R-pM. Leave dead-end 20th Century Management Behind

Manage the Value and Quality of Customer Goods and Services

Organize your enterprise business to manage the value and quality of goods and services provided to customers

Organize and manage your enterprise business rather than your business enterprise

The generally-accepted definition of enterprise business is “the activity of providing goods and services”, even for a non-profit organization or government agency. The enterprise must directly organize and manage “the activity of providing goods and services” to manage performance in business activity to provide high-value and high-quality goods and services for its customers.

20th century management organizes and manages the business enterprise and not the enterprise business. Organization and management structures are laid over the business preventing direct management of “the activity of providing goods and services”. Any method can be employed to manage the business enterprise. This leads to duplication , waste, and unsolvable problems. Only one method can be used to manage the enterprise business properly, so that business management is focused and productive and unsolvable problems are eliminated. R-pM is a new breakthrough to organize and manage business activity as performance solutions utilized and good, services, and other economic outputs as results produced.

R-pM organizes and manages goods and services provided

Every individual or enterprise procures goods and services as input results to the business. The input results may be utilized by the individual or enterprise business in one of two ways:

  • Results, such as material or components, may be transformed into output results from the enterprise business
  • Results may be implemented as performance solutions such as equipment, supplies, processes and systems, information etc to be utilized in the business to produce other results

Goods and services provided to a customer represent the value created by the enterprise business and contain the quality produced by enterprise performance. Value is determined by the customer willingness to pay for the goods and services as input results to his business. Quality is in the customer perception of the suitability of the goods and services as input results to his business.

Goods and services are produced by utilizing performance solutions to produce output results along a chain of results. For goods, the results may be material received, product produced, product placed for sale, product included in customer order, and product delivered to customer. For a services, the results may be service results planned, service agreement executed, service results delivered result by result, service results accepted by customer, and service invoice paid. The value and quality of goods and services provided can be managed only by organizing and managing the results in the result chain leading to the final results provided to the customer.

R-pM defines the results in the result chain that must be organized and managed to provide high-value and high-quality input results for the customer result chain.

R-pM organizes and manages the activity of providing

In our personal business, we utilize performance solutions in our time, capabilities, equipment, cash, supplies, purchased services, plans and tactics, information, and other solutions to produce or procure the result desired. The result could be a pleasurable time, specific achievement, or purchased goods or service results. The value of the result must exceed the cost of performance. Quality of the result is the pleasure we received, the objective satisfied, or the suitability of the result to be transformed to a final result like dinner, or to be utilized as a performance solution such as a tool, soap, or personal knowledge. We do this naturally. We do not lay organization or management structures over our personal business.

Business activity is performance in the utilization of performance solutions to produce business results. Performance solutions are the capital in our business that have worth and contribute to our enterprise worth. Enterprise capital must be organized by the capabilities required to develop and support the capital, as:

  • Business capital in the business organization, business process, an business data utilized. Business capital is specific to the result produced and cannot be used to produce other results. Business capital requires business knowledge and analytical capabilities
  • Human capital in the personnel, capabilities, and knowledge of individuals utilized by the business. Human capital requires human handling and development capabilities
  • Facility capital in the reusable equipment, consumable supplies, and records kept on the business. Facility capital requires experience with the particular capital utilized
  • Management capital in management strategies that plan the business, management tactics that keep the business competitive, and management intelligence that indicate business opportunities or threats. Management capital requires management analysis and research capabilities.

The capital must be defined as specific performance solutions that can be utilized in the business to produce specific results. Performance solutions must be integrated with like solutions to produce results effectively, as:

  • Readiness capital to integrate the business organization with human personnel, facility equipment, and management strategy to be ready to produce the first result in a set of results that utilize the capital
  • Production capital to integrate the business process with human capabilities, facility supply, and management tactics that are utilized when producing a specific result
  • Information capital to integrate the business data, with human knowledge, facility records, and management intelligence that are needed to produce a result and to document results produced

All capital including currently unmanaged capital and intangible assets are organized and managed as performance solutions.

R-pM organizes and manages the performance solutions utilized to produce results to provide goods and services

R-pM organizes the results that must be produced across the business, including the chain of results that produce goods and services, in the result structure. R-pM organizes the performance solutions utilized in business activity in the performance structure. R-pM organizes results and performance in one integrated business structure by deploying specific performance solutions to be utilized to produce specific results. R-pM captures actual business data on the value, quality, volume, risks, etc in results produced and the corresponding cost, effectiveness, capacity, uncertainty etc of performance solutions utilized. The result value less total performance costs is the result value added that is managed across the result chain to maximize customer value while minimizing performance costs. The effectiveness of each performance solution is managed to manage the quality of each result in the chain to assure the quality delivered to the customer.