20^th century accounting does not keep complete or accurate financial records on the business

Rule No. 4 of the 10 rules of 21^st century management with R-pM: Keep accurate financial and non-financial records on full business operations and development.

Today's enterprise faces many obstacles to professional record capital management because of several 20^th century problems. Financial accounting is often seen as enterprise records management, but maintains a professional view of what it will record, and acts as an administrative function rather than professional records management. Financial accounting records some financial data against a chart of accounts laid over the business. Financial accounting does not keep complete and accurate financial and non-financial records of the actual business. Most other enterprise records are not maintained as enterprise capital to be available to provide needed performance solutions. Records management is a growing problem in today's enterprise requiring a comprehensive professional records management solution.

R-pM enables complete and accurate financial and non-financial records against the actual business

R-pM maintains all business management information against one business structure to integrate organization, planning, directing, control, and reporting. Structures laid over the business are removed. Management information includes result value, capital worth, performance costs, and result investment returns that are "unknown" today. Tangible information capital is maintained as facility records to record all financial and non-financial business transactions and activity in computer records, documents, images, archives, etc. Accounting is one sub-set of professional records management.

R-pm provides an opportunity for accounting to broaden to professional records management

R-pM provides a unique opportunity for the accounting profession to expand to professional records management. R-pm eliminates unsolvable accounting and financial management problems. Professional facility records management maintains financial and non-financial facility records of the actual business, and provides information capital solutions from records, where needed to produce results at all levels of business management [more...]

20^th century management does not maintain accurate financial and non-financial records on the actual business

20^th century management used today does not keep records on the capital items utilized as performance solutions by the business as a set, and does not keep records on the output results produced by the business as a set. Thus, the business cannot be organized or managed and there is no set of complete and accurate records on the business to provide actual business management information. Instead, information is maintained against contrived structures laid over the business, such as organization, planning, budget and account, and reporting structures.

Accounting maintains a sub-set of enterprise records in financial and statistical accounts against a contrived chart of accounts. Financial records on the full cycle of performance costs and result value creation are not maintained. Many non-financial records that should be maintained are not considered as accounting responsibility and are never recorded and managed as information capital.

The records management problem is getting serious with the explosion in email, file transfers, and other records created, entering, and leaving the enterprise. The enterprise has no way to reference records to the actual business, to prevent records being lost due to information complexity, and to properly manage records as information capital.

Rule No. 4 for 21^st Century Management: Keep financial and non-financial records on full business operations and development

Management needs complete and accurate information on the actual business for good corporate governance and business management. This is not possible with 20^th century management, which does not organize or manage the actual business. 21^st Century Management requires accurate financial and non-financial records for the full cycle of business operations, along the chain of results produced by the business, and across the operation-development continuum.

R-pM maintains accurate financial and non-financial records on the actual business to provide accurate and complete management information

Result-performance Management (R-pM) organizes the actual business so that one set of accurate and complete facility records can be maintained on the business and accurate reports on the full business cycle of cost-effective performance producing value-quality results, the results from supplier-provided input results and through enterprise business results to final customer results, and the investment costs in new performance solutions and the return in new result value can be provided. R-pM broadens traditional accounting to professional records management [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...]

20^th Century Management lays organization and management structures over the business. Information systems are implemented over the business to process the data produced by the various structures. The information often conflicts with the business and causes information complexity. The systems require large IT processing overheads, Since the business is not organized the systems cannot capture actual business data or report actual business management information.

21^st Century Management defines the actual business first as chains of results that must be produced across the business. Information system processing is integrated with business processing to produce each result required by the business. Performance cost, effectiveness, capacity, expectations are captured for each solution utilized. Result value, quality, volume, goals, etc. are captured for each result. Information is updated to one business management system to report the consistently-defined business structure for actual and accurate business information.

Existing processing that does not produce a needed result and that reports irrelevant or inaccurate business information is deactivated. Eventually 21^st century information systems evolve into a series of linked business-system processing modules that produce specific results and that update one business management system that accurately reports business performance and business results. [more...]

20^th century management does not manage capital. Certain capital is administered and other capital is neglected. Facility capital includes all reusable and consumable assets and business records. But, the stress is on administering financial capital at the expense of other capital of increasing importance and worth. Financial management and accounting have developed their own principles and practices that isolate financial management from the business and often conflict with the needs of general business management.

R-pM manages all financial and non-financial facility capital as one category containing three classes in facility equipment reused to produce a set of results, facility supply consumed in producing specific results, and facility records for complete documentation of the business in solutions utilized and results produced. This enables integrated planning of the solutions needed to produce results, integrated utilization of solutions that produce the specific result, and integrated record-keeping and record extracts as performance solutions to produce new results. [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...]

20^th century management provides many methods of cost accounting. None of the methods has been able to capture all costs and charge all costs to the proper entity to absorb costs. Known costs are captured from separate entities, such as employee, fixed asset, cash, and supplies. Costs are charged to entities like center, activity, station, etc, that show where the cost was incurred, but were not produced by the cost.

Management needs one entity that contains all the costs incurred by the business and one entity that was produced by the cost to absorb the cost properly. Result-performance Management (R-pM) provides the one entity "performance solution" that produces all costs. R-pM provides the one entity "result" that was produced by the cost to create value, and can properly absorb costs to know result value-added. Result-performance costing is the only method to know all performance costs, and to charge costs properly to the value of the specific result produced. [more...]

Enterprises have much to gain by properly organizing and leveraging information to provide value. Information is not managed properly for support, integration, and utilization in today’s enterprise.

Information capital must be managed from two perspectives:

• Information capital development, support, and maintenance to increase capital worth
• Information integration and provision as solutions to create value in results

Today's enterprise manages information as technology or an administrative function, rather than as specific data, knowledge, record, or intelligence information capital.

The enterprise also lacks the integrating entities to create an enterprise information base and deliver information solutions to be utilized by the business. Information is maintained on a wide variety of entities in various systems and solutions creating a large data reconciliation and integration problem [more...]