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...]

20^th century capital development is ad-hoc and separate from the business

Capital is not acquired, developed, or managed as part of the business today. Capital financial investments are made by a financial unit in isolation from the business or returns needed for the business. Capital development investments are normally ad-hoc projects to produce a new fixed asset or to lay a new structure over the business. The specific solutions involved, the investment cost by solution, or the output results of benefit to be produced by the investment rarely are known.

Capital development must develop specific solutions to utilize in performance to produce measured results

Capital solutions needed by the business must be planned and developed by result to be produced by utilizing the capital. Each result absorbs a portion of the investment cost and provides a value-added to contribute to the return on the solution investment. The full set of solutions needed to produce the result must be planned and integrated to produce results successfully with a high value-added. Capital solutions must be produced as results of a development project to utilize project capital and capture full costs of the solution. The solution is implemented with the investment balance to be amortized against the results produced over the solution life.

21^st century capital development produces result value-added for solution return and worth

Implemented solutions are utilized to produce each volume of output results. The performance costs are captured against each result and reduce the unamortized investment balance and capital worth to pay back the investment. The result value-added over total performance costs should be positive to provide a further gain on the investment. The future solution worth is determined by the continuing absorption of performance costs until paid back and the future result value-added from solution utilization over the remaining life and later sale or disposal. [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 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...]

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...]

It is impossible to manage capital development properly today with 20^th century management

20^th century management used today does not provide a framework for proper capital development. Capital development develops specific solutions that must be utilized by the business. Capital development incurs the costs of development and sets up the cost of capital utilization. But today, capital is not defined and managed as a set of capital solutions available to the business. Capital is categorized as employees, fixed assets, intangible assets, etc.

Implemented capital is utilized in business performance to produce output results of value. Result development provides the benefits of development and the value-added that provides the return on investment. But today, results are not defined and managed as a set to be produced by the business. Some results are managed as separate items, such as product, sales order, revenue, etc. 20^th century management manages capital development separate from the business to develop certain known capital.

The business must be organize to enable result-capital development

21^st century business management organizes the business in results that must be produced for business success, capital that must be invested in the business to produce results, and performance in the utilization of specific implemented capital as solutions to produce specific results. Once the business is managed, it is straight forward to identify new results required to improve and expand the business. Once the business is managed, it is also straight forward to identify the capital solutions needed to produce the results. New result development and new capital solution development is planned and managed as part of the business. [more...]

20^th century management lays many organization and management structures over the business

20^th century enterprise management used today lays an organization structure over the business, instead of organizing the business. Since the business is not defined and organized it is impossible to integrate business organization and management in one business structure. Additional structures are laid over the business for planning, directing, control, and reporting, such as corporate plans, business processes, account charts, and scorecards. Different structures are used for investment planning and capital development. The proliferation of structures creates business and information complexity. Rigid overlaid structures conflict with the actual business causing the wide range of unsolvable 20^th century enterprise management problems.

21^st century business management integrates business organization, management, operations, and development

The actual business is organized for 21^st century business management. One business structure defines the current business and another defines the desired strategic business, so that management organization, planning, directing, control, and reporting are focused on the transition from the current to strategic business structure. Business operations are organized by result groups within the business structure to produce specific chains of results. Capital development is organized and managed through sub-sets of the structure for results and performance solutions to be developed. Projects are managed through a project business structure that organizes new results and solutions being developed and the capital assigned to the project as specific performance solutions. The actual strategic and current business structures are used for all organization, management, and governance needs. [more...]

Enterprises continue to waste funds on dead-end 20^th century management investments

20^th century management investments have created the maze of organization and management structures laid over the business that cause today’s unsolvable problems with alignment, change management, unknown costs and value, unknown capital worth and investment returns, business and information complexity, business collaboration, and on and on. New 20^th century management investments in reorganizations, enterprise information systems, process and performance improvements, IT architectures, etc are dead-ends that add to unsolvable problems.

It only requires a small alternative investment to organize the business for 21^st century management

The alternative is to invest in managing the actual business to eliminate unsolvable 20^th century management problems. The investment to organize and utilize existing capital to produce results along result value-quality chains and across the business is relatively small and one time. The big change is the change in thinking to understand and manage the actual business. Existing information systems can manage the business and existing processes and systems as solutions can be utilized to produce specific results. Once the business is organized all tangible and intangible capital invested in the business is organized as capital solutions of worth to be utilized in performance to incur costs and produce value in results. All structures laid over the business are cleared away to focus on business data collection and provision of information and other capital solutions needed for actual business management.

Once the business is managed, business change investments are minimized to new capital advances to produce valuable new results.

The only way to plan and develop capital for a planned and measured return on investment is to manage the business. Capital is managed to minimize investments to those essential to the actual business. Future investments are in capital solutions needed to produce specific new or improved results. The development costs are captured and amortized against results produced and return on investment in added result value-added is captured against the capital solution. [more...]

Business management eliminates the cause of the economic crisis

Business management is the new breakthrough to organize the enterprise business for 21^st century management. Business management captures actual business data and provides actual business management information not available to management today. Business management eliminates the unsolvable problems that caused the economic crisis such as intangible assets, unknown costs and value creation, unknown capital worth and investment returns, financial management through structures and models instead as part of capital management, lack of business management information, inability to manage the corporation business as the sum of corporate businesses, and lack of a consistent structure for economic management.

Business management is real business transformation, not a structure laid over the business

Business management is not another business change or transformation methodology that lays structures over the business like business process management, business performance management or quality management. Business management is the final business transformation. Once the business is organized the business organization changes with each business change and the actual business is planned, directed, reported, and governed.

The knowledge is available today to learn, organize and manage the actual business

The recession provides the ideal time for the transition to business management, when business is slow and management time and resources are available. Forward-looking enterprises are now organizing the actual business for significant competitive advantage to flourish when the economy recovers. Many immediate benefits are gained by learning the business to be ready to organize the actual business. Business management is applied immediately to any business change or capital development project to prevent undesirable change or mismanaged investments. The knowledge needed to manage the actual business is provided by Result-performance Management (R-pM) through the Business Management Toolkit and the R-pM websites. [more...]

The inability to manage capital worth is a large problem that contributes to the economic crisis

Many financial institutions and corporations cite the inability to know and manage "asset value", which is actually capital worth, as a contributor to the economic crisis. Usually, capital worth is not managed until it comes time to sell or liquidate the asset, when the actual worth turns out to be much less than worth in the books causing large and sudden write-downs. In other cases, corporations are forced to state the worth according to an arbitrary rule like "mark to market", which may not reflect the plan for utilization of the asset in the business.

The business must be managed to manage capital solution worth as part of the business

Corporations do not manage the business today, so capital worth cannot be managed as part of the business. Capital is not managed as specific solutions utilized to produce results of known value, with many solutions unknown or labeled as intangible assets. Results are not managed as a set to determine the costs absorbed and value-added in the utilization to produce the result and value-added in the disposal of the solution, which determines the worth of the solution.

Total capital worth and result value-added must be managed to manage total business worth

Since capital solutions and results are not defined and managed as data sets today, actual business data cannot be captured and actual business information cannot be reported to management. This includes the positive worth of asset and negative worth of liability solutions utilized by the business, which adds up to the total business worth. The total business worth is also assessed by the total result value-added to be produced by the business over the future business payback period at the cost of capital or other return desired. This again can only be estimated in an unmanaged business. [more...]