Performance management today mixes capital utilized, performance, and results accomplished together

Performance management is a popular form of 20^th century enterprise management. But performance management mixes the capital utilized, the performance in the utilization of capital, and the results produced together. This prevents real business management to manage the utilization of specific measured capital solutions, in measured specific actions of performance, to produce specific measured results. Performance indicators do not distinguish capital solutions, solution performance, and results produced.

R-pM separates capital solutions, performance, and results to manage the business

The business is defined as “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results”. In order to manage the business, capital solutions, solution performance, and results produced must be managed as separate components of the business. Capital solutions are qualified to produce specific results before being acquired and implemented. Capital solutions are planned with the potential to produce results and measured through capital measures. Performance is the utilization of a specific solution to produce a result. Performance is planned through a level of expectation and measured through performance indicators. Results are planned to produce a volume or count of results of value through result goals and measured through result metrics. This enables all components of the business to be measured and managed as separate entities in business performance in order to manage the actual business. [more...]

Corporations today are not able to manage the business causing the economic crisis

All business managers are familiar with such 20^th century management problems as unknown costs, unknown value and quality chains, unknown investment amounts and return in specific capital items, unknown capital worth (asset value), intangible assets, inaccurate and missing management information, and on an on. These unsolvable problems are symptoms of the one corporate management problem that caused the economic crisis; the failure to manage the corporate business. Corporations today do not have the management information or tools to solve the problems and prevent future problems. The various corporate businesses cannot be consolidated into one corporation business.

Government responses to the economic crisis do not address the one fundamental problem

Governments and "experts" propose solutions to the economic crisis that are the usual economic recovery, corporate rescue, and added regulation. No one is trying to identify and solve the fundamental problem in order to prevent recurrence. Measures proposed encourage corporations to proceed as usual, and not take the needed steps to manage the corporate businesses to gain significant competitive advantage and to prevent the problems that will lead to future economic crisis.

R-pM is the only solution for effective corporate business management

Result-performance Management (R-pM) is the only method available to consolidate and manage the corporation business. R-pM organizes and manages each part of the corporation as a business. Businesses at a lower-level add into the businesses at a higher-level until the corporation is managed as one business with one complete, accurate, and transparent business structure. All 20^th century management structures laid over corporate businesses at all levels and the related unsolvable problems are left behind. [more...]

Capital investments today are not managed as specific solutions to produce business results

20^th century management employed by all enterprises today does not identify specific capital solutions as an entity to be defined, measured, or managed. Some obvious capital assets like employees, fixed assets, and money are identified and managed as separate assets. Many high worth assets are never defined or are labeled as "intangible assets". The full amount invested in capital solutions, the decline in solution worth producing performance costs to amortize the investment, the return on investment in the solution, and the current capital worth or "asset value" of the solutions are unknown. Unknown and unmanaged capital is a major contributor to financial losses that led to the current economic recession.

Result-performance Management manages all capital investments in the business

Result-performance Management (R-pM) identifies all capital investments as specific solutions intended to produce specific results. The full scope of solutions needed to produce a result are defined, with the qualifications needed for each solution. The expected result value increase with the investment is planned and must exceed the development and implementation costs to justify the investment. Result value is attributed to solutions utilized by the contribution of the solutions to producing a good result. The attributed result value for each solution over its expected life and disposal is the planned solution worth that must cover the solution investment.

Capital solution performance to produce results and result value-added is measured and managed

Each capital solution is implemented to produce one or more results in performance. The solution worth declines as the solution deteriorates or becomes outdated. The decline generates performance costs that are spread across the results that utilize the solution. Utilization of the solution also creates result value that leads to customer revenues. The portion attributed to the solution covers the solution costs and provides the gain or loss for the return on investment in the solution. The expected future attributed result-value to cover the costs and gain in the solution over the remaining life, plus solution sale or disposal result value is the current solution worth, which must exceed the unamortized investment balance. These capital measures largely are unknown today, but are important for the proper management of the business and prevention of financial, capital, and economic problems. [more...]

Economic output results produced by the business today are not managed or are managed as an isolated entity

20^th century management employed by all enterprises today does not define economic output results as an entity to be defined, measured, or managed. Most results produced by the business are never defined or managed. Some important recurring results are identified and managed as an isolated entity such as an order, a service rendered, a payment received, etc. Results produced across the chain to produce the managed entity are not identified or managed.

Result-performance Management manages all results produced by the business

Results are outputs that can be counted and measured. Results contain enterprise value, quality, costs, risk, value-added, and other metrics that are unknown today. Results provide the important outputs that must be produced to meet business objectives and achieve business success. Result-performance Management (R-pM) focuses the enterprise on producing results and on managing the business result by result, and achieving result goals period by period.

Capital solutions utilized in performance are measured and managed for each result

Each result is produced by utilizing implemented capital solutions in performance to incur costs and create value and quality. Every result has a customer who must be willing to pay a value to receive the result. The total result value of each result in a chain cannot exceed the final result value paid by the external customer. The result value less the total performance cost for the volume of results produced is the result value-added, which must be positive to justify producing the result. Result value-added is the main management metric of 21^st Century Management. [more...]

20^th century management used today cannot plan the business

Since the business today is not organized or managed, the business cannot be planned. The enterprise is planned through strategic maps, corporate plans, IT, financial, human resource and other functional plans, and budgets that are laid over the business. The planning structures use different terminology, and often do not relate to each other or to management and reporting structures used to manage the business.

R-pM plans the actual business in a strategic business structure in 2-5 years

Result-performance Management plans results of a value that a customer is willing to pay that must be produced by a particular time. Capital is planned for solution investments needed and costs to produce each specific result giving result value-added. Time periods are planned to produce results that are needed for business success. Result value-added is planned to ensure "the bang for the buck" and profitability.

Future results are researched to determine customer needs and preferences, and to design results. Capital development is planned to produce specific results of added value-added for the investment return. The business is planned in a strategic business structure at a selected horizon in 2-5 years. Result goals and performance expectations are planned by period from the base business to the strategic business.

Responsible managers learn results and capital solutions to plan results, performance, and management over time

As experience is gained, business planning becomes more precise and reliable. All responsible managers learn their results and capital solution performance in order to professionally determine future result value and capital solution needs. The planned period by period business provides a clear view for managing progress to achieve future results. This enables managed course correction and lets all see their part in strategic result value creation. R-pM is the only way to manage planned strategic result value creation and result value-added time period by period starting from the base period. [more...]

Management Consultants need a way to help Clients out of the Recession

Both enterprises and management consultants are hurting as a consequence of the economic recession. Both need a solution to help them recover. The only solution to the problems that caused the recession is Result-performance Management (R-pM). Management Consultants guide the Enterprise to organize and manage the business directly to slash costs, improve product value and quality, and gain new competitive advantages. Enterprises have under-utilized time and capital that provides the opportunity to organize the business for 21^st Century Management to prosper in the recovery.

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

As you see from the articles in 21^st Century Management magazine, Result-performance Management (R-pM) is the only way to organize the actual business into one structure for 21^st Century Management. Unsolvable 20^th century management problems, propagated by management consultants today, are better known as the cause of the economic crisis. R-pM is the only way for professional management consultants to stop supporting obsolete 20^th century management and begin to support growing 21^st Century Management.

R-pM use and the demand for R-pM management support is growing

R-pM has now been launched and is growing in popularity. Many enterprises are downloading the R-pM Toolkit to learn R-pM and to begin to organize and manage their actual business. R-pM is supported by the R-pM Management Consulting Model to assist consultants and corporations to work together to organize and manage the actual corporate business. The benefits of R-pM are becoming well-known and corporations and other enterprises are looking for professional management consultant support. This provides an opportunity for management consultants to join R-pM and become a licensed R-pM Management Consultant. [more...]

No enterprise in the world is able to manage its business today

Enterprises operate under the false impression that their business is being managed. But the business itself is not known or managed. The business is hidden under a maze of structures used to manage the enterprise. The fundamental problem that caused the economic crisis is "the failure to manage the business". All the symptoms and mistakes made by financial institutions, other corporations, and governments that are cited as the cause of the economic crisis arise from this one fundamental problem.

The only solution to the economic crisis is to use R-pM to manage the business

Result-performance management is the only way to manage the actual business in “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results”. R-pM manages current and future capital worth to know "asset values", to prevent sudden write-downs and losses. R-pM manages all the businesses in a corporate business to consolidate into the corporation business and prevent corporate management problems. R-pM provides the transparent view of the business for informed management and investor decisions. R-pM provides the architecture needed by governments to consolidate businesses by industry, market, and economic sector for proper management of economic cycles. R-pM manages the actual business to eliminate the problems that caused and continue to aggravate the economic crisis. [more...]

The economic crisis is caused by the failure to manage the business and results as part of the business

The business is “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results”. In order to manage the business, three components of the business must be managed; the capital investments in the business as capital solutions of worth, performance of the business in utilization of specific capital solutions to incur costs and produce specific results, and output results of managed value and quality produced across the business.

20^th century management utilized by all corporations, financial institutions, and other enterprises today do not identify or manage specific capital solution investments as a complete data set and do not identify or manage specific output results produced as another data set. Financial institutions are not able to manage "asset value" in the worth of solutions in their investment portfolios. Corporations are not able to manage diverse businesses within the corporation as part of an integrated and managed corporate business. These are examples of causes cited for business failures and downturns that caused the economic crisis.

Result-performance Management organizes and manages the actual business and results as part of the business

R-pM organizes and manages one integrated enterprise business structure. The business structure is comprised of the result structure to organize and relate results required for business success, the capital structure to organize capital solutions available, and the performance structure to implement the capital that is utilized to produce specific results.

The key component of the business structure is the result structure that organizes economic outputs to be managed for the volume, value, and quality that lead to revenue, profit, and stakeholder value results. All enterprise management responsibilities are to produce specific results. Strategies are organized by the strategic results to produce in the strategic result structure. A well-managed enterprise business must manage the value and quality of all results produced by the utilization of specifically-qualified and cost-effective capital solutions. [more...]

The economic crisis shows the failure to manage capital investments and utilization

The economic crisis shows the importance of managing capital properly. But, businesses today use 20^th century management and cannot manage capital in the set of solutions utilized by the business in performance to produce output results. Capital is lumped together as a fixed asset, developed but never identified as capital, or is labeled as intangible assets. The business does not know the amount invested in solutions, costs of utilization of capital, the worth of capital available, the specific utilization of capital by the business, and the actual return on the capital investment.

Managed capital shows investments and return, performance costs, and worth by solution

All tangible and intangible capital must be identified and organized as the specific solutions available to the business to produce specific results and to record all investments in the solution. Capital solutions are implemented when deployed to a result to set up a performance domain to record business transactions. Capital solution utilization generates business data on solution performance costs, performance effectiveness, result value-added, and other data not captured today. Result value-added by solution provides return on investment and establishes the worth of the solution.

Capital must be managed as part of the managed business

The economic crisis is caused by failure to manage the business. Financial institution cannot manage asset-value, which is actually capital solution worth. Corporations cannot manage costs or margins, because capital solutions are not identified and result value-added is unknown. Corporate financial statements record partial capital in balance sheets and report erroneous business net worth. The only solution is Result-performance Management (R-pM) to organize the business, and capital as part of the business, for 21^st Century Management, and leave 20^th century management problems behind. [more...]

The economic crisis shows the problems with 20^th century Business Process Management

Financial institutions and other corporations state that they have problems due the the failure to manage asset value, full operating costs, and the margins in outputs produced. This is part of the basic problem causing the economic crisis, failure to manage the business. One of the major features of 20^th century management, Business Process Management, prevents management of the business. Corporations must manage processes and cannot manage specific capital investments, output results produced, and the performance of capital solutions utilized to produce a result.

Business processes must be replaced by result chains to manage costs, value, and quality

Rule 2 for 21^st Century Management is to: Generate revenues from a chain of known value. The rule says to define the results produced and manage each result in the result value-quality chain; starting from input results from the supplier, proceeding through result value added along the corporate chain, and ending at the final result to the customer. Business processes used today do not allow this. The corporation must redefine business processes by identifying the results produced and the capital solutions utilized within the process to isolate the most cost-effective performance to produce the highest value-quality result. Results must be managed result by result within a set to produce the input result to the customer value-quality chain.

R-pM manages result value-quality chains as part of the managed business

Result-performance Management is the only method to manage the corporate business and result value-quality chains to know full costs to produce a result, the value of the result, the value-added by performance as well as capital solution qualifications, performance effectiveness, and the quality result by result in the chain. R-pM ensures that customers receive managed value and quality in goods and services from the corporation. [more...]