20^th century management does not maintain accurate financial and non-financial records on the actual business

Management needs complete and accurate information on the actual business for good corporate governance and business management. This is not possible with 20^th century management used today, which does not organize or manage the actual business. Records are not kept on the capital investments utilized as capital solutions by the business as a set or on the economic output results produced by the business as a set. Thus, there is no set of complete and accurate records on the business to provide actual business management information. Instead, information is maintained against contrived structures laid over the business, such as organization, planning, budget and account, and reporting structures.

Instead of accounting for the business, a chart of accounts is laid over the business. Accounting maintains a sub-set of enterprise records in financial and statistical accounts. The full cycle of performance costs incurred and result value created is not recorded. Many non-financial records that should be maintained are not considered as accounting responsibility and are never recorded and managed as information capital.

The records management problem is getting serious with the explosion in email, file transfers, and other records created, entering, and leaving the enterprise. The enterprise has no way to reference records to the actual business, to prevent records being lost due to information complexity, and to properly manage records as information capital.

Rule No. 4 for 21^st century business management: Keep financial and non-financial records on full business operations and development

21^st century business management requires accurate financial and non-financial records for the full cycle of business operations, along the chain of results produced by the business, and across the operation-development continuum. Business management maintains financial and non-financial records on the actual business to provide accurate and complete management information. The actual business is recorded so that one consistent set of accurate and complete facility records can be maintained on the business and accurate reports on the full business cycle of cost-effective performance producing value-quality results, the results from supplier-provided input results and through enterprise business results to final customer results, and the investment costs in new capital solutions and the return in new result value are provided. 21^st century business management broadens traditional accounting to professional records management for complete financial and non-financial business records. [more...]

Performance quality is managed today through structures laid over the business

Business process management teaches us to manage "performance quality". Other methods like six sigma lay structures over the business to capture and manage statistics related to quality. Quality is related to the process followed and the actions executed.

Quality is an attribute of the result for each result in a chain

Quality is not an attribute of performance. There is no such thing as performance quality. Quality is an attribute of the output result produced by business performance. Business management replaces business processes with result value-quality chains. Quality is managed for each result in the chain to produce quality in the final result. The business process contains only the business and information system processing solutions utilized to produce each result, result by result, along the chain.

Business management manages capital qualifications and performance effectiveness to produce quality in each result

Each solution implemented to produce a result, must first be qualified to produce a quality result. Solutions are then utilized in performance to produce the result quality. Performance effectiveness is the proper utilization and application of the solution qualifications to produce the planned quality of result. A defective result can be produced by a defective input result, a poorly qualified solution, or lack of performance effectiveness to properly apply solution qualifications to produce a result. All of this is planned, measured, and managed to ensure result quality along a result chain leading to a customer result that has the quality expected by the customer for the money paid that sets the perceived value of the result. [more...]

20^th century enterprise management cannot optimize operations in the capital solutions that produce output results

The 20^th century enterprise today is organized, but the business is not organized. Capital investments in the business are not organized to implement and utilize capital solutions as part of the business. Therefore, business operations in the capital utilized as specific capital solutions, the performance of the solution to produce specific output results, and results produced cannot be managed. If business operations are not managed, performance cannot be optimized to produce high-quality results and the result value-added that contributes to the profit result.

Rule No. 5 for 21^st century business management "Operate to optimize operations, result value-added, and the profit result"

The ten rules for 21^st century business management help each enterprise to understand how well positioned they are to compete with the coming 21^st century business environment. Rule No 5: "Operate to optimize operations, result value-added, and the profit result" establishes an enterprise routine of managing and supporting capital solutions, managing the utilization of a solution in performance to produce a result, managing the results produced, and managing the return on investment and contribution to profits over time.

21^st century business management manages cost-effective performance to produce value-quality results and profits

Capital is managed to capture the cost of development or improvement, to ensure solutions are qualified to produce the desires results, to capture the result value created to determine the return of investment and the continuing solution worth, and to optimize the investment, qualifications, capacity, and reliability of each solution.

Performance, in the utilization of a solution to produce a result, is managed to meet expectations in performance, to work together with other solutions to produce the same result, and to optimize the cost, effectiveness, capacity utilization, and uncertainty of each solution utilized.

Results are managed to utilize integrated solutions to reach result goals, to create result value greater than total performance costs for result value-added, to produce a high-quality result, to produce the expected volume of results on time, and manage the risk of a poor result.

Results are managed with the capital solutions utilized and performance as the routine, High-value results are periodically optimized by managing the volume, value, quality, goals, and risk of results by optimizing the capital solutions utilized and the performance of the solutions. Optimizing ensures that performance is cost-effective to produce high value-quality results, to return investments in capital solutions, to manage and maintain capital worth, and to provide the result value-added that contributes to the profit result. [more...]

Business change and change management are major problems faced by enterprises today

Business change today involves major projects to lay new organization, process, account, performance management, or other structures over the business. Business change today is change to structures laid over the business, but does not change the actual business, which lies hidden under overlaid structures. Business change involves significant investment and often requires management consultants and change management services.

Business change problems are eliminated by organizing and managing the actual business

The business must be organized and managed in order for the business to be changed. The business consists of capital investments in the business organized as specific capital solutions, economic outputs produced by the business organized as specific results, and business performance in the utilization of a specific capital solution in a performance domain to produce a specific result. Capital solutions, results, and performance domains are organized as data sets to manage the attributes, determinates, and measures of each. All business decisions and business changes involve results to add, improve, or close in order to improve the business; and capital solutions to acquire, develop, implement, improve, or close in order to produce results.

Business change is routine with 21^st century business management

The actual business organizes results, capital solutions, and performance domains in the current in-operation and strategic business structures. Business change is routine to add, improve, or close results by implementing, improving, or redeploying the capital solutions that produce the result. Business change for improvement involves planning new results needed and the capital solutions that must be acquired and developed and implemented to produce the result. Business change is a routine part of 21^st century business management. 20^th century business change and change management problems are left behind. [more...]

20^th century enterprise management lays strategic structures over the business

20^th century enterprise management contrives structures to define the corporate strategy in corporate plans, maps, investment plans, IT plans, financial plans, and other structures laid over the business. The strategic business is not planned. The overlaid structures do not relate to the actual business and may conflict with structures used to manage the corporation. Strategic value numbers are pulled out of the air. There is no good method to govern the transition from the current corporate status to the strategic objective. Corporate governance cannot govern the actual business, so it governs through compliance with arbitrary rules and regulations.

Rule No. 6 for 21^st century business management: Plan and govern the transition from today’s value to approved strategic value.

The business is “investments in capital as solutions of worth utilized for cost and effectiveness of performance to produce value and quality in results”. The business must be planned to know the economic output results that must be produced for business success and the capital investments in the business that are required to produce the results. The business must be managed to know result value, full performance costs, result value-added, complete capital worth, capital investment returns for all solutions, and other essential business measures that are unknown today. The strategic business structure provides the foundation for planning the results to be produced and capital to be utilized at a 2-5 year strategic horizon. Strategic result value is substantiated in specific period by period result goals requiring growth in value of current results and the value of new results enabled by implementation of capital of worth.

Business goals are planned from the current to strategic business for management and good governance

21^st century business management enables good management and governance of the transition to the strategic business by reporting financial and non-financial status against result goals and performance expectations, updating strategic estimates, providing result evaluations and performance assessments, and providing management information on anticipated opportunities, threats, and developments. Good corporate governance ensures responsible business management and planned progress to the approved strategic business. [more...]

20^th century enterprise management defines performance to include capital, solution utilization, and results

20^th century management used by all enterprises today defines performance to include capital utilized in actions executed and the results accomplished. This definition prevents capital solutions, utilization of a solution to produce a result in performance, and economic output results produced from being managed as separate entities. Key performance indicators mix capital, performance, and results together.

Capital solutions, solution utilization in performance, and results must be defined as separate sets in order to manage the business

The actual business is organized, planned, and managed through three entities; capital solutions invested in the business, utilization of solutions to produce results in performance, and the output results produced. These three entities are not defined as data sets today, so the business cannot be managed. Instead the enterprise is managed by laying organization, account, performance management, and other structures over the business.

21^st century business management optimizes capital solutions, capital solution utilization in performance, and results to optimize the business

Once capital solutions, solution utilization to produce results in performance, and results produced are described, organized, and measured by specific attributes in data sets, the business can be managed. The related attributes in capital measures, performance indicators, and result metrics are managed in capital development and operations for cost-effective performance to produce value-quality results to optimize the business. [more...]

20^th century management cannot manage investments, development, or returns

20^th century enterprise management develops capital as a tangible asset or project outcome. The specific capital items to be developed and the specific business improvements to be made are not defined or managed. So, it is impossible to plan and manage capital development to provide a measured return on investment.

Rule No. 7 of 21^st century business management: Manage all capital investments to gain a planned return

The investment management problem is solved by rule no 7 of 21^st century business management. All capital investments must manage the results to be produced by the investment as well as the capital needed as specific capital solutions. The increase in value in new and improved results and the development cost of specific capital solutions must be planned to justify the investment. Development project results are managed to implement solutions to create value and added result value is measured in operations know the return on investment.

Plan and develop both the results and capital solutions needed in results-driven capital development.

21^st century business management replaces capital development with results-driven capital development to actually plan and manage capital investments and development for a measured return on investment. The return on investment is provided by the value created in results produced to date attributed to each capital solution utilized. [more...]

20^th century enterprise management manages the enterprise, not the business

20^th century management used today manages the enterprise by laying organization and management structures over the business. We are familiar with the organization structure that requires periodic reorganization, and management structures in the corporate plans, business processes, information systems, account charts, and reporting structures used every day. These structures record a multitude of data entities and can report mountains of information, but do not record actual business data or report actual business management information.

21^st century business management manages the business to manage the enterprise

21^st century business management organizes and manages the enterprise business as one integrated business structure. The enterprise is managed by managing the business of the enterprise. Business is “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results”. 21^st century management manages the three entities that comprise the business: capital investments in the business, business performance in the utilization of the capital, and business results produced by performance. All business data is captured in one structure and one consistent, complete, and accurate set of business management information is reported.

There is only one source of knowledge for 21^st century business management

Result-performance Management (R-pM) provides the concepts and procedures for 21^st century business organization and management. The knowledge to manage any business is provided in the Business Management Toolkit. The toolkit is continually updated and expanded to guide 21^st century business management. [more...]

20^th century enterprise management administers human resources as employees

20^th century enterprise management administers human resources and is unable to manage human capital as capital utilized by the business. The business is not organized to produce specific economic output results and human capital is not organized as capital solutions, within the full set of capital solutions utilized to produce the results. Human capital management addresses general human resource development, rather than specific development to add value to the business and increase human capital worth.

Rule No. 8 of 21^st century business management: Manage human personnel, capability, and knowledge capital to increase human worth

Human capital must be managed as readiness capital to keep personnel ready to produce results, production capital to provide the capabilities to produce specific results, and information capital to provide the knowledge required to produce high value-quality results. The objective of human capital management must be to increase human capital worth by producing results of higher value to the business.

The enterprise must organize the business to utilize human capital to produce business results

To follow Rule No. 8, the enterprise must organize the business to invest in and utilize human and other capital as specific solutions in performance to produce high value and high quality results. Human capital is maintained to be ready to produce results. Human capital is developed as capability solutions to utilize specific business processes to produce specific results. Human personnel and capabilities also are supported with the knowledge needed utilize other capital solutions and to produce specific results. [more...]