Organize and manage your business activity and goods and services provided to customers
The generally-accepted 20th century definition of enterprise business is “the activity of providing goods and services”, even for a non-profit organization or government agency. R-pM provides a more precise 21st century definition of the business as “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results”
20th century management organizes and manages the business enterprise and not the enterprise business. Organization and management structures are laid over the business preventing direct management of “the activity of providing goods and services”. Today, you invest large sums in capital solutions of worth and utilize solutions in performance to produce results. But you are unable to measure and manage capital worth, performance costs, or result value-quality, since your actual business is hidden under overlaid organization units, corporate plans, business processes, account charts, costing activities, administrative functions, scorecards, and other structures. You must identify, document, and gain control of your business through R-pM, clear away all overlaid structures, and then actually manage your investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results.
Any method can be employed to manage the business enterprise. This leads to duplication, waste, and unsolvable problems. Only one method can be used to manage the enterprise business properly, so that business management is focused and productive and unsolvable problems are eliminated. R-pM is a new breakthrough to organize and manage business activity as capital solutions utilized in performance and good, services, and other economic outputs as results produced. With R-pM, you can gain control of your business to directly organize and manage “the activity of providing goods and services” to provide high-value and high-quality goods and services to your customers.
R-pM organizes and manages goods and services provided as results
Every individual or enterprise procures goods and services as input results to the business. The input results may be utilized by the individual or enterprise business in one of two ways:
- Results, such as material or components, may be transformed into output results from the enterprise business
- Results may be implemented as capital solutions such as equipment, supplies, processes and systems, information etc to be utilized in the business to produce other results
Goods and services provided to a customer represent the value created by the business and contain the quality produced by business performance. Value is determined by the customer willingness to pay for the goods and services as input results to his business. Quality is in the customer perception of the suitability of the goods and services as input results to his business.
Goods and services are produced by utilizing capital solutions in performance to produce output results along a chain of results. For goods, the results may be material received, product produced, product placed for sale, product included in customer order, and product delivered to customer. For a services, the results may be service results planned, service agreement executed, service results delivered result by result, service results accepted by customer, and service invoice paid. The value and quality of goods and services provided can be managed only by organizing and managing the results in the result chain leading to the final results provided to the customer.
R-pM defines the results in the result chain that must be organized and managed to provide high-value and high-quality input results for the customer result chain. R-pM organizes and relates results in a result structure to manage volumes produced, result value, total performance costs, value-added, quality, risk, goals, and other result metrics.
R-pM enables the activity of providing by organizing capital utilized business performance
In our personal business, we utilize capital solutions in our time, capabilities, equipment, cash, supplies, purchased services, plans and tactics, information, and other solutions to produce or procure the result desired. The result could be a pleasurable time, specific achievement, or purchased goods or service results. The value of the result must exceed the cost of performance in order for us to be happy with the result. Quality of the result is the pleasure we received, the objective satisfied, or the suitability of the result to be transformed to a final result like dinner, or to be utilized as a performance solution such as a tool, soap, or personal knowledge. We recognize that the quality of the result is a function of the effectiveness of our performance in selecting or producing the result. We do this naturally. We do not lay organization or management structures over our personal business.
Business activity is performance in the utilization of capital solutions to produce business results. Capital solutions have worth in the value they add to the results produced and contribute to our enterprise worth. Capital solutions must be organized in categories to apply the specific capabilities required to develop and support the solutions, as:
- Business capital in the business organization, business process, and business data utilized. Business capital is specific to the result produced and cannot be used to produce other results. Business capital requires business knowledge and analytical capabilities
- Human capital in the personnel, capabilities, and knowledge of individuals utilized by the business. Human capital requires human handling and development capabilities
- Facility capital in the reusable equipment, consumable supplies, and records kept on the business. Facility capital requires administrative ability and experience with the particular capital utilized
- Management capital in management strategies that plan the business, management tactics that keep the business competitive, and management intelligence that indicate business opportunities or threats. Management capital requires management analysis and research capabilities.
The capital must be defined as specific capital solutions that can be utilized in the business to produce specific results. Capital solutions must be organized by class to be integrated with like solutions to produce results effectively, as:
- Readiness capital to integrate the business organization with human personnel, facility equipment, and management strategy to be ready to produce the first result in a set of results that utilize the capital. Readiness capital provides the capital module utilized by the business organization unit solution to produce assigned results.
- Production capital to integrate the business process with human capabilities, facility supply, and management tactics that are utilized when producing a specific result
- Information capital to integrate business data, with human knowledge, facility records, and management intelligence that are needed to produce a result and to document results produced
All capital, including currently unmanaged capital and intangible assets, are organized and managed as individual solutions. Capital solutions are organized by category and class in one capital structure to manage capital investment costs, investment costs amortized as performance costs, investment balance unamortized, return on investment, capital worth, qualifications and potential to produce results, and other capital measures.
R-pM organizes performance in specific solutions utilized to produce specific results to provide goods and services
R-pM organizes the results that must be produced across the business, including the chain of results that produce goods and services, in the result structure. R-pM organizes the capital solutions utilized in business activity in the capital structure. R-pM organizes results and capital in one integrated business structure by deploying specific capital solutions to domains in the performance structure to be utilized to produce specific results. R-pM captures actual business data on the value, quality, volume, risks, etc in results produced and the corresponding cost, effectiveness, capacity utilization, uncertainty, etc of solutions utilized in performance. The result value less total performance costs is the result value added that is managed across the result chain to maximize customer value while minimizing performance costs. The effectiveness of each performance solution is managed to manage the quality of each result in the chain to assure the quality delivered to the customer.
Businesses in a corporation consolidate into the corporate business
Learn more about R-pM to organize and manage your business at Result-performance-Management.com
These are the basics of Result-performance Management to organize the business for 21st Century Management. R-pM builds on these basics to eliminate unsolvable 20th century management problems and provide the breakthrough advantages of 21st Century Management. Learn how to gain control of your business at Result-performance-Management.com. Subscribe to the R-pM Toolkit for detailed procedures and 21st Century Management conventions, definitions, and standards
The R-pM Solution to the Economic Crisis is explained in free downloads
Three free white papers explain the dead-end 20th century management problems 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
- The Only Solution to the Economic Crisis explains how R-pM manages the business to capture actual business data and provide management the information needed for actual business management
- A Government Business Management Program to Answer the Economic Crisis outlines a government program to encourage business management 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.
