Many managers are interested in business management, but are concerned about the authenticity

Now with the economic crisis, 21^st century business management is gaining more recognition as the only solution to eliminate the 20^th century management problems that enabled the crisis. But, people ask how business management originated. Some people are concerned about the authenticity and viability of business management.

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

Business management was originally developed as aids to capital solution development and management improvement projects

Business management concepts 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 business management began in 2002

After retiring from active consulting, work began in 2002, to develop and document business management knowledge as Result-performance Management (R-pM) to provide the one structure to organize and manage the business. The Business Management Toolkit is now available, and continues to be developed as business management evolves. Business management is now launched for use by forward-looking enterprises that want to learn their actual business, and then organize and manage the business for breakthrough cost reductions and competitive advantages. Business management is available for use by governments as the basis for a Business Management Program, to solve the problems that caused the economic crisis and build a new architecture for corporate, industry, and economic management. [more...]

20^th century management used today cannot plan the business

Since the business today is not organized or managed, the business cannot be planned. The enterprise is planned through strategic maps, corporate plans, IT, financial, human resource and other functional plans, and budgets that are laid over the business. The planning structures use different terminology, and often do not relate to each other or to management and reporting structures used to manage the business.

R-pM plans the actual business in a strategic business structure in 2-5 years

Result-performance Management plans results of a value that a customer is willing to pay that must be produced by a particular time. Capital is planned for solution investments needed and costs to produce each specific result giving result value-added. Time periods are planned to produce results that are needed for business success. Result value-added is planned to ensure "the bang for the buck" and profitability.

Future results are researched to determine customer needs and preferences, and to design results. Capital development is planned to produce specific results of added value-added for the investment return. The business is planned in a strategic business structure at a selected horizon in 2-5 years. Result goals and performance expectations are planned by period from the base business to the strategic business.

Responsible managers learn results and capital solutions to plan results, performance, and management over time

As experience is gained, business planning becomes more precise and reliable. All responsible managers learn their results and capital solution performance in order to professionally determine future result value and capital solution needs. The planned period by period business provides a clear view for managing progress to achieve future results. This enables managed course correction and lets all see their part in strategic result value creation. R-pM is the only way to manage planned strategic result value creation and result value-added time period by period starting from the base period. [more...]

Management Consultants need a way to help Clients out of the Recession

Both enterprises and management consultants are hurting as a consequence of the economic recession. Both need a solution to help them recover. The only solution to the problems that caused the recession is Result-performance Management (R-pM). Management Consultants guide the Enterprise to organize and manage the business directly to slash costs, improve product value and quality, and gain new competitive advantages. Enterprises have under-utilized time and capital that provides the opportunity to organize the business for 21^st Century Management to prosper in the recovery.

R-pM is the only way to organize and manage a corporate business

As you see from the articles in 21^st Century Management magazine, Result-performance Management (R-pM) is the only way to organize the actual business into one structure for 21^st Century Management. Unsolvable 20^th century management problems, propagated by management consultants today, are better known as the cause of the economic crisis. R-pM is the only way for professional management consultants to stop supporting obsolete 20^th century management and begin to support growing 21^st Century Management.

R-pM use and the demand for R-pM management support is growing

R-pM has now been launched and is growing in popularity. Many enterprises are downloading the R-pM Toolkit to learn R-pM and to begin to organize and manage their actual business. R-pM is supported by the R-pM Management Consulting Model to assist consultants and corporations to work together to organize and manage the actual corporate business. The benefits of R-pM are becoming well-known and corporations and other enterprises are looking for professional management consultant support. This provides an opportunity for management consultants to join R-pM and become a licensed R-pM Management Consultant. [more...]

Capital solutions are not implemented today to produce specific benefits

Your enterprise likely has implemented information systems or major capital solutions. Were the benefits or return based on a quantified list of specific benefits and not just estimates of increased sales or revenues? Did users have goals to achieve the return on the investment? Were change management problems or resistance prevented by professionally-managed implementation of human and other solutions? Was professional support for all new or changed solutions established as the routine? Was the investment planning and capital development professionally managed? Were consultants utilized to achieve the return on the investment? Was the return on investment managed and measured?

20^th century management does not enable capital management and measured return on capital investments

If you can answer yes, your enterprise is a rare exception. 20^th century management has many inherent obstacles to overcome to implement new solutions to produce managed value-added to provide an measured return. The enterprise must organize and manage the business first, in order to manage change and improvement to the business effectively. Otherwise the enterprise will continue to implement new solutions to produce old problems.

R-pM organizes the business to implement specific capital solutions to add value to business result produced

The prior article showed how to design packaged solutions that any enterprise can use. In order to produce planned business benefits and gain the return, the business must be organized and managed using Result-performance Management (R-pM). Results must be defined to plan and manage value-added by implemented solutions. Capital solutions must be organized for professional support. Specific solutions required must be integrated and utilized in performance to produce specific results. The return on investment comes from added result value-added over the payback period compared to result value-added with no improvement. [more...]

"Business Transformation" has never organized or transformed the business

"Business Transformation" brings shudders to many managers, who went through Business Process Re-engineering (BPR) and Enterprise Resource Planning (ERP) only to find that they spent a lot of money for different problems and limited benefits.

The problem was that "business transformation" did not transform the business. Transformation changed enterprise organization and management structures laid over the business. The enterprise business, the activity of providing goods and services, still was not organized or managed before or after the "business transformation".

The one "business transformation" is the transformation from enterprise management to actual business management

Enterprises need only one real business transformation to organize and manage the business with Result-performance Management (R-pM). Once the business is organized and managed through one business structure, there is never a need for business transformation, since the business organization changes naturally with business change. [more...]

Enterprises today do not know costs or worth of all capital utilized

Enterprises may capture some known costs for some known capital items like fixed assets or employees. But many capital items and costs remain unknown. Development costs may be captured for some other big-ticket capital items. In this case, costs usually include costs for other undefined solutions developed in the same project. Capital worth may be assessed for some tangible items, but cannot be done for all capital to know actual enterprise net worth.

Capital costs and worth are an integral part of the business and actual business management

The enterprise business consists of output results produced, capital deployed to be utilized for the result, and performance in the utilization of capital to incur costs and produce value in results. When the business is managed, results value and quality are managed, capital worth and investment returns are managed, and performance costs and effectiveness contributing to result value-added are managed. Results and capital are managed in result-capital development to plan and manage the result value-added to cover capital development costs and provide the return on investment.

R-pM is the only way to capture capital and performance costs and assess capital worth

Result-performance Management (R-pM) is the only way to organize and manage the actual business. All capital is managed to eliminate intangible assets, unknown costs, unknown capital and enterprise business worth, and unknown return on investments. Human and other capital is managed to control costs, invest only in capital needed, develop capital to create value, and maintain and increase capital worth [more...]

All capital development is result-capital development to develop solutions to produce results

All capital development develops capital as performance solutions to be utilized to create additional value in output results produced by the business. The additional value of output results provides the return on the capital development investment. If the performance solutions utilized and the results produced by the business are not managed, capital development cannot be managed properly and the return on investment cannot be measured. Therefore, capital development must be planned and managed as result-capital development.

20^th century management does not organize or manage results or performance

20^th century management does not manage the business. Specific results produced and performance solutions utilized are not defined and managed as sets. Added result value cannot be managed to provide benefits and specific performance solutions developed cannot be managed to know costs. Capital development is a separate exercise to develop performance or tangible assets to produce some estimated return on investment.

R-pM manages result-capital development as part of the business for measured and managed return

The answer for all future result-capital development is Result-performance Management (R-pM) to organize the business for 21^st Century Management. R-pM manages performance solutions utilized and the business results produced to plan and manage the value added to results. R-pM manages new performance solution development to produce new or improved results. R-pM manages each result-capital development project as part of the business with its own project business structure. R-pM manages implemented solution development and operating costs and the additional value-added to results to measure the actual return on investments. R-pM is the essential approach for any new result-capital development. It is all described in The R-pM Toolkit, your 21^st Century Management Manual [more...]

20^th century management information is inaccurate and incomplete

20^th century management used today can report enormous amounts of information against organization and management structures laid over the business. Large information systems process information on the various organization, planning, process, system, account, project, administration, performance, and reporting structures. Additional systems try to make sense of the information for management use.

But, since the actual business is not organized or managed, no information is reported on details of the actual business. Business data in value created, costs incurred, return on capital investments, business value-added, capital worth, and enterprise business worth remain unknown.

R-pM reports accurate and complete information on the actual business

R-pM organizes one business structure for one set of accurate, complete, and consistent management information on the actual business for organization, planning, direction, control, and reporting. Existing processes and systems are rationalized for use in the actual business. R-pM reports the actual business across the breath of the business in business results produced and to the depth of the business in the capital utilized in performance solutions to produce results.

R-pM reports result value-added, quality determinates, and capital worth

R-pM reports business management information not available today in result value, strategic result value creation, result value-added, performance costs, capital development costs and value-added and returns, capital worth, and many other performance indicators and result metrics that are not known today. R-pM provides complete and accurate information on the actual business and phases out the inaccurate, inconsistent, and incomplete management information provided today. R-pM enables management to use common sense to manage the actual business rather than trying to follow arbitrary rules imposed by structures laid over the business [more...]

Human resource and capital management of today essentially administer human resources as employees and develops human capital to meet general performance needs. Human capabilities required by the business are not defined or managed as capital. Knowledge solutions to develop human capital or for human capital to utilize solutions to produce results are not defined or managed as capital.

R-pM develops all capital, including human capital, to produce specific result value-added. Human capital in personnel learning, specific human capability development, and knowledge development is managed to add value to specific business results. Management knows the personnel, capability, and knowledge solutions utilized to create result value and the value-added to results. Management can assess the worth of human capital and plan human capital development to meet needs to increase the value of specific results or to produce valuable new results. Human capital has a stake in the enterprise business and knows that increasing result value-added increases human capital worth and justifies increases in human capital performance costs. [more...]

20^th century management does not capture actual business data and does not provide the information to manage the actual business. 20^th century management gathers mountains of information, which are mostly irrelevant to the business, related to structures laid over the business. This creates the enormous IT overheads and information complexity problems. 20^th century management provides management information to manage structures laid over the business, rather than managing the actual business.

21^st Century Management manages the actual business through two integrating entities, capital utilized as performance solutions and economic output results produced. This enables data to be gathered on all actual business activity. Actual business management information solutions can be delivered to utilize any specific performance solution to produce any specific result, anywhere in the business. Information capital is managed professionally by those with the capability to provide information performance solutions needed to create value in results. [more...]