R-pM for Capital Development Project Management

Conventional project management methods do not develop benefits

Most project management methods do not plan and develop specific project benefits, gather development costs for each capital performance solution to be utilized in operations, relate development costs of implemented solutions to the actual operational value created, and measure the return on investment. This is particularly true of enterprise organization and management improvement methods.

The objective of conventional capital development is to implement performance improvements. There are several problems with this:

• Implement: The objective is to get the solution into operation rather than ensuring on-going benefit
• Performance: The objective is the way things are done rather than results produced
• Improvement: The objective is to have people improve their performance, often generating resistance

Many conventional capital development methodologies concentrate on performance, to show the cost of development, but ignore the benefit of development. Development costs tend to be gathered against a project or tangible fixed assets, rather than each specific solution. Most capital development is through ad-hoc projects rather than as part of on-going enterprise responsibilities.

R-pM develops results and performance for a planned return

Rule No. 7 of the 10 rules of 21^st Century Management is Manage Investments to gain a planned result value Return. The enterprise cannot manage the return on capital development, unless the specific results to be produced by the developed capital are organized and managed. The enterprise cannot manage costs against the benefit, unless the specific performance solutions being developed are defined and managed.

R-pM provides many benefits in both the investment planning and development of new capital, as well as in the business structure used to manage project results and performance.

R-pM capital development adds value to results

The objective of R-pM capital development is to produce result value-added. There are three advantages with this approach:

• Produce: The objective is to utilize implemented solutions to improve results
• Result: The objective is to enable people to produce new results they could not produce before
• Value-Added: The objective is to add value to results to provide the return on investment

The objective of result-performance development is to produce new results. Improving the way things are done in performance happens along the way.

R-pM provides bottom-up result development and performance development

R-pM stresses result development in the result dimension as well as performance development in the performance dimension. Result development starts with result symptoms (product not accepted, market not penetrated, customers dissatisfied, etc.) and studies the means and value of removing the symptom. R-pM provides a bottom-up development approach to assure result development as well as performance development.

The Result-performance Development Project normally consists of two teams. Result Teams involve primarily users, with potential R-pM consulting assistance. Result development brings in users, gains buy-in, gets new goals accepted, and ensures solution utilization to produce valuable results. Performance Teams involve capital result and performance management members to develop solutions. Performance development may involve R-pM consultants, contractors, and vendors.

R-pM provides an operation-development continuum in the management dimension

R-pM does not separate development from operations, but provides an operation-development continuum. Everyone has a role to identify development requirements in operation, to participate in development teams, and to utilize or support implemented solutions in operation to improve results.

R-pM plans and manages the results that utilize specific implemented solutions with goals for added value-added along the management dimension. The return on investment can be systematically determined for all capital development.

Performance solutions are developed and implemented as project results

R-pM identifies the specific performance solutions being developed including intangible intellectual capital, information capital, and management capital. R-pM defines each solution as a project result to capture full development costs to be closed out against the solution at project end, as an assumed capital worth. The implemented solution is then deployed in operation to be utilized by results to amortize development costs against result value created.

R-pM manages project results and performance through the project business structure

The whole completed and closed out capital development project is an investment management result. Under this result, the project itself has its own business structure that defines the results to be produced, such as the developed and implemented solutions, plus the performance solutions to be utilized. Consultants, contractors, or vendors may provide performance solutions, such as human personnel and capabilities or facility equipment, to produce specific project results.

The project is managed like any other enterprise using R-pM.

The R-pm Toolkit is a valuable aid to any capital development project management

Any capital development project, even for development of physical assets, can be planned, organized, and managed using R-pM. The R-pM Toolkit provides detailed guidance, including the specific document “Beneficial Result-performance Development”, for safe and secure capital development.

Visit Result-performance-Management.com to learn more about organizing your business with R-pM for 21^st Century Management, and the R-pM Toolkit, your 21^st Century Management Manual.