Archive for the 'Performance Measurement' Category
Manage all information capital as part of the business
May 19th, 2008Enterprises 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 mix performance and results of the enterprise, not the business
April 28th, 2008Key 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...]
The Professional Golfer teaches us Result-performance Management
April 10th, 2008Few 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 21st 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...]
You use R-pM now to manage your Personal Business
March 31st, 2008R-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 21st Century Management [more...]
Business “Results” and “Performance” are not clearly defined today
March 20th, 200820th century business definitions are confusing and imprecise
What is your definition of an "enterprise" or the "business"? How do you or your performance management methods define "performance"? How do you define "result"?
Precise definitions are needed to organize and manage the business of the enterprise properly. Current definitions of performance mix performance activity together with output results and report and manage both as "performance". Current usage of the term "result" is as economic outputs that leave the enterprise.
The definition of the business conflicts with the definition of performance and results
Yet, the generally-accepted definition of the enterprise business as "the activity of providing goods and services" indicates that the enterprise business has two components:
- The performance component in business activity
- The result component in the goods, and services provided
20th century management is unable to organize and manage the two components of the business because performance and results are mixed together and managed as performance.
R-pM precisely defines business, performance, and results for 21st Century Management
Properly defining "performance" and "result" and then separating results from performance are the first steps to organizing the enterprise business for 21st Century Management [more...]
Rule No. 8: Manage human personnel, capability, and knowledge capital to increase human worth
March 3rd, 200820th century management administers human resources as employees
20th century management administers human resources and is unable to manage human capital as capital utilized by the business. The business is not organized to produce specific economic output results and human capital is not organized as capital, within the full set of capital utilized to produce the results. Human capital management addresses general human resource development, rather than specific development to add value to the business and increase human capital worth.
Rule No. 8 of 21st Century Management: Manage human personnel, capability, and knowledge capital to increase human worth
Human capital must be managed as readiness capital to keep personnel ready to produce results, production capital to provide the capabilities to produce specific results, and information capital to provide the knowledge required to produce high value-quality results. The objective of human capital management must be to increase human capital worth by producing results of higher value to the business.
R-pM organizes the business to utilize human capital to produce business results
Result-performance Management (R-pM) organizes the business to utilize human and other capital in performance to produce high value and high quality results. Human capital is maintained to be ready to produce results. Human capital is developed as capability solutions to utilize specific business processes to produce specific results. Human personnel and capabilities also are supported with the knowledge needed to produce specific results [more...]
The missing business management information
February 14th, 200820th century management information is inaccurate and incomplete
20th century management used today can report enormous amounts of information against organization and management structures laid over the business. Large information systems process information on the various organization, planning, process, system, account, project, administration, performance, and reporting structures. Additional systems try to make sense of the information for management use.
But, since the actual business is not organized or managed, no information is reported on details of the actual business. Business data in value created, costs incurred, return on capital investments, business value-added, capital worth, and enterprise business worth remain unknown.
R-pM reports accurate and complete information on the actual business
R-pM organizes one business structure for one set of accurate, complete, and consistent management information on the actual business for organization, planning, direction, control, and reporting. Existing processes and systems are rationalized for use in the actual business. R-pM reports the actual business across the breath of the business in business results produced and to the depth of the business in the capital utilized in performance solutions to produce results.
R-pM reports result value-added, quality determinates, and capital worth
R-pM reports business management information not available today in result value, strategic result value creation, result value-added, performance costs, capital development costs and value-added and returns, capital worth, and many other performance indicators and result metrics that are not known today. R-pM provides complete and accurate information on the actual business and phases out the inaccurate, inconsistent, and incomplete management information provided today. R-pM enables management to use common sense to manage the actual business rather than trying to follow arbitrary rules imposed by structures laid over the business [more...]
Rule No. 5: Operate to optimize operations, result value-added, and the profit result
February 11th, 200820th century management cannot optimize operations in the performance solutions that produce output results
The 20th century business is not organized. Therefore, operations in the capital utilized as specific performance solutions to produce specific output results cannot be managed. If operations are not managed performance cannot be optimized to produce high-quality results and the result value-added that contributes to the profit result.
Rule No. 5 for 21st Century Management "Operate to optimize operations, result value-added, and the profit result"
The ten rules for 21st Century Management help each enterprise to understand how well positioned they are to compete with the coming 21st century enterprise. Rule No 5: "Operate to optimize operations, result value-added, and the profit result" establishes an enterprise routine of managing performance solutions, managing the results produced, and managing the return on investment and contribution to profits over time.
R-pM manages cost-effective performance to produce value-quality results and profits
Performance is managed to capture the cost of development or improvement, meet expectations in performance, integrate with other solutions of the same class for the same result, and manage the cost, effectiveness, capacity, and uncertainty of each solution.
Results are managed to utilize integrated solutions to reach result goals, to create result value greater than total performance costs for result value-added, to produce a high-quality result, to produce the expected volume of results on time, and manage the risk of a poor result.
Results are managed against performance as the routine, High-value results are periodically optimized by managing the volume, value, quality, goals, and risk of results by optimizing the capacity, cost, effectiveness, expectations, and uncertainty of the performance solutions that produce the result. Optimizing ensures that performance is cost-effective to produce high value-quality results to return investments in performance solutions, and provide the result value-added that contributes to the profit result [more...]
Rule no. 2: Generate profits from a chain of managed value and quality
January 21st, 2008Business processes and information systems laid over the business prevent management of costs, value, and quality
20th 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 21st 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...]
How to maximize Benefits from existing Processes and Systems
January 10th, 2008Existing 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...]


