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...]

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...]

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...]

R-pM organizes human capital as part of the business

Human capital can benefit from R-pM by understanding R-pM conceptually to increase personal productivity and worth to the 20^th century enterprise, by understanding themselves as human capital to know how to increase their capital worth, and by leveraging human capital capabilities in the organized and managed business with R-pM.

R-pM manages human capital worth against performance expectations and result value-added produced

The 20^th century enterprise organization structure places human capital into positions, jobs, functions, etc. Human capital justify their cost by the time spent in their place in the organization structure. R-pM replaces the enterprise organization structure with the business result-performance structure. R-pM provides a different perspective of human capital as specific human personnel, capability, or knowledge performance solutions deployed to meet performance expectations and produce specific results. R-pM assesses the worth of all capital on performance expectations met and the contribution to result value-added.

R-pM enables humans to improve capabilities, meet increased expectations, produce higher-value results, increase capital worth, and justify higher performance costs

R-pM benefits those who want to increase their reward by increasing result value produced to justify increase in human capital costs incurred by the enterprise. This is supported by Rule no. 8 of the 10 rules of 21^st century management; to manage human personnel, capability, and knowledge capital to increase human worth. R-pM provides one integrated organization and management structure so that humans understand the roles and responsibilities for results they produce, the other solutions they use, and the relationships to other enterprise results. Humans have opportunities and a framework to develop new capabilities and knowledge to produce higher-value results, meet increasing expectations, and increase human capital worth. For human personnel capital, human capital worth must justify human personnel costs and cost increases [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...]

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...]

Human capital is integrated with the business through human capability capital, which is the capability rather than the human personnel solution that possesses the capability. Human capabilities are defined and designed into the business process to utilize and execute the process to produce the specific result. Capability specifications and utilization of the capability are described as human knowledge solutions to support human capability development and capability utilization.

Human capability is the performance solution that most determines result quality and value. 21^st Century human capital development plans and projects primarily are directed to human capability development needed by the business to produce higher-value results and to develop higher-worth human capital. [more...]

Human resource and capital management of today essentially administer human resources as employees and develops human capital to meet general performance needs. Human capabilities required by the business are not defined or managed as capital. Knowledge solutions to develop human capital or for human capital to utilize solutions to produce results are not defined or managed as capital.

R-pM develops all capital, including human capital, to produce specific result value-added. Human capital in personnel learning, specific human capability development, and knowledge development is managed to add value to specific business results. Management knows the personnel, capability, and knowledge solutions utilized to create result value and the value-added to results. Management can assess the worth of human capital and plan human capital development to meet needs to increase the value of specific results or to produce valuable new results. Human capital has a stake in the enterprise business and knows that increasing result value-added increases human capital worth and justifies increases in human capital performance costs. [more...]

20^th century management does not capture actual business data and does not provide the information to manage the actual business. 20^th century management gathers mountains of information, which are mostly irrelevant to the business, related to structures laid over the business. This creates the enormous IT overheads and information complexity problems. 20^th century management provides management information to manage structures laid over the business, rather than managing the actual business.

21^st Century Management manages the actual business through two integrating entities, capital utilized as performance solutions and economic output results produced. This enables data to be gathered on all actual business activity. Actual business management information solutions can be delivered to utilize any specific performance solution to produce any specific result, anywhere in the business. Information capital is managed professionally by those with the capability to provide information performance solutions needed to create value in results. [more...]

Most companies still administer human resources as employees. They use organization structures, job descriptions, task plans, salary scales, rigid HR policies, performance management, and other measures that put human capital into boxes and manage the activities humans perform.

Result-performance Management manages human capital to produce results, to develop capabilities to produce higher-value results, to provide the specific knowledge needed to develop and produce results, to link the value added to results to the worth as human capital, and to compensate and reward relative the human capital worth. [more...]