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Manage Results as a Value Chain

August 18th, 2008

Value chain methods used today lay an additional contrived structure over the business

Methods used today lay contrived value-chains over the business. The chain is not integrated within the business to control actual costs against value-created or to produce value within total managed business value. These value chains have never been successful in actual business management.

R-pM is the first method to manage value chains as part of the managed business

There has never been a method to organize the business to provide natural value chains until Result-performance Management (R-pM).

R-pM employs information technology to manage all the results of value produced by the business and all capital solutions that incur costs in performance to produce each result. R-pM builds result value chains with end-results of value as a link in the chain, within a higher-level set-result that is the final result from the chain. Result relationships chain the end-result links together and each end-result to the final set-result. Each end-result has a managed value that adds to the total final set-result value.

The costs and value-added is managed at each link in the chain to manage total chain value-added

Supplier input results are transformed by performance through internal business results to customer final results. Each solution utilized incurs a performance cost. The total of solutions utilized is the cost of creating result value at each link. R-pM manages the end-result value-added at each link and the set-result value-added for the complete chain. Result value chains manage the value, quality, volume, risk, and goals for each result and the final result. Result value chains enable supplier-customer integration and business collaboration. [more...]

The Commonalities of all Businesses Build the Foundation for R-pM

August 14th, 2008

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...]

Eliminate 20th Century Accounting Problems through 21st Century Records Management

July 31st, 2008

Today we have many generally-accepted accounting problems

Accounting is a major problem in the 20th century enterprise. Management is faced with generally-accepted accounting problems. Financial records are missing for much of the business cycle. Management financial information is inconsistent, inaccurate, and incomplete. Many well-known problems like intangible assets, unknown costs, unknown capital worth, unknown investment returns, unknown value creation continue unsolved. Accounting is often equated to records management. Most enterprise non-financial records are scattered, missing, and mismanaged.

R-pM builds professional records management to manage all financial and non-financial facility records capital

Result-performance Management (R-pM) builds professional records management to provide complete financial and non-financial facility record capital solutions for 21st Century Management. R-pM manages the full business cycle to keep accurate records on all performance costs, performance effectiveness, result volumes, result quality, result values, result value-added, tangible and intangible assets of positive capital worth, liabilities as specific solutions of negative capital worth, and accurate enterprise business net worth. R-pM provides one set of accurate management information on the strategic, planned, actual, and historic business. [more...]

Result-performance Management: Three Dimensions of 21st Century Management

July 28th, 2008

Today's enterprise cannot manage the business in capital, performance, or results

Today’s enterprise cannot manage the business, since organization, process, account, activity, human resource, and other rigid management structures are laid over the actual business. The business consists of capital invested as solutions in the business, business performance in the utilization of capital solutions, and output results produced by business performance. Structures laid over the business conflict with the real changing business causing unsolvable 20th century management problems.

Capital, performance, and results must be organized to organize the business

Result-performance Management (R-pM) organizes the business for 21st century management. R-pM organizes capital as business, human, facility, and management solutions. R-pM organizes results to produce revenues, manage and support capital, and manage and develop the current to strategic business. R-pM organizes performance to utilize specific solutions to incur costs to produce value in a result.

R-pM manages the business in three dimensions: result, performance, and management

R-pM manages results produced across the business to provide value and quality to customers and reach revenue result goals. R-pM optimizes performance for each capital solution utilized to produce results to provide high-worth solutions that produce result value and quality at a controlled cost to reach profit margin result goals. R-pM provides management over time to manage and collaborate in value-quality chains, to plan and manage capital development and result value-added benefits, and to govern the business to reach strategic value result goal [more...]

R-pM Principles for Competitive Differentiation and Advantage

July 24th, 2008

All enterprises are burdened by 20th century management problems today

Enterprises can compete today, not because they are efficient and effective, but, because they are all inefficient and ineffective. All businesses today lay organization and management structures over the business that conflict with the actual business and cause unsolvable problems that can never be solved by laying new structures over the business.

The first to organize the real business for 21st Century Management gain significant competitive advantage

The business consists of three components: capital investments made in the business in specific capital solutions of developed worth, output results of value and quality that must be produced for business success, and performance in the utilization of specific solutions to incur costs and provide effectiveness to produce specific results. R-pm organizes the business for 21st Century Management to provide immediate competitive advantages.

R-pM manages capital worth and performance to minimize costs and maximize result value-added and quality across the business

With R-pM all management and personnel know the solutions they must utilize effectively and the value and quality they must produce in results. Capital is developed only to increase result value-added and the worth of human and other capital. Result value-added and quality are managed along the chain to produce high value-quality customer results. The actual business is managed to quickly change capital utilized and results produced and to integrate with suppliers, business partners, and customers for shared value-added. R-pM provides measurable competitive differentiation and advantage not possible today with 20th century management. [more...]

Organize the Business, then deploy Human Capital

July 17th, 2008

Re-organizations are unnecessary 20th century management problems

Re-organization, one of the top 10 problems of 20th century management, occurs because we organize people and power, and not the business. If 20th 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 21st 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 21st 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 21st century management, and leave 20th century re-organizations and other unsolvable problems behind. [more...]

How to Gain Competitive Advantage in the 21st Century

July 7th, 2008

20th century management does not provide competitive differentiation and advantage for the 21st century

Management structures laid over the business in today’s enterprises cannot create competitive differentiation and advantage from utilization of technology, the Internet, and intellectual capital. A new business structure is required to enable competitive advantage in the 21st century. The obstacle is conventional thinking that prevents a complete new definition of the business and continues to improve obsolete management structures laid over the business.

The 21st century presents new requirements for competitive differentiation and advantage

In the 21st century, business competition and collaboration can come from anywhere in the world. Competitive differentiation and advantage in the 21st century requires that the business is simplified for fast and flexible change, is organized to utilize technology effectively and enable business communication and collaboration, and is managed to provide customer value and quality.

R-pM provides significant new competitive differentiators and advantages for the 21st century

21st century competitive differentiation and advantage is provided by Result-performance Management (R-pM). R-pM uses information technology to organize the actual business for significant competitive advantage in the 21st century. R-pM organizes business capital invested, performance to utilize capital, and output results produced to provide competitive differentiation in high value and quality customer results. R-pM makes the unorganized business burdened by overlaid structures a distinct competitive disadvantage in the 21st century. [more...]

Use one Structure for Organization, Operations, Development, and Management: the Business

June 12th, 2008

Enterprises today are organized and managed using many structures

Throughout the 20th century, we have implemented organization, process, account, performance management, and other structures. These many structures, and the different entities used, produce business and information complexity and many other problems. There has long been recognition of the problems. Many books have been written and additional management structures have been devised, but the problems remain.

Enterprises and management developers have been looking for one integrating structure

There are many efforts to replace these structures with one simple and consistently-defined structure for business collaboration, reliable management information, use of common solutions, and other needs. Until now, no one has defined the one integrated structure that can be used to organize and manage any enterprise in any industry. Each new structure is laid over existing structures compounding the problems.

The one integrating structure exists; it is the business itself

There is one structure. It has been there all along! That structure is the business itself!

The enterprise business is defined as “the utilization of capital of worth in performance to incur costs and produce value in results”. The business consists of three components:

  • Business results produced as economic outputs of value from the business
  • Capital in the specific performance solutions invested in the business
  • Performance in the utilization of performance solutions to produce results

These components of the business are organized into the current and strategic business structures that replace all structures laid over the business for transparent management of strategic result value creation.

R-pM provides the only method to organize and manage the actual business

Today's unsolvable business problems are caused by conflicts between the actual business and structures laid over the business. Result-performance Management (R-pM) organizes the business, as current and strategic structures, for 21st century management. R-pM replaces all overlaid structures with the appropriate business structure and leaves unsolvable 20th century problems behind [more...]

Record Business Data, stop recording Irrelevant Corporate Data

June 5th, 2008

Information systems gather corporate data that is irrelevant to the business

20th century information systems do not capture business data or provide the information needed to manage the actual business. 20th 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 21st 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 20th century structures becomes irrelevant and can be abolished. 21st century management can then concentrate on managing the business [more...]

Capture capital and performance costs and assess capital worth

May 26th, 2008

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...]

Organize with R-pM for 21st Century Management

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