The organization structure is the "fatal error" of 20^th century enterprise management

Once an enterprise organization structure is laid over the business, the business can never be managed. Consistent, comprehensive, and accurate business data can never be captured and reliable business management information can never be reported to management. The enterprise must be managed by laying business process, corporate plan, account chart, performance management, cost activity, quality assurance, data reconciliation, and other structures over the business. Data is gathered against arbitrarily defined overlaid structures, rather than the business, providing management with an overload of inconsistent, inaccurate, and very incomplete information.

Organize the business as one management and reporting structure

The business consists of three components: 1) results needed for success, 2) investments in capital solutions to produce results, and 3) the performance of each capital solution to produce each result. These three components are organized in the business structure for use in all business planning, direction, control, reporting, and governance. Actual business data is captured when capital solutions of worth and qualifications are utilized in cost-effective performance to produce value and quality in a result. The structures laid over the business are no longer needed. Management has one set of consistent, complete, and accurate information to manage the actual business. [more...]

Capital investments must be organized as solutions to be implemented and utilized as part of the business

Many articles discuss how business results and capital solutions must be organized together in a business structure, to organize the business as “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results”. Capital solutions are organized into a capital structure by category in the human capability needed to develop and support specific solutions and by class in the business utilization of solutions to be ready to produce output results, to produce specific output results, and to have the information to produce and document results.

Capital management manages capital solution acquisition, development, implementation, and support

Capital management is fundamental to acquire, develop, and support capital utilized to produce results, and performance management is fundamental to implementing and maintaining cost-effective solutions to produce value-quality results. Organized and managed capital is required to eliminate intangible assets, unknown costs, underutilized capital, business complexity, unknown capital worth or asset value, and other unsolvable problems. Organized and managed capital is required to establish value chains, develop capital for precise business needs, respond quickly to add or delete business results, optimize operations, have skills and responsibilities for capital development, measure the precise return on capital investments, and gain other benefits prevented by the unorganized and unmanaged capital used today. [more...]

There is but one natural way to organize and manage a business

You use the one natural way to organize your personal business. You produce results in the things you accomplish. To produce results, you acquire and maintain capital as solutions in your capability, time, tools, equipment, money, plans, instructions, etc. You utilize the capital solutions in your performance to produce a result of value, such as a prepared meal, arrived at a destination, a good time, etc. You manage your business through common sense. You do this instinctively because it is the only way to organize and manage your personal business or any other business.

Your company organizes and manages the company, rather than the business

But on your job, you no longer naturally utilize capital solutions to produce results. Your company does not organize or manage the business. The company lays contrived structures over the business to manage the company. All business schools, management books, packaged solutions, consulting advice, professional bodies, and on-the-job experience teach us to lay contrived structures over the business. You cannot manage or perform using common sense. You must follow various rules, regulations, and procedures to utilize arbitrary processes, systems, accounting, and other structures.

Use your natural method to organize your company business

Result-performance Management (R-pM) defines the natural way you organize your personal business. R-pM enables you to use your natural method of utilizing specific solutions in performance to produce specific business results. You will see improvement in the job you do today, and understand the potential to organize your company business for the breakthrough advantages of 21^st century business management. [more...]

20^th century enterprise management we use today presents many unsolvable problems

21^st Century Management Magazine has produced many articles describing the 20^th century enterprise management with the unsolvable problems all business enterprises suffer from today. The enterprise is organized and managed instead of the business. Enterprise organization and management structures conflict with the business, so that all enterprises confront reorganizations, unknown costs, unknown value creation, unmanaged value chains, investments not required by the business, intangible assets, change management, corporate governance, inaccurate accounting and management information, excessive IT overheads, and other continuing problems that can never be solved by managing the enterprise.

21^st century business management manages the business directly

21^st century business management manages the business as one structure for all organization, planning, direction, control, reporting, and governance. 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 all capital invested in the business as specific solutions, economic output results required for business success, and the performance of the business in utilization of capital solutions to produce specific results. 21^st century business management provides the structures, principles, and rules to guide actual business management and eliminate the problems of 20^th century enterprise management. [more...]

Enterprises today are organized and managed using many structures

Throughout the 20^th century and continuing today, enterprises implemented organization, process, account, performance management, and other structures. The different entities used to describe each structure, produce business and information complexity. The fixed structures conflict with the changing business causing many other known 20^th century enterprise management problems. Many books have been written and additional management structures have been devised, but the problems remain.

Enterprises and management developers have been looking for one integrating structure

There have been many efforts to replace these structures with one simple and consistently-defined structure for business collaboration, reliable management information, use of common solutions, and other needs. Until now, no one has defined the one integrated structure that can be used to organize and manage any enterprise in any industry. Each new structure is laid over existing structures compounding the problems.

The one integrating structure exists; it is the business itself

There is one structure. It has been there all along! That structure is the business itself!

The enterprise 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 consists of three components:

• Business results produced as economic outputs of value from the business
• Capital in the specific solutions invested in the business and implemented to produce results
• Performance in the utilization of each capital solution to produce each result

These components of the business are organized into the current and strategic business structures that replace all structures laid over the business for transparent management of strategic result value creation.

R-pM provides the only method to organize and manage the actual business

Today's unsolvable business problems are caused by conflicts between the actual business and structures laid over the business. Result-performance Management (R-pM) provides the knowledge and procedures to organize the business, as current and strategic business structures, for 21^st century management. All overlaid structures are replaced by the business structure to leave all unsolvable 20^th century management problems behind. [more...]

20^th century enterprise management lacks competitive differentiation and advantage for the 21^st century

Today's business enterprises manage the enterprise, and do not manage the business. Management structures laid over the business in today’s enterprises cannot create competitive differentiation and advantage from utilization of technology, the Internet, and intellectual capital. A new business structure is required to directly manage the business and enable competitive advantage in the 21^st century. The obstacle is conventional thinking that prevents a complete new definition of the business and continues to improve obsolete enterprise management structures laid over the business.

The 21^st century presents new requirements for competitive differentiation and advantage

In the 21^st century, business competition and collaboration can come from anywhere in the world. Competitive differentiation and advantage in the 21^st century requires that the business is simplified for fast and flexible change, is organized to utilize technology effectively and enable business communication and collaboration, and is managed to provide customer value and quality.

The business must be managed for significant new competitive differentiators and advantages for the 21^st century

21^st century competitive differentiation and advantage is gained by organizing and managing the business. Result-performance Management (R-pM) provides the knowledge and procedures required to manage the business. Information technology is employed effectively to organize the actual business for significant competitive advantage in the 21^st century. Capital invested in the business, performance to utilize capital, and output results produced by the business are managed directly to provide competitive differentiation in high value and quality customer results. The unorganized business burdened by overlaid structures will be a distinct competitive disadvantage as corporations organize their businesses in the decade of the 2010's. [more...]

20^th century enterprise management used today is a dead-end that will never improve

21^st Century Management Magazine has published many articles on the unsolvable problems with 20^th century enterprise management caused by organization and management structures laid over the business. These problems have never been solved in spite of thousands of 20^th century management books written and solutions proposed to add or improve overlaid structures. The problems will never be solved by continuing 20^th century enterprise management, used by all enterprises today, into the 21^st century.

20^th century enterprise management must be replaced by 21^st century business management

20^th century management structures laid over the business and unsolvable problems caused by conflicts between the business and overlaid structures must be abolished. The only way to abolish structures laid over the business is to organize the actual business “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results” for 21^st century business management.

R-pM provides the knowledge and procedures for 21^st century business management

Result-performance Management (R-pM) shows the only way to organize the business for 21^st century management. Once the business is organized, all overlaid structures are removed and the business is managed directly to move from the current to the planned strategic business. 21^st century business management provides the breakthrough benefits of a managed business that are impossible to achieve today. [more...]

The "alignment' problem hampers all enterprises today

All of us have heard of various alignment problems to align the organization, processes, information systems, human resource administration, financial and IT strategies, knowledge and capability development, accounts, capital development, outsourcing, supplier specifications, customer needs, tangible and intangible assets, etc with the business. All of these alignment problems are caused by rigid 20^th century organization and management structures that are laid over the business. The rigid structures conflict with the actual business, causing business change problems, and go further out of alignment as the business changes. Periodically new organization, accounting, process, administration, and other structures must be redesigned to align them closer to the business, and then the cycle is repeated.

All attempts to solve the alignment problem have failed and the problem remains unsolved today

Hundreds of books and solutions exist to solve the "alignment" problems, but alignment problems remain unsolved. Alignment problems can never be solved by laying new structures over the business, or by contriving methods to align overlaid structures with each other. The overlaid structures cannot be aligned with the business, because the actual business has never been defined or organized.

21^st century business management eliminates 20^th century alignment problems

The solution to the alignment problem is obvious. The generally-accepted definition of the enterprise business is "the activity of providing goods and services". The business has two components: "the activity of providing" and "the goods and services provided". We must organize the business to align the business activity in capital solutions utilized performance with the goods and services provided as results. This eliminates alignment problems by organizing the business for 21^st century business management. [more...]

Information Technology is a high-cost corporate overhead today

The typical corporation spends enormous sums on Information Technology and has many complex enterprise information systems, but still does not have an information system to manage the actual business, The corporation has much capital administered as IT instead of being managed for corporate benefit, and has much information administered as technology instead of being managed to provide information solutions for business and management results.

Reduce enterprise information systems to essential business processing and management

The key to proper information system utilization and information technology management is 21^st century business management. Result-performance Management (R-pM) provides the knowledge and procedures to use IT to manage the actual business as one simplified Business Management System. System processing routines or simplified application programs are designed and managed as capital solutions integrated with the business process, where needed, to produce a specific result. Other overlaid 20^th century information systems, duplicated and irrelevant information, and the need for a large IT overheads are eliminated. All capital, including IT and information capital, is developed and supported through capital management to produce specific results.

Manage data, knowledge, records, and intelligence as information capital

The managed business manages all information as capital to produce data, knowledge, record, and intelligence solutions needed to produce specific business results. All information in the enterprise references a business data entity as part of one integrated Business Information Base. Information technology capital, support, and capabilities are integrated as part of normal 21^st century business capital management, replacing the IT organization and eliminating excessive IT costs. [more...]