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Why you cannot manage your business

January 24th, 2008

You cannot manage your business, because your business is not organized

20th century management does not organize the actual business enterprise. Instead, an enterprise organization structure is laid over the business. The organization structure is the fatal error of 20th century management. Once an organization structure is laid over the business, the business can never be managed.

Since your actual business has never been defined or organized, you cannot manage your business. You must manage artificial entities described in separate management structures laid over your business. You plan in corporate planning and budget structures, direct operations in business process and information system structures, administer through administration structures, control through an account structure, and report through performance management and reporting structures.

You can manage your business directly with Result-performance Management (R-pM)

Result-performance Management (R-pM) replaces 20th century management structures with one 21st century business structure to integrate business organization and management. All business organization, planning, directing, control, and reporting is against one business structure. Your business management and decisions involve the specific performance solutions used to produce specific business results. You manage result value, performance costs, result value-added, capital worth, and other attributes of the actual business that you have never managed in 20th century management [more...]

Manage Result Quality, not Performance Quality

November 12th, 2007

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...]

Getting Management Involved in Business Change

March 5th, 2007

Management rarely fills the proper role in conventional business change. The change is up to consultants and the administrative department. Management will often resist using new enterprise structures and continue to manage the business in his own way. This is possible, because conventional business change is not change to the business, but change to enterprise structures overlaid on the business.

Result-performance Management is the final business change to organize the business, so that all future business change is part of the enterprise routine. Enterprise management must take the lead and participate in the change to R-pM, since the fundamental performance utilized and results produced by the business are being organized and managed. R-pM becomes the daily routine of managers at all levels and all overlaid enterprise management structures are removed. R-pM simplifies the business to six consistently defined information entities to remove information complexity and enable 21st century management.
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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...]