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Separating Capital From Results Improves Performance
August 20, 2008 2:00 PM
Companies can only effectively manage their performance when they separate the capital they use in their activities from the results those activities produce, according to management consultant Harry Greene. When those are separate, companies can put into place an entirely new structure for managing the business that does away with all overlaid structures and organizes the performance solutions utilized and business results into a single, comprehensive system. Greene says, "This enables the enterprise to minimize its use of capital, maximize result value added, and optimize performance for each result along a value-quality chain. But this is possible only after R-pM [Result-performance Management] separates results from performance and organizes the business for 21st-century management."
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