20th century management plans through structures laid over the business
A wide variety of methods, models, and maps are employed to produce enterprise strategies. Strategy, planning, and budget structures are laid over the business, rather than planning the actual business. Enterprises often proclaim a strategy to create future value, but do not define the precise range of results that will provide the value. Different structures are used for a strategy, corporate plans, financial plans, IT plans, other functional plans, development plans, and budgets. The planning structures often are not related and contradict. Generally-accepted management structures laid over the business are difficult to relate to planning structures. This makes it difficult to carry out the strategy and create the future value.
R-pM plans the actual business in result, performance, and management dimensions
Result-performance Management (R-pM) provides a simple and easy-to-understand business structure for 21st century business planning and management of the actual business defined as “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results”. R-pM is Result-performance Management, because it plans and manages the actual business of the enterprise in three dimensions: result, performance, and management, similar to how you might create spreadsheets.
- Result: Results planned and produced on the vertical result column as in a spreadsheet
- Performance: Capital solutions planned, implemented, and utilized in performance domains to produce specific results, and managed across horizontal performance rows
- Management: Each month or other time period planned and managed along the management dimension from the base plan period to the strategic horizon. Each time period shows the business like a new spreadsheet, for the planned and actual results and performance against result goals and performance expectations for the period
Result-performance Management is named for the three dimensions of management to manage the current business effectively and the convergence of the business period by period to the approved strategic business.
R-pM plans the business strategy and all investments to increase result value-added
R-pM plans the actual business starting from the results produced and capital solutions utilized in a base period and building up time period by period to the strategic business structure at a future business horizon time.
The strategic business structure defines the specific results planned and specific capital solutions needed at the strategic horizon in 2-5 years. The business is planned and managed in the management dimension of R-pM. Result research is planned to investigate and design new results needed. Capital development is planned to have the solutions needed to produce new or improved results. Result value-added is planned with goals from the base period by period to the strategic horizon. Business governance manages each period for actual results produced against goals, result research and capital development projects in progress, the return on investment for previously developed capital, and the progress and explained change in projected estimates against the strategic result plans.
R-pM integrates all strategy, planning, and budgeting in the current base planning structure and the strategic business structures. R-pM defines the strategy in terms of what really adds value, future results, and to define result research and capital investment and development needed to achieve the value. Strategic results include all results to be produced at the strategic horizon. Strategic result value is systematically built up and justified by period by period goals starting from the base period result values and the implementation period for new results and the capital solutions needed.
The business strategy is planned and managed as management strategy capital
Management strategy capital defines and manages the enterprise strategy. Management strategy is an approved and deployed management solution used to produce results. The management strategy is presented in the strategic business structure, which plans result value, result research, capital solution investment and development, and all costs to the strategic horizon. Operation and development plans show the period by period results and performance needed to execute the strategy. Functional plans and budgets are contained in plans by capital solution type to produce results over time. For example, information system processing and business processes are planned and budgeted as part of business process planning. IT equipment and networks and financial facilities are planned and budgeted as part of reusable facility equipment planning.
The strategy is based on planning results at the strategic horizon to plan future result value, and planning the capital solutions needed with the investment and performance costs of producing the results. This is represented by the strategic business structure.
New capital investments are planned to produce result value-added to provide solution worth and the return on investment
New capital solution investments are planned to produce new result value-added and to incur investment costs. New individual capital solution worth is planned in attributed result value-added in utilization over the solution life plus solution sale or disposal. Planned solution worth must exceed investment costs to justify the solution.
The current business structure in-operation can be projected with no change to understand existing result value-added with no investment. Investment projects in new capital are justified by the added result value-added over the investment payback period for all solutions, which must exceed total investment costs. The added result value-added is the value-added to results planned less the result value-added if there is no investment. For existing results, the result value-added with no investment likely will turn negative at some future period. For new results, the result value-added with no investment is zero. The investment or development project results needed to acquire or develop capital solutions and add results are planned and managed as a project business structure using project capital assigned. Result research projects are managed similarly to define and design new strategic results desired.
Business governance manages the convergence of the current business on to the strategic business
Business governance manages the convergence of the current business structure to the strategic business structure over time periods to the strategic horizon. Actual results are managed against goals for each period. Strategic value-added to date is managed against the plan and explained new estimates for any change in strategic result value at the strategic horizon. Projects in progress are managed for actual against planned in the project business structure. Any delays or failures can be projected and corrective action taken. Prior closed projects are reviewed for actual added value-added against the plan and individual solution return on investments.
R-pM employs new 21st Century Management concepts and principles
R-pm employs new direct business management concepts and principles that supersede generally-accepted concepts and principles employed today that manage structures laid over the business. Thus, R-pM is confusing until actual business concepts and principles are understood. Visit Result-performance-Management.com to learn more about planning your business with R-pM for 21st Century Management. Subscribe to and download the R-pM Toolkit, your 21st Century Management Manual, to learn how you can plan and manage your actual business directly with R-pM.
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, such as the failure to plan and manage the actual business, 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.
