Need For Result and Performance Management

Performance Management Solutions that do not Manage Performance

20th century management defines performance to include the result as well as performance, preventing actual business organization and management

Performance management usually describes performance reporting and correction. “Performance management system” describes a performance indicator reporting and comparison system. Performance management in human resources describes human performance evaluations and performance correction.

The 20th century definition of "performance" defines not only the actions but also the results of performance as "performance". This flawed definition prevents actual business organization and management through Result-performance Management. All current performance management control panels, cockpits, scorecards, dashboards, etc. propagate this flawed 20th century definition. Performance measures such as asset utilization or average transactions per period are mixed with result measures such as profits, employee or customer satisfaction, and product or service quality. Many managers have both result and performance responsibilities, without a clear definition of the responsibilities and the means to carry out the responsibilities.

20th century performance management reports indicators, but does not manage the performance of capital

20th century performance management establishes performance indicators and mechanisms to report indicators against some objectives. Performance management does not include intangible assets and unknown costs. Performance management is applied after-the-fact to identify performance problems and take corrective action. Often the corrections are ad-hoc, to correct the particular instance, rather than an analyzed solution to ensure that problems do not reoccur.

Performance management systems often identify significant potential to increase human productivity, if people have the proper tools, knowledge, direction, support, and objectives. In other words, a proper and managed set of performance solutions to produce valuable results.

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Conventional Performance Management and Result-performance Management: Most performance management solutions report a mixture of performance and result indicators like operating expenses or customer satisfaction. A manager may be responsible for an indicator without the control over what produces the indicator. R-pM provides result management against value-quality goals a manager can achieve, and separate performance management against cost-effectiveness expectations that a manager can meet.

The responsibility for performance across the enterprise cannot be the same as the responsibility for specific results. Result measurement and reporting must be separate from performance measurement and reporting. So, results and performance must be defined and managed in their own proper way in order to organize and manage the actual business.

Manage cost-effective performance of your capital and the value and quality of results produced

20th century performance management covers only a small sub-set of R-pM. With R-pM, performance management is performance management; the responsibility to provide the proper performance solutions and manage utilization to produce results. Performance management is a continuing responsibility that comes both before performance to prevent problems and after performance to correct problems. Performance management is supplemented by result management to manage results as results. Result and performance management can then manage the relationship between results and performance, to optimize the enterprise and foresee exceptions.