Key performance indicators measure the enterprise and not the business

Key performance indicators produced today measure the various organization, process, system, performance management, and other structures laid over the business, rather then the actual business. To measure and manage the business, the attributes of capital utilized as solutions, output results produced, and performance in the utilization of a capital solution to produce a result must be measured and managed.

Key performance indicators mix capital, results, and other entities together under the heading performance

Performance is defined to include both the actions executed and results accomplished. This prevents the actual business from being organized and managed. Many performance indicators measure capital, results, and other entities. Very little actual business performance is measured of managed. Most actual business performance in costs, effectiveness, problems, uncertainty, value creation, etc remains unknown.

We must separate capital solutions, output results, and performance to measure and record the actual business

In order to manage the actual business, we must organize results, capital solutions, and performance of solutions to produce results in one business structure. Specific capital solutions are then implemented for utilization in performance to produce specific results. At this point, performance domain records are set up for each capital solution and result combination to capture the performance of the specific solution to produce the specific result in capacity utilization, costs, expectations, and other indicators. Performance transactions record actual performance costs, effectiveness, etc producing result value, quality, etc. Performance records, plus capital solution and result totals are updated, as needed, for each instance of performance. [more...]

Management Consultants today provide counter-productive enterprise management services

20^th century enterprise management consulting helps the client manage the enterprise through structures laid over the business, rather than directly managing the enterprise business. With the advent of 21^st century business management, 20^th century management consulting is obsolete. Yet, management consultants today continue to inflict high-costs and unsolvable problems on client enterprises through re-organizations, enterprise strategy, business process, information system, performance management, administration, and other 20^th century enterprise management structures and services.

21^st century business management consultants help customers manage the actual business

Today it is possible to manage the business directly using Result-performance Management (R-pM) knowledge and procedures. 21^st century business management replaces enterprise structures laid over the business with current and strategic business structures. More consultants are licensing as R-pM Business Management Consultants, to provide professional 21^st century business management consulting services that assist enterprise customers to organize and manage the business and eliminate unsolvable 20^th century problems. All R-pM business management consulting services are based on achieving planned and measured result value-added benefits. All consulting services employ the R-pM Business Management Consulting Model and 21^st century business management conventions and standards.

Prepare for the future demand for 21^st century business management consulting

Business management consultants are provided extensive R-pM knowledge and support to build capabilities and experience in actual business management. 21^st century business management consultants will be well placed when competition forces all enterprises to organize the business to gain the competitive advantages of 21^st century business management. [more...]

The business enterprise can be managed or the enterprise business can be managed

20^th century management utilized by enterprises today organizes and manages the enterprise by laying organization and management structures over the business. The enterprise business is not defined or organized and actual business information is not provided for management.

The alternative is to organize the actual enterprise business for 21^st century business management. One simplified business structure is used for all current and strategic business organization, planning, direction, control, and reporting. Actual business data is captured and actual business information is used for management.

20^th century management is a dead-end that can never solve existing or future management problems

The structures laid over the business conflict with the business creating unsolvable problems with reorganizations, change management, business alignment, unknown costs and value, unknown worth and investment returns, and on and on. The problems are compounded by the expanding use of information technology to manage overlaid structures rather than the business. New IT architectures and resources are added, but can never solve the problems and just add more unsolvable problems.

The only future alternative is to organize the business for 21^st century business management

The only solution is to organize and manage the actual current and strategic business. One set of business data entities are managed and reported. All information in the business is referenced to the business in one Business Information Base. Current systems are organized as business solutions, as appropriate, and unneeded systems and structures are abolished. The business is organized to leverage IT for direct business management, flexible change, and rapid growth. The business is no longer burdened by unsolvable problems and customer value and quality is managed directly. [more...]

Today we have many generally-accepted accounting problems

Accounting is a major problem in the 20^th century enterprise. Management is faced with generally-accepted accounting problems. The actual business is not accounted for. Financial records are missing for much of the business cycle. Financial management information is inconsistent, inaccurate, and incomplete. Many well-known problems like intangible assets, unknown costs, unknown capital worth, unknown investment returns, unknown value creation continue unsolved. Accounting is often equated to records management. Most enterprise non-financial records are scattered, missing, and mismanaged.

Organize your business for professional records management of all financial and non-financial facility records capital

21^st century business management organizes the actual business and builds professional records management to provide complete financial and non-financial facility record capital solutions. 21^st century business management manages the full business cycle to keep accurate records on all performance costs, performance effectiveness, result volumes, result quality, result values, result value-added, tangible and intangible assets of positive capital worth, liabilities as specific solutions of negative capital worth, and accurate enterprise business net worth. 21^st century business management provides one set of accurate management information on the strategic, planned, actual, and historic business. [more...]

Most enterprises today do not organize or manage their business

Today, there are few examples of enterprises or industries that intrinsically organize and manage their business to define the output results they must produce, have result goals they strive to exceed, invest in the specific capital solutions needed to produce results, develop solutions to add value to results, relate their performance to results, manage performance uncertainty to reduce result risk, utilize result value-quality chains, differentiate through performance and results, and pay based on results.

Professional golfers employ natural 21^st century business management

Professional golf is one industry that intrinsically employs natural business management. Each professional golfer and those the golfer employs is an enterprise. The golfer separates results from performance, and organizes his business to utilize capital effectively in performance to produce quality results. Like any enterprise, the professional golfer's competitive differentiator is the totality of how well he develops and utilizes his capital solutions in his performance to produce value and quality in results.

Learn how to organize and manage your business from the professional golfer

Other industries can learn about organizing the business for 21^st century management from professional golf, to develop cost-effective performance to produce value-quality results. If you are a golfer, learn about managing your enterprise business from the way you manage your golf game. [more...]

No enterprise manager today makes actual business decisions

Managers today lack the business context, business management information, and the actual business management experience needed to make decisions on business organization and management. Any actual business decision could never be implemented because the business is not defined or organized.

All managers make enterprise management decisions to change structures laid over the business

Enterprises today use 20^th century management to manage the enterprise with structures laid over the business. Management decides on changes to the organization, business process, information system, account, scorecard, or other overlaid structure rather than changing the actual business.

We must manage and report the business to provide the context for business decisions

In order to make actual business decisions, the business, “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results”, must be organized and managed. All business decisions are an informed change to a result produced by the business and the capital utilized as solutions in business performance to produce results. Business decisions are directly implemented to the business to produce a new result or utilize improved solutions. Business decisions are made, reported, and managed in the business context of performance cost and result value change, performance effectiveness producing result quality, result value-added affecting capital worth, actual achievement against result goals, progress to strategic result value, and other business management information not provided by 20^th century enterprise management. [more...]

Unsolvable 20^th century management problems are caused by structures laid over the business

20^th century enterprise management problems are caused by conflicts between the actual business and enterprise organization and management structures laid over the business. 20^th century enterprise management “solves” the problems by laying ever more-complicated structures over the business, and adding more information technology overheads to manage the structures.

Dead-end 20^th century management problems can never be solved by laying new structures over the business

For years and years, many management books and expensive solutions have been sold to “solve” 20^th century enterprise management problems by new or improved structures laid over the business. But the “solutions” only compounded the problems. 20^th century enterprise management is a dead-end. All 20^th century management problems remain unsolved today. All we have done is to make the enterprise more complicated and created a gigantic IT infrastructure that cannot capture actual business data.

Enterprises are now waking up to the problem and organizing the business for 21^st century business management

There is only one solution to the problems with dead-end 20^th century enterprise management. Each enterprise must organize the actual business for integrated 21^st century business management. The 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 business is organized as one business structure that captures actual business data and reports actual business management information. The strategic business structure plans the future business. The business structure replaces all the enterprise management structures now laid over the business. The enterprises now organizing their business will have continuing competitive advantage over enterprise burdened with 20^th century enterprise management, and the advantage will continue even after followers start to manage their business. [more...]

Today's information systems do not capture and report actual business data

Today's enterprise uses a myriad of management structures and information systems creating enormous information complexity. Each structure and system defines its own set of data entities and reports separate information. Enterprise management information systems attempt to reconcile data and integrate information into meaningful reports for management. But, no system today captures actual business data and no management information system reports actual business management information.

The business must be managed to capture business data and report business management information

21^st century business management organizes the business in order to manage economic output results produced, capital investments implemented, and the utilization of capital to produce results, as complete data sets. The business is organized as one integrated business structure to capture data on the utilization of capital in specific solutions to produce economic outputs in business results. Business data is captured in an integrated Business Information Base to provide access to one complete set of comprehensive business management information.

Data is reported on all results produced, capital invested in solutions, and capital utilized to produce results

Data is captured on capital solution capacity, qualifications, worth, and return; performance capacity utilization, cost, and effectiveness; and the volume, value, and quality of results produced. Strategic results and the solutions needed are maintained in the strategic business structure with plans for time periods and updated strategic estimates. Complete and comprehensive management information is reported on the actual business for effective 21^st century business management and good corporate governance. [more...]

Enterprises today have many problems with information management

Enterprises implement information systems to manage the enterprise, not the business. The many enterprise structures laid over the business require a massive workload in data collection and information processing, and produce a wide range of information concerning various enterprise entities, much of it conflicting and inaccurate. This produces enormous information complexity and excessive IT resources. Enterprises must make additional investments in hardware, information management systems, and IT architectures to attempt to manage the complexity. All the information gathered and reported describes the enterprise. No enterprise today captures actual business data.

Business management captures actual business data and reports information for utilization by the business

21^st century business management organizes information as capital for support and utilization. Actual business data is captured and managed as sets to know value, all costs, capital worth, investment returns, etc. All information is related to the business for utilization to produce results and for control of business information. Enterprise information not related to the business is no longer processed or maintained. All emails, Internet searches and downloads, file transmissions, etc in or out of the business relate to a specific business data entity.

All information is managed as one consistent Business Information Base

All information used by the business is referenced to one of six data sets that control common attributes and subsidiary data entities. The information is organized into one consistent, complete, and accurate Business Information Base. Information systems are reduced to direct system solutions to produce specific results. Large IT resources for enterprise information systems, data reconciliation, enterprise information management, portfolio and hardware management, and special information management systems are no longer needed. [more...]