Capital solutions are not implemented today to produce specific benefits

Your enterprise likely has implemented information systems or major capital solutions. Were the benefits or return based on a quantified list of specific benefits and not just estimates of increased sales or revenues? Did users have goals to achieve the return on the investment? Were change management problems or resistance prevented by professionally-managed implementation of human and other solutions? Was professional support for all new or changed solutions established as the routine? Was the investment planning and capital development professionally managed? Were consultants utilized to achieve the return on the investment? Was the return on investment managed and measured?

20^th century management does not enable capital management and measured return on capital investments

If you can answer yes, your enterprise is a rare exception. 20^th century management has many inherent obstacles to overcome to implement new solutions to produce managed value-added to provide an measured return. The enterprise must organize and manage the business first, in order to manage change and improvement to the business effectively. Otherwise the enterprise will continue to implement new solutions to produce old problems.

R-pM organizes the business to implement specific capital solutions to add value to business result produced

The prior article showed how to design packaged solutions that any enterprise can use. In order to produce planned business benefits and gain the return, the business must be organized and managed using Result-performance Management (R-pM). Results must be defined to plan and manage value-added by implemented solutions. Capital solutions must be organized for professional support. Specific solutions required must be integrated and utilized in performance to produce specific results. The return on investment comes from added result value-added over the payback period compared to result value-added with no improvement. [more...]

Business information is inconsistent, incomplete, and inaccurate in today's enterprise

Enterprises have much to gain by properly organizing and leveraging information to provide value. Information is not managed properly for support and utilization in today’s enterprise. The business is not organized and managed to capture information produced directly by the business and to apply information directly to the business. The categories of information are not supported as information capital to produce business results. There are no precisely-defined data entities to integrate information from the various systems into a business information base for consistent management information. Most direct business data is never captured and management information is reported in conflicting and inaccurate sets.

The information complexity and accuracy problems are addressed by additional information technology investments

Each management structure and information system defines the enterprise differently producing the information complexity and accuracy problem. Large information technology investments for data reconciliation, enterprise information management, IT architectures, specialized knowledge and records management, etc can never solve the problems.

R-pM integrates actual data, knowledge, records, and intelligence in one Business Information Base

R-pM provides the proper support for information capital to provide information solutions, to utilize solutions to capture data and apply information directly for the business, and to integrate information on the business in one consistent and accurate Business Information Base for transparent management and good corporate governance. [more...]

Many managers are interested in R-pM, but are concerned about the authenticity of R-pM

People ask how R-pM originated. Some people are concerned about the authenticity and viability of R-pM.

20^th century management problems were encountered and the need for R-pM was conceived piece by piece over 30 years, on business organization, management improvement, and system development projects with such firms as Booz Allen and Hamilton, Multinational Management, Price Waterhouse, A.T. Kearney, and Arthur D. Little.

R-pM was originally developed as aids to capital solution development and management improvement projects

R-pM first evolved as an aid to business and information systems design and later to manage business change projects, both the project and the changes to the business as the results of the project. It became clear that the only solution to business organization and management problems was to organize and manage the business. Contrived organization and management structures laid over the business had to be eliminated.

Formal development of Result-performance Management began in 2002

After retiring from active consulting, work began in 2002, to develop and document Result-performance Management (R-pM) as the one structure to organize and manage the business. The R-pM Toolkit is now available, and continues to be developed as R-pM evolves. R-pM is now launched for use in business change applications and for use in forward-looking enterprises that want to learn their actual business, and then organize and manage the business for breakthrough cost reductions and competitive advantages. [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...]

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...]

Information is not managed as capital for support and utilization

Today’s enterprise captures information on a multitude of entities that describe structures laid over the business, but captures little information on the few entities that describe the actual business. The many enterprise information systems produce enormous amounts of information. However, little is managed as information capital to be used to operate, improve, and manage the business. Much information is managed by the wrong capabilities, such as management accounting and data management by IT. Most information just adds to the information complexity and overload problems.

The explosion in enterprise information demands new information simplification and management solutions

With emails, internet searches, file transfers, etc information is entering and leaving the enterprise at a high rate and enterprises have no way consolidate information or consistently reference information to the business. Additional structures are laid over the business to reconcile and classify information. Special information systems are needed to locate, extract, reconcile, and report information of use to management. Additional investments are being made in various document, record, report, content, etc management systems to manage information scattered around the enterprise.

This cannot solve the problem. The only way to solve the problem is the simplify and organize the business as a few specific data entities, and professionally manage all data, knowledge, records, and intelligence through reference to these few data entities.

R-pM organizes information capital for delivery and utilization by the business

Result-performance Management organizes the business to capture data and produce other information related directly to the business and to eliminate data collection and information reporting not related to the business. All information in, entering, or leaving the business is referenced to a result, performance solution, or other business entity. Management information is captured and reported on the business for decisions to add, change, or close output results or capital utilized as performance solutions

R-pM organizes information capital for professional support and development

Information capital requires specific capabilities to develop and maintain professionally. All information capital is categorized as business data, human knowledge, facility records, and management intelligence for professional maintenance of information and development of information solutions to produce business and management results [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...]

Existing business processes and systems can by improved significantly

Over the past 15 years corporations and other enterprises have implemented business processes and packaged information systems, like ERP, SCM, MRP, and CRM. These processes and systems provided general improvement, but usually still include extra costs and inefficiencies. Business processes and systems are laid over the actual business, rather than being utilized as a part of the business. Many corporations want to improve their process and system utilization, but lack a fundamentally-sound method.

Use R-pM to define processes and systems as a result value-quality chain

Result-performance Management (R-pM) provides the method by identifying and managing the actual business that lies hidden under the processes and systems. The business is defined by the economic output results produced and the capital, such as business processes and systems, utilized as specific performance solutions to produce specific results. R-pM redefines processes and systems as performance solutions that are utilized in result value-quality chains. R-pM minimizes the performance solutions utilized and maximizes the result produced at each link in the chain, so the corporation can manage value and quality across existing processes and systems.

Process and system performance is improved result by result across the result chain

R-pM makes business processes and systems a part of the actual business, instead of structures laid over the business. Business process and information system processing utilized to produce each result in the result chain is analyzed to integrate the process, eliminate waste, and produce a high value-quality result. Doing this, result by result, defines the actual business and maximizes the benefits from existing processes and systems [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...]