Business owners and investors are the big losers from the financial crisis

Corporate management may have lost out on some big bonuses and property owners may have to wait for the worth of their properties to recover. But, the business owners and shareholders have lost on their investments due to the continuing failures of obsolete 20^th century management. They have invested in corporations and institutions that are unable to manage their business in the costs and planned worth of investments, the cost and effectiveness of specific capital solutions utilized in performance, the value and quality of results produced from performance, and the historic return and future solution worth from the value added to results. These failures cause the continuing cycle of corporate management problems.

Business owners and investors face growing risks from poor management

Corporate executives are burdened by lifetimes of misleading management teachings and experience and have no real incentive to change. The incentive and responsibility for change lies with the business owners, shareholders, and board representatives, who must demand change to 21^st Century Management with R-pM. The risk of no change is twofold 1) in continued poor corporate management and another cycle of problems, and 2) the significant advantages to competitors now organizing their businesses with R-pM.

R-pM gives enormous competitive advantage for minimal investment and risk

R-pM is mainly a change in thinking, which requires time to take hold. The existing business is gradually redefined into result value-quality chains and one integrated business structure. Obsolete structures laid over the business and unsolvable 20^th century management problems are gradually abolished.

As the enterprise learns R-pM, implementation accelerates and the competitive advantage of R-pM increases until the complete business is organized for 21^st Century Management.

Business owners and investors must lead the drive to use R-pM

Business owner and investors gain the most by being among the first to use R-pM, and lose the most to competitors using R-pM. They must ensure that their enterprise is not burdened by unsolvable problems and high cost overlaid structures, while competitors use R-pM to take away markets and profit [more...]

The ongoing credit crunch and growing financial crisis show the failures of 20^th century management used today

20^th century management lays organization and management structures over the business to manage the enterprise arbitrarily, rather than managing the business. 20^th century management does not manage important result metrics like result value, result volume, result quality, result value-added, and result risk; important performance indicators like performance costs, capital utilization, performance effectiveness, and performance uncertainty; or important capital measures like investment costs, capacity, qualifications, reliability, investment return, and solution worth.

The problems being experienced today invariably point to the lack of information and management of return on capital investments, planned and current capital solution worth, capital amortization in performance costs as solution worth declines, new product result value, planned future value-added from product results, and other information needs that are blocked by 20^th century management methods.

The only solution to the current problems and to prevent any enterprise from experiencing the same problems is Result-performance Management (R-pM)

Now is the time to wake up to the problems of obsolete 20^th century management. 20^th century management used today is a time bomb for all business enterprises in the world. The enterprise either will experience similar problems and losses due to the inadequacy of 20^th century management methods or will lose out to competitors who are now abandoning 20^th century management and organizing their business with R-pM for 21^st Century Management. R-pM is the only way to clear away structures laid over your business, and organize your actual business as one business structure for complete, consistent, and accurate 21^st Century Management. [more...]

Business change is a mystery because the business is not managed

Business change is a mystery in 20^th century management today with “intangible assets”, “unknown costs”, unmanaged value, and “ad-hoc projects”. In order to manage change to the business, the enterprise must first organize and manage the business to manage all capital solutions utilized in performance to produce specific results.

"Business change" does not change the business, but changes structures laid over the business

20^th century "business change" changes organization, business process, information system, account, and performance management structures laid over the business. The actual business lies buried under the structures and changes continually with each result or capital solution change. "Business change" is periodic to align overlaid structures with the business and to lay new structures over the business.

R-pM directly changes an organized business as part of the daily routine

Result-performance Management (R-pM) organizes the business to take the mystery out of business change. R-pM manages the results and capital solutions that change day to day to continually reorganize the business. Business change projects use R-pM to implement specific new capital solutions to add value to specific results, provide effective project management, set operational responsibilities for results against goals and solution performance against expectations, measure the return on change investments, manage costs arising from change, manage solution and business worth, and enable beneficial business change management consulting services. [more...]

It is impossible to manage capital development properly today with 20^th century management

20^th century management used today does not provide a framework for proper capital development. Capital development develops capital as specific tangible and intangible performance solutions that must be utilized by the business. Capital development incurs the costs of development. But capital is not defined and managed as a set of performance solutions available to the business. Developed capital is utilized in business performance to produce output results of value. Result development provides the benefits of development and the value-added that provides the return on investment. But results are not defined and managed as a set to be produced by the business. Therefore, 20^th century management manages capital development to develop certain known capital as an exercise separate from the business.

Result-performance Management (R-pM) organizes the business to enable result-performance development

Result-performance Management organizes the business in results that must be produced for business success, capital that must be invested in the business to produce results, and performance in the utilization of specific capital as performance solutions to produce specific results. Once the business is managed, it is straight forward to identify new results required to improve and expand the business. Once the business is managed, it is also straight forward to identify the tangible and intangible capital needed to produce the results. New result development and new performance solution development is planned and managed as part of 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...]

Enterprises continue to waste funds on dead-end 20^th century management investments

20^th century management investments have created the maze of organization and management structures laid over the business that cause today’s unsolvable problems with alignment, change management, unknown costs and value, unknown capital worth and investment returns, business and information complexity, business collaboration, and on and on. New 20^th century management investments in reorganizations, enterprise information systems, process and performance improvements, IT architectures, etc are dead-ends that add to unsolvable problems.

R-pM requires a small alternative investment to organize the business for 21^st Century Management

By comparison, R-pM is a small investment to organize and utilize existing capital to produce results along result value-quality chains and across the business. The big change with R-pM is the change in thinking to understand and manage the actual business. R-pM normally can utilize existing information systems to manage the business and can redefine existing processes and systems as solutions to produce specific results. Once the business is organized all tangible and intangible capital invested in the business is organized as performance solutions of worth to be utilized in performance to incur costs and produce value in results. All structures laid over the business are replaced by R-pM to focus on actual business data collection and provision of information and other performance solutions needed for actual business management.

All future investments are limited to specific performance solutions needed to produce value in specific results

R-pM provides the only way to plan and develop capital for a planned and measured return on investment. Capital is managed to minimize investments to those essential to the actual business. Future investments are in performance solutions needed to produce specific new or improved results. The development costs are captured and amortized against results produced and return on investment in added result value-added is captured against the performance solution. This is guided by The R-pM Toolkit, your 21^st Century Management Manual [more...]

All capital development is result-capital development to develop solutions to produce results

All capital development develops capital as performance solutions to be utilized to create additional value in output results produced by the business. The additional value of output results provides the return on the capital development investment. If the performance solutions utilized and the results produced by the business are not managed, capital development cannot be managed properly and the return on investment cannot be measured. Therefore, capital development must be planned and managed as result-capital development.

20^th century management does not organize or manage results or performance

20^th century management does not manage the business. Specific results produced and performance solutions utilized are not defined and managed as sets. Added result value cannot be managed to provide benefits and specific performance solutions developed cannot be managed to know costs. Capital development is a separate exercise to develop performance or tangible assets to produce some estimated return on investment.

R-pM manages result-capital development as part of the business for measured and managed return

The answer for all future result-capital development is Result-performance Management (R-pM) to organize the business for 21^st Century Management. R-pM manages performance solutions utilized and the business results produced to plan and manage the value added to results. R-pM manages new performance solution development to produce new or improved results. R-pM manages each result-capital development project as part of the business with its own project business structure. R-pM manages implemented solution development and operating costs and the additional value-added to results to measure the actual return on investments. R-pM is the essential approach for any new result-capital development. It is all described in The R-pM Toolkit, your 21^st Century Management Manual [more...]

20^th century management cannot manage investments, development, or returns

20^th century management develops capital as a tangible asset or project outcome. The specific capital items to be developed and the specific business improvements to be made are not defined or managed. So, it is impossible to plan and manage capital development to provide a measured return on investment.

Rule No. 7 of 21^st Century Management: Manage investments to gain a planned result value return

The investment management problem is solved by rule no 7 of 21^st Century Management. All capital investments must manage the results to be produced as well as the capital needed to produce the results. The investment results and capital to be developed in specific performance solutions must be planned to justify the investment, managed in the development project results to implement solutions to create value, and measured in operations know actual added result value-added for the return on investment.

R-pM plans and develops both the results and performance solutions needed in Result-performance Development.

R-pM replaces capital development with Result-performance Development to actually plan and manage investments and development for a measured return on investment [more...]

20^th century management lays strategic structures over the business

20^th century management contrives structures to define the corporate strategy in corporate plans, maps, investment plans, and other structures laid over the business. The strategic business is not planned. The overlaid structures do not relate to the actual business and may conflict with structures used to manage the corporation. Strategic value numbers are pulled out of the air. There is no good method to govern the transition from the current corporate status to the strategic objective. Corporate governance cannot govern the actual business, so it governs through compliance with arbitrary rules and regulations.

Rule No. 6 for 21^st Century Management states: Plan and govern the transition from today’s value to approved strategic value.

R-pM defines the current business to know result value, capital worth, performance costs, and investment returns to provide the foundation for planning the strategic business. The strategic business structure shows results to be produced and capital to be utilized at a 2-5 year strategic horizon. Strategic result value is substantiated in specific period by period result goals requiring growth in value of current results and the value of new results enabled by implementation of capital of worth.

R-pM provides information on the current to strategic business for management and good governance

R-pM enables good management and governance of the transition to the strategic business by reporting financial and non-financial status against result goals and performance expectations, updating strategic estimates, providing result evaluations and performance assessments, and providing management information on anticipated opportunities, threats, and developments. Good corporate governance ensures responsible business management and planned progress to the approved strategic business [more...]

20^th century enterprises do not manage the business, so capital development cannot be managed as part of the business. Capital development develops new capital as performance solutions to create value in new or improved results. 20^th century enterprises do not manage their capital and do not manage their results. So, capital development is managed as an isolated undertaking. This makes it difficult to manage the relationship between the project and the business, gain business user acceptance of new solutions implemented, and plan and measure return on the capital development investment.

Result-performance Management (R-pM) is a new project management breakthrough. R-pM organizes the operational results produced and performance solutions utilized as one Enterprise Business Structure. This provides the framework to describe and plan the new result value to be created, and to describe and plan the new capital in performance solutions needed to create new result value.

The new enterprise results and performance solutions to be developed are set up as Project Results in the Project Business Structure. Internal and external capital assigned to the project is managed as specific Project Performance Solutions to produce specific Project Results. The new enterprise results and performance solutions are developed, documented, and implemented as specific project results.

The project is closed out as project results are put into operation as new enterprise results and enterprise performance solutions in the developed Enterprise Business Structure. The new solutions are utilized to produce new result value over the payback period to provide the return on the capital investment [more...]