Logo: Feedburner Archive for the 'Process Management' Category

Performance quality does not exist; quality is in the result produced

April 20th, 2007

Many enterprises have invested in quality management with TQM, ISO 9000, BPR, etc. But, how many are satisfied that they have the solution needed to manage quality across the enterprise? Many enterprises put a large effort into managing performance quality in their business processes.

Result-performance Management provides the means to know and manage the quality produced by everyone in the enterprise. The only way to manage enterprise quality is to manage the quality of results produced across the enterprise. Quality is an attribute of the result, not performance. Each performance solution utilized must be effective to produce a quality result. The quality in a business process cannot be managed by managing "performance quality". The business process must be replaced by a result quality chain to manage the effectiveness of performance producing each result and the quality of each result along the chain [more...]

Business capital: the capital that gets things done

March 16th, 2007

What is business capital? Who is responsible for business capital? If these are unanswered question, the enterprise is not organized for 21st century management. Business capital is designed and utilized in performance solutions to produce a specific result, and cannot be used for results in general. Business capital includes three categories: business organization to plan and be ready to produce a result, business process to produce the actual result, and business data to access and update information about the result. With R-pM, organization, process, and data are defined precisely to be capital related to a specific result or a chain of results.

Business capital management is fundamental to manage the business. Other separately-managed human, facility, and management capital must be integrated with business capital to produce the result. This is not managed in conventional enterprises with significant unseen consequences. To see the consequences, business as usual must be compared with an unimagined organized and optimized business [more...]

Results: the Internal Economic Output from Enterprise Performance

February 9th, 2007

Results have historically been defined as a component of performance, or as economic outputs that reside outside of the enterprise. These definitions prevent the enterprise from managing the result as internal economic output.

Results must be separated from performance and defined as the internal economic outputs produced by enterprise performance. Results then are the basic building blocks of the enterprise, since all that the enterprise does must be focused on producing specific results. Result-performance Management (R-pM) defines and organizes the specific results produced by every human capital solution across the enterprise. This enables the enterprise to manage quality and value and the other attributes of each result [more...]

Charge Performance Costs to Results produced to manage Value-added

February 8th, 2007

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...]

Years of Management Problems because of our flawed Definition of Performance

January 31st, 2007

The word performance used in business management is defined to include not only the activity of performance, but also the results produced in goods and services and other economic outputs. This definition prevents the performance management structures, key performance indicators, business processes and other structures, we overlay on the business, from managing the results of performance separate from the activity of performance.

The definition conflicts with the definition of business in an enterprise as "the activity of providing goods and services", so we overlay organization and other structures on the business, rather than organizing and managing the business [more...]