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...]

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...]

Governments and corporations are looking for a unifying structure for best business market, financial, and economic management

Over the past year, governments have been meeting to construct an international response to the economic crisis. They discussed new best business management practices to solve problems that caused the crisis, and new structures for the financial system and economic management to prevent future crises. Again, as always in the past, they failed to comprehend and address the unsolvable 20^th century enterprise management problems that cause the crisis. Governments add new practices and regulations on top of existing dead-end 20^th century enterprise structures, and claim to have solved the problem.

In order to make real progress, those involved must set current structures aside and take a completely new look at what comprises a business and how businesses relate to industries, markets, financial systems, and economies.

Business management is the only solution available to eliminate unsolvable problems that caused the crisis

The actual business is “investments in capital as solutions of worth utilized for cost and effectiveness of performance to produce value and quality in results”. 20^th century enterprise management structures are replaced by one business structure to eliminate unsolvable problems in unknown capital solution investments in the business, unknown economic output results produced in chains across the business, unknown value of results from the business, unknown costs of performance to produce results, unknown value-added to manage the complete business, unknown performance effectiveness to manage result quality, unknown returns on capital investments from the added value to results, unknown capital worth in future output and disposal result value, and on and on. Business management captures actual business data to manage all corporations, financial institutions, and other enterprises properly and to report on the actual business to regulators.

The business is the only unifying structure to integrate corporation, market, industry, financial, and economic management to prevent future crises

Business management builds up from the business structure to consolidate actual business in structures by corporation, industry, or economic area or sector to consolidate actual business data. Data can be consolidated by market for business input and output results and capital solution utilization. Industries, such as the financial industry, can be managed for the value and quality of results and the utilization of financial and other capital solutions. Economies and markets can be clearly viewed and managed to identify and plan for cycles, to anticipate and plan for surpluses and shortages, to manage interest rates and monetary supply, to plan and manage trade, and take other actions that are prevented by obsolete 20^th century enterprise management today. [more...]

Business change and change management are major problems faced by enterprises today

Business change today involves major projects to lay new organization, process, account, performance management, or other structures over the business. Business change today is change to structures laid over the business, but does not change the actual business, which lies hidden under overlaid structures. Business change involves significant investment and often requires management consultants and change management services.

Business change problems are eliminated by organizing and managing the actual business

The business must be organized and managed in order for the business to be changed. The business consists of capital investments in the business organized as specific capital solutions, economic outputs produced by the business organized as specific results, and business performance in the utilization of a specific capital solution in a performance domain to produce a specific result. Capital solutions, results, and performance domains are organized as data sets to manage the attributes, determinates, and measures of each. All business decisions and business changes involve results to add, improve, or close in order to improve the business; and capital solutions to acquire, develop, implement, improve, or close in order to produce results.

Business change is routine with 21^st century business management

The actual business organizes results, capital solutions, and performance domains in the current in-operation and strategic business structures. Business change is routine to add, improve, or close results by implementing, improving, or redeploying the capital solutions that produce the result. Business change for improvement involves planning new results needed and the capital solutions that must be acquired and developed and implemented to produce the result. Business change is a routine part of 21^st century business management. 20^th century business change and change management problems are left behind. [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...]

Actual business decisions are not supported by today's 20^th century enterprise management

All business decisions involve what do we want to accomplish in the business and how do we accomplish it. Each business decision seeks to answer the basic question: What specific output result is to be produced and what specific capital in human and other capital solutions are to be utilized to produce the result?

20^th century enterprise management used today does not support management decision-making. Results produced by the business and capital solutions utilized in business performance are not identified and managed as data sets or reported to management. Therefore, decisions cannot be implemented to change or improve the business. Changes are implemented through an organization structure, changes are executed through business process, information system, and function structures, changes are tracked through an account, costing, or quality structure, and changes are reported through financial statement and other management reporting structures. The actual decision is not recorded or reported.

Results produced and capital solutions utilized must be managed to implement, track, and measure management decisions

We can implement, followup, manage, and evaluate decisions made only if we implement, execute, track, measure, and report each specific result to be produced in the set of business results needed for business success; and the human and other capital investments utilized as specific capital solutions in the set of capital invested in the business. We must manage the value of the result produced, the cost of performance in producing each result in order to manage the value-added and other direct impacts of the decision on the business.

Organize the business as one business structure to manage all business decisions

Business management organizes business results produced and capital solutions utilized to produce each result. Management decisions are directly implemented, executed, tracked, measured, and evaluated. Good decisions are identified quickly and built upon. Bad decisions are identified quickly and changed. The business is flexible to quickly implement and change decisions to keep ahead of the competition. [more...]

Conventions, definitions, and standards used in 20^th century enterprise management are inconsistent and confusing

20^th century enterprise management does not organize the natural business or apply common-sense management, as we do in our personal business. Arbitrary contrived structures are laid over the business. Each structure has its own set of conventions, definitions, and standards. Added together this produces an inconsistent hodge-podge of conventions, definitions, and standards that are applied separately for organization, planning, processes and systems, accounting, administration, IT architectures, performance management, reporting, and other parts of enterprise management.

Rule No 10 of 21^st century business management: Employ 21^st century business management conventions and standards

The 21^st century business must avoid the problems inherent in 20^th century enterprise management. This is done by organizing the business for 21^st century management. 21^st century business management uses one set of conventions, definitions, and standards that are applied to the actual business and used for all management organization, planning, directing, control, and reporting. Common conventions, definitions, and standards enable business collaboration and education, solutions, and services that can be applied to any business.

One consistent set of conventions, definitions, and standards define 21^st century business management

21^st century business management is guided by Result-performance Management (R-pM) knowledge and procedures. 21^st century business management conventions, definitions, and standards are defined, updated, and maintained in the R-pM Business Management Toolkit to support the organization and management of any business. The conventions, definitions, and standards can be followed by any education institution, solution developer, or service provider to meet the needs of any 21^st century business. [more...]

The 21^st Century Business Management Consulting Model organizes and manages the business to avoid unsolvable problems

Enterprises today do not manage their business. They manage the enterprise by laying organization, corporate plan, business process, account, and other structures over the business. Unsolvable problems occur due to clashes between overlaid structures and the actual business. The problems disappear when the actual business is organized to manage one business structure to integrate planning, directing, control, and reporting.

The 21^st Century Business Management Consulting Model guides the enterprise and consultants to organize the actual business and work together to achieve new business value in result value-quality chains, result-performance costing, strategic value management, result-performance optimization, project result management, human capability management, and other new concepts not possible with 20^th century enterprise management.

Opportunities are emerging for management consultants to support 21^st century business management

21^st century business management will ultimately replace obsolete 20^th century enterprise management, creating a demand for business management consultants. The knowledge and procedures for managing the business and the 21^st Century Business Management Consulting Model are provided and supported by Result-performance Management (R-pM). Business management and business management consulting sales and delivery are supported by R-pM websites, The R-M Business Management Toolkit, and other business management documentation. Professional management consultants and firms, who want to provide professional services that provide planned and measured enterprise benefit, will gain significantly by registering and practicing as 21^st century business management consultants. [more...]

Management Consultants today provide counter-productive enterprise management services

20^th century enterprise management consulting helps the client manage the enterprise through structures laid over the business, rather than directly managing the enterprise business. With the advent of 21^st century business management, 20^th century management consulting is obsolete. Yet, management consultants today continue to inflict high-costs and unsolvable problems on client enterprises through re-organizations, enterprise strategy, business process, information system, performance management, administration, and other 20^th century enterprise management structures and services.

21^st century business management consultants help customers manage the actual business

Today it is possible to manage the business directly using Result-performance Management (R-pM) knowledge and procedures. 21^st century business management replaces enterprise structures laid over the business with current and strategic business structures. More consultants are licensing as R-pM Business Management Consultants, to provide professional 21^st century business management consulting services that assist enterprise customers to organize and manage the business and eliminate unsolvable 20^th century problems. All R-pM business management consulting services are based on achieving planned and measured result value-added benefits. All consulting services employ the R-pM Business Management Consulting Model and 21^st century business management conventions and standards.

Prepare for the future demand for 21^st century business management consulting

Business management consultants are provided extensive R-pM knowledge and support to build capabilities and experience in actual business management. 21^st century business management consultants will be well placed when competition forces all enterprises to organize the business to gain the competitive advantages of 21^st century business management. [more...]