Archive for January, 2008
Integrate business organization and management through one business structure
January 31st, 200820th century management lays many organization and management structures over the business
20th century management used today starts with an organization structure that is laid over the business, instead of organizing the business. This prevents integrated business organization and management. Additional structures are laid over the business for planning, directing, control, and reporting. Separate operation structures are used for the various functions and activities of the business. Different structures are used for investment planning and capital development. The proliferation of structures creates business and information complexity. Rigid overlaid structures conflict with the actual business causing the wide range of unsolvable 20th century management problems.
21st Century Management integrates business organization, management, operations, and development
R-pM organizes the actual business for 21st Century Management. One business structure defines the current business and another defines the desired strategic business, so that management organization, planning, directing, control, and reporting are focused on the transition from the current to strategic business structure. Business operations are organized by result groups within the business structure to produce specific chains of results. Capital development is organized and managed through sub-sets of the structure for results and performance solutions to be developed. Projects are managed through a project business structure that organizes new results and solutions being developed and the capital assigned to the project as specific performance solutions. R-pM uses the actual business as one structure for all organization and management needs [more...]
Rule No. 3: Organize and Manage Capital for High Utilization and Return
January 28th, 2008Administration is one of the top ten 20th century management problems
Administration is one of the top ten management problems with 20th century management. Enterprises have large sums invested in the capital that is utilized in performance, but most have not organized capital, so that it can be managed.. Capital is assigned to a center, labeled as “intangible assets”, or administered by an administration function. Since capital is not identified and organized to be part of the business, capital cannot be managed for operation, development, and utilization.
Rule No. 3 of the ten rules of 21st Century Management: Organize and Manage Capital for High Utilization and Return
The administration problem is eliminated by Result-performance Management (R-pM). R-pM follows Rule No. 3 of the 10 rules of 21st century management: Organize and Manage Capital for High Utilization and Return. Capital management is essential to manage the business, the utilization of capital as performance solutions to produce value in results. R-pM manages information capital to eliminate the emerging information complexity and management problems
R-pM organizes performance solutions for professional support and to be integrated to produce results
Capital is organized by the professional capabilities needed to properly manage and support the capital as business, human, facility, or management capital. Capital is organized further by the way it is utilized to produce results as readiness, production, or information capital
Capital is managed to be of high-worth, by being utilized for a managed performance cost to create greater value in the results produced for a known value-added. New capital is developed as specific performance solutions of a known cost to add known value to specific results to manage the return on investments. All enterprises can improve profit margins by using R-pM to organize and manage capital for high utilization and return.
But, enterprises can never manage capital while it lies in centers hidden from view, while it is classified as “intangible assets”, and while those who should be managing it are performing administrative functions [more...]
Why you cannot manage your business
January 24th, 2008You cannot manage your business, because your business is not organized
20th century management does not organize the actual business enterprise. Instead, an enterprise organization structure is laid over the business. The organization structure is the fatal error of 20th century management. Once an organization structure is laid over the business, the business can never be managed.
Since your actual business has never been defined or organized, you cannot manage your business. You must manage artificial entities described in separate management structures laid over your business. You plan in corporate planning and budget structures, direct operations in business process and information system structures, administer through administration structures, control through an account structure, and report through performance management and reporting structures.
You can manage your business directly with Result-performance Management (R-pM)
Result-performance Management (R-pM) replaces 20th century management structures with one 21st century business structure to integrate business organization and management. All business organization, planning, directing, control, and reporting is against one business structure. Your business management and decisions involve the specific performance solutions used to produce specific business results. You manage result value, performance costs, result value-added, capital worth, and other attributes of the actual business that you have never managed in 20th century management [more...]
Rule no. 2: Generate profits from a chain of managed value and quality
January 21st, 2008Business processes and information systems laid over the business prevent management of costs, value, and quality
20th century management lays monolithic business processes and information systems over the business to manage business performance. Results produced by the business are defined as performance and are not specifically identified and managed as a set or chain leading to final results that go to the customer. This prevents to business from managing the cost of producing a result, the result value, the result quality, and the result value added. Much time and money is wasted trying to reconcile ill-defined processes and systems for business collaboration.
Rule No. 2 of the 10 rules of 21st Century Management: Generate profits from a chain of managed value and quality
Result-performance Management (R-pM) organizes the performance producing each result and organizes results as value-quality chains to manage cost-effective performance producing value-quality results to provide high value and high quality customer results.
R-pM produces customer business results from result value-quality chains
R-pM redefines business processes and information systems by the results produced and manages each result in the result value-quality chain starting from input results from the supplier, result value added along the enterprise result chain, and the final result to the customer. R-pM manages result value-added to contribute directly to the profit result. R-pM enables the business to integrate and manage the chain to help suppliers meet enterprise needs and to add more value by meeting customer needs [more...]
The Competitive Playing Field will no longer be Level
January 17th, 2008All companies today are burdened by the same 20th century management problems
20th century management contains significant competitive disadvantages. But, 20th century management continues today, because all companies are burdened with the same costs and problems. The competitive playing field remains level, because no company organizes and manages the actual business.
21st Century Management is vastly superior to 20th century management
But what happens when one company uses R-pM to organize the business for 21st Century Management, to jettison excess costs, focus on increasing result quality and value-added, quickly develop and implement new performance, quickly introduce new and improved products and services, and reduce prices while increasing revenues. That company will enjoy significant competitive advantage over companies still burdened with unsolvable 20th century problems.
The future competitive playing field will no longer be level. Where will your company be? Among the leaders employing R-pM for competitive advantage or among the followers, still struggling with unsolvable 20th century problems and falling further behind [more...]
Rule No. 1: Organize and Manage the Business
January 14th, 2008An organization structure is laid over the business, instead of organizing the business, so the business can never be managed
The fatal error of 20th century management is the organization structure. Once and organization structure is laid over the business, the business can never be managed. If the business is organized the business organization changes with business change and there is no need for reorganization or change management. Since the business is not organized, additional structures must be laid over the business for management planning, directing, control, and reporting.
Rule No. 1 of the 10 rules of 21st Century Management: Organize and manage the business
The conventional definition of the enterprise business is the activity of providing goods and services. The 20th century enterprise has never organized or managed the activity of providing goods and services, but, instead, lays rigid enterprise organization and management structures over the business. Business change conflicts with the rigid structures, creating unsolvable problems that can only be eliminated by organizing the business for 21st Century Management.
Result-performance Management (R-pM) organizes and manages one integrated business structure
Result-performance Management (R-pM) organizes the business as one structure to integrate enterprise business organization and management. Business activity is organized as capital utilized in performance solutions. Goods and services are organized as the results produced by business activity. Business results and performance solutions into are organized together into a business structure. The business is organized by deploying specific performance solutions to produce specific results. The one integrated business structure is utilized for all 21st century management planning, directing, control, and reporting to leave 20th century organization and management problems behind [more...]
How to maximize Benefits from existing Processes and Systems
January 10th, 2008Existing business processes and systems can by improved significantly
Over the past 15 years corporations and other enterprises have implemented business processes and packaged information systems, like ERP, SCM, MRP, and CRM. These processes and systems provided general improvement, but usually still include extra costs and inefficiencies. Business processes and systems are laid over the actual business, rather than being utilized as a part of the business. Many corporations want to improve their process and system utilization, but lack a fundamentally-sound method.
Use R-pM to define processes and systems as a result value-quality chain
Result-performance Management (R-pM) provides the method by identifying and managing the actual business that lies hidden under the processes and systems. The business is defined by the economic output results produced and the capital, such as business processes and systems, utilized as specific performance solutions to produce specific results. R-pM redefines processes and systems as performance solutions that are utilized in result value-quality chains. R-pM minimizes the performance solutions utilized and maximizes the result produced at each link in the chain, so the corporation can manage value and quality across existing processes and systems.
Process and system performance is improved result by result across the result chain
R-pM makes business processes and systems a part of the actual business, instead of structures laid over the business. Business process and information system processing utilized to produce each result in the result chain is analyzed to integrate the process, eliminate waste, and produce a high value-quality result. Doing this, result by result, defines the actual business and maximizes the benefits from existing processes and systems [more...]
Your Business is your only valid Account Structure
January 3rd, 2008Accounting, today, does not maintain accurate business records
20th century management does not organize or manage the business. This makes it impossible to keep records on output results of value produced by the business and the consumption of capital in costs to produce each result. Instead of recording the actual business, a chart of accounts is laid over the business to record income and expenses and the worth of certain known assets. 20th century accounting records the cash generated and spent by the business, rather than recording the complete development and utilization of capital and the complete economic output results produced by the business.
Accounting, today, contains many unsolvable 20th century problems
Accounting is one of the main unsolvable problems of 20th century management. Accounting is separate from the actual business, records only a small sub-set of needed financial and non-financial business records, sees it role as control rather than capital management and business support, allows financial management problems such as intangible assets and unknown costs to persist, does not provide accurate business information needed for corporate management and governance, and on and on.
R-pM accurately records and accounts for the actual business for 21st Century Management
21st century management uses Result-performance Management (R-pM) to organize the actual business as one integrated business structure. The business structure replaces all organization, accounting, planning, performance, costing, reporting, and administration structures laid over the business. R-pM employs professional records management to manage facility records as capital, to maintain complete and accurate financial and non-financial records on the actual business, and to provide information performance solutions from records for good corporate management and governance. Records management is integrated within the business to be utilized to make decisions at all levels and to record accurately actual business decisions made [more...]


