Performance today is defined as both the actions executed and results accomplished
Another fundamental problem of 20th century management is the definition of performance. Enterprises today employ the 15th century definition of performance that includes not only the utilization of capital in actions executed, but also the output results accomplished. Performance management methods and systems are based on this definition. KPIs mix together capital utilized, performance executed, and results accomplished as performance indicators. Since performance defines results and performance in the utilization of capital as the same entity, they cannot be managed separately. Contrived processes and performance management structures mix capital or results identified together with performance, in one performance dimension. Managers have no structure to manage responsibility for capital, performance to utilize the capital, and results produced.
R-pM separates performance into capital implemented, utilization of capital in performance, and results produced
R-pM separates capital, results, and performance as specific components of the business. R-pM redefines performance as the utilization of specific capital solutions to produce a result. Results are the inputs and outputs of performance and are defined to encompass all that the enterprise produces. Capital solutions encompass all the capital that is employed in performance to produce results. The business is organized when capital solutions are deployed and implemented in performance domains with specific results. Business performance utilizes the implemented solutions in all domains for a result to produce the result.
Manage performance by managing capital solutions domains in utilization to produce the result
Actual business performance is managed by managing capital solution utilization in each result-solution domain to produce results. All human capital time and other capital utilization costs are charged against results produced.
Each time a volume of full or partial results is produced, business transactions are generated to capture performance costs for each solution utilized, the attributed result value-added from the performance, other performance indicators, metrics specific to the result produced, and measures specific to the capital solution utilized. Business transactions update domain, capital solution, and result data and facility records. Metrics for volume, total performance cost, quality, risk, value added, and symptoms are updated to the result. Indicators for utilization, cost, effectiveness, uncertainty, attributed contribution to value-added, and problems are updated to the performance domain. Measures for capacity, cost reducing the investment balance, qualifications, reliability, value-added to determine return and worth, cause of problems are updated to the capital solution. Business performance and all transactions are transparent and accurate.
Capital solution performance is managed across results that utilize the solution
Capital is managed to have solutions available to produce results. Performance is managed by implementing and managing the solutions utilized to produce multiple results across the horizontal performance dimension. Results are managed by utilizing multiple capital solutions along the vertical result dimension. Business result and performance management manages both dimensions in the business structure for any part of the business. Result metrics are summarized for the volume of each result produced by result column and managed against result goals. Capital measures are summarized by performance row for the solution utilized and managed against capital potential. Performance indicators are summarized by the result-solution performance domain for performance indicators and managed against performance expectations.
Business structures show the performance of any part of the business, the complete business, or consolidated businesses
The business structure can show the whole business or any part of the business. Business structures within a corporation can be consolidated to the corporate structure. Business structures can be combined for merger, acquisition, or collaboration. Business structures form an architecture for businesses within an industry, market, economy, or other business descriptor. Business structures at all levels describe and consolidate results, capital solutions, and performance into a manageable framework.
Business performance management provides the qualified and cost-effective solutions to produce value-quality results
Business performance management is the utilization of investments in qualified capital solutions to be cost-effective in order to produce high value-quality results. R-pM provides the structure for efficient and effective business performance at all levels. R-pM provides transparent management of every result produced, every capital solution utilized, and the performance of every solution to produce a result to manage business performance. Problems and delays in producing a result cannot be hidden. Results, capital solutions, and performance are managed within each time period to utilize capital to its potential, meet performance expectations, and reach result goals. Business performance is managed period by period in the management dimension to plan the strategic business, set result goals, develop and change the business, carry out the strategy, and converge on the strategic business. R-pM manages business performance to produce results planned for the period, and to maintain progress on results in process and strategic result goals.
The Only Solution to the Economic Crisis is explained in free downloads
Three free white papers explain the dead-end 20th century management problems, such as the failure to plan and manage actual business performance, that caused the economic crisis, the way R-pM eliminates the problems, and a government program to address the crisis by stimulating the economy, solving the problems, building an architecture for financial and economic management, and organizing local businesses to flourish in the eventual recovery.
- How to Eliminate Problems that caused the Economic Crisis explains the major unsolvable 20th century management problems and the R-pM solution to eliminate the problems
- The Only Solution to the Economic Crisis explains how R-pM plans and manages the business to capture business data and provide management the information needed for actual business, corporation, industry, and economic management
- A Government Business Management Program to Answer the Economic Crisis outlines a government program to encourage business management, stimulate the economy, restore confidence, organize businesses to flourish in the recovery, and manage economic cycles to prevent future crisis
These three white paper downloads are available to R-pM Community Members at Result-performance Management.com. There is no cost or obligation to join the R-pM Community. Join by entering your email and password. Your email address is protected and used only for download problems and occasional R-pM Member news and white papers.
