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 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...]

R-pM is natural and the only way to organize a business

Result-performance Management (R-pM) is the natural way you organize your personal business. You produce results in the things you accomplish. To produce results, you utilize your capital as performance solutions in your capability, tools, equipment, money, plans, instructions, etc. You manage your business through common sense. You use R-pM instinctively because R-pm is the only way to organize and manage your personal business or any other business.

Your company organizes and manages the company, rather than the business

But on your job, you no longer naturally utilize performance solutions to produce results. Your company does not organize or manage the business. The company lays contrived structures over the business to manage the company. All business schools, management books, packaged solutions, consulting advice, professional bodies, and on-the-job experience teach us to lay contrived structures over the business. You cannot manage or perform using common sense. You must follow various rules, regulations, and procedures to utilize arbitrary processes, systems, accounting, and other structures.

Use your natural method to organize your company business

Use your natural method of utilizing specific performance solutions to produce specific business results. You will see improvement in the job you do today, and understand the potential in organizing your company business for the breakthrough advantages of 21^st Century Management [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 lays strategic structures over the business

20^th century management contrives structures to define the corporate strategy in corporate plans, maps, investment plans, and other structures laid over the business. The strategic business is not planned. The overlaid structures do not relate to the actual business and may conflict with structures used to manage the corporation. Strategic value numbers are pulled out of the air. There is no good method to govern the transition from the current corporate status to the strategic objective. Corporate governance cannot govern the actual business, so it governs through compliance with arbitrary rules and regulations.

Rule No. 6 for 21^st Century Management states: Plan and govern the transition from today’s value to approved strategic value.

R-pM defines the current business to know result value, capital worth, performance costs, and investment returns to provide the foundation for planning the strategic business. The strategic business structure shows results to be produced and capital to be utilized at a 2-5 year strategic horizon. Strategic result value is substantiated in specific period by period result goals requiring growth in value of current results and the value of new results enabled by implementation of capital of worth.

R-pM provides information on the current to strategic business for management and good governance

R-pM enables good management and governance of the transition to the strategic business by reporting financial and non-financial status against result goals and performance expectations, updating strategic estimates, providing result evaluations and performance assessments, and providing management information on anticipated opportunities, threats, and developments. Good corporate governance ensures responsible business management and planned progress to the approved strategic business [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...]

You cannot manage your business, because your business is not organized

20^th century management does not organize the actual business enterprise. Instead, an enterprise organization structure is laid over the business. The organization structure is the fatal error of 20^th century management. Once an organization structure is laid over the business, the business can never be managed.

Since your actual business has never been defined or organized, you cannot manage your business. You must manage artificial entities described in separate management structures laid over your business. You plan in corporate planning and budget structures, direct operations in business process and information system structures, administer through administration structures, control through an account structure, and report through performance management and reporting structures.

You can manage your business directly with Result-performance Management (R-pM)

Result-performance Management (R-pM) replaces 20^th century management structures with one 21^st century business structure to integrate business organization and management. All business organization, planning, directing, control, and reporting is against one business structure. Your business management and decisions involve the specific performance solutions used to produce specific business results. You manage result value, performance costs, result value-added, capital worth, and other attributes of the actual business that you have never managed in 20^th century management [more...]

An organization structure is laid over the business, instead of organizing the business, so the business can never be managed

The fatal error of 20^th century management is the organization structure. Once and organization structure is laid over the business, the business can never be managed. If the business is organized the business organization changes with business change and there is no need for reorganization or change management. Since the business is not organized, additional structures must be laid over the business for management planning, directing, control, and reporting.

Rule No. 1 of the 10 rules of 21^st Century Management: Organize and manage the business

The conventional definition of the enterprise business is the activity of providing goods and services. The 20^th century enterprise has never organized or managed the activity of providing goods and services, but, instead, lays rigid enterprise organization and management structures over the business. Business change conflicts with the rigid structures, creating unsolvable problems that can only be eliminated by organizing the business for 21^st Century Management.

Result-performance Management (R-pM) organizes and manages one integrated business structure

Result-performance Management (R-pM) organizes the business as one structure to integrate enterprise business organization and management. Business activity is organized as capital utilized in performance solutions. Goods and services are organized as the results produced by business activity. Business results and performance solutions into are organized together into a business structure. The business is organized by deploying specific performance solutions to produce specific results. The one integrated business structure is utilized for all 21^st century management planning, directing, control, and reporting to leave 20^th century organization and management problems behind [more...]

Accounting, today, does not maintain accurate business records

20^th century management does not organize or manage the business. This makes it impossible to keep records on output results of value produced by the business and the consumption of capital in costs to produce each result. Instead of recording the actual business, a chart of accounts is laid over the business to record income and expenses and the worth of certain known assets. 20^th century accounting records the cash generated and spent by the business, rather than recording the complete development and utilization of capital and the complete economic output results produced by the business.

Accounting, today, contains many unsolvable 20^th century problems

Accounting is one of the main unsolvable problems of 20^th century management. Accounting is separate from the actual business, records only a small sub-set of needed financial and non-financial business records, sees it role as control rather than capital management and business support, allows financial management problems such as intangible assets and unknown costs to persist, does not provide accurate business information needed for corporate management and governance, and on and on.

R-pM accurately records and accounts for the actual business for 21^st Century Management

21^st century management uses Result-performance Management (R-pM) to organize the actual business as one integrated business structure. The business structure replaces all organization, accounting, planning, performance, costing, reporting, and administration structures laid over the business. R-pM employs professional records management to manage facility records as capital, to maintain complete and accurate financial and non-financial records on the actual business, and to provide information performance solutions from records for good corporate management and governance. Records management is integrated within the business to be utilized to make decisions at all levels and to record accurately actual business decisions made [more...]

Today's definition of the enterprise business is "the activity of providing goods and services". But, we cannot organize or manage the business because today's definition of performance defines both the activity of providing and the goods and serviced provided as performance.

As shown in the article of December 13, 2007, the R-pM definition of the business is "the utilization of capital as performance solutions to produce value in specific results". Therefore, results must be separated from performance. Two components of the business must be organized the performance solutions utilized in "the activity of providing" and the results produced in "the goods and services provided". Only then can we capture actual business data of the cost and effectiveness of performance and the value and quality of results to report to management on cost-effective performance producing value-quality results. [more...]