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...]

There is no framework today to guide the development, implementation, and utilization of packaged solutions

Packaged solution providers have never had a consistent framework to design solutions that any enterprise business can employ. This has required that packaged solutions be very problem, function, or industry specific.

The only valid framework for packaged business and management solutions is the business itself

The framework needed to develop consistently-defined capital solutions exists, but it has never been used. That framework is the business.

R-pM organizes the three components that define the enterprise business in results required, capital solutions invested in the business, and the performance of specific solutions that produce specific results. Packaged solutions fit into the business organization and are utilized as part of the business to incur costs and create value in specific results.

R-pM provides consistent support for solution developers, implementation consultants, and solution users

The R-pM Toolkit provides the needed guidance for both the packaged solution developer and the solution user to ensure that solutions seamlessly fit into the enterprise business structure and can be utilized to produce the intended results.The Toolkit includes 21^st Century Management conventions, definitions, and standards that are followed so that any business reduce costs and improve the value and quality of results by using common packaged solutions and services. [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...]

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...]

Enterprises today do not know costs or worth of all capital utilized

Enterprises may capture some known costs for some known capital items like fixed assets or employees. But many capital items and costs remain unknown. Development costs may be captured for some other big-ticket capital items. In this case, costs usually include costs for other undefined solutions developed in the same project. Capital worth may be assessed for some tangible items, but cannot be done for all capital to know actual enterprise net worth.

Capital costs and worth are an integral part of the business and actual business management

The enterprise business consists of output results produced, capital deployed to be utilized for the result, and performance in the utilization of capital to incur costs and produce value in results. When the business is managed, results value and quality are managed, capital worth and investment returns are managed, and performance costs and effectiveness contributing to result value-added are managed. Results and capital are managed in result-capital development to plan and manage the result value-added to cover capital development costs and provide the return on investment.

R-pM is the only way to capture capital and performance costs and assess capital worth

Result-performance Management (R-pM) is the only way to organize and manage the actual business. All capital is managed to eliminate intangible assets, unknown costs, unknown capital and enterprise business worth, and unknown return on investments. Human and other capital is managed to control costs, invest only in capital needed, develop capital to create value, and maintain and increase capital worth [more...]

Few enterprises today organize their business to use Result-performance Management

Today, there are few examples of enterprises or industries that intrinsically employ Result-performance Management (R-pM) to define the output results they must produce, have result goals they strive to exceed, relate their performance to results, develop solutions to add value to results, manage performance uncertainty to reduce result risk, utilize result value-quality chains, differentiate through performance and results, and pay based on results.

Professional golfers employ natural Result-performance Management

Professional golf is one industry that intrinsically employs Result-performance Management. Each professional golfer and those the golfer employs is an enterprise. The golfer separates results from performance, and organizes his business to utilize capital effectively in performance to produce quality results. Like any enterprise, the professional golfer's competitive differentiator is the totality of how well he develops and utilizes his performance solutions to produce value and quality in results.

Learn how to organize and manage your business from the professional golfer

Other industries can learn about organizing the business for 21^st Century Management from professional golf, to develop cost-effective performance to produce value-quality results. If you are a golfer, learn about managing your enterprise business from the way you manage your golf game [more...]

20^th century business definitions are confusing and imprecise

What is your definition of an "enterprise" or the "business"? How do you or your performance management methods define "performance"? How do you define "result"?

Precise definitions are needed to organize and manage the business of the enterprise properly. Current definitions of performance mix performance activity together with output results and report and manage both as "performance". Current usage of the term "result" is as economic outputs that leave the enterprise.

The definition of the business conflicts with the definition of performance and results

Yet, the generally-accepted definition of the enterprise business as "the activity of providing goods and services" indicates that the enterprise business has two components:

• The performance component in business activity
• The result component in the goods, and services provided

20^th century management is unable to organize and manage the two components of the business because performance and results are mixed together and managed as performance.

R-pM precisely defines business, performance, and results for 21^st Century Management

Properly defining "performance" and "result" and then separating results from performance are the first steps to organizing the enterprise business for 21^st Century Management [more...]

20^th century management cannot optimize operations in the performance solutions that produce output results

The 20^th century business is not organized. Therefore, operations in the capital utilized as specific performance solutions to produce specific output results cannot be managed. If operations are not managed performance cannot be optimized to produce high-quality results and the result value-added that contributes to the profit result.

Rule No. 5 for 21^st Century Management "Operate to optimize operations, result value-added, and the profit result"

The ten rules for 21^st Century Management help each enterprise to understand how well positioned they are to compete with the coming 21^st century enterprise. Rule No 5: "Operate to optimize operations, result value-added, and the profit result" establishes an enterprise routine of managing performance solutions, managing the results produced, and managing the return on investment and contribution to profits over time.

R-pM manages cost-effective performance to produce value-quality results and profits

Performance is managed to capture the cost of development or improvement, meet expectations in performance, integrate with other solutions of the same class for the same result, and manage the cost, effectiveness, capacity, and uncertainty of each solution.

Results are managed to utilize integrated solutions to reach result goals, to create result value greater than total performance costs for result value-added, to produce a high-quality result, to produce the expected volume of results on time, and manage the risk of a poor result.

Results are managed against performance as the routine, High-value results are periodically optimized by managing the volume, value, quality, goals, and risk of results by optimizing the capacity, cost, effectiveness, expectations, and uncertainty of the performance solutions that produce the result. Optimizing ensures that performance is cost-effective to produce high value-quality results to return investments in performance solutions, and provide the result value-added that contributes to the profit result [more...]

Business processes and information systems laid over the business prevent management of costs, value, and quality

20^th 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 21^st 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...]