• R-pM:

Eliminate Management Problems by Managing your Business

20^th century enterprise management lays structures over your business today for organization, plans, processes, accounts, systems, functions, IT, activities, etc, which prevents actual business management and causes you many problems.

This site supports actual business management to manage the worth and qualification of capital invested, cost and effectiveness of capital performance to produce a result, and the value and quality of results required. All business data is captured for complete new information to manage the current to strategic business. Uniform standards enable new 21^st century business management.

Result-performance Management (R-pM) provides the knowledge and support for business management. Join the R-pM Community to subscribe to and download The Business Management Toolkit, with updates and support.

You cannot manage your business today, due to overlaid structures

Business schools, management books, systems and solutions, and professional bodies have never defined the real business and continue to lay dead-end 20^th century management structures over the changing business. You are taught to organize with an organization structure; to plan with maps, corporate plans, and budgets; to direct with processes, functions, and systems; to control with account charts, activity costing, and quality structures; and to report with scorecards and financial statements. Overlaid structures prevent you from managing your business.

Overlaid structures cause many costly, unsolvable business problems

Rigid 20^th century structures conflict with your changing business and produce information complexity, hamper business change, require excessive IT resources, incur high costs, and cause recurring unsolvable problems with reorganization, alignment, "business complexity", "business change", unknown costs and value, unknown capital worth and returns, intangible assets, IT and business conflicts, investments, projects, inaccurate information, corporate governance, quality, collaboration, outsourcing, IT overheads, and on and on. 20^th century management is a dead-end. New 20^th century structures can never solve these problems, but just escalate IT and other costs.

Set outdated teachings aside to learn your real business

We are all burdened by lifetimes of teachings and experience that prevent business management. You must rethink and learn your real business. The business is defined as “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results”. The business consists of three components; 1) economic output results needed for business success, 2) investments in capital solutions to be implemented to produce results, and 3) performance in the utilization of solutions to produce a specific result. Today, you make many large capital investments, but cannot manage capital solution investment costs, worth, return, and capacity. You must produce specific output results for success, but cannot manage result chains, volume, value, and quality. You utilize specific capital solutions in performance to produce specific results, but cannot manage performance costs, effectiveness, solution utilization, and result value-added contribution.

You manage your personal business naturally, without structures

You already know how to manage a business. You manage your personal business naturally. You use capital as solutions in your time, capabilities, possessions, money, and services to incur performance costs to produce personal results, like a meal, repaired item, or good time. To be happy with a result, the value must exceed the performance costs. Your performance effectiveness produces result quality. You manage your business naturally. But, at work, you cannot manage naturally. You manage contrived 20^th century structures laid over your business. You also can be the one to change that by introducing natural 21^st Century Management in your business.

The only way to prevent business, financial, or economic crisis

Here we go again. In many past crises, we never solved the same problems that cause the current economic crisis. The blind are leading the blind in solutions to the economic crisis. Commentators decry the lack of information on asset values, real costs, future risk, and coming business problems, and lack of a structure for financial and economic management. But, no structure is proposed to provide needed management information.

The structure needed is the actual business. Each unit of a bank or other corporation must be managed as a business. Corporations must consolidate businesses to manage the corporate business. Governments must consolidate actual business information to manage markets, industries, financial assets, and economies. Financial products must be managed as results to be utilized as solutions to determine future risk, value-added, and sale or disposal worth. Executive reward must be based on prior directly-attributed value-added to the business.

We need to wake up to dead-end 20^th century management, as explained in articles on causes of the economic crisis, the business management solution, and government actions needed. Three free white papers explain the dead-end 20^th century management problems that caused the economic crisis, the way business management eliminates the problems, and a government program to restore confidence by stimulating the economy, building a structure for financial and economic management, and organizing local businesses to flourish in the recovery.

• How to Eliminate Problems that caused the Economic Crisis explains the major unsolvable 20^th century management problems and the R-pM solution
• The Only Solution to the Economic Crisis; Manage the Business explains how to manage the business to capture business data unknown today and provide management the information needed
• A Government Business Management Program to Answer the Economic Crisis outlines a program to promote business management and manage economic cycles to prevent future crisis

These three white paper downloads are free and are available to R-pM Community Members. 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 new white papers.

Management is simplified to the current and strategic businesses

The only way to clear away 20^th century structures and prevent future crisis is to organize the actual business. Investments are planned and justified as specific capital solutions that are qualified to produce specific results and are implemented for utilization in performance to incur costs and add value to the results for the managed return. Every result has a result manager responsible, every capital solution is under a capital manager, and every implemented solution in a domain is under a performance manager, responsible to the capital manager.

Capital provides solutions like business and system processes, human personnel and capabilities, equipment and supply facilities, management strategy and tactics, and information. All tangible or intangible capital investments are defined as solutions that can be utilized to produce results. Each capital solution has an investment cost in the total acquisition, development, and implementation costs. Each capital solution has worth in the currently expected future result value-added attributed from utilization and from sale or disposal after the useful life.

Every economic output from the business that can be counted and measured and has a customer willing to pay to have it produced is a result. Results are product sold, service delivered, learning completed, solution implemented, investment planned, etc. End-results order booked, order filled, invoice prepared, and order delivered form a value-quality chain that produces the order fulfilled set-result. An end-result has value in the internal customer willingness to pay within the value of the final set-result in the external customer willingness to pay.

 

Capital solutions are qualified to produce a result and then implemented to the result to create a performance domain. Performance is the utilization of a solution at a level of effectiveness to incur a cost to produce a result of value and quality. Capital solutions incur costs as solution worth declines in utilization of human personnel time, consumption of supplies or services, or deterioration or obsolescence of acquired or developed solutions.

All solutions utilized are managed for the volume or count of results produced. The solution cost per result times the result volume is the solution performance cost. The solution performance cost reduces solution worth and the unamortized investment balance. The performance cost of each solution utilized adds up to the total performance cost for the result. The result volume times the value of one result is the result value produced. The result value less total performance costs is the result value-added.

The result value-added produced is pro-rated back to the solutions utilized. The total result value-added produced determines the return on the solution investment.  The current solution worth is the total projected future value-added in utilization and disposal. If the solution worth is less than the unamortized balance, there is a problem with the solution and the difference must be managed as additional costs against results.

Result value-added should be positive along a chain and across the business. If the value-added is negative the result should not be produced, unless performance costs are reduced or the result value is increased, with commensurate decrease in the value of other results in the chain.

A strategic business structure is planned to produce specific existing, improved, or new results at a strategic horizon in 2-5 years. Result research projects are planned as a subsidiary business to design or develop new results.  Existing, improved, or new capital solutions are planned to produce the strategic results. Capital development projects are planned as a subsidiary business to implement new or improved solutions. Result goals and performance expectations are planned by reporting time period from the base period to the strategic horizon.

Business data is captured for result metrics against goals, performance indicators against expectations, and capital measures against solution potential. Business transactions are generated to update financial and non-financial facility records on the business. The business structure is also the account structure. All accounting requirements can be met by the proper definition of results and capital solutions. Business data and facility records also update external and other corporate enterprises and individuals that interact with the business, time periods for routine and ad-hoc planning, and business descriptors for attributes and codes of the business such as industry, product line, customer segment, market, region, and any other descriptor of interest to the business.

Results, capital solutions, and performance are organized in current and strategic business structures used for all planning, direction, control, and reporting; replacing today's overlaid structures. This is complete and simplified 21^st Century Business Management. Managers focus on the business, know costs and value, manage results to reach goals and meet deadlines, manage the value added business-wide to the profit result, and create strategic value by period. None of this is possible today with dead-end 20^th century management, which is discontinued.

Focus on business results for significant competitive advantage

Business management organizes capital as business, human, facility, and management solutions, and results as revenue (product sold), capital (machine repaired), and investment (project complete) results. The business is organized by deploying existing capital solutions, like responsible unit and manager, with rules to produce results. Existing information systems are used to capture data and manage performance in cost-effective solutions used to produce value-quality results. The business is updated for every new or closed result or changed solution, eliminating re-organization and change management problems.

All capital is supported and managed for cost-effective solutions for value-quality result by result. Actual business data is captured for one set of business information. A strategic business structure plans strategic results and capital solution development. Actual results are governed against goals and strategic estimates by period.

20^th century structures, costs, and problems are left behind. You benefit from new breakthroughs like result-performance costing, measured value creation and investment returns, value-quality chains, professionally-managed capital, result-performance development, project management as a business, accurate records, information capital indexed to the business, managed capital worth, actual business information systems; plus common 21^st Century Management terms, standards, solutions, services, and learning used by any business.

Learn, organize, and manage the business now covered by structures

The big change is the change in thinking to learn, organize, and manage your business, which operates today under the maze of overlaid structures. Today, you invest 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. You must identify, document, and gain control of your business through three phases:

1. Learn the business: Use the Business Management Toolkit for management and staff learning and exercises to document capital as specific solutions, economic outputs as results, and performance as solutions that produce results
2. Organize the business: Organize the business in your general ledger or relational database system. Establish result relationships and metrics, performance indicators, and capital measures as possible. Identify result production and business data generated by your application systems. Prepare alternate accounts and generate journal entries by result and capital solution identifier. Test your organized business against the current business and learn new management information available. Think of the business strictly in terms of results to produce, capital available, and solutions to utilize in performance
   
3. Manage the business: Begin to manage your actual business. Remove overlaid structures, when needed functionality is proven. Follow-up on problems and areas of slow adoption. Employ common sense for business organization, planning, direction, control, reporting, and governance.

Once old methods, structures, information processing, and workloads are removed, business management becomes transparent and straight-forward. The business employs 21^st century business management conventions, definitions, and standards and one complete and accurate set of business data and management information.

Today's enterprise cannot compete with your 21^st century business

You can compete today because all enterprises employ obsolete 20^th century management and incur similar costs, IT overheads, and unsolvable problems. Your enterprise of today cannot compete with your and other organized businesses of tomorrow that invest in specific capital and optimize performance to increase result value, develop human and other capital worth to increase result value-added, plan strategic value creation with specific goals, manage result chains to assure customer value and quality, and collaborate for the highest shared value-added.

The Business Management Toolkit provides Learning, Tools, and Directions

Subscribe to the Business Management Toolkit for a nominal cost to organize and manage your business. The Toolkit subscription includes learning programs, procedures and instructions, 21^st Century Management conventions, definitions, and standards, and all updates. The Toolkit is developed with advanced tools as business management and technology advances. Subscribers are emailed new Toolkit versions for free, prior to download by new subscribers.

Management Consultants and Solution Providers can license business management

Education institutions and professional bodies have free use of 21^st century business management teachings and principles. New open-ended business opportunities are emerging for management consultants, software developers, management developers, business solution providers, etc to license business management knowledge to meet the emerging demand for 21^st Century Management consulting, services, software, and solutions to help customers manage the actual business.

Join R-pM Community for free White Papers, Toolkit, and Licenses

Join the R-pM Community with no obligation for free downloads, plus Business Management Guides, the Business Management Toolkit subscription, licenses, and other business management products.

The investment is far less than new 20^th century management

Enterprises today have no appreciation of the amount of capital, money, and human effort wasted due to 20^th century management structures, and continue to invest in obsolete reorganizations, enterprise information systems, process and performance improvements, IT architectures, etc that compound problems. The investment to organize the business for 21^st Century Management is relatively small, with enormous benefit in increased customer value-quality and 20^th century management work, waste, costs, and problems left behind. It costs little to test business management on a part of your business to learn your real business and the real benefits. Once in use, new investments are minimized to capital justified to produce specific new or improved results.

The competitive advantages of 21^st Century Business Management

The existing business is organized and managed, without the need for other investments. Business management is utilized only after the actual business is organized and understood to minimize problems. Much of today's workloads and costs are abolished. Management and personnel think of solutions to utilize and results to produce. Work assignments are specific results with value-added and completion goals. Result value and quality is maximized across the business. Capital utilization increases significantly with corresponding cost reductions. Result value-added increases go to the profit result. Business management provides breakthrough benefits and competitive advantages that are impossible today.

• Eliminate information systems, workloads, costs, and problems of restrictive overlaid structures
• Integrate management organization, planning, direction, control and reporting of the actual business
• Consolidate the businesses within a corporation into the corporate business structure to manage all results
  
• Manage capital to acquire, develop, and support solutions and eliminate intangible assets
• Manage results to ensure value-quality of all outputs to meet deadlines and achieve business goals
• Manage performance to provide qualified solutions to meet expectations and produce value-quality results
• Plan result value creation and result-performance development for the strategic business in 2-5 years
• Manage capital development to implement solutions of worth and gain result value-added return
• Govern monthly result goals and updated estimates to create value in the approved strategic business
• Significantly reduce information systems and IT overheads to only essential business systems
• Integrate suppliers, partners, outsourcing, and customers in value-quality chains to maximize shared value
• Use 21^st Century Management conventions for business collaboration and common services and solutions
• Maintain competitive advantage through cost-effective performance producing value-quality results

These and other benefits become obvious as you learn your business. Competitors are organizing their businesses to focus on customer value and quality to gain these benefits. Will your unorganized business be able to compete?

Business owners, shareholders, and directors must lead Business Management 

It is time to leave the 20^th century behind. Do not mix business management with 20^th century methods. 21^st century business management supersedes 20^th century management. 21^st Century Management standards provide consistency, communications, and collaboration. Licensed solution providers and service firms develop education and learning, information systems, business solutions, and management services applicable to any business.

Business owners, investors, lenders, shareholders, and directors are the main beneficiaries of business management. They must direct managers to manage the business to slash costs, optimize performance, manage result quality, maximize revenue, report accurate information, integrate partners and customers, utilize low-cost solutions, govern strategic value, develop human worth, manage development for planned returns, and gain other benefits not possible today.

Learn Business Management and join the R-pM Community for downloads and support

Much more information is available on this site:

• Enter the R-pM Community with your email address for Business Management Toolkit updates and support for Users
• Learn The Business Problem to eliminate 20^th century problems that hamper your enterprise
• Learn The Business Solution to know the approaches and advantages of 21^st Century Management

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