Value has no value in 20^th century management used today

Value is an impressive word. People talk of value propositions, strategic value, value chains, value creation, and value management as if they were actually measuring and utilizing value as a day-to-day business metric. But looking further, we find that value is calculated from a contrived business overlay or formula.

20^th century enterprise organization and management prevents the utilization of value as a day-to-day business metric.

R-pM organizes the business to make value a manageable and valuable result metric

We must organize the business through Result-performance Management (R-pM) for day-to-day 21^st Century Management. Value is an attribute of output results produced by the utilization of capital in performance across the business. The value of input results from suppliers, plus each result in the business result chain, equals the value imparted to customer results in customer willingness to pay. [more...]

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...]

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...]

It is impossible to manage capital development properly today with 20^th century management

20^th century management used today does not provide a framework for proper capital development. Capital development develops capital as specific tangible and intangible performance solutions that must be utilized by the business. Capital development incurs the costs of development. But capital is not defined and managed as a set of performance solutions available to the business. Developed capital is utilized in business performance to produce output results of value. Result development provides the benefits of development and the value-added that provides the return on investment. But results are not defined and managed as a set to be produced by the business. Therefore, 20^th century management manages capital development to develop certain known capital as an exercise separate from the business.

Result-performance Management (R-pM) organizes the business to enable result-performance development

Result-performance Management organizes the business in results that must be produced for business success, capital that must be invested in the business to produce results, and performance in the utilization of specific capital as performance solutions to produce specific results. Once the business is managed, it is straight forward to identify new results required to improve and expand the business. Once the business is managed, it is also straight forward to identify the tangible and intangible capital needed to produce the results. New result development and new performance solution development is planned and managed as part of the business [more...]

Leaders tend to be satisfied with the methods that got them leadership

Current industry or competitive leaders likely are satisfied with 20^th century management that brought them to a leadership position. It is the followers, who have the most to gain by using a new breakthrough to overtake the leaders. R-pM enables the followers, be it a country, corporation, or business association to become a leader.

R-pM enables the capable follower to overtake the complacent leader

The first to implement R-pM will implement R-pM because they want to and will instill 21^st century management throughout the business. They become the leader and gain an unassailable business advantage that continues to grow over time. The followers will have to implement R-pM as well. But, they will implement R-pM because they have to. The followers, who use R-pM because they have to, will continue to fall behind the leaders, who use R-pM because they want to.

R-pM is a breakthrough to manage the business and a one-time opportunity to gain significant advantage

R-pM is a breakthrough for 21^st century management to abolish the enormous overheads, costs, and inefficiency of 20^th century management. R-pM provides an one-time opportunity for followers to become leaders. If you are a follower, as an enterprise, group, or nation, research R-pM to learn how to leap over the competition and become a leader [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 information is inaccurate and incomplete

20^th century management used today can report enormous amounts of information against organization and management structures laid over the business. Large information systems process information on the various organization, planning, process, system, account, project, administration, performance, and reporting structures. Additional systems try to make sense of the information for management use.

But, since the actual business is not organized or managed, no information is reported on details of the actual business. Business data in value created, costs incurred, return on capital investments, business value-added, capital worth, and enterprise business worth remain unknown.

R-pM reports accurate and complete information on the actual business

R-pM organizes one business structure for one set of accurate, complete, and consistent management information on the actual business for organization, planning, direction, control, and reporting. Existing processes and systems are rationalized for use in the actual business. R-pM reports the actual business across the breath of the business in business results produced and to the depth of the business in the capital utilized in performance solutions to produce results.

R-pM reports result value-added, quality determinates, and capital worth

R-pM reports business management information not available today in result value, strategic result value creation, result value-added, performance costs, capital development costs and value-added and returns, capital worth, and many other performance indicators and result metrics that are not known today. R-pM provides complete and accurate information on the actual business and phases out the inaccurate, inconsistent, and incomplete management information provided today. R-pM enables management to use common sense to manage the actual business rather than trying to follow arbitrary rules imposed by structures laid over the business [more...]

20^th century management uses many different structures for planning and management

20^th century management does not plan or manage the business. Various planning and management structures are laid over the business. Various strategy documents, corporate plans, budget structures, etc. plan the corporation in different ways. But, no corporation plans the actual business to show the specific result values to produce month by month to create the strategic value in the future business results.

20^th century management cannot support good corporate governance

20^th century management governs the corporation through rules and regulations because the business is not organized and cannot be planned and managed to create strategic value. Regulatory requirements continue to add overheads to the corporation make 20th century management even more difficult.

R-pM organizes, plans, manages, controls, and governs the actual business

R-pM replaces all 20^th century management structures laid over the business with one business structure used for all organization, planning, directing, control, and reporting. A strategic business structure sets the strategic result value to be created and the capital investments needed. Transparent business management and corporate governance manage the transition of the current business to the strategic business. 21^st Century Management conventions, definitions, and standards provide benchmarks and guidance for business results and performance and good governance [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...]