corporate financial statements record partial capital in balance sheets and report erroneous business net worth. The only solution is Result-performance Management (R-pM) to organize the business, and capital as part of the business, for 21^st Century Management, and leave 20^th century management problems behind. [more...]

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...]

Value chain methods used today lay an additional contrived structure over the business

Methods used today lay contrived value-chains over the business. The chain is not integrated within the business to control actual costs against value-created or to produce value within total managed business value. These value chains have never been successful in actual business management.

R-pM is the first method to manage value chains as part of the managed business

There has never been a method to organize the business to provide natural value chains until Result-performance Management (R-pM).

R-pM employs information technology to manage all the results of value produced by the business and all capital solutions that incur costs in performance to produce each result. R-pM builds result value chains with end-results of value as a link in the chain, within a higher-level set-result that is the final result from the chain. Result relationships chain the end-result links together and each end-result to the final set-result. Each end-result has a managed value that adds to the total final set-result value.

The costs and value-added is managed at each link in the chain to manage total chain value-added

Supplier input results are transformed by performance through internal business results to customer final results. Each solution utilized incurs a performance cost. The total of solutions utilized is the cost of creating result value at each link. R-pM manages the end-result value-added at each link and the set-result value-added for the complete chain. Result value chains manage the value, quality, volume, risk, and goals for each result and the final result. Result value chains enable supplier-customer integration and business collaboration. [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...]

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...]

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...]

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...]