By: Harry Greene
Now is the time to take a new look at how you organize and manage your enterprise, in order to compete in the 21st century.
20th century management methods cannot meet 21st century needs
Technology has made it imperative that the enterprise quickly change and adapt to serve customers and markets. Technology enables us to focus on the specific economic output and input results that form a value-quality chain from within our suppliers, through our enterprise and business-partner collaboration, and on into our customer’s value-quality chain. Technology has enabled many changes in the way we manage capital to move the focus from cash and accruals to the total worth of tangible and intangible assets. Technology enables us to simplify the enterprise to directly organize, plan, and manage business reality.
20th century enterprises cannot move to the 21st century because of conventional thinking
Conventional methods and structures were contrived in the 19th and 20th century, based on the business needs and technology available at the time. Our organization and management methods must be reassessed to take advantage of modern technology.
The 20th century enterprise faces one gigantic barrier: conventional thinking. Conventional thinking says that management improvement and new methods must be based on the way things have always been done. Management books and articles will not be accepted for publication, unless substantiated as accurate by footnotes and bibliographies that prove that they are based on old conventional thinking. Throughout the 20th century conventional thinking has prevented the simple analysis of what constitutes the business and how should the business really be organized and managed. Instead we are forced to continue costly and wasteful methods that prevent us from proving our worth and achieving real value.
Result-performance Management (R-pM) provides the means to compete in the 21st century
The way forward to compete in the 21st century is provided by a new breakthrough, Result-performance Management (R-pM). R-pM organizes the enterprise business to utilize capital in performance to produce value in results through the two entities that define all business:
- Results: The economic outputs that are chained in value-quality chains
- Performance Solutions: The breakdown of all capital into specific performance solutions for cost-effective utilization to produce value-quality results
R-pM also defines the periods of time utilized for strategic, operational, and development planning. R-pM then manages the enterprise in three dimensions.
- Result: To manage each economic output produced to generate revenues and reach objectives
- Performance: To manage each performance solution utilized to control costs and maximize profits
- Management: To manage period by period to develop, gain the return, and carry out the strategy
The only other entities to manage are suppliers for input results solution providers for external and outsourced solutions, and customers for utilization of final output results.
R-pM simplifies the enterprise and removes all overlaid organization and management structures for transparent 21st century management.
R-pM separates results from performance to measure and manage the attributes of each
The enterprise creates value through results. Quality is an attribute of the result, not of the performance. Value must be added to results to justify improvement or development. Risk is the chance that a result will not be produced completely or on-time as planned.
Costs are incurred through performance. The performance cost can only be charged against the value created in the result produced. Performance effectiveness puts quality into results. Performance capacity is needed to produce a volume of results. Performance improvement or development can produce benefit only by adding value to results. Performance uncertainty causes much of result risk.
If the enterprise does not manage results and performance, it cannot manage costs, value, benefits, worth, volumes, quality, risk, uncertainty, and other attributes of results and performance.
R-pM provides enormous advantage to the 21st century enterprise
Managing results and performance presents many advantages to the 21st century enterprise:
- There is one framework that describes the business to manage all results produced and all performance solutions utilized, in both operations and development over time periods
- The enterprise is dynamic to change results and performance solutions quickly and reorganize naturally with each change
- All in the enterprise directly understand their role in terms of results and goals and performance and expectations
- Personnel are performance solutions with assessable worth, who continually increase capabilities to produce higher-value results
- Personnel understand that their capabilities are performance solutions utilized in a result value-quality chain, and that poor performance produces a low value-quality result that affects a chain of results
- Personnel understand the relationship between the cost, effectiveness, capacity, and uncertainty of performance and the value, quality, volume, and risk in the results they produce
- Managers and professionals are deployed to results that are organized to employ their capabilities, and they are supported by professionals deployed for each category of solution that they utilize
- The enterprise is simplified for planning and reporting only results, performance solutions, and the time period, providing one integrated management solution
- Capital investment is justified by itemized result value added and reinforced by future result value-added goals
- Capital development develops both results to provide value-added benefit and also performance solutions to implement the capital needed to create result value and show the costs against the value
- The enterprise strategy defines strategic result value to be created and governance ensures the transformation from current result value to strategic result value
- Contrived 20th century structures and entities are abolished by describing all responsibilities in terms of results and performance solutions
- An efficient and effective 21st century enterprise is created by standardizing performance and costs and differentiating in the value-quality of customer results
- The enterprise can collaborate with other 21st century enterprises by re-linking result value-quality chains, since results are consistently defined and performance costs are standardized
Move beyond conventional thinking to evaluate what R-pM can do for your enterprise
Do you gain these advantages from your 20th century enterprise? If you don’t, join the R-pM community at Result-performance Management to learn more about R-pM.
R-pM provides competitive advantage through 21st century management
R-pM provides a new management, outlook, plus specific applications to improve your enterprise today. R-pM makes 20th century methods obsolete, and is becoming the imperative for organizing and managing the enterprise to compete through 21st century management.
Harry is the President of Result-performance Management Ltd. and posts information on R-pM at result-performance-management.com (http://www.result-performance-management.com/) the home site for the R-pM community.
E-mail: harry@result-performance-management.com
Source: http://www.articlepros.com
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