20th century management uses different structures for enterprise planning and management
A recent article “Integrate business organization and management through one business structure”, pointed out the separate structures laid over the business for 20th century management, to manage the corporation rather than the business. The corporation is organized through an organization structure. The corporation is planned through strategic structures like maps and corporate plans, operational and development plans, and budgets. The corporation is directed through process and system structures. The enterprise is controlled through financial and cost accounting structures. The corporation is reported through performance management structures like scorecards, strategic enterprise management structures, and reporting structures.
The many structures define different versions of the corporation and require various information systems to manage and process. This creates information and business complexity and prevents management of the actual business. The actual business “the activity of providing goods and services” lies hidden under the structures and has never been organized, planned, directed, controlled, or reported.
R-pM uses the actual business to integrate management organization, planning, direction, control, and reporting
Result-performance Management (R-pM) eliminates this problem by organizing the business for 21st Century Management. One business structure organizes the current in-operation performance solutions being utilized as capital in business activity and goods and services and other economic output results of value being produced by the solutions. Another strategic business structure shows the strategic results to be produced by the business at the strategic horizon in two to five years, and the existing and new performance solutions needed to produce the results. The current in-operation and strategic business structures are used for all management to organize, plan, direct, control, and report the actual business through one consistent set of 21st Century Management conventions, definitions, and standards.
R-pM documents the business strategy as management strategy capital in the strategic business structure
The current in-operation business structure is maintained as business organization capital. The strategic business structure is developed and maintained as management strategy capital. The strategy of every corporate or other business boils down to what results must be produced in the future to create the value needed to sustain and grow the business, and what capital investments in performance solutions must be made to have the capability to produce the results. The strategy for the future business at a point in time, called the strategic horizon, is represented by the strategic business structure. The strategic business structure shows the business organization in results of value to be produced and the specific investments in new performance solutions needed. The strategic business structure is backed up by management strategy capital in operating and development plans, the competitive environment, justifications, etc.
R-pM plans result goals from the current to strategic business and sets performance expectations
Result managers must accept the strategy and work out result goals by time period, such as month, to create the planned strategic result value. The result goals plan the transition from the current to the strategic business. New goals are introduced as new results are produced in the strategy. Capital development plans document the specific performance solutions to be developed to provide the new capability needed to produce strategic results. Performance expectations are set where specific performance solutions must be acquired or developed and managed to produce the needed results.
R-pM governs the transition from the current to strategic business
R-pM organizes the business and provides the solutions needed for good corporate governance results. Governance is supported by management capital solutions to provide a sound business strategy and plans as strategy capital, to provide responsible management, competitive tactics, result evaluations, and performance assessments as tactics capital, and to provide internal information analysis and external competitive and business analysis as intelligence capital. Governance is also supported by planned, actual, and estimated results such as revenues, profits, shareholder or stakeholder value, etc. Governance ensures that result goals are met time period by period, that estimates are tracked against strategic goals, and that performance expectations are maintained. 21st Century Management provides specific conventions, definitions, and standards to benchmark the business and guide good corporate governance. Governance ensures that actions are taken to resolve specific result or performance problems.
R-pM provides the information and guidance to organize your business for 21st Century Management
R-pM and 21st Century Management conventions, definitions, and standards are presented in The R-PM Toolkit, your 21st Century Management Manual. Visit result-performance-management.com to learn more about R-pM and to download The R-PM Toolkit.
