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Organize the Business to Manage Intellectual Capital:

Organize the Business to Manage Intellectual Capital

R-pM implements results with intellectual property as performance solutions increasing intellectual capital

Performance solutions are implemented from results. The intellectual property in the result may be protected by an intellectual property protection solution. The result may be a process design, a logo, an information system, developed human capability, created knowledge, a business strategy, a competitive management tactic, etc. The intellectual property in the result is implemented as the intellectual capital portion of the worth of the solution.

The worth of a performance solution comes from the capability to produce a future volume of results at a value-quality level. Intellectual capital is the unique and distinguishing intellectual content in any solution that can reduce solution costs or add to the volume, value, or quality of the result produced.

The intellectual property protection solution protects the intellectual property in results produced by intellectual capital. Intellectual capital is utilized within the enterprise, but still must be protected as trade secrets, non-disclosure, file copying and transmission policies, and other measures.

Capital management manages all capital utilized, eliminating intangible assets. The enterprise optimizes performance solutions to produce high value-quality results. The enterprise assesses the worth and intellectual capital content of performance solutions to manage operating and utilization costs and the return on solution investments. The enterprise develops a new solution, such as a design, with high intellectual property as a project result that is patent protected, as needed, and implemented as a high worth solution to infuse intellectual property value in results produced. The enterprise implements the patent protection solution to protect the intellectual property in results produced.

R-pM organizes and manages all tangible and intangible assets to produce business results

R-pM does not identify tangible or intangible assets or intellectual capital. Most performance solutions have tangible, intangible, and intellectual content. R-pM eliminates today’s capital management problems by organizing all capital as performance solutions in four categories by the professional human capabilities required to manage operation, improvement, development, and worth:

Business capital is organization, process, and data that require business knowledge and analysis
Human capital is personnel, capabilities, and knowledge that require human handling and development
Facility capital is equipment, supply, and records that require specific expertise and administrative ability
Management capital is strategy, tactics, and intelligence that require management judgment and research

Capital is organized by category, within the capital structure, for professional support and management. Each category is organized into three solution types for integration with like solutions and utilization to produce results. Each solution type can have some intellectual capital content.

All capital includes intellectual capital content to increase capital worth

Business capital organizes the business, defines how the business works, and maintains business data. Business capital is designed to produce specific results. Business organization maintains the business structure and includes result organization units, human roles, business relationships, and business image. Business processes contain designs, system utilization, and work steps to produce results. Business data updates results, performance solutions, and enterprises with business transactions and added-worth customer and competitor data.

Human capital includes all internal and external human resources utilized, with the special capability solutions they provide, and the knowledge needed to produce results. Routine results are produced by the experience and learning of personnel solutions. Higher-value results require specific innate and developed human capabilities, such as salesmanship, analytical ability, machine expertise, management skills, and knowledge development. Knowledge is intellectual capital delivered to utilize specific solutions and produce specific results.

Most tangible assets administered today are facility capital. Facility equipment includes all reusable facilities and can have intellectual content in the constructive financing, added-value, and innovative use. Facility supply includes consumable facilities and can provide cash reductions and beneficial and socially-responsible alternatives and negotiating. Facility records include financial and non-financial business documentation and records, and solutions produced from records to produce other results.

Management capital includes intellectual capital on the business opportunities, and competitors. Management strategy defines the strategic business structure and plans future result value and new performance solutions. Management tactics provides the management direction and competitive measures to produce results. Management tactics includes intellectual property protection solutions and management solutions from result evaluations and capital assessments. Management intelligence is intellectual capital to support management decisions developed through external research and internal information analysis.

R-pM develops and documents intellectual capital as the normal business routine

Result-performance development plans and manages the development of solutions for new and improved results to increase result value added over performance costs. Each capital category specifies the solutions needed to meet result requirements. Total solution development costs are planned against the added result value-added over the project payback period to justify development.

All new solutions and results are developed as project results in the project business structure. Result and performance teams work together to develop the specific new solutions needed, including intellectual capital, to produce each new result, including intellectual property. Performance solutions are developed and documented as project results to develop intellectual property and capture development costs. The intellectual property included in each project result is documented and intellectual property protection solutions are developed, as needed. The intellectual property that is implemented as intellectual capital in a performance solution is utilized to produce other results. Knowledge solutions are created on the utilization of new solutions that require human action, and on the integrated utilization of all solutions to produce a result.

The business utilizes intellectual property and capital within the normal routine

R-pM eventually abolishes all of the overlaid 20^th century structures employed today. Most of the effort to organize and manage results and performance solutions is performed one time. The level of detail and frequency of updating depends on management needs. Most data generation is automated and data entry is limited to exceptions.

R-pM replaces today’s routine to utilize performance solutions to produce results naturally. Personnel are encouraged to apply their capabilities and knowledge to add-value to results and increase intellectual property.

All organization units and management responsibilities are defined by deployment to produce assigned results. Result management utilizes capital to produce specific results and achieve result goals. Performance management provides performance solutions needed, supports solution utilization, and maintains solution cost-effectiveness to meet expectations. Result-performance costing reports results produced, performance utilized, and result value-added. Managers quickly learn how to manage results and performance, to handle particular exceptions, and to optimize performance to produce high value-quality results.

R-pM provides the capability for capital management and worth assessment

R-pM replaces administration with capital management for operation, support, maintenance, and development. Business data and records are maintained on each solution to capture costs, contribution to result value-added, performance against expectations, and assessments of the solution.

The few solutions utilized with high intellectual capital worth have a significant impact on result value-added. Solution assessment includes contribution of the solution to result value-added. Result value-added projected over the development payback period helps to determine capital worth as the capability to provide an annual return on the investment in the capital. Each solution also has development and annual operating costs that contribute to result value-added. If the capital contributes to increasing result value-added, the capital worth is likely increasing. If the capital is producing a decreasing result value added the capital worth is likely decreasing. If total performance costs exceed result value, the result is discontinued, solutions are modified or replaced to reduce costs, or result value is increased by decreasing other result value in the chain.

Capital worth of all capital utilized to produce result value should add up around the market worth of the enterprise. Enterprise worth is in the capability to provide an annual return, over the years, at a desired level, such as at the cost of capital. Once experience is gained, result value evaluations and capital worth assessments become essential management tools.

R-pM provides new benefits by organizing the business to manage intellectual capital

R-pM provides new benefits in intellectual property and intellectual capital management, such as:

Performance solutions are utilized to maximize the value of each result leading to revenue results
Operation and development of all capital is professionally-managed to increase profit margins
Professional performance managers assist result managers with utilization and needs for new solutions
Human capability solutions are utilized to add intellectual value to results producing intellectual property
Intellectual property solutions are developed, as needed, to protect the intellectual value of new results, whether sold to customers or implemented as performance solutions to produce results with the intellectual property
Intellectual capital is developed and implemented to provide and document high worth solutions to produce high value-quality results
Innovation and exploitation of intellectual capital is built into the business in all result designs, solution development, and knowledge utilization for managed competitive advantage
Human capability is a managed to integrate human capabilities with the business process for high-value results and to align human and career development with business needs
Actual business data is captured on result volumes, value, and quality and performance solution capacity, costs, and effectiveness to provide accurate business management information
Accurate financial and non-financial records are maintained on the actual business to leverage records for current and future results
The worth of human and other capital is assessed to know their contribution to result value-added, take action if value-added is unsatisfactory, and justify increased performance costs
Management capital is managed for strategic value creation, competitive advantage exploitation, identification and response to opportunities, and solutions for good governance

These benefits are not possible with today’s 20^th century management. They are made possible by organizing the business to design results with high-value intellectual property, to develop and utilize performance solutions with high-worth intellectual capital, to optimize solution performance to produce high value-quality results, and to manage result value-quality chains to provide valuable input results for customer value-quality chains.

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