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...]

The many development project management methods cannot plan and develop specific project benefits, capture development costs for specific performance solutions, nor measure development costs against actual result value-added to find the return on investment.

Rule No. 7 of the 10 rules of 21st century management is Manage Investments to gain a planned result value return. The enterprise cannot manage benefits unless the specific results to be produced by the developed capital are organized and managed. The enterprise cannot manage costs to know return on investment, unless the specific performance solutions being developed are defined and managed.

R-pM uses unique bottom-up Result-performance Development to develop both the costs and benefits of development, so that they can be tracked into operation to provide the planned and managed return on investment.

R-pM provides a business structure for capital development project results produced and performance solutions utilized for effective project management and to capture of costs of new solutions developed as project results.

Do not attempt any capital development project without studying and understanding the benefits of R-pM. [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...]

When your enterprise reorganized, re-engineered business processes, implemented information systems, conducted training programs, etc was there an itemized list of benefits that substantiated the return on investment or were there estimates, projections, or expectation of benefits? Did managers have specific goals to measure the benefits?

20th century business change is not managed directly, because the business is not organized and managed. Therefore, the enterprise cannot itemize and manage directly the benefits of capital development and business change. The business must be organized through R-pM for 21st century capital development and business change management [more...]