20th century management reports against structures laid over the business
20th century management lays an organization structure over the business preventing business organization and management. Enterprise management structures are laid over the business in strategy, corporate plan, and budget structures for planning; functions, processes, projects, and system structures for directing; financial and cost accounting and quality structures for control; and statement, performance management, and other structures for reporting. Each of these structures uses different terminology and meanings to describe the enterprise. Many structures have their own information systems to process data and report information on the enterprise.
20th century management produces an enormous amount of information on structures laid over the business
The various management structures can produce enormous amounts of information. For the most part the information has meaning only against the structure reported. There are discrepancies, gaps, and overlaps in the information reported. This produces the well-known information complexity problem. Additional enterprise information management systems are required for data reconciliation, data extraction and information consolidation, and strategic management reporting.
20th century management does not provide direct business management information
Despite all of the information systems and mountains of information reported, 20th century management fails to capture data or report information on the actual business. Most actual business information is classified as unknown. The current and strategic value created in the business remains unknown. Actual and complete costs incurred by the business remain unknown. The actual worth of tangible and intangible capital and the enterprise business worth remain unknown. The return on capital investments remains unknown. The effectiveness of capital utilized and the quality of outputs produced across the business are largely unknown.
R-pM organizes the business for 21st Century Management reporting
R-pM organizes the actual business as one business structure to integrate management organization, planning, directing, control, and reporting. The business is managed directly using common sense, rather than arbitrary rules dictated by 20th century management. Business processes and information systems that can be utilized by the business are incorporated as solutions in the business. R-pM then phases out overlaid 20th century management structures.
Management decisions focus on current and strategic results to produce and what performance solutions to develop and utilize. Management reporting boils down a few key entities and the subordinate records, such as; results produced, human an other capital utilized as performance solutions, enterprises that form and interact with the business, and time periods with result goals and performance expectations.
R-pM organizes information capital to provide data, knowledge, record, and intelligence solutions
R-pM organizes information capital to produce solutions needed for the business and management as:
- Business data to maintain data concerning the business entities and access to information within the business, using business knowledge and analysis capabilities
- Human knowledge to provide knowledge for human development and utilization of solutions to produce results, using human handling and development capabilities
- Facility records to capture business transactions and maintain the tangible financial and non-financial records on the business, using record-keeping experience and administrative ability
- Management intelligence to analyze internal information and gather external information for reporting status, projections, opportunities, and threats, using management analysis and research capabilities
Each type of information capital requires the specific capabilities to capture, develop, maintain, and report. Knowledge supports human capabilities to utilize solutions and produce results. Business data describes the entities utilized in the business, such as performance solutions and results. Result-performance transactions generated from business performance update complete financial and non-financial facility records. Data and records on the business are analyzed for management intelligence.
R-pM reports actual result value, performance costs, result value-added, capital worth and other information not available today
R-pM captures data directly on the business in the utilization of capital as performance solutions to produce value in results. Capital is organized as performance solutions of worth totaling capital or business worth. Results are organized in result chains with each result having a value within overall chain value. Performance costs, the portion of capital worth for the consumption or utilization of capital, are captured for actual performance solutions utilized to produce results in performance records. Total performance costs are deducted from result value to enable reporting and management of result value-added, the most important business management metric. Performance effectiveness that impacts result quality is reported against determinates. Performance capacity is known and managed against result volumes produced. Performance solutions are totaled to provide information on categories and classes of capital. Results are totaled to know information on revenue-producing results, capital support results, and investment management results for each result organization unit and responsible manager in the business.
Capital development is reported for performance solutions developed to produce new and improved results. Development and operating costs are captured by solution against the added result value-added to enable reporting of the return on each capital development investment. Result value-added is provided to assess capital worth for the solutions producing the value-added for the assessed portion over a payback period at the cost of capital, or other selected framework. Declining capital worth can be assessed to understand improvement and forecast replacement needs.
Business management information can be captured by any flexible general ledger system, and can be manipulated and analyzed for the totality of information needed for business management planning, directing, and control.
Organize your business for 21st Century Management to slash costs and beat the competition
Slash costs by reducing the large information processing overheads and the costs of overlaid systems. Beat the competition by focusing on the business to provide cost-effective performance to produce high value-quality results. The means to do this is described in The R-PM Toolkit, your 21st Century Management Manual provided at result-performance-management.com.
