The current financial crisis shows the need for actual best business management practices

After every corporate financial, management, or governance crisis or scandal the call arises for best business management practices. However, nobody knows what real best business management practices are, since no one has any experience in actually organizing and managing a business. The practices installed are never actual best business management practices, but are a collections of rules and regulations or methods to better manage structures that hide the business and prevent actual business management.

20^th century best practices are the best of bad business practices

20^th century best business practices are a collection of organization, process, system, and administration structures laid over the business for a particular purpose, which have proven effective elsewhere. All 20^th century best business practices are bad business practices, because they add to enterprise overheads and costs, and do not help the enterprise to operate or manage the actual business.

R-pM provides the business definitions and structure for good best practices

Result-performance Management (R-pM) instills best practices across the business for 21^st Century Management. R-pM manages the business by managing the capacity, investment, qualifications, reliability, return, and worth of capital solutions; utilization, cost, effectiveness, uncertainty, and value-added of each capital solution in guided performance; and the volume, total cost, quality, risk, value, and value-added of each result produced. The set of solutions deployed and utilized to produce a result is defined as a capital module. The capital module that produces the best value-quality result can be defined as a best practice. All best practices are then built into the business structure to operate and manage the actual business.

The only way to prevent future corporate financial, management, and governance problems is to use R-pM to organize and manage the businesses. Governments that want to improve local business competitiveness significantly and prevent future crises, must investigate R-pM. [more...]

Past and current financial crises have been caused by failure to manage the actual business

All financial crises, corporate governance problems, and other problems due to inadequate corporate or financial institution management have roots in one fundamental problem, the failure to organize and manage the actual business. 20^th century management lays many structures for organization, strategies, account charts, processes, scorecards, etc over the business to manage the enterprise. The actual business in the cash expenditures for specific capital investments, performance costs from capital utilization, value created in results, and value added providing profits, capital returns, and capital worth is hidden under overlaid structures and never reported to management.

Enormous sums of money are used to cover up actual problems and restore confidence

No attention is being paid to eliminating the pervasive financial institution and corporate management problems that led to the crisis. The funds are used to pay a higher worth for the currently worthless and unsellable assets of those who mismanaged corporate and personal funds, and transfer the potential further losses and gains to taxpayers. In effect, we keep covering up the unsolvable problems of 20^th century management that have never been solved and can never be solved by more 20^th century management.

Governments should help enterprises manage their actual businesses to eliminate 20^th century management problems

The big change is the change in thinking required to put aside the lifetimes of misleading teachings and experience and visualize and understand the business as “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results”. Managing the business is common sense used by all to manage their personal businesses. The investment in managing the actual business is very small and recovered quickly in the added value-added of a managed business.

The cost of a government investment program to assist local enterprises to organize their businesses for 21^st Century Management is insignificant compared with the cost of bailing out companies and covering up the failures of 20^th century management. The program will provide transparent reporting of the business for management, shareholders, and regulatory authorities. The program will provide real economic boost in the new value created by organized and managed businesses. [more...]

Capital development and support and capital utilization in performance is not managed today

Capital, utilized to produce results, cannot be managed if it resides in a responsibility center, is administered by a function, or is labeled as an "intangible asset". Some capital may be defined as an asset for depreciation, but capital is not managed as the solutions needed by the business. Enterprises make large investments in capital and then fail to manage the utilization of the capital to create known value in results and provide the known return on the capital investment.

21^st Century Management requires Capital Management and Performance Management

One key element of 21^st century management is proper capital management to define all capital as specific solutions. Capital Management manages solutions for planning, development, support, and operation.

Within Capital Management is Performance Management, so that a performance manager manages the utilization of each solution in performance to deploy and maintain a qualified solution that meets expectations, to be utilized by a result manager to produce results.

R-pM manages capital and performance as components of the business to produce results

Result-performance Management (R-pM) organizes and manages the actual business as “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results”. Capital is managed to be of high-worth, by being developed to add specific result value and then being utilized in performance for a managed performance cost and effectiveness to create greater value and quality in the results produced. The return on the capital investment and the capital solution worth can be known only by measuring the value-added to results attributable to the solution over its useful life. [more...]

Business information is inconsistent, incomplete, and inaccurate in today's enterprise

Enterprises have much to gain by properly organizing and leveraging information to provide value. Information is not managed properly for support and utilization in today’s enterprise. The business is not organized and managed to capture information produced directly by the business and to apply information directly to the business. The categories of information are not supported as information capital to produce business results. There are no precisely-defined data entities to integrate information from the various systems into a business information base for consistent management information. Most direct business data is never captured and management information is reported in conflicting and inaccurate sets.

The information complexity and accuracy problems are addressed by additional information technology investments

Each management structure and information system defines the enterprise differently producing the information complexity and accuracy problem. Large information technology investments for data reconciliation, enterprise information management, IT architectures, specialized knowledge and records management, etc can never solve the problems.

R-pM integrates actual data, knowledge, records, and intelligence in one Business Information Base

R-pM provides the proper support for information capital to provide information solutions, to utilize solutions to capture data and apply information directly for the business, and to integrate information on the business in one consistent and accurate Business Information Base for transparent management and good corporate governance. [more...]

20^th century management problems can never be solved by conventional thinking

Unsolvable problems of 20^th century management with reorganization, alignment, costs, value, worth, investments, returns, intangible assets, complexity, etc are well known. Solutions are prevented by conventional thinking that allows only incremental improvements in the way that things have always be done and prevents the breakthrough needed to find a new way to do things to actually solve the problem.

Conventional thinking limits the worth of individual human capital

People need to go beyond conventional thinking to gain new capabilities and knowledge to increase their worth by producing higher value results. But conventional thinking prevents this, because the enterprise has never managed human personnel, capabilities, and knowledge as capital, never developed human capabilities as solutions to produce results, never managed result value created, and never managed the worth of human capital.

All the enterprise needs to do is to organize the business for a base of new conventional thinking in the 21^st Century

But the enterprise cannot organize the business, the activity of providing goods and services, because it is not the way things have always been done. High-worth human capital must go beyond conventional thinking to support R-pM and gain the advantaged of managing human capital worth with R-pM. If you can go beyond conventional thinking and increase your own human capital worth look at using Result-performance Management to organize the activity of providing goods and services for 21^st century management, and provide a new base for conventional thinking in the 21^st century. [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...]

Leaders tend to be satisfied with the methods that got them leadership

Current industry or competitive leaders likely are satisfied with 20^th century management that brought them to a leadership position. It is the followers, who have the most to gain by using a new breakthrough to overtake the leaders. R-pM enables the followers, be it a country, corporation, or business association to become a leader.

R-pM enables the capable follower to overtake the complacent leader

The first to implement R-pM will implement R-pM because they want to and will instill 21^st century management throughout the business. They become the leader and gain an unassailable business advantage that continues to grow over time. The followers will have to implement R-pM as well. But, they will implement R-pM because they have to. The followers, who use R-pM because they have to, will continue to fall behind the leaders, who use R-pM because they want to.

R-pM is a breakthrough to manage the business and a one-time opportunity to gain significant advantage

R-pM is a breakthrough for 21^st century management to abolish the enormous overheads, costs, and inefficiency of 20^th century management. R-pM provides an one-time opportunity for followers to become leaders. If you are a follower, as an enterprise, group, or nation, research R-pM to learn how to leap over the competition and become a leader [more...]

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

20^th 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 20^th 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 21^st 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 21^st Century Management Manual [more...]

R-pM defines actual business organization and management

R-pM provides the concepts, procedures, and learning so that any enterprise can organize and manage the actual business. Part of R-pM is 21^st Century Management to provide the framework for business operations, education, services, and solutions that can be utilized effectively by any business.

21^st Century Management provides the framework for collaboration and common solutions

R-pM is designed to simplify the business and to provide the foundation for business collaboration and common education, services, and performance solutions that any business can use. This requires a minimum set of fundamentally-correct and consistent 21^st Century Management conventions, definitions, and standards that are followed by R-pM users, educators, business management software and solutions, and service providers to reduce business costs and enable effective communications and collaboration.

21^st Century Management is documented in The R-pM Toolkit.

21^st Century Management descriptions are included in all R-pM Toolkit documentation. The 21^st Century Management conventions, and definitions are included in the current R-pM Toolkit. Additional 21^st Century Management conventions will be refined and included in future R-pM Toolkit updates. 21^st Century Management standards will evolve as R-pM is employed in practice.

The R-pM Community can provide inputs into 21^st Century Management

The intention is to make 21^st Century Management a product of the R-pM community so that anyone can contribute their ideas and requirements to be reviewed for inclusion in the continuing development and refinement of 21^st Century Management [more...]

Conventions, definitions, and standards used in 20^th century management are inconsistent and confusing

20^th century management does not organize the natural business or apply common-sense management, as we do in our personal business. Arbitrary contrived structures are laid over the business. Each structure has its own set of conventions, definitions, and standards. Added together this produces an inconsistent hodge-podge of conventions, definitions, and standards that are applied separately for organization, planning, processes and systems, accounting, administration, IT architectures, performance management, reporting, and other parts of enterprise management.

Rule No 10 of 21^st Century Management: Employ 21^st Century Management conventions and standards

The 21^st century business must avoid the problems inherent in 20^th century management. This is done by organizing the business with R-pM for 21^st Century Management. 21^st Century Management uses one set of conventions, definitions, and standards that are applied to the actual business and used for all management organization, planning, directing, control, and reporting. Common conventions, definitions, and standards enable business collaboration and education, solutions, and services that can be applied to any business.

R-pM provides one consistent set of conventions, definitions, and standards for 21^st Century Management

21^st Century Management conventions, definitions, and standards are defined, updated, and maintained in the R-pM Toolkit to support the application and use of R-pM. The conventions, definitions, and standards can be followed by any education institution, solution developer, or service provider to meet the needs of any 21^st century enterprise [more...]