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...]

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...]

Enterprises today combine many different forms, theories, and structures to produce many different ways of "doing business"

Enterprises today are defined and organized in many different ways, making it difficult to collaborate and employ common solutions. Enterprises think that they have their own distinctive way of "doing business". But, no enterprise actually understands the real business or the commonalities that must defined, organized, and managed to manage the business.

The commonalities of all businesses must be understood in order to define the actual business and organize and manage the business

All enterprises businesses have commonalities that must be understood and used as the foundation to build strong businesses that can collaborate easily and differentiate specifically where beneficial. Result-performance Management is based on the commonalities of all businesses that must be defined, organized, and managed. From analysis of business commonalities, R-pM defines 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”.

R-pM provides the only way to organize the actual business and the only way to do business

Result-performance Management (R-pM) organizes the business into a common business structure to utilize investments in standard categories of capital solutions in performance to produce specifically defined results. The common business structure enables collaboration and utilization of common solutions and services for all businesses. R-pM differentiates in the value-quality of result design and the cost-effectiveness of capital solutions utilized in performance to produce value-quality results. [more...]

Management capital is required to plan and manage a competitive business and create strategic value

Rule No. 6 of the 10 rules of 21^st century management with R-pM: Plan and govern the transition from today's value to approved strategic value. All management planning, directing, control, reporting, and governance is against the current and strategic business, with no overlaid structures. Management capital produces solutions to support management at all levels of the enterprise to plan and execute a strategy and protect shareholder value.

Management capital today uses structures laid over the business

Few enterprises have a disciplined set of management capital, particularly as related to the actual business. 20^th century management and governance problems start as soon as an organization structure is laid over the business, instead of organizing the business so that the business can be managed. Management structures for strategy, planning, accounting, processes, reporting, etc. must be laid over the business as well, creating business and information complexity.

R-pM manages management capital as part of the actual business to support informed management

R-pM organizes the business in results needed for business success, capital invested in the business to provide solutions to be utilized, and performance in the utilization of solutions to produce results. R-pM develops and maintains management solutions to produce management results through three categories of capital: management strategy to plan and manage strategic result value, management tactics to guide and optimize results and performance, and management intelligence to inform of strategic and tactical status and forecasts.

Management capital specialists in each category develop professional capabilities in management analysis, research, and judgment to lead the enterprise in 21^st century manageme [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...]

Information systems gather corporate data that is irrelevant to the business

20^th century information systems do not capture business data or provide the information needed to manage the actual business. 20^th century information systems manage organization and management structures laid over the business. Management structures are arbitrary and define inconsistent data entities. Data on hundreds entities must be recorded throughout the corporation, and then processed and managed creating information complexity and providing mountains of confusing information.

R-pM organizes the business to capture actual business data

The objective of 21^st century management is to organize and manage the business of the corporation. Result-performance Management (R-pM) directly organizes and manages the business to record actual business data and report business management information that is not available today. Timely integrated information solutions are delivered to produce specific business and management results. The business is defined by three information entities and managed through six information sets.

Business management information is used to manage the business directly

R-pM provides actual business management information on the worth and return of capital investments, utilization of capital in performance to incur costs and produce results, and results of value produced by the business. Once actual business information is provided, corporate information provided by overlaid 20^th century structures becomes irrelevant and can be abolished. 21^st century management can then concentrate on managing the business [more...]

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 20^th 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 21^st century business capital management, replacing the IT organization and eliminating excessive IT costs [more...]

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

20^th 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 21^st 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.

20^th 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 21^st 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...]

Information is not managed as capital for support and utilization

Today’s enterprise captures information on a multitude of entities that describe structures laid over the business, but captures little information on the few entities that describe the actual business. The many enterprise information systems produce enormous amounts of information. However, little is managed as information capital to be used to operate, improve, and manage the business. Much information is managed by the wrong capabilities, such as management accounting and data management by IT. Most information just adds to the information complexity and overload problems.

The explosion in enterprise information demands new information simplification and management solutions

With emails, internet searches, file transfers, etc information is entering and leaving the enterprise at a high rate and enterprises have no way consolidate information or consistently reference information to the business. Additional structures are laid over the business to reconcile and classify information. Special information systems are needed to locate, extract, reconcile, and report information of use to management. Additional investments are being made in various document, record, report, content, etc management systems to manage information scattered around the enterprise.

This cannot solve the problem. The only way to solve the problem is the simplify and organize the business as a few specific data entities, and professionally manage all data, knowledge, records, and intelligence through reference to these few data entities.

R-pM organizes information capital for delivery and utilization by the business

Result-performance Management organizes the business to capture data and produce other information related directly to the business and to eliminate data collection and information reporting not related to the business. All information in, entering, or leaving the business is referenced to a result, performance solution, or other business entity. Management information is captured and reported on the business for decisions to add, change, or close output results or capital utilized as performance solutions

R-pM organizes information capital for professional support and development

Information capital requires specific capabilities to develop and maintain professionally. All information capital is categorized as business data, human knowledge, facility records, and management intelligence for professional maintenance of information and development of information solutions to produce business and management results [more...]

20^th century management produces waste and inefficiency

20^th century management requires enormous overheads and waste by laying many organization and management structures over the business rather than organizing and managing the business directly. Business, human, and management capital is not developed and managed to be utilized effectively by the business. Management does not have the information or methods for socially-responsible business management.

R-pM organizes the business for socially-responsible 21^st Century Management

Result-performance Management (R-pM) is the future of socially-responsible business management. R-pM organizes and manages the business directly to eliminate wasteful overheads, utilize energy and supplies efficiently, maximize human capabilities, and apply responsible management policies and practices [more...]