Capital investments must be organized as solutions to be implemented and utilized as part of the business

Recently we discussed how business results and capital solutions must be organized together in a business structure, to organize the business as “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results”. Capital solutions are organized into a capital structure by category in the human capability needed to develop and support specific solutions and by class in the business utilization of solutions to be ready to produce results, to produce actual results, and to have the information to produce and document results.

Capital management manages capital solution acquisition, development, and support

Capital management is fundamental to acquire, develop, and support capital utilized to produce results, and performance management is fundamental to implementing and maintaining cost-effective solutions to produce value-quality results. Organized and managed capital is required to eliminate intangible assets, unknown costs, underutilized capital, business complexity, unknown capital worth, and other unsolvable problems. Organized and managed capital is required to establish value chains, develop capital for precise business needs, respond quickly to add or delete business results, optimize operations, have skills and responsibilities for capital development, measure the precise return on capital investments, and gain other benefits prevented by the unorganized and unmanaged capital used today. [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...]

Many managers are interested in R-pM, but are concerned about the authenticity of R-pM

People ask how R-pM originated. Some people are concerned about the authenticity and viability of R-pM.

20^th century management problems were encountered and the need for R-pM was conceived piece by piece over 30 years, on business organization, management improvement, and system development projects with such firms as Booz Allen and Hamilton, Multinational Management, Price Waterhouse, A.T. Kearney, and Arthur D. Little.

R-pM was originally developed as aids to capital solution development and management improvement projects

R-pM first evolved as an aid to business and information systems design and later to manage business change projects, both the project and the changes to the business as the results of the project. It became clear that the only solution to business organization and management problems was to organize and manage the business. Contrived organization and management structures laid over the business had to be eliminated.

Formal development of Result-performance Management began in 2002

After retiring from active consulting, work began in 2002, to develop and document Result-performance Management (R-pM) as the one structure to organize and manage the business. The R-pM Toolkit is now available, and continues to be developed as R-pM evolves. R-pM is now launched for use in business change applications and for use in forward-looking enterprises that want to learn their actual business, and then organize and manage the business for breakthrough cost reductions and competitive advantages. [more...]

Re-organizations are unnecessary 20th century management problems

Re-organization, one of the top 10 problems of 20^th century management, occurs because we organize people and power, and not the business. If 20^th century business organization methods organized the business, the organization would change with business change.

The organization structure is the fatal error that prevents business organization and management

The organization structure is not a management prerogative or political football. The business organization is a business capital solution that provides the foundation for 21^st century management. Once an organization structure is laid over the business, the business cannot be organized or managed.

Use R-pM to organize the business for 21^st Century Management

Organize your business results, your capital investments in solutions, and utilization of solutions in performance to produce results. Then deploy human capital, where they are qualified to manage and produce results, for 21^st century management, and leave 20^th century re-organizations and other unsolvable problems behind. [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...]

Effective business collaboration is prevented by 20^th century management

Each enterprise today lays a different collection of structures over the business, and each structure defines the enterprise differently and captures inconsistently-defined data against the various structures. The 20^th century method of business collaboration is for businesses to lay the same process, information system, or data reconciliation and information reporting structure over the business. This is very expensive and still does not provide a satisfactory solution, since none of the collaborators actually organizes or manages the business.

Rule No. 9 of 21^st Century Management: Collaborate to maximize shared value and minimize shared costs

Effective business collaboration and outsourcing requires that the business of each collaborator be managed. If the business is managed, there are common definitions, value creation, performance costs, and quality levels that can be managed for each business and across businesses. 21^st century management requires that businesses be managed to enable collaboration by maximizing shared value and minimizing shared costs.

R-pM is one simple business structure used by all businesses to enable collaboration and integration

Result-performance Management organizes the business for 21^st Century Management to define the results, result quality, result value, result costs, and result value-added across the business. The capital utilized to produce each result is defined as performance solutions to know performance costs against the result. The business structure can be managed within a business or across businesses to create result value-quality chains where each result is produced for the highest value and quality for the lowest cost [more...]

20^th century management administers human resources as employees

20^th century management administers human resources and is unable to manage human capital as capital utilized by the business. The business is not organized to produce specific economic output results and human capital is not organized as capital, within the full set of capital utilized to produce the results. Human capital management addresses general human resource development, rather than specific development to add value to the business and increase human capital worth.

Rule No. 8 of 21^st Century Management: Manage human personnel, capability, and knowledge capital to increase human worth

Human capital must be managed as readiness capital to keep personnel ready to produce results, production capital to provide the capabilities to produce specific results, and information capital to provide the knowledge required to produce high value-quality results. The objective of human capital management must be to increase human capital worth by producing results of higher value to the business.

R-pM organizes the business to utilize human capital to produce business results

Result-performance Management (R-pM) organizes the business to utilize human and other capital in performance to produce high value and high quality results. Human capital is maintained to be ready to produce results. Human capital is developed as capability solutions to utilize specific business processes to produce specific results. Human personnel and capabilities also are supported with the knowledge needed to produce specific results [more...]

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

20^th 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 20^th century management problems.

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

R-pM organizes the actual business for 21^st 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...]

Administration is one of the top ten 20^th century management problems

Administration is one of the top ten management problems with 20^th century management. Enterprises have large sums invested in the capital that is utilized in performance, but most have not organized capital, so that it can be managed.. Capital is assigned to a center, labeled as “intangible assets”, or administered by an administration function. Since capital is not identified and organized to be part of the business, capital cannot be managed for operation, development, and utilization.

Rule No. 3 of the ten rules of 21^st Century Management: Organize and Manage Capital for High Utilization and Return

The administration problem is eliminated by Result-performance Management (R-pM). R-pM follows Rule No. 3 of the 10 rules of 21^st century management: Organize and Manage Capital for High Utilization and Return. Capital management is essential to manage the business, the utilization of capital as performance solutions to produce value in results. R-pM manages information capital to eliminate the emerging information complexity and management problems

R-pM organizes performance solutions for professional support and to be integrated to produce results

Capital is organized by the professional capabilities needed to properly manage and support the capital as business, human, facility, or management capital. Capital is organized further by the way it is utilized to produce results as readiness, production, or information capital

Capital is managed to be of high-worth, by being utilized for a managed performance cost to create greater value in the results produced for a known value-added. New capital is developed as specific performance solutions of a known cost to add known value to specific results to manage the return on investments. All enterprises can improve profit margins by using R-pM to organize and manage capital for high utilization and return.

But, enterprises can never manage capital while it lies in centers hidden from view, while it is classified as “intangible assets”, and while those who should be managing it are performing administrative functions [more...]