20^th century management lays many organization and management structures over the business

20^th century enterprise management used today lays an organization structure over the business, instead of organizing the business. Since the business is not defined and organized it is impossible to integrate business organization and management in one business structure. Additional structures are laid over the business for planning, directing, control, and reporting, such as corporate plans, business processes, account charts, and scorecards. 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 20^th century enterprise management problems.

21^st century business management integrates business organization, management, operations, and development

The actual business is organized for 21^st century business 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. The actual strategic and current business structures are used for all organization, management, and governance needs. [more...]

Enterprises continue to waste funds on dead-end 20^th century management investments

20^th century management investments have created the maze of organization and management structures laid over the business that cause today’s unsolvable problems with alignment, change management, unknown costs and value, unknown capital worth and investment returns, business and information complexity, business collaboration, and on and on. New 20^th century management investments in reorganizations, enterprise information systems, process and performance improvements, IT architectures, etc are dead-ends that add to unsolvable problems.

It only requires a small alternative investment to organize the business for 21^st century management

The alternative is to invest in managing the actual business to eliminate unsolvable 20^th century management problems. The investment to organize and utilize existing capital to produce results along result value-quality chains and across the business is relatively small and one time. The big change is the change in thinking to understand and manage the actual business. Existing information systems can manage the business and existing processes and systems as solutions can be utilized to produce specific results. Once the business is organized all tangible and intangible capital invested in the business is organized as capital solutions of worth to be utilized in performance to incur costs and produce value in results. All structures laid over the business are cleared away to focus on business data collection and provision of information and other capital solutions needed for actual business management.

Once the business is managed, business change investments are minimized to new capital advances to produce valuable new results.

The only way to plan and develop capital for a planned and measured return on investment is to manage the business. Capital is managed to minimize investments to those essential to the actual business. Future investments are in capital solutions needed to produce specific new or improved results. The development costs are captured and amortized against results produced and return on investment in added result value-added is captured against the capital solution. [more...]

All companies today are burdened by the same 20^th century enterprise management problems

20^th century enterprise management used by all companies today contains significant competitive disadvantages. But, 20^th century enterprise 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. All companies lay organization, accounting, business process, administration, and other management structures over the business to manage the enterprise.

21^st century business management is vastly superior to 20^th century enterprise management

But what happens when one company organizes the actual business as one structure for 21^st century management, clears away all the unwieldy structures laid over the business, and eliminates unsolvable 20^th century management problems. That company jettisons excess costs, increases result quality and value-added, quickly develops and implements new capital, quickly introduce new and improved products and services, and reduce prices while increasing revenues. That company enjoys significant competitive advantage over companies still burdened with unsolvable 20^th century management problems.

The future competitive playing field will no longer be level. Where will your company be? Among the leaders managing the business for competitive advantage or among the followers, still struggling with unsolvable 20^th century management problems and falling further behind? [more...]

Alignment is an unsolvable 20^th century enterprise management problem

Many books have been written offering solutions to the "alignment problem"; to align outsourced and internal solutions, processes and information systems with the business, capital development and business operations, customer solutions and the business, etc. Despite all the books the alignment problem continues unsolved today.

The business must be organized to provide the structure for alignment

The alignment problem cannot be solved because the business is not organized. Capital investments in the business are not identified as specific solutions. Solutions provided by other parties such as outsourced solution providers, business partners, or customers are not identified as solutions to be managed. The results produced by the solutions are not identified as a set of economic outputs from the business. Therefore, the business cannot be organized by aligning the internal and external solutions utilized in performance with the result produced.

Aligned solutions are integrated to produce results as part of the business

When the business is organized all capital invested in the business and all the outsourced, business partner, or customer solutions utilized are aligned and related to the results produced by the solution. The full set of solutions can then be integrated to work together to produce a specific result. The result manager is responsible to utilized the full set of internal and external solutions to ensure that the result is produced to meet solution performance expectations and achieve result goals. [more...]