The only Way to Organize and Manage your Business

Organize business results, capital as solutions, and performance in one structure for 21st century business management.

Result-performance Management and R-pM are Result-performance Management Limited trademarks for one set of concepts, procedures, standards, and conventions to organize a business for 21st century management.

The current financial crisis is caused by failure to organize and manage the enterprise business. The business organization is not a management prerogative or political football. The business organization is professionally managed capital to organize results and the capital utilized to produce results and maintain the organized business. Business management focuses on utilizing cost-effective capital in performance to produce value-quality results and managing result value-added across the business to produce the profit result.

Management is simplified to the actual business to prevent crises

The definition of business is “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 capital investments in the business organized as solutions of worth, results that must be produced across the business to create value for business success, and performance of specific solutions that are implemented to a performance domain and utilized to produce specific results.

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Business performance is managed by measuring specific capital solutions utilized at a level of capacity and effectiveness to incur costs and measuring the volume, quality, and value of results produced. The business is planned by planning near-term and strategic results and the additional capital to be acquired or developed to produce the results. The business is directed by managing the chain of results produced across the business and the capital solutions utilized to produce each result. The business is controlled by controlling the capacity, cost, effectiveness, and uncertainty of performance against expectations and the volume, value, quality, and risk of results to know value-added, defects, and problems against goals and new strategic estimates. The business is reported by reporting results and performance and analyzing against internal and external business needs.

This is 21st century business management to organize and manage the actual business directly without overlaid structures. All structures, systems, tools, reports, and other devices laid over the business to manage the 20th century enterprise are cleared away.

Organize the business as one business structure

The business organization consists of the three components of the actual business that are structured to have investments made in capital available as solutions to be utilized in performance to produce results.

  • Results: Specific economic outputs of value and quality that must be produced for business success
  • Capital: Investments in specific solutions of worth that are implemented to produce results
  • Performance: Specific solutions utilized for cost and effectiveness to produce specific results

Results are the inputs to and the outputs from performance. Results are specific accomplishments, like product item produced, learning course completed, solution implemented, etc that can be counted and measured. Capital covers all investments, acquisitions, and developments that provide the capability to produce results. Capital items are organized as specific solutions that can be professionally supported and utilized to produce results. Capital solutions like human salesmanship capability, order entry process, customer data file, and salesman equipment are utilized to produce the customer order recorded result. Performance utilizes specific solutions to incur costs and to create value in specific results. The business is organized when specific solutions are deployed to produce specific results and performance records are established to record costs, volumes, etc against expectations. Business transactions record the costs, effectiveness, capacity of solutions to produce value, quality, and volume of results. The business structure is updated with every business transaction and result and solution change.

Simplify and strengthen the corporate business organization

Results are related to define results produced before other results, results that add cost and value to other results, set-results that incur costs allocated to end-results, results that must be managed together, results that comprise a value-quality chain, etc. Results are organized in the  result structure. Results produced by existing business processes and information systems are defined to manage capital utilization in performance result by result.

Capital is sub-defined into specific solution types, like business process, human capability, facility supply, and management tactics. Capital is sub-defined further as specific solutions to be utilized to produce specific business results. Capital is organized as specific solutions in the corporate capital structure. Capital solutions, utilized together to produce a chain of results, are defined as a capital module.

The business is organized by combining the result, capital, and performance structure into one integrated business structure. The organization unit is a business organization solution with a set of solutions that can be deployed to produce the result. The responsible manager is a human personnel solution deployed to be responsible for the result. A sub-set of the business structure can be inverted to show results under the responsibility of an organization unit or manager. One specific solution, such as a human salesmanship capability, utilized to produce one specific result, such as customer order booked, is a performance domain, the basic building block of the business of all corporations. R-pM provides the framework and flexibility for enterprise management to decide on the level of detail to record and manage.

Capital development is managed for itemized result value return

20th century capital development ignores result development. 21st century capital development develops specific capital solutions to add value to specific results. The enterprise needs to add or create planned value in specific results, so invests in capital to be developed as specific solutions. Capital development projects have a business structure to utilize assigned capital to develop new solutions as project results. Project results capture development costs and are implemented as documented solutions. Development costs provide an assumed investment amount as the beginning unamortized balance to be amortized against results produced over the solution payback period, until fully amortized. New solutions are utilized to incur costs and create value in the results produced over the payback period. The result value-added provides the return on each solution investment.

Manage results, performance, and management time periods

Business management manages the business, and every result produced through three dimensions

  • Result: Manage economic output to produce revenues and other strategic results
  • Performance: Manage capital utilized to provide solutions, control costs, and produce profit margins
  • Management: Manage by time periods to develop and create value in the strategic business structure

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Do the Right Things Right: Business management is executed in the vertical result, horizontal performance, and on-going time management dimensions. Business management stresses doing the right things through intelligent results, doing things right through well-designed capital solutions, and doing the right things right by managing results, capital solutions, and performance in operation and development over defined periods to the strategic horizon.

The current business structure is managed to reach result goals and meet performance expectations by time period to develop the new solutions and create the result value established in the strategic business structure.

Six data sets are used to integrate business management

Modern information technology is utilized to organize the business for 21st century management. Business data capture and reporting focuses on that needed to manage the actual business. Only six precisely-defined sets and subsidiary entities are utilized for integrated business management in one consistent Business Information Base:

  1. Results: Outputs of value organized into result structures and value-quality chains
  2. Capital: Specific qualified solutions deployed to produce specific results to manage positive or negative capital worth and investment capital worth from development project results
  3. Performance: Performance records and transactions recording the cost, effectiveness, capacity of specific capital solutions producing the value, quality, and volume of specific results
  4. Enterprises: The business enterprise with superior and subordinate units, plus suppliers, customers, business partners, solution providers, and others that interact with the business
  5. Business Descriptors: The attributes of results, solutions, and enterprises to relate entities by product group, industry, market, region, segment, etc
  6. Time Periods: Specific historic and planned future periods with result goals and performance expectations to create strategic value or develop new capital solutions and results

Subsidiary files detail results, like products and orders, solutions, like assets and employees, and enterprises like suppliers and customers. Descriptor entities such as country, service line, account, unit, etc. are attributes to describe result sets or solution modules. Reporting only business entities enables consistent and accurate business information and business comparison and collaboration.

Business results, solutions, performance, enterprises, descriptors, and time periods can be managed by financial and statistical accounting or data base management systems to deliver timely information solutions. Business results and solutions form the basis for business record-keeping. Management information is simplified and focused to eliminate information complexity. Timely integrated information solutions are delivered to produce business and management results. 20th century accounting is retained until modernized by professional and regulatory bodies. All accounting needs can by met by defining results and capital solutions properly.

Manage business data such as value, costs, worth, and returns

Structures laid over the business today define the enterprise in many different ways with many terms and definitions. These structures are updated and maintained to collect a wide range of data to describe the enterprise, but capture very little data to describe the enterprise business. The proliferation of data, not related to the actual business just contributes to information complexity and confuses enterprise management.

Business management eliminates data collection against overlaid structures and captures actual business data to enable successful and efficient business operations and management. Once the business is organized, the business structure integrates planning, direction, accounting, control,  reporting, operations, development, optimizing, and governance. Business management maintains accurate facility records, for business data like:

  • Result value: Specific result values accumulated across a chain from what the enterprise pays for input results, what internal customers agree, up to what the external customer pays for final results
  • Performance costs: Amortization and operation costs for the deterioration in worth, consumption, or utilization of a solution to produce each result
  • Result value-added: Result value produced less total performance costs for solutions utilized
  • Result quality: The actual against planned or determined quality for which the customer pays a value
  • Performance effectiveness: The effectiveness and problems against expectations to produce result quality
  • Capital investment: The amount invested in the acquisition, development, and implementation of specific solutions, the amount amortized to date, and the remaining balance to amortize
  • Capital worth: Solution investment worth in the future cost plus value-added to results, from utilization and from sale or disposal; the actual cost of service or supply solutions, or worth assessed for the expected cost plus result value-added over a period for human personnel solutions
  • Solution investment gain: The attributed result value-added to date in the utilization of the solution to produce results

Business management manages performance capacity utilized for result volume, performance costs against result value, performance effectiveness for result quality, and performance expectations to reach result goals.

Structures, like account charts, cannot record this data, since they fail to define tangible and intangible capital as specific solutions of worth, the set of results of value, and performance records and transactions to capture costs and value in solutions utilized to produce a result.

Information Technology is organized and managed as capital

Information technology is simplified and managed through integrated business capital management. Simplified application programs are managed as capital solutions integrated with the business process, where needed, to produce a specific result or set of results. The large Information Technology overheads are reduced and information technology is integrated with enterprise capital for proper capital management to produce results. Information capital is managed properly as data, knowledge, records, and intelligence to provide the information solutions to produce business and management results. All information produced, brought in, or sent out from the business is referenced from a business entity for control in one Business Information Base.

Business management provides new 21st century breakthroughs

Business management abolishes the enormous costs, complexity, and problems inherent in 20th century structures. Business management enables system-process integration, efficient IT utilization, result-performance management systems, good corporate governance, result-performance costing, value-added management, value-quality chains, itemized investment benefits, accurate business records, result-capital development, human capability business application, managed human worth development, result-performance optimization, integrated information capital, managed Business Information Base, known enterprise and capital worth, supplier-customer integration, business collaboration, aligned outsourcing, and other 21st century management breakthroughs.

The transition to business management is gradual to avoid change problems

The challenge is to learn, organize, and manage the business. Once the enterprise has organized the business, it is straight-forward to manage the business and to shed 20th century structures.

Any enterprise business can be organized and managed. The enterprise can start with business management applications to gain experience on a small problem first. Or, the enterprise can start by learning, recording, and working with the business structure, then organizing the business as an overlaid structure to work in parallel with existing structures. When ready, overlaid structures are replaced by the business structure or are converted to results and performance solutions as part of the business. Cost-effective performance is then optimized to maximize value-quality results.

Business management is supported by 21st century management consulting and solutions

Business management employs the 21st Century management consulting model in a guided consultant and enterprise partnership for planned result value-added. Licensed business management consultants add value to R-pM knowledge to provide business and management services. Business management is the basis for simplified information systems, precise management learning, and other 21st century packaged performance solutions. Licensed solution providers add value to R-pM knowledge to develop and market specific business solutions.

Join the R-pM Community for details, support, and the Business Management Toolkit

To learn more about business management, join the R-pM community. Membership is free with no obligation. Join the R-pM community, with the email ID to receive updates and occasional information. The R-pm Community area provides free member downloads and details for users, management consultants, and solution providers. The Toolkit Download page has The Business Management Toolkit, plus valuable information on Business management application, consulting, and solution development.

The Business Management Toolkit provides the knowledge for business management

The Business Management Toolkit is the only source of detailed learning, procedures, and examples needed to organize the business for 21st Century Management. The Toolkit defines the standards and conventions for 21st Century Management. The Toolkit subscription includes issued toolkit products, plus all future toolkit products and updates, at your member email address. The Toolkit is offered at a nominal price for research by any individual and use by any enterprise worldwide. Toolkit users can request new toolkit material and contribute material to the Toolkit, and thus make 21st century business management, a product of the R-pM Community.

Business management enables individual and enterprise management improvement

Do you perform to produce results or do what has always been done? What results do you produce in your personal result-performance management? Are your results defined with goals? Do you or your superiors measure the value and quality of your results? You use your time, capabilities, and knowledge; plus other solutions in system and business processes, data, facilities, plans, guidance, etc. Do you have the full set of cost-effective solutions you need to produce value-quality results? Are the costs, effectiveness, and capacity of all your solutions managed and improved by professionals? Can you increase your human capital worth by improving your use of solutions and your result value-added? What if everybody in your enterprise increased the value of their results?

Business management is the natural way to perform and produce results

You have spent years in school, training, and on-the-job experience to learn the contrived 20th century management structures you use. It is not easy to learn or accept a new business structure that replaces existing structures. But, business management is the natural way you produce personal results every day. You use your time, capabilities, facilities, knowledge, a process, your computer, information, and management guidance to produce specific results. You do not lay structures over your personal business. Business management replaces artificial structures with the natural way to manage your business by utilizing capital as solutions to produce business results, the same way you produce personal results.

Business management is much simpler than the structures you now use, but will appear to add work, because it enables new performance and result benefits, not achievable with existing structures. The important thing to realize is all the wasteful contrived structures, low-value results, and ineffective performance that are eliminated. You no longer use contrived structures. You focus on results and are supported for the solutions you need.

Business management benefits those who make the effort to understand how to organize and manage their business. Forward-looking enterprises are now quietly organizing the business for 21st Century Management, to gain significant competitive advantage over 20th century enterprises still held back by unsolvable problems.

Business management is proven in experience

Business management was developed and used by Mr. Harry Greene, an American, in the design of business solutions for over 100 enterprises in over 20 industries in North and South America, Europe, and Asia for such management consultant firms as Booz Allen and Hamilton, Arthur D. Little, A.T. Kearney, and Price Waterhouse. Harry is the President of Result-performance Management Limited and has invested over six years refining business management.

The following topics describe business management

This section describes business management through the following topics: