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...]

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...]

Results have historically been defined as a component of performance, or as economic outputs that reside outside of the enterprise. These definitions prevent the enterprise from managing the result as internal economic output.

Results must be separated from performance and defined as the internal economic outputs produced by enterprise performance. Results then are the basic building blocks of the enterprise, since all that the enterprise does must be focused on producing specific results. Result-performance Management (R-pM) defines and organizes the specific results produced by every human capital solution across the enterprise. This enables the enterprise to manage quality and value and the other attributes of each result [more...]

Many of the ten rules for 21st century management require that the enterprise manage performance costs and result value. The 20th century enterprise and conventional cost accounting and management methods capture "known costs" for various entities and then charge the costs to a contrived center, process, object, or activity and not against the value created. The 20th century enterprise is not organized to determine performance costs and result value.

In order to manage performance costs and result value the enterprise must organize the business for 21st century management. The enterprise cannot know and manage performance costs unless performance solutions are organized and managed. The enterprise cannot know and manage result value unless results are organized and managed. The enterprise cannot know and manage result value-added as a metric to optimize operations and the return on capital development investments, unless performance costs are managed against the result value created. [more...]