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...]

Today's business processes emphasize managing performance and "performance quality". But, people have difficulty defining "performance quality" and in identifying and correcting poor performance. If the business process output is not up to standard, it is difficult to identify what happened within the process and to prevent the problem from recurring.

"Quality" is not an attribute of performance. "Quality" is an attribute of the output result produced by performance effectiveness. We can see and determine the quality of the output result, where we cannot see or determine the quality of performance, if it is not witnessed. In order to manage quality we must manage each output result produced in the chain of results leading to the final process result. In order to manage the effectiveness of performance, we must manage the human and other performance solutions utilized to produce the result. A defective result in the chain it is caused by either a defective input result or ineffective performance. The chain is traced back to identify the defective result. Since performance solutions are managed, the ineffective solution can be corrected or replaced. But, this can only be done by managing result chains with Result-performance Management. [more...]

20^th century management lays a monolithic business process over the business. Results are mixed with performance and defined as "performance" preventing actual business management. The objective is to manage "performance quality", but costs, value, effectiveness, and quality are hidden in the process.

Rule No. 2 of 21^st Century Management is to "Generate profits from a chain of managed value and quality". Result-performance Management (R-pM) replaces business processes with result value-quality chains to organize and manage the actual business to manage performance capacity to produce a result volume, performance effectiveness producing result quality, and performance costs creating result value. Result value-added is the result value less the total result cost. The actual business is managed to generate profits from a chain of managed result value-added. Contrived overlaid business processes are abolished. [more...]

20^th century management provides many methods of cost accounting. None of the methods has been able to capture all costs and charge all costs to the proper entity to absorb costs. Known costs are captured from separate entities, such as employee, fixed asset, cash, and supplies. Costs are charged to entities like center, activity, station, etc, that show where the cost was incurred, but were not produced by the cost.

Management needs one entity that contains all the costs incurred by the business and one entity that was produced by the cost to absorb the cost properly. Result-performance Management (R-pM) provides the one entity "performance solution" that produces all costs. R-pM provides the one entity "result" that was produced by the cost to create value, and can properly absorb costs to know result value-added. Result-performance costing is the only method to know all performance costs, and to charge costs properly to the value of the specific result produced. [more...]

The 20^th Century Corporation has a problem defining value and managing value creation. Value is not organized and managed within the corporation as part of the routine. Methods and formulas are contrived to calculate numbers called "value". Business collaboration for shared value remains an elusive goal.

Result-performance Management (R-pM) organizes the business as results, the economic outputs that contain value, and as performance solutions, the capital consumed to incur the cost of producing the value. Value is an attribute of each result and is determined and utilized as a routine management metric.

R-pM is the only to way to redefine monolithic business processes as manageable result value-quality chains. R-pM enables value-quality chains, value and value-added management, strategic value creation, business collaboration for shared value, and integration with supplier and customer value-quality chains. [more...]