Today, we organize and manage the enterprise not the business

An organized business reorganizes with each business change. There is never a need for an organization study. The generally-accepted definition of the enterprise business is the activity of providing goods and services.

20^th century methods of business organization and management do not organize and manage the activity of providing goods and services. An enterprise organization structure is laid over the business, immediately creating the unsolvable re-organization problem.

20^th century enterprise management used today is a dead-end

Since the business is not organized, the business cannot be managed. Additional enterprise management structures are contrived for the strategy, plans, business processes, accounts, systems, development, reporting, etc. The many structures create business complexity, and each structure defines the enterprise through its own entities, creating enormous information complexity.

There are unlimited ways to contrive enterprise organization and management structures. The overlaid structures conflict with the actual business creating the unsolvable 20^th century business organization and management problems.

A new breakthrough to organize and manage the actual business for the 21^st century

Now we have a new breakthrough to eliminate 20^th century problems by actually organizing the business and using the business itself as one integrated structure for 21^st century management. The knowledge and procedures to organize and manage the business is provided by Result-performance Management (R-pM). All business organization, planning, direction, control, reporting, and governance use only the current and strategic business structures. Structures laid over the business, conflicts with the business, and unsolvable problems are eliminated. [more...]

Poor corporate governance allows economic crises and large business losses

Many experts rightly point out that one of the main causes of the economic crisis is the lack of corporate governance. But the solutions they advocate are stronger government regulation and stricter reporting requirements. Corporate regulation is not corporate governance.

How much more will corporations spend conforming to corporate regulations, before we realize that the whole approach to corporate governance is wrong? Today corporations measure and report contrived overlaid structures, rather than the actual business. Corporations govern by enforcing policies and rules, instead of governing approved business strategies and plans. Corporations and authorities address the symptoms of the corporate governance problem from the governance side with more rules and regulations, instead of solving the problem from the corporate side, by organizing and managing the business. We are now repeating the same past mistakes in response to the current economic crisis.

Good Corporate Governance manages the transition of the current business to the approved strategic business

Corporate governance is internal so that the corporate management has the capabilities to ensure continuation of a strong and ethical corporate business that is planned and managed to create strategic result value, maintain and manage capital worth, and control on-going performance costs. Rule No. 6 of 21^st century business management: Plan and govern the transition from today’s value to approved strategic value. Business management eliminates contrived 20^th century structures that cause our corporate governance problems and, instead, organizes the business itself as one integrated structure for 21^st century business management and governance. The future business is planned and approved in the strategic business structure to plan the value of strategic results and the result research, capital solution development, and strategic value creation needed. Result goals are set and managed time period by period to the strategic business. [more...]

Enterprises today cannot collaborate in result value and quality chains

Business collaboration is an unsolvable problem of 20^th century enterprise management used today. Organizations, processes, systems, accounts, reporting and other structures laid over collaborating businesses conflict and employ inconsistent definitions and methods. The problem is addressed by laying other structures over the businesses for data reconciliation, information management, or a contrived multi-business process. This does not enable real collaboration, but allows reporting on what is occurring across the collaborating enterprises.

Business collaboration is impossible until businesses are managed

By definition business collaboration requires that first each business that is to collaborate is managed. 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”. Each collaborator must manage the results of value and quality produced by the business, the capital of specific investment and operating costs utilized in the business, and the costs and effectivness of performance that produces each specific result.

Business management enables collaboration and management of shared value

When each collaborator manages the economic output results produced, capital investments implemented as solutions, and the performance of each solution to produce a result following 21^st century business management conventions, definitions, and standards, there can be real business collaboration. A result value and quality chain can be linked across businesses to produce each result where the best value and quality can be achieved, eliminate duplicated results, and control capital utilization to produce the maximum value-added in the final customer result from the chain. [more...]

There is no structure to develop packaged solutions that any enterprise can implement and utilize today

Packaged solutions today are designed and developed as solutions to be laid over the business rather that solutions that are implemented as part of the business. There are many unsolvable problems that hamper the integration of packaged solutions with other structures laid over the business and utilization of common solutions across business for effective business collaboration.

The business provides the standard structure needed for solutions that any business can use

When the business is defined and organized there is a consistent structure for developing and utilizing standard packaged application systems, business processes, information solutions, human capabilities, and other capital solutions to produce results. Capital solutions are designed to produce economic output results, result by result, across a chain of results needed for business success. All capital solutions are integrated in the capital structure to work together when utilized in performance to produce specific results.

Business management enables a new generation of simple and effective capital solutions to produce results

Business management organizes the business to provide the framework needed for a new generation of capital solutions that produce specific results and are designed to work together with other packaged and in-house solutions. Result chains are created by implementing solutions for each result that must be produced within the chain in the internal or external organization that can provide the most cost-effective performance to produce the highest value-quality result. [more...]

You manage your personal business to utilize your capital in performance to produce value in results

You use natural common-sense business management for your personal business. You do not lay structures over your business. You utilize your time, capability, and possessions as capital solutions in your performance to produce personal results, such as item purchased, enjoyed night out, or exercised and fit body. The value of the result must exceed the cost incurred in performance to be happy with the result. Your performance uncertainty risks poor or delayed results. Your input result quality and performance effectiveness determine output result quality, such as a repaired household item. You do not follow processes; you produce results, as needed, or along a chain to a final result.

But, when you get to work you must follow enterprise processes and procedures

When you get to work you are unable to apply your natural business management. The enterprise you work for has never defined or organized the business. Results produced across the business have never been identified as a set to be managed. Capital investments in the business have never been identified as specific capital solutions that can be utilized in performance to produce results. Therefore, you must follow the processes, procedures, and systems laid over the business to produce selected output results. You are unable to manage the common attributes of capital, performance, and results that produce actual business data or to obtain actual business management information that is needed to manage the business. [more...]

20^th century accounting does not keep complete or accurate financial records on the business

Today's enterprise faces many obstacles to professional record capital management because of several 20^th century management problems. Financial accounting is often seen as enterprise records management, but maintains a professional view of what it will record, and acts as an administrative function. Financial accounting records some financial data against a chart of accounts laid over the business. Financial accounting does not keep complete and accurate financial and non-financial records of the actual business. Most actual business data is not captured in financial, statistical, or cost accounts or other enterprise records today. Most other enterprise records are not maintained as information capital to be available to provide needed management information solutions. Problems with intangible assets, unknown value creation, unknown costs, unknown capital worth, inaccurate business net worth, etc have never been solved. Records management is a growing problem in today's enterprise requiring a comprehensive professional records management solution.

21^st century business management maintains complete and accurate financial and non-financial records of the actual business

Business data and record transactions are captured against one business structure to integrate organization, planning, directing, control, and reporting. Structures laid over the business and irrelevant bases of data collected against the structures are removed. Management information includes result value, performance costs, result value-added in excess of costs, capital worth, and capital investment returns that are "unknown" today. Tangible information capital is maintained as facility records to record all financial and non-financial business transactions and activity in computer records, documents, images, archives, etc. Accounting continues independently but can be incorporated as one sub-set of professional records management.

Business management provides an opportunity for accounting to broaden to professional records management

Managing the actual business provides a unique opportunity for the accounting profession to expand to professional records management and eliminate unsolvable accounting and financial management problems. Professional facility records management maintains financial and non-financial facility records of the actual business, and provides information capital solutions from records, where needed to produce results at all levels of business management. [more...]