Logo: Feedburner Archive for September, 2007

Replace Business Processes with Value-quality Chains

September 27th, 2007

20th century management lays a monolithic business process over the business. Results are mixed with performance and defined as "performance" preventing actual business management. The objective is to manage "performance quality", but costs, value, effectiveness, and quality are hidden in the process.

Rule No. 2 of 21st Century Management is to "Generate profits from a chain of managed value and quality". Result-performance Management (R-pM) replaces business processes with result value-quality chains to organize and manage the actual business to manage performance capacity to produce a result volume, performance effectiveness producing result quality, and performance costs creating result value. Result value-added is the result value less the total result cost. The actual business is managed to generate profits from a chain of managed result value-added. Contrived overlaid business processes are abolished. [more...]

Do not manage the Business Enterprise, manage the Enterprise Business

September 13th, 2007

The business enterprise is managed with 20th century management by laying enterprise organization and management structures over the business. The structures conflict with the business causing unsolvable 20th century management problems with reorganization, alignment, business and information complexity, change management, intangible assets, unknown costs and value, and on and on. Yet today, all business schools, management books, management consultants, and information systems, teach and assist us to manage the business enterprise.

The enterprise business is managed with 21st Century Management through one integrated business structure to capture actual business data, maintain accurate business records, minimize the capital utilized and maximize the results produced from business production, and focus the enterprise on utilizing cost effective performance to produce high-quality and high-value results. Managing the enterprise business eliminates unsolvable problems, reduces costs significantly, utilizes information technology and other capital properly, maximizes human capabilities and worth, and provides many other benefits not possible by managing the business enterprise. [more...]

Escape the Straight Jacket of 20th Century Management

September 6th, 2007

New businesses around the world are forced to adopt "western style" 20th century management, since it is taught in all business schools and management books, propagated by management consultants, and supported by software packages and other packaged management solutions.

20th century management does not provide a solid business foundation and introduces many conflicting, complex, and high-cost structures. Problems with reorganization, unknown costs, unmanaged value, unplanned capital development returns, business alignment, intangible assets, unknown capital and enterprise worth, inaccurate business records, business and information complexity, growing IT overheads, and on and on, have been known for years. Years of 20th century management teachings, books, consulting, software, and solutions have made the business more complex, and have never solved the unsolvable problems of 20th century management.

Now there is a way to escape the straight jacket of 20th century management. Result-performance Management (R-pM) organizes the actual business as a firm foundation for simple and direct 21st Century Management [more...]