Governments around the world are promising programs to prevent future business management problems

After every economic, financial, or corporate governance crisis, governments promise action to prevent problems from happening again. The actions invariably impose more regulations on enterprises, which increase management costs and complexity, and do not address or solve the actual problems.

There is only one problem to solve, the problem of obsolete 20^th century enterprise management

The fundamental problem underlying every economic, financial, and corporate governance crisis is the failure to understand and manage the business properly on the part of managers, accountants and auditors, and government regulators. The problems are inherent in 20^th century management structures laid over businesses worldwide that prevent actual business management.

There is only one solution, organize the actual business with R-pM and apply 21^st Century Management Conventions and Standards

The solution to the problem is available today with Result-performance Management (R-pM) to assist businesses, professional bodies, educational institutions, business service and solution providers, and government programs to institute and support proper business management. R-pM replaces 20^th century management structures laid over the business, with one business structure for 21^st Century Management.

A government “Business Management Program” will prevent future problems and provide significant economic benefits

Most governments likely will continue the past cosmetic approach to pass new regulations and announce that they have solved the problem. A courageous government must step forward and take the lead to institute a “Business Management Program” as discussed in this article. Once one government establishes its country as the leader and begins the program, other countries will be forced to follow. But, the lead country will always have the advantages developed by the leader. [more...]

Business owners and investors are the big losers from the financial crisis

Corporate management may have lost out on some big bonuses and property owners may have to wait for the worth of their properties to recover. But, the business owners and shareholders have lost on their investments due to the continuing failures of obsolete 20^th century management. They have invested in corporations and institutions that are unable to manage their business in the costs and planned worth of investments, the cost and effectiveness of specific capital solutions utilized in performance, the value and quality of results produced from performance, and the historic return and future solution worth from the value added to results. These failures cause the continuing cycle of corporate management problems.

Business owners and investors face growing risks from poor management

Corporate executives are burdened by lifetimes of misleading management teachings and experience and have no real incentive to change. The incentive and responsibility for change lies with the business owners, shareholders, and board representatives, who must demand change to 21^st Century Management with R-pM. The risk of no change is twofold 1) in continued poor corporate management and another cycle of problems, and 2) the significant advantages to competitors now organizing their businesses with R-pM.

R-pM gives enormous competitive advantage for minimal investment and risk

R-pM is mainly a change in thinking, which requires time to take hold. The existing business is gradually redefined into result value-quality chains and one integrated business structure. Obsolete structures laid over the business and unsolvable 20^th century management problems are gradually abolished.

As the enterprise learns R-pM, implementation accelerates and the competitive advantage of R-pM increases until the complete business is organized for 21^st Century Management.

Business owners and investors must lead the drive to use R-pM

Business owner and investors gain the most by being among the first to use R-pM, and lose the most to competitors using R-pM. They must ensure that their enterprise is not burdened by unsolvable problems and high cost overlaid structures, while competitors use R-pM to take away markets and profit [more...]

Your actual business is hidden under overlaid 20^th century management structures

Managers today think that they are managing their business. However, no manager today manages his actual business. Managers manage the enterprise through structures laid over the business. These overlaid structures hide the business and prevent actual business management.

You must learn your actual business and the entities that comprise your business

The enterprise business is defined as "the activity of providing goods and services". The enterprise must directly manage the business to manage providing high-value and high-quality goods and services for its customers. The business is managed by organizing and managing business activity in the utilization of capital in performance and business economic outputs in the results that provide customer goods and services. 20^th century management utilized today does not organize and manage the enterprise business, but rather organizes and manages the business enterprise through structures laid over the business. This causes many unsolvable problems with reorganizations, unknown investments and returns, unknown capital worth, unknown result value and quality, IT overheads, misleading management information, change management, corporate governance, business collaboration, and on and on.

R-pM allows you to gain control of your business and abolish structures laid over your business

R-pM organizes and manages business activity in the utilization of capital that is organized as specific capital solutions. R-pM organizes and manages goods and services as specific economic output results that are produced by the business. R-pM organizes the business as one integrated structure for all management needs by utilizing specific capital solutions in performance to produce specific results. R-pM captures actual business data on result volumes, value, and quality produced by the capacity, cost, and effectiveness of solutions utilized in performance. R-pM provides one set of clearly-defined management information on the current business and progress to the strategic business defined by a strategic business structure. R-pM manages cost-effective performance to produce high-value and high-quality goods and services as input results to the customer business. [more...]

The ongoing credit crunch and growing financial crisis show the failures of 20^th century management used today

20^th century management lays organization and management structures over the business to manage the enterprise arbitrarily, rather than managing the business. 20^th century management does not manage important result metrics like result value, result volume, result quality, result value-added, and result risk; important performance indicators like performance costs, capital utilization, performance effectiveness, and performance uncertainty; or important capital measures like investment costs, capacity, qualifications, reliability, investment return, and solution worth.

The problems being experienced today invariably point to the lack of information and management of return on capital investments, planned and current capital solution worth, capital amortization in performance costs as solution worth declines, new product result value, planned future value-added from product results, and other information needs that are blocked by 20^th century management methods.

The only solution to the current problems and to prevent any enterprise from experiencing the same problems is Result-performance Management (R-pM)

Now is the time to wake up to the problems of obsolete 20^th century management. 20^th century management used today is a time bomb for all business enterprises in the world. The enterprise either will experience similar problems and losses due to the inadequacy of 20^th century management methods or will lose out to competitors who are now abandoning 20^th century management and organizing their business with R-pM for 21^st Century Management. R-pM is the only way to clear away structures laid over your business, and organize your actual business as one business structure for complete, consistent, and accurate 21^st Century Management. [more...]

Many methods and books have addressed the alignment problem, but the problem remains unsolvable

The 20^th century enterprise has contrived many methods and spent enormous sums to solve the alignment problem inherent in aligning performance with performance. Even after all this, the unsolvable alignment problem remains. In an early Article, we identified alignment as one of The Top Ten Problems with 20^th Century Management.

The alignment problem can be solved only by organizing the business to align capital utilized in performance with the result produced

The solution to the alignment problem is very simple. Follow the first rule of 21^st Century Management; organize and manage the business. Result-performance Management (R-pM) organizes the business in economic output results produced, investments in capital solutions to produce results, and the deployment, alignment, integration, and utilization of specific solutions to produce specific results. Capital solutions utilized to produce the same result are aligned. [more...]

Enterprises today combine many different forms, theories, and structures to produce many different ways of "doing business"

Enterprises today are defined and organized in many different ways, making it difficult to collaborate and employ common solutions. Enterprises think that they have their own distinctive way of "doing business". But, no enterprise actually understands the real business or the commonalities that must defined, organized, and managed to manage the business.

The commonalities of all businesses must be understood in order to define the actual business and organize and manage the business

All enterprises businesses have commonalities that must be understood and used as the foundation to build strong businesses that can collaborate easily and differentiate specifically where beneficial. Result-performance Management is based on the commonalities of all businesses that must be defined, organized, and managed. From analysis of business commonalities, R-pM defines the actual business as “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results”.

R-pM provides the only way to organize the actual business and the only way to do business

Result-performance Management (R-pM) organizes the business into a common business structure to utilize investments in standard categories of capital solutions in performance to produce specifically defined results. The common business structure enables collaboration and utilization of common solutions and services for all businesses. R-pM differentiates in the value-quality of result design and the cost-effectiveness of capital solutions utilized in performance to produce value-quality results. [more...]

Many managers are interested in R-pM, but are concerned about the authenticity of R-pM

People ask how R-pM originated. Some people are concerned about the authenticity and viability of R-pM.

20^th century management problems were encountered and the need for R-pM was conceived piece by piece over 30 years, on business organization, management improvement, and system development projects with such firms as Booz Allen and Hamilton, Multinational Management, Price Waterhouse, A.T. Kearney, and Arthur D. Little.

R-pM was originally developed as aids to capital solution development and management improvement projects

R-pM first evolved as an aid to business and information systems design and later to manage business change projects, both the project and the changes to the business as the results of the project. It became clear that the only solution to business organization and management problems was to organize and manage the business. Contrived organization and management structures laid over the business had to be eliminated.

Formal development of Result-performance Management began in 2002

After retiring from active consulting, work began in 2002, to develop and document Result-performance Management (R-pM) as the one structure to organize and manage the business. The R-pM Toolkit is now available, and continues to be developed as R-pM evolves. R-pM is now launched for use in business change applications and for use in forward-looking enterprises that want to learn their actual business, and then organize and manage the business for breakthrough cost reductions and competitive advantages. [more...]

Alignment is an unsolvable 20^th century management problem

All enterprises have alignment problems in aligning management strategy with actual operations, operations with the actual business, outsourced solutions with internal solutions, intangible assets with tangible assets, capital investments with the business, account charts with the business, management decisions with business change, and on and on. The problem is the attempt to align capital utilized in performance with other capital utilized in performance.

Performance is aligned with poorly-defined performance, since the business is not organized

Performance is defined to include not only the utilization of capital in the execution of actions but also the results accomplished. This makes it difficult to organize and manage the business as capital solutions of worth utilized in performance to produce value in results. The three components of the business in results needed for success, capital investments to provide solutions, and performance in the utilization of solutions to produce results are confused as performance. 20^th century management has never defined results needed for business success as a set or capital utilized in performance as set of solutions. Therefore, there are no defined results to align capital utilized in performance against.

R-pM separates results and capital from performance to organize the actual business and align solutions with results

R-pM organizes the business as a structure of results produced, capital solutions available, and specific solutions utilized in performance to produce a result. Solutions utilized in performance to produce the same result are defined, aligned, integrated, and utilized to incur performance costs that can be totaled to the total performance cost to produce a volume of the result of determined value to create result value-added. [more...]

All enterprises are burdened by 20^th century management problems today

Enterprises can compete today, not because they are efficient and effective, but, because they are all inefficient and ineffective. All businesses today lay organization and management structures over the business that conflict with the actual business and cause unsolvable problems that can never be solved by laying new structures over the business.

The first to organize the real business for 21^st Century Management gain significant competitive advantage

The business consists of three components: capital investments made in the business in specific capital solutions of developed worth, output results of value and quality that must be produced for business success, and performance in the utilization of specific solutions to incur costs and provide effectiveness to produce specific results. R-pm organizes the business for 21^st Century Management to provide immediate competitive advantages.

R-pM manages capital worth and performance to minimize costs and maximize result value-added and quality across the business

With R-pM all management and personnel know the solutions they must utilize effectively and the value and quality they must produce in results. Capital is developed only to increase result value-added and the worth of human and other capital. Result value-added and quality are managed along the chain to produce high value-quality customer results. The actual business is managed to quickly change capital utilized and results produced and to integrate with suppliers, business partners, and customers for shared value-added. R-pM provides measurable competitive differentiation and advantage not possible today with 20^th century management. [more...]

Re-organizations are unnecessary 20th century management problems

Re-organization, one of the top 10 problems of 20^th century management, occurs because we organize people and power, and not the business. If 20^th century business organization methods organized the business, the organization would change with business change.

The organization structure is the fatal error that prevents business organization and management

The organization structure is not a management prerogative or political football. The business organization is a business capital solution that provides the foundation for 21^st century management. Once an organization structure is laid over the business, the business cannot be organized or managed.

Use R-pM to organize the business for 21^st Century Management

Organize your business results, your capital investments in solutions, and utilization of solutions in performance to produce results. Then deploy human capital, where they are qualified to manage and produce results, for 21^st century management, and leave 20^th century re-organizations and other unsolvable problems behind. [more...]