Actual business decisions are not supported by 20^th century management

All business decisions involve what do we want to accomplish in the business and how do we accomplish it. Each business decision is: A specific output result is to be produced and specific capital in human and other performance solutions are to be utilized.

20^th century management used today does not support management decision-making. Decisions are implemented through an organization structure, decisions are executed through business process, information system, and function structures, decisions are tracked through an account, costing, or quality structure, decisions are reported through financial statement, performance management and other reporting structures. The actual decision is lost in the maze of overlaid structures.

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

We can manage decisions made only if we implement, execute, track, measure, and report each specific result to be produced and the human and other capital utilized as performance solutions. We want to know the value of the result produced, the cost of performance in producing each result, and the value added and other direct impacts of the decision on the business.

Organize the business with R-pM to manage all business decisions

Result-performance Management (R-pM) organizes business results produced and capital utilized as performance solutions 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...]

20^th century management cannot manage investments, development, or returns

20^th century 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 Management: Manage investments to gain a planned result value return

The investment management problem is solved by rule no 7 of 21^st Century Management. All capital investments must manage the results to be produced as well as the capital needed to produce the results. The investment results and capital to be developed in specific performance solutions must be planned to justify the investment, managed in the development project results to implement solutions to create value, and measured in operations know actual added result value-added for the return on investment.

R-pM plans and develops both the results and performance solutions needed in Result-performance Development.

R-pM replaces capital development with Result-performance Development to actually plan and manage investments and development for a measured return on investment [more...]

20^th century management consultants implement unsolvable problems

Consultants today do not help clients solve the unsolvable 20^th century management problems. Typical consulting services lay structures over the business and introduce new unsolvable problems in the need for reorganization, business and information complexity, unknown costs and value, unknown capital worth and returns, overlaid solution and business conflicts, and on and on.

R-pM provides the 21^st Century Management consulting model to organize and manage the business to avoid unsolvable problems

Unsolvable problems occur due to clashes between overlaid structures and the actual business. The problems disappear when the actual business is organized with R-pM to manage one business structure to integrate planning, directing, control, and reporting.

The 21^st Century Management consulting model guides the enterprise and consultants to 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 management.

Opportunities are emerging for R-pM consultants to support 21^st Century Management

21^st century management will ultimately replace obsolete 20^th century management, creating a demand for R-pM management consultants. R-pM consulting sales and delivery are supported by R-pM websites, The R-M Toolkit, and other R-pM promotions. Professional management consultants and firms, who want to provide professional services that provide planned and measured enterprise benefit, will gain significantly by being among the first registered R-pM management consultants [more...]

20^th century management continues today because all enterprises have the same costs and problems. Many 21^st Management Magazine articles have documented the significant advantages of using R-pM to manage the enterprise business, rather than managing the enterprise with 20^th century management.

The future playing field will no longer be level. Companies now implementing R-pM will have a significant competitive advantage over companies burdened with 20^th century costs and problems. It is time to leave the 20^th century behind. Your company can be among the leaders and enjoy the advantage of 21^st Century management, or stay among the followers and suffer the disadvantages of 20^th century management. [more...]

20^th century management organizes and manages the business enterprise and not the enterprise business. An organization structure is laid over the business, preventing the business from being managed. Management structures for strategy, processes, systems, accounts, etc are laid over the business. The overlaid structures are contrived human creations that do not accurately represent the business. The business must change continually, while overlaid structures remain fixed, creating unsolvable problems. Business change management is not change to the business but change to overlaid structures to align them with the actual business.

Result-performance Management (R-pM) organizes the business as one integrated business structure. Data is captured on the actual business and accurate management information is presented in the framework of the current and strategic business. All overlaid structures either are incorporated in the business as performance solutions or are removed along with all the work to maintain the structures. The one integrated business structure changes with every change to the business, and eliminates all 20^th century management problems. [more...]

20^th century management lays a monolithic business process over the business. Results are mixed with performance and defined as "performance" preventing actual business management. The objective is to manage "performance quality", but costs, value, effectiveness, and quality are hidden in the process.

Rule No. 2 of 21^st Century Management is to "Generate profits from a chain of managed value and quality". Result-performance Management (R-pM) replaces business processes with result value-quality chains to organize and manage the actual business to manage performance capacity to produce a result volume, performance effectiveness producing result quality, and performance costs creating result value. Result value-added is the result value less the total result cost. The actual business is managed to generate profits from a chain of managed result value-added. Contrived overlaid business processes are abolished. [more...]

New businesses around the world are forced to adopt "western style" 20^th century management, since it is taught in all business schools and management books, propagated by management consultants, and supported by software packages and other packaged management solutions.

20^th century management does not provide a solid business foundation and introduces many conflicting, complex, and high-cost structures. Problems with reorganization, unknown costs, unmanaged value, unplanned capital development returns, business alignment, intangible assets, unknown capital and enterprise worth, inaccurate business records, business and information complexity, growing IT overheads, and on and on, have been known for years. Years of 20^th century management teachings, books, consulting, software, and solutions have made the business more complex, and have never solved the unsolvable problems of 20^th century management.

Now there is a way to escape the straight jacket of 20^th century management. Result-performance Management (R-pM) organizes the actual business as a firm foundation for simple and direct 21^st Century Management [more...]

20^th century enterprises do not manage the business, so capital development cannot be managed as part of the business. Capital development develops new capital as performance solutions to create value in new or improved results. 20^th century enterprises do not manage their capital and do not manage their results. So, capital development is managed as an isolated undertaking. This makes it difficult to manage the relationship between the project and the business, gain business user acceptance of new solutions implemented, and plan and measure return on the capital development investment.

Result-performance Management (R-pM) is a new project management breakthrough. R-pM organizes the operational results produced and performance solutions utilized as one Enterprise Business Structure. This provides the framework to describe and plan the new result value to be created, and to describe and plan the new capital in performance solutions needed to create new result value.

The new enterprise results and performance solutions to be developed are set up as Project Results in the Project Business Structure. Internal and external capital assigned to the project is managed as specific Project Performance Solutions to produce specific Project Results. The new enterprise results and performance solutions are developed, documented, and implemented as specific project results.

The project is closed out as project results are put into operation as new enterprise results and enterprise performance solutions in the developed Enterprise Business Structure. The new solutions are utilized to produce new result value over the payback period to provide the return on the capital investment [more...]

The Business Change Forum presents a page Problems/Solutions, which many have found an enlightening summary of Result-performance Management (R-pM). The page is presented in this article for readers of 21^st Century Management.

The first step to 21^st century management is to recognize the problems with 20^th century management. The 20^th century enterprise works around many business organization and management problems that are accepted as normal business practice. The article summarizes a few of the problems and introduces the R-pM solution to organize the business for 21^st century management and leave the 20th century problems behind. [more...]

Business transformation got a bad name when it was misapplied to business process re-engineering and implementation of enterprise resource planning.

True "Business Transformation" moves an enterprise, organized and managed through structures laid over the business, to an enterprise that directly organizes and manages the business and never needs further transformation.

Result-performance Management (R-pM) provides the methods and guidance for true transformation to an organized and managed business. [more...]