Logo: Feedburner Archive for the 'Best Practices' Category

Stop making dead-end 20th century management investments

May 15th, 2008

Enterprises continue to waste funds on dead-end 20th century management investments

20th century management investments have created the maze of organization and management structures laid over the business that cause today’s unsolvable problems with alignment, change management, unknown costs and value, unknown capital worth and investment returns, business and information complexity, business collaboration, and on and on. New 20th century management investments in reorganizations, enterprise information systems, process and performance improvements, IT architectures, etc are dead-ends that add to unsolvable problems.

R-pM requires a small alternative investment to organize the business for 21st Century Management

By comparison, R-pM is a small investment to organize and utilize existing capital to produce results along result value-quality chains and across the business. The big change with R-pM is the change in thinking to understand and manage the actual business. R-pM normally can utilize existing information systems to manage the business and can redefine existing processes and systems as solutions to produce specific results. Once the business is organized all tangible and intangible capital invested in the business is organized as performance solutions of worth to be utilized in performance to incur costs and produce value in results. All structures laid over the business are replaced by R-pM to focus on actual business data collection and provision of information and other performance solutions needed for actual business management.

All future investments are limited to specific performance solutions needed to produce value in specific results

R-pM provides the only way to plan and develop capital for a planned and measured return on investment. Capital is managed to minimize investments to those essential to the actual business. Future investments are in performance solutions needed to produce specific new or improved results. The development costs are captured and amortized against results produced and return on investment in added result value-added is captured against the performance solution. This is guided by The R-pM Toolkit, your 21st Century Management Manual [more...]

Abolish excessive Information Technology overheads

May 12th, 2008

Information Technology is a high-cost corporate overhead today

The typical corporation spends enormous sums on Information Technology and has many complex enterprise information systems, but still does not have an information system to manage the actual business, The corporation has much capital administered as IT instead of being managed for corporate benefit, and has much information administered as technology instead of being managed to provide information solutions for business and management results.

R-pM reduces enterprise information systems to essential business processing and management

Result-performance Management (R-pM) uses IT to manage the actual business as one simplified Result-performance Management System. R-pM manages system processing routines or simplified application programs as performance solutions integrated with the business process, where needed, to produce a specific result. R-pM eliminates other overlaid 20th century information systems, duplicated and irrelevant information, and the need for a large IT overhead. R-pM organizes all capital, including IT, for capital management to produce results.

R-pM manages data, knowledge, records, and intelligence as information capital

R-pM manages all information as capital to produce data, knowledge, record, and intelligence solutions needed to produce specific business results. All information in the enterprise references a business data entity as part of one integrated Business Information Base. Information technology capital, support, and capabilities are integrated as part of normal 21st century business capital management, replacing the IT organization and eliminating excessive IT costs [more...]

There are only two alternatives to manage the business enterprise

May 5th, 2008

The business enterprise can be managed or the enterprise business can be managed

20th century management utilized by enterprises today organizes and manages the business enterprise by laying organization and management structures over the business. The enterprise business is not organized and business management information is not provided for business management.

The alternative is R-pM to organize the actual enterprise business for 21st Century Management. One simplified business structure is used for current and strategic organization and management. Actual business data is captured and actual business information is used for management.

20th century management is a dead-end that can never solve existing or future management problems

The structures laid over the business conflict with the business creating unsolvable problems with reorganizations, change management, business alignment, unknown costs and value, unknown worth and investment returns, and on and on. The problems are compounded by the expanding use of information technology to manage overlaid structures rather than the business. New IT architectures and resources are added, but can never solve the problems and just add unsolvable problems.

The only future alternative is R-pM to organize the business for 21st Century Management

R-pM organizes and manages the actual current and strategic business. One set of business data entities are managed and reported. All information in the business is referenced to the business in one Business Information Base. Current systems are organized as business solutions, as appropriate, and unneeded systems and structures are abolished. The business is organized to leverage IT for direct business management, flexible change, and rapid growth. The business is no longer burdened by unsolvable problems and customer value and quality is managed directly [more...]

Manage Capital Development as Result-capital Development to Achieve Planned Returns

March 27th, 2008

All capital development is result-capital development to develop solutions to produce results

All capital development develops capital as performance solutions to be utilized to create additional value in output results produced by the business. The additional value of output results provides the return on the capital development investment. If the performance solutions utilized and the results produced by the business are not managed, capital development cannot be managed properly and the return on investment cannot be measured. Therefore, capital development must be planned and managed as result-capital development.

20th century management does not organize or manage results or performance

20th century management does not manage the business. Specific results produced and performance solutions utilized are not defined and managed as sets. Added result value cannot be managed to provide benefits and specific performance solutions developed cannot be managed to know costs. Capital development is a separate exercise to develop performance or tangible assets to produce some estimated return on investment.

R-pM manages result-capital development as part of the business for measured and managed return

The answer for all future result-capital development is Result-performance Management (R-pM) to organize the business for 21st Century Management. R-pM manages performance solutions utilized and the business results produced to plan and manage the value added to results. R-pM manages new performance solution development to produce new or improved results. R-pM manages each result-capital development project as part of the business with its own project business structure. R-pM manages implemented solution development and operating costs and the additional value-added to results to measure the actual return on investments. R-pM is the essential approach for any new result-capital development. It is all described in The R-pM Toolkit, your 21st Century Management Manual [more...]

Ten Rules for 21st Century Management

March 24th, 2008

How to ensure you gain the benefits of 21st Century Management

20th century management causes many unsolvable problem like unknown business costs, value, worth, and investment returns that are easily left behind by using Result-performance Management (R-pM) for 21st Century Management. Any responsibly-managed business must investigate totally new R-pM to organize the business into one business structure for integrated 21st Century Management and significant competitive advantage.

Follow the ten rules for 21st Century Management

Ten rules are provided as a guide to organize and manage results and performance as one integrated business structure to ensure effective 21st Century Management. Each rule provides new approaches and advantages never possible before with 20th century management. These ten rules are supported by the R-pm Toolkit. Become an R-pM Community member and download the R-pM Toolkit at result-performance-management.com and then organize your business to follow the ten rules for 21st Century Managemen [more...]

Broaden financial accounting to provide professional records management

February 28th, 2008

20th century accounting does not keep complete or accurate financial records on the business

Rule No. 4 of the 10 rules of 21st century management with R-pM: Keep accurate financial and non-financial records on full business operations and development.

Today's enterprise faces many obstacles to professional record capital management because of several 20th century problems. Financial accounting is often seen as enterprise records management, but maintains a professional view of what it will record, and acts as an administrative function rather than professional records management. Financial accounting records some financial data against a chart of accounts laid over the business. Financial accounting does not keep complete and accurate financial and non-financial records of the actual business. Most other enterprise records are not maintained as enterprise capital to be available to provide needed performance solutions. Records management is a growing problem in today's enterprise requiring a comprehensive professional records management solution.

R-pM enables complete and accurate financial and non-financial records against the actual business

R-pM maintains all business management information against one business structure to integrate organization, planning, directing, control, and reporting. Structures laid over the business are removed. Management information includes result value, capital worth, performance costs, and result investment returns that are "unknown" today. Tangible information capital is maintained as facility records to record all financial and non-financial business transactions and activity in computer records, documents, images, archives, etc. Accounting is one sub-set of professional records management.

R-pm provides an opportunity for accounting to broaden to professional records management

R-pM provides a unique opportunity for the accounting profession to expand to professional records management. R-pm eliminates unsolvable accounting and financial management problems. Professional facility records management maintains financial and non-financial facility records of the actual business, and provides information capital solutions from records, where needed to produce results at all levels of business management [more...]

The missing business management information

February 14th, 2008

20th 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. 4: Keep financial and non-financial records on full business operations and development

February 4th, 2008

20th century management does not maintain accurate financial and non-financial records on the actual business

20th century management used today does not keep records on the capital items utilized as performance solutions by the business as a set, and does not keep records on the output results produced by the business as a set. Thus, the business cannot be organized or managed and there is no set of complete and accurate records on the business to provide actual business management information. Instead, information is maintained against contrived structures laid over the business, such as organization, planning, budget and account, and reporting structures.

Accounting maintains a sub-set of enterprise records in financial and statistical accounts against a contrived chart of accounts. Financial records on the full cycle of performance costs and result value creation are not maintained. Many non-financial records that should be maintained are not considered as accounting responsibility and are never recorded and managed as information capital.

The records management problem is getting serious with the explosion in email, file transfers, and other records created, entering, and leaving the enterprise. The enterprise has no way to reference records to the actual business, to prevent records being lost due to information complexity, and to properly manage records as information capital.

Rule No. 4 for 21st Century Management: Keep financial and non-financial records on full business operations and development

Management needs complete and accurate information on the actual business for good corporate governance and business management. This is not possible with 20th century management, which does not organize or manage the actual business. 21st Century Management requires accurate financial and non-financial records for the full cycle of business operations, along the chain of results produced by the business, and across the operation-development continuum.

R-pM maintains accurate financial and non-financial records on the actual business to provide accurate and complete management information

Result-performance Management (R-pM) organizes the actual business so that one set of accurate and complete facility records can be maintained on the business and accurate reports on the full business cycle of cost-effective performance producing value-quality results, the results from supplier-provided input results and through enterprise business results to final customer results, and the investment costs in new performance solutions and the return in new result value can be provided. R-pM broadens traditional accounting to professional records management [more...]

Integrate business organization and management through one business structure

January 31st, 2008

20th century management lays many organization and management structures over the business

20th century management used today starts with an organization structure that is laid over the business, instead of organizing the business. This prevents integrated business organization and management. Additional structures are laid over the business for planning, directing, control, and reporting. Separate operation structures are used for the various functions and activities of the business. Different structures are used for investment planning and capital development. The proliferation of structures creates business and information complexity. Rigid overlaid structures conflict with the actual business causing the wide range of unsolvable 20th century management problems.

21st Century Management integrates business organization, management, operations, and development

R-pM organizes the actual business for 21st Century Management. One business structure defines the current business and another defines the desired strategic business, so that management organization, planning, directing, control, and reporting are focused on the transition from the current to strategic business structure. Business operations are organized by result groups within the business structure to produce specific chains of results. Capital development is organized and managed through sub-sets of the structure for results and performance solutions to be developed. Projects are managed through a project business structure that organizes new results and solutions being developed and the capital assigned to the project as specific performance solutions. R-pM uses the actual business as one structure for all organization and management needs [more...]

Rule no. 2: Generate profits from a chain of managed value and quality

January 21st, 2008

Business 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...]

Organize with R-pM for 21st Century Management

R-pM dot net logo