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...]

Many methods and books have addressed the alignment problem, but the problem remains unsolvable

The 20^th century enterprise has contrived many methods and spent enormous sums to solve the alignment problem inherent in aligning performance with performance. Even after all this, the unsolvable alignment problem remains. In an early Article, we identified alignment as one of The Top Ten Problems with 20^th Century Management.

The alignment problem can be solved only by organizing the business to align capital utilized in performance with the result produced

The solution to the alignment problem is very simple. Follow the first rule of 21^st Century Management; organize and manage the business. Result-performance Management (R-pM) organizes the business in economic output results produced, investments in capital solutions to produce results, and the deployment, alignment, integration, and utilization of specific solutions to produce specific results. Capital solutions utilized to produce the same result are aligned. [more...]

Value has no value in 20^th century management used today

Value is an impressive word. People talk of value propositions, strategic value, value chains, value creation, and value management as if they were actually measuring and utilizing value as a day-to-day business metric. But looking further, we find that value is calculated from a contrived business overlay or formula.

20^th century enterprise organization and management prevents the utilization of value as a day-to-day business metric.

R-pM organizes the business to make value a manageable and valuable result metric

We must organize the business through Result-performance Management (R-pM) for day-to-day 21^st Century Management. Value is an attribute of output results produced by the utilization of capital in performance across the business. The value of input results from suppliers, plus each result in the business result chain, equals the value imparted to customer results in customer willingness to pay. [more...]

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...]

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...]

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...]

"Business Transformation" has never organized or transformed the business

"Business Transformation" brings shudders to many managers, who went through Business Process Re-engineering (BPR) and Enterprise Resource Planning (ERP) only to find that they spent a lot of money for different problems and limited benefits.

The problem was that "business transformation" did not transform the business. Transformation changed enterprise organization and management structures laid over the business. The enterprise business, the activity of providing goods and services, still was not organized or managed before or after the "business transformation".

The one "business transformation" is the transformation from enterprise management to actual business management

Enterprises need only one real business transformation to organize and manage the business with Result-performance Management (R-pM). Once the business is organized and managed through one business structure, there is never a need for business transformation, since the business organization changes naturally with business change. [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...]

20^th 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

20^th 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 21^st Century Management

Properly defining "performance" and "result" and then separating results from performance are the first steps to organizing the enterprise business for 21^st Century Management [more...]