The current financial crisis shows the need for actual best business management practices

After every corporate financial, management, or governance crisis or scandal the call arises for best business management practices. However, nobody knows what real best business management practices are, since no one has any experience in actually organizing and managing a business. The practices installed are never actual best business management practices, but are a collections of rules and regulations or methods to better manage structures that hide the business and prevent actual business management.

20^th century best practices are the best of bad business practices

20^th century best business practices are a collection of organization, process, system, and administration structures laid over the business for a particular purpose, which have proven effective elsewhere. All 20^th century best business practices are bad business practices, because they add to enterprise overheads and costs, and do not help the enterprise to operate or manage the actual business.

R-pM provides the business definitions and structure for good best practices

Result-performance Management (R-pM) instills best practices across the business for 21^st Century Management. R-pM manages the business by managing the capacity, investment, qualifications, reliability, return, and worth of capital solutions; utilization, cost, effectiveness, uncertainty, and value-added of each capital solution in guided performance; and the volume, total cost, quality, risk, value, and value-added of each result produced. The set of solutions deployed and utilized to produce a result is defined as a capital module. The capital module that produces the best value-quality result can be defined as a best practice. All best practices are then built into the business structure to operate and manage the actual business.

The only way to prevent future corporate financial, management, and governance problems is to use R-pM to organize and manage the businesses. Governments that want to improve local business competitiveness significantly and prevent future crises, must investigate R-pM. [more...]

There is no framework today to guide the development, implementation, and utilization of packaged solutions

Packaged solution providers have never had a consistent framework to design solutions that any enterprise business can employ. This has required that packaged solutions be very problem, function, or industry specific.

The only valid framework for packaged business and management solutions is the business itself

The framework needed to develop consistently-defined capital solutions exists, but it has never been used. That framework is the business.

R-pM organizes the three components that define the enterprise business in results required, capital solutions invested in the business, and the performance of specific solutions that produce specific results. Packaged solutions fit into the business organization and are utilized as part of the business to incur costs and create value in specific results.

R-pM provides consistent support for solution developers, implementation consultants, and solution users

The R-pM Toolkit provides the needed guidance for both the packaged solution developer and the solution user to ensure that solutions seamlessly fit into the enterprise business structure and can be utilized to produce the intended results.The Toolkit includes 21^st Century Management conventions, definitions, and standards that are followed so that any business reduce costs and improve the value and quality of results by using common packaged solutions and services. [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...]

Redefining BPM: Why Results and Performance Must Be Separated

BPM Business Performance Management magazine is the authority on new developments in business management. The lead article in the June 2008 issue of BPM magazine explains the new breakthrough to R-pM to organize the actual business for 21^st century management to replace all 20^th century management structures laid over the business like business performance management and business processes. R-pM is the only way to organizes and manage the actual business to clear away the 20^th century organization structure and need to lay 20^th century management structures over the business.

Learn more about R-pM in BPM Magazine

Learn more by reading the article by Harry Greene, the developer of R-pM, "Redefining BPM: Why Results and Performance Must Be Separated". The article can be reviewed and printed at the BPM management magazine website bpmmag.net [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 today have many problems with information management

Enterprises implement information systems to manage the enterprise, not the business. The many enterprise structures laid over the business require a massive workload in data collection and information processing, and produce a wide range of information concerning various enterprise entities, much of it conflicting and inaccurate. This produces enormous information complexity and excessive IT resources. Enterprises must make additional investments in hardware, information management systems, and IT architectures to attempt to manage the complexity. All the information gathered and reported describes the enterprise. No enterprise today captures actual business data.

R-pM organizes all information for support and utilization by the business

R-pM organizes information as capital for support and utilization. R-pM captures actual business data as a managed set to know value, all costs, capital worth, investment returns, etc. R-pM relates all information to the business for utilization to produce results and for control of business information. Enterprise information not related to the business is no longer processed or maintained. All emails, Internet searches and downloads, file transmissions, etc in or out of the business relate to a specific business data entity.

R-pM manages all information as one consistent Business Information Base

All information used by the business is referenced to one of six data sets that control common attributes and subsidiary data entities. The information is organized into one consistent, complete, and accurate Business Information Base. Information systems are reduced to direct system solutions to produce specific results. Large IT resources for enterprise information systems, data reconciliation, enterprise information management, portfolio and hardware management, and special information management systems are no longer needed [more...]

Key performance indicators measure the enterprise and not the business

Key performance indicators produced today measure the various organization, process, system, performance management, and other structures laid over the business, rather then the actual business. To measure and manage the business, the attributes of capital utilized as performance solutions, output results produced, and performance in the utilization of a performance solution to produce a result must be measured and managed.

Key performance indicators mix capital, results, and other entities together under the heading performance

Performance is defined to include both the actions executed and results accomplished. This prevents the actual business from being organized and managed. Many performance indicators measure capital, results, and other entities. Very little actual business performance is measured of managed. Most actual business performance in costs, effectiveness, problems, uncertainty, value creation, etc remains unknown.

Result-performance Management (R-pM) measures and records the actual business

R-pM organizes results and capital as performance solutions in one business structure. R-pM organizes the business by deploying specific performance solutions to produce specific results. At this point, performance records are set up to capture the performance of the specific solution to produce the specific result in capacity, expectations, and other indicators. Performance transactions record actual performance costs, effectiveness, etc producing result value, quality, etc. Performance records and performance solution and result totals are updated, as needed, for each instance of performance [more...]

Few enterprises today organize their business to use Result-performance Management

Today, there are few examples of enterprises or industries that intrinsically employ Result-performance Management (R-pM) to define the output results they must produce, have result goals they strive to exceed, relate their performance to results, develop solutions to add value to results, manage performance uncertainty to reduce result risk, utilize result value-quality chains, differentiate through performance and results, and pay based on results.

Professional golfers employ natural Result-performance Management

Professional golf is one industry that intrinsically employs Result-performance Management. Each professional golfer and those the golfer employs is an enterprise. The golfer separates results from performance, and organizes his business to utilize capital effectively in performance to produce quality results. Like any enterprise, the professional golfer's competitive differentiator is the totality of how well he develops and utilizes his performance solutions to produce value and quality in results.

Learn how to organize and manage your business from the professional golfer

Other industries can learn about organizing the business for 21^st Century Management from professional golf, to develop cost-effective performance to produce value-quality results. If you are a golfer, learn about managing your enterprise business from the way you manage your golf game [more...]

R-pM is natural and the only way to organize a business

Result-performance Management (R-pM) is the natural way you organize your personal business. You produce results in the things you accomplish. To produce results, you utilize your capital as performance solutions in your capability, tools, equipment, money, plans, instructions, etc. You manage your business through common sense. You use R-pM instinctively because R-pm is the only way to organize and manage your personal business or any other business.

Your company organizes and manages the company, rather than the business

But on your job, you no longer naturally utilize performance solutions to produce results. Your company does not organize or manage the business. The company lays contrived structures over the business to manage the company. All business schools, management books, packaged solutions, consulting advice, professional bodies, and on-the-job experience teach us to lay contrived structures over the business. You cannot manage or perform using common sense. You must follow various rules, regulations, and procedures to utilize arbitrary processes, systems, accounting, and other structures.

Use your natural method to organize your company business

Use your natural method of utilizing specific performance solutions to produce specific business results. You will see improvement in the job you do today, and understand the potential in organizing your company business for the breakthrough advantages of 21^st Century Management [more...]