R-pM Project Management, Manage the Enterprise and Projects as Businesses

Result-performance Management (R-pM) manages the cost and benefits of projects

R-pM replaces 20th century capital development and project management with Result-performance Development to manage investments and development projects. R-pM manages the project through two business structures:

  • The enterprise business structure to organize specific new or improved enterprise results needed and specific capital solutions to be developed by the project to know costs of capital development; and the added value-added to results to be improved to know the benefits, and return on the development investment. This business structure is a subset or contributes to the enterprise strategic business structure
  • The project business structure to organize the capital solutions utilized to execute the project and the results to be produced as outputs from the project. The project results are a set of results under an enterprise “development project in progress” result. The most important project results are specific implemented, tested, and accepted capital solutions to be utilized in performance to produce future enterprise results

The project is managed using R-pM as with other business operations to produce project results. The total project progress produces current enterprise investment business results. A fundamental R-pM concept is to develop or acquire and implement new solutions as results in the project business structure to be utilized as capital solutions in performance in the enterprise business structure.

The key to investment analysis and project planning is end-user results

There is a need to get users involved early on. Users utilize capital solutions performance to produce results. Users may not understand the details of the solutions they utilize, but all users have a good understanding of the results they produce. Users must define and analyze the specific business outputs or results they produce to justify the investment by the value to be added to their results. The benefits of development are in the value added to these business outputs or results. A critical piece missing in 20th century investment and project management is result development.

So, the key to properly organizing and planning a project is to get the users to understand the project in terms of results that they need, the symptoms of performance problems on their results, and the value of removing the result symptoms by solving performance problems. The return on investment can only come from valuable new and improved results. Users are involved in result teams to ensure that results are improved and to accept new capital solutions tested.

The value-added to results in the result value less performance costs is projected for each result to be improved. If the result needs performance improvement, the performance costs likely will exceed result value at some future point. The result value-added with development is also projected to show the impact of new capital solutions on the result produced. The added result value-added is the result value-added with development less the result value-added without development. This may be difficult to conceive before the business is organized and managed, but becomes routine with experience with R-pM.

The key to capital development is capital and performance management

It is also important to get administrative personnel to look at their responsibilities as supporting specific capital and solutions and solving specific performance problems, so that their solutions were utilized to increase the value of results. Another critical piece missing in 20th century performance development is the breakdown of capital into specific solutions that would be utilized to produce specific results. Analyzing capital  solutions could show that many solutions needed for successful implementation and utilization of the developed capital to produce higher-value results, were not included in the development, and that other parts of development were unnecessary.

It is important to get administrators involved in performance teams for the development of the specific solutions they should support for operation and user utilization.

Changing conventional users and administrators may be slow, but the effort produces real benefit

Changing the thinking of users and administrators can be difficult, but the attempt is very helpful in planning and managing the project.

The user results to be improved are part of the project focus and users are organized to participate in the project to gain the result improvement.

Focusing administrators on their solutions helps to get IT to look at business utilization, human resources to look at human capability and development needs, IT to take a separate look at operations, and management to look at strategies, planning, and policies. Analyzing solutions to be developed also identifies business, management, intellectual capital, and information solutions that are not managed today and tend to be labeled as intangible assets. Support responsibility must be devised for these solutions as well.

The implemented performance solutions must be utilized to produce results over time periods to return the investment. Administrators may resist a role in the beneficial utilization of their solutions, but will see that their solutions must be utilized to produce results to return the investment.

Project management must utilize capital in performance to produce project results

Project management also requires that the project be organized to utilize human capabilities and other solutions in performance to produce project results. Internal and external capital assigned to the project should be defined and assigned to produce specific project results in order to capture development costs. Project results have to be produced over time periods to meet project result goals.

So, clearly, there is a need for managing the project in three dimensions.

  • Result: Involve users to plan and accept goals for the output results from development and to reach goals by utilizing the new solutions
  • Performance: Involve those responsible for the capital to define and develop specific solutions and to implement and document the solutions to produce specific results
  • Management: Plan internal project results and performance and the time periods, phasing, and goals for project management, solution implementation, and follow up

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

Result-performance Management (R-pM) provides the method to simplify and manage benefits

Result-performance Management (R-pM) provides a holistic structure to organize the business based on results produced as business outputs, and the capital utilized as specific performance solutions. The enterprise business is managed over time in the management dimension for operations and development to carry out the strategy and create strategic value.

R-pM integrates operations and development

R-pM has two enterprise phases that proceed as one continuum, Result-performance Operation and Result-performance Development. Result-performance Operation identifies result managers responsible for each developed result, analyzes result symptoms and performance problems, accepts new goals and expectations to substantiate development, and plans the result user and capital support roles in Result-performance Development.

Enterprise Result-performance Development provides one integrated method for all capital development to improve the capital utilized in performance to produce added-value in results. Result-performance Development includes result development to alleviate symptoms and provide benefits, capital development to develop and implement specific solutions, and performance development needed to test and accept solutions to solve problems, incur controlled costs, and produce measured result value-added.

As the project proceeds into implementation, enterprise Result-performance Operation picks up again for result managers to accept and utilize new solutions that meet expectations to produce results that reach goals to payback the investment, capital management responsibilities to provide on-going support and improvement, and performance management within capital management for the cost-effectiveness of new solution utilization in performance to produce results.

Result development manages project value and benefits

Result development plans the detailed value to be created through utilization of new solutions across the scope of the project, backed up by user-accepted goals to increase result value after new solutions are implemented. The means to know the value of results are included in development. The project does not begin until user result value goals when utilizing new solutions are accepted.

Capital development manages investments and costs

Capital development breaks down the investment into the specific capital solutions under a capital manager responsible for capital development and support. Each capital solution is produced as a project result and implemented as a capital solution. Project performance costs are captured against each solution development to provide and assumed capital worth and an un-amortized balance. Amortization of development costs and assessment of capital worth is continued in operations in accordance with enterprise management policy.

Performance development manages implementation and testing to produce results

Performance managers are responsible for capital solutions utilized to produce results. All performance managers study the investment to ensure that specific solutions needed to produce results are in the investment and to accept expectations for the performance of their solutions. They help to know the worth and development cost of new solutions included in development. Performance managers ensure that all capital solutions implemented meet expectations to produce results and work with result managers to ensure satisfaction with solutions and to manage performance costs and result value-added in operations.

Result-performance Development develops capital, performance, and results to produce value and benefits

By developing results, capital solutions, and performance, R-pM provides the one right way to manage projects in the 21st century and leaves the 20th century problems in investment analysis, capital development, and project management behind. Download the R-pM Management Guide “How to Manage Projects in the 21st Century” to learn real project management, and download the R-pM Toolkit for complete details and updates for using R-pM to organize the business for 21st Century Management.

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