It is impossible to manage capital development properly today with 20^th century management

20^th century management used today does not provide a framework for proper capital development. Capital development develops specific solutions that must be utilized by the business. Capital development incurs the costs of development and sets up the cost of capital utilization. But today, capital is not defined and managed as a set of capital solutions available to the business. Capital is categorized as employees, fixed assets, intangible assets, etc.

Implemented capital is utilized in business performance to produce output results of value. Result development provides the benefits of development and the value-added that provides the return on investment. But today, results are not defined and managed as a set to be produced by the business. Some results are managed as separate items, such as product, sales order, revenue, etc. 20^th century management manages capital development separate from the business to develop certain known capital.

The business must be organize to enable result-capital development

21^st century business management organizes the business in results that must be produced for business success, capital that must be invested in the business to produce results, and performance in the utilization of specific implemented capital as solutions to produce specific results. Once the business is managed, it is straight forward to identify new results required to improve and expand the business. Once the business is managed, it is also straight forward to identify the capital solutions needed to produce the results. New result development and new capital solution development is planned and managed as part of the business. [more...]

20^th century enterprise management problems can never be solved by conventional thinking

Unsolvable problems of 20^th century enterprise management with reorganization, alignment, costs, value, worth, investments, returns, intangible assets, complexity, etc are well known. What is not well known is the cause; the failure to manage the business. Solutions are prevented by conventional thinking that allows only incremental improvements in the way that enterprises have always been managed and prevents the thinking needed to manage the actual business to eliminate the problems.

Conventional thinking limits the worth of individual human capital

People need to go beyond conventional thinking to gain new capabilities and knowledge to increase their worth by producing higher value results. But conventional thinking prevents this, because the enterprise has never managed human personnel, capabilities, and knowledge as capital, never developed human capabilities as solutions to produce results, never managed result value created, and never managed the worth of human capital.

All the enterprise needs to do is to organize the business for a base of new conventional thinking in the 21^st century

But the enterprise cannot organize the business, defined as "the activity of providing goods and services", because it is not the way things have always been done. High-worth human capital must go beyond conventional thinking to learn the actual business and gain the breakthrough competitive advantages of 21^st century business management. If you can go beyond conventional thinking and increase your own human capital worth, look at organizing the activity of providing goods and services for 21^st century business management, and provide a new base for conventional business management thinking in the 21^st century. [more...]

All enterprises are burdened by obsolete 20^th century management today

Enterprises can compete today, not because they are efficient and effective, but, because they are all inefficient and ineffective. The enterprise is managed, not the business, which consists of “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results”. All enterprises today lay organization and management structures over the business that conflict with the actual business and cause unsolvable problems that can never be solved by laying new structures over the business.

The first to organize the real business for 21^st century management gain significant competitive advantage

The business consists of three components: capital investments made in the business in specific capital solutions of developed worth, output results of value and quality that must be produced for business success, and performance in the utilization of specific solutions to incur costs and provide effectiveness to produce specific results. Organizing the business for 21^st century management provides immediate competitive advantage.

Manage capital worth and performance to minimize costs and maximize result value-added and quality across the business

In a managed business all management and personnel know the solutions they must utilize effectively and the value and quality they must produce in results. Capital is developed only to increase result value-added and the worth of human and other capital. Result value-added and quality are managed along the chain to produce high value-quality customer results. The actual business is managed to quickly change capital utilized and results produced and to integrate with suppliers, business partners, and customers for shared value-added. This provides measurable competitive differentiation and advantage not possible today with 20^th century enterprise management. [more...]

Enterprises today combine many different forms, theories, and structures to produce many different ways of "doing business"

Enterprises today are defined and organized in many different ways, making it difficult to collaborate and employ common solutions. Enterprises think that they have their own distinctive way of "doing business". But, no enterprise actually understands the real business or the commonalities that must defined, organized, and managed to manage the business.

The commonalities of all businesses must be understood in order to define the actual business and organize and manage the business

All enterprises businesses have commonalities that must be understood and used as the foundation to build strong businesses that can collaborate easily and differentiate specifically where beneficial. 21^st century business management is based on the commonalities of all businesses that must be defined, organized, and managed. From analysis of business commonalities, the actual business is defined as “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results”.

The knowledge required to organize and manage your actual business is available today

Result-performance Management (R-pM) shows how to organize the business into a common business structure to utilize investments in standard categories of capital solutions in performance to produce specifically defined results. The common business structure enables collaboration and utilization of common solutions and services for all businesses. R-pM shows how to differentiate your business in the value-quality of result design and the cost-effectiveness of capital solutions utilized in performance to produce value-quality results. [more...]

Today it is not possible to manage businesses as part of a corporation, industry, or economy

Companies and corporations today are arbitrarily organized and managed through structures laid over the business. The business is not organized, actual business data is never captured, and real business management information is never generated, recorded, or consolidated to describe the actual company, corporation, industry, or economy in real business terms.

Businesses must be organized as business structures that build up to multiple-business corporations, industries, and economies

Businesses must be organized instead of companies or corporations. The business organization structure must define economic output results produced in chains of results across the complete business, all investments made in the business as specific human and other capital solutions implemented to produce specific business results, and the utilization of each solution to incur the costs and to create the value in each business result. The consistently-defined organized businesses can then be consolidated into the complete economic output results produced by a corporation, industry, or economy. All capital investments are managed to know and consolidate the return in result value-added to date and the capital worth (asset value) in the projected continuing future result value-added. The utilization of all capital solutions in performance to produce results are managed to know and consolidate all result volumes produced, performance costs, result value created, result value-added over performance costs, performance effectiveness, and much more vital and accurate business management information.

21^st century business management provides the structure required to manage each business and consolidate multiple businesses

21^st century business management structures each enterprise business to manage all capital investments, the performance of each investment in the business, and the economic output results produced from the utilization of specific capital investments. Enterprise businesses are consistently consolidated to the corporation business to record and manage all businesses within the corporation. Consolidation is possible for all the businesses in an industry, market, economy, or other business indicator against which enterprise business data is collected. [more...]

Today, your actual business is hidden under 20^th century enterprise management structures

As we said in many previous articles, the current economic crisis is caused by one fundamental problem, the failure to manage the business. Many large financial institutions and corporations have shown that they are unable to manage the various parts of the corporation in various divisions, business units, and subsidiary companies scattered around the world. Managers today think that they are managing their business. However, no manager today manages his actual business. Managers manage the enterprise through generally-accepted structures laid over the business. These overlaid structures hide the business and prevent actual business management.

You must learn your actual business and the entities that comprise your business

The generally-accepted definition of the business enterprise "the activity of providing goods and services". The enterprise must manage the utilization of capital in business activity or performance providing high-value and high-quality goods and services as results for its customers in order to manage the business directly. 20^th century management utilized today does not organize and manage the enterprise business, but rather organizes and manages the enterprise through structures laid over the business. This causes many unsolvable problems with reorganizations, unknown investments and returns, unknown capital worth, unknown result value and quality, IT overheads, misleading management information, change management, corporate governance, business collaboration, and on and on.

Gain control of your business and abolish structures laid over your business

The only solution to the problem causing the economic crisis is to manage your actual business. You must organize and manage your business activity in the utilization of capital as specific capital solutions. You must organize and manage your goods and services as specific economic output results that are produced by the business. The business is then organized as one integrated structure for all management needs by utilizing specific capital solutions in performance to produce specific results. Actual business data is captured on result volumes, value, and quality produced by the capacity, cost, and effectiveness of solutions utilized in performance. You have one consistent set of clearly-defined management information on the current business and progress to the strategic business defined by a strategic business structure. You can manage cost-effective performance to produce high-value and high-quality goods and services as input results to the customer business. Corporations manage various divisions, business units, and subsidiary companies as businesses that consolidate up to the complete corporation business. [more...]

Management consultants today are enterprise consultants not business consultants

Management consultants today utilize conventional 20^th century management practices to manage the enterprise through contrived organization and management structures laid over the business. Many consultants claim to be business management consultants, but in fact have no concept of what the business is and how to manage the business.

Management consultants must learn to organize and manage the business to become 21^st century business management consultants

Management consultants must learn to organize and manage the actual business by utilizing the knowledge and guidance provided by Result-performance Management (R-pM). Management consultants utilizing R-pM knowledge are licensed as 21^st century business management consultants. The decade of the 2010's will be the decade of business management as enterprises organize the business to rectify and prevent the problems that led to the current economic crisis.

The 21^st century business management consulting model guides enterprises and consultants to work together to manage the business

R-pM is described in the R-pM Business Management Toolkit, which guides both the enterprise client and the consultant to work together to organize and manage the business. The Toolkit includes the 21^st century business management consulting model which provides the framework and guidelines for the consultant to work in partnership with the enterprise to organize and manage the actual business for significant competitive advantage and future business success. [more...]