Align Strategy, Organization, Systems, Assets, Processes, and Outsourcing with The Business

The 20^th century enterprise has contrived many methods and spent enormous sums to solve the alignment problem inherent in aligning capital utilized in performance with other capital utilized in performance or with the “business”. Many methods have been advanced and books have been written on aligning the organization, systems, processes, assets, outsourcing, etc with the business. But no one has defined what the business is that we are trying to align with.

Now we have a definition of the business with Result-performance Management (R-pM) as “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results”. R-pM organizes the actual business to provide the business structure to align all capital utilized in performance with results produced as part of an organized business.

The 20^th century management tries to align capital with capital

We keep reading books and seeing methods that offer contrived solutions to specific alignment problems. Even with all the contrived alignment methods, we continue to have problems aligning the organization with business operations, strategy with operation plans, enterprise application architecture and information systems with the business processes, customer needs with product and service development, outsourced services with internal operations, tangible assets with intangible assets, and various capital with other capital utilized in performance. 20^th century management tries to align capital utilized in performance with other capital utilized. This is futile! In order to align capital utilized with capital utilized, we must identify the common denominator between the capital utilized in performance. There is one common denominator; the output results produced from utilizing the capital solutions in performance.

We need a structure, fixed in place, to align our capital against

We said that we need something fixed in place to align our organization, strategy, business, information systems, customer relationship methods, outsourced services, tangible and intangible assets, capital investments and projects, and internal operating methods against. Once all of these things are aligned against something fixed in place then they are aligned with each other. Every enterprise has what is needed for alignment, in results produced and capital utilized in performance, but they have never been defined or managed.

All of the entities we want to align are capital solutions utilized in performance, whether performed in-house or outsourced. But, we face a serious problem in our definition of performance, which labels not only the capital utilization in business actions executed, but also products, services, and other results accomplished, as performance.

We need to separate results and capital utilized from performance in order to structure the business as a frame of reference

Capital utilized in performance has one common denominator with other capital utilized in performance, the output result produced by the performance. We can only align capital utilized in performance against the output results produced. Then the capital solutions utilized in performances to produce the same result are aligned with each other. Therefore, we must structure the results produced by all of the capital solutions that we must align.

The problem is that we have never defined or organized the output results produced by utilizing capital solutions in performance. Selected results like material received, product produced, order booked, service delivered, revenue accrued, etc are managed as isolated entities. In order to organize the business, we must organize results produced as one complete set to record information on the commonalities of all results such as value, value-added, volume produced, quality, etc.

Our organization, business processes, information system processes, customer relationship methods, outsourced services, tangible assets, intangible assets, and internal operating methods are all capital that we utilize to produce results. In order to align capital with results we must isolate and precisely define capital we want to align as specific capital solutions. We must identify the specific solutions utilized to produce a specific result and deploy the solution to be utilized in performance. We can then align and optimize the utilization of capital solutions in performance to produce the same result and we can record the business data generated from the performance.

Capital solutions are deployed, aligned, and integrated to be utilized in performance to produce a specific result

We can solve the alignment problem by defining the specific results produced by performance and organizing each result in a business structure. We then organize the capital solutions available to produce results as part of the business structure. We then organize the business and align capital solutions with results by deploying solutions to produce specific results as part of the business structure. The capital solutions deployed can by integrated with like solutions and optimized for cost-effective performance to produce high value-quality results.

Eliminate the unsolvable alignment problem with Result-performance Management (R-pM)

The answer is Result-performance Management (R-pM), to organize the business for 21^st Century Management.

20^th century management caused the unsolvable alignment problem by laying organization and management structures over the business, rather than organizing and managing the business. R-pM eliminates the unsolvable alignment problem by clearing away overlaid structures, organizing all economic outputs as results, organizing all capital as specific solutions, and implementing and aligning each solution in a performance domain with the result the solution produces.

Capital solutions are implemented to be utilized in performance to produce results in the business structure. The business structure is a matrix, like a spreadsheet, with results in the columns across the top and the capital solutions utilized in the rows down the side. Solutions are implemented to produce specific results in the cells called domains. The solutions implemented to produce the same output result are aligned in domains and integrated to work together. Implementation assures that the solution is cost-effective and successfully produces value and quality in the result. Each result has a manager responsible for effective utilization of solutions to produce the result. Each solution has a performance manager responsible for providing and supporting an effective solution.

Utilize R-pM to solve your alignment problems by simply organizing your business. Visit Result-performance-Management.com to learn more about organizing your business with R-pM for 21^st Century Management. Download the R-pM Management Guide “Organize your Business with R-pM” to solve your alignment problems. Subscribe to the R-pM Toolkit for complete details and continuing updates on the use of R-pM and 21^st Century Management conventions and standards.