Managers today do not manage the business or make business decisions
Managers and directors may think that they manage the business and make business decisions. But, in fact, managers are unaware of the definition of the actual business or the components of the business. Managers have never been taught and do not have access to learning on actual business management and business decision-making.
Managers do not have the business context, business management experience, or actual business management information needed to make decisions directly related to the business, to implement business decisions to change the business, and to measure the results from decisions.
Managers use dead-end 20th century management to manage the enterprise and not the business. Organization and management structures are laid over the business to prevent business management. All management and decision-support information is reported against overlaid structures rather than the actual business. All management decisions made today are enterprise decisions based on changes to overlaid enterprise structures. Management decisions are implemented by changing organization, process, system, etc structures laid over the business or laying new performance management, IT architecture, records management, etc structures over the business.
Business decisions must involve the actual business and be implemented in the actual business
The actual business is not defined or managed today. The business is defined as “the utilization of capital of worth in performance to incur costs and produce value in results”. The business has three components:
- Capital in the performance solutions of worth available to the business
- Performance of the business in the utilization of capital as specific performance solutions to incur costs and produce specific results
- Results in the economic outputs of value produced by performance
Every current or strategic business decision boils down to what result to produce and what capital to utilize. Every business change is a change to a specific result produced or to the performance solutions utilized to produce results. Every business decision is implemented through a new or improved result or new or improved performance solution. Every business decision is recorded and measured in actual performance in the cost and effectiveness of the solution to produce value and quality results. Therefore, we must organize and manage the business as capital, performance, and results in order to make actual business decisions and manage business change.
Management has no context or information to support business decision-making
Business decisions must be made in the actual business context and by using actual business management information that do not exist under 20th century management. In order to make informed business decisions management needs a context of results of known value produced across the business to decide on specific new or improved results needed. Management needs a context of the worth and costs of capital utilized as performance solutions in order to make actual business capital development decisions on specific solutions needed to create value in specific results. Management needs decision support information on the value and quality of results produced in value-quality chains and the cost and effectiveness of performance producing results. Management must gain experience with actual business management performance indicators and result metrics like performance costs, capital worth, solution performance against expectations, result value-added, result value returns on capital investments, result goal setting, customer result quality requirements, performance effectiveness, determined result quality, progress in creating strategic result value, strategic result value estimates, etc. Management cannot make informed business decisions without the context and information provided by the organized business.
Use R-pM to organize the business to enable business decisions
No business schools or management books teach managers how to manage the actual business or how to make real business decisions. The only answer is Result-performance Management (R-pM) to organize the actual business for 21st Century Management.
R-pM organizes results produced across the business and the capital utilized in performance solutions to produce each result. R-pM captures actual business data in performance transactions when solutions are utilized to incur costs to produce value-quality results. R-pM provides actual business management information to support business decisions. R-pM implements business decisions in new results and performance solutions as actual business change.
R-pM implements strategic decisions in the strategic business structure at a future horizon to plan strategic results and capital development required to provide specific performance solutions to produce new result value. R-pM substantiates strategic decisions through result goals by time period to implement solutions needed and to produce strategic result value. R-pM provides management information on progress to the strategic business and new strategic estimates to govern approved business decisions.
The R-pM Toolkit is the source of information and guidance on organizing the business for informed business decisions
The R-pM Toolkit, your 21st Century Management manual, is the only authoritative source of information on actual business management and R-pM. Visit result-performance-management.com to download your copy of The R-pM Toolkit and learn how to organize and manage your business for informed business decisions.
