The current financial crisis shows the need for actual best business management practices

After every corporate financial, management, or governance crisis or scandal the call arises for best business management practices. However, nobody knows what real best business management practices are, since no one has any experience in actually organizing and managing a business. The practices installed are never actual best business management practices, but are a collections of rules and regulations or methods to better manage structures that hide the business and prevent actual business management.

20^th century best practices are the best of bad business practices

20^th century best business practices are a collection of organization, process, system, and administration structures laid over the business for a particular purpose, which have proven effective elsewhere. All 20^th century best business practices are bad business practices, because they add to enterprise overheads and costs, and do not help the enterprise to operate or manage the actual business.

R-pM provides the business definitions and structure for good best practices

Result-performance Management (R-pM) instills best practices across the business for 21^st Century Management. R-pM manages the business by managing the capacity, investment, qualifications, reliability, return, and worth of capital solutions; utilization, cost, effectiveness, uncertainty, and value-added of each capital solution in guided performance; and the volume, total cost, quality, risk, value, and value-added of each result produced. The set of solutions deployed and utilized to produce a result is defined as a capital module. The capital module that produces the best value-quality result can be defined as a best practice. All best practices are then built into the business structure to operate and manage the actual business.

The only way to prevent future corporate financial, management, and governance problems is to use R-pM to organize and manage the businesses. Governments that want to improve local business competitiveness significantly and prevent future crises, must investigate R-pM. [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...]

Government executives must manage a business the same as corporate executives

R-pM defines the business as “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results”. This includes governments at all levels and all agencies, departments, commissions, enterprises, and other forms of business. The president or vice president are executives not legislators. Most recent presidents have had governor experience before becoming president. When evaluating a candidates experience the criterion should not be years of government experience, but particular executive experience or credentials that indicate actual capability to carry out presidential responsibilities and accomplish campaign promises.

Both political parties promise change and state that they have the experience to carry out change

Experience in initiating and managing beneficial change in a business is rare. For the vast majority, experience is an obstacle to change, since they base future methods and decisions on past experience. A manager advocating change should have experience in initiating and managing change.

Governor Sarah Palin is the first candidate in memory to run on the capability to initiate and manage change

It is easy to talk change, but very difficult to effect change. Governor Palin’s nomination is being criticized for a lack of experience. But, among the candidates, she has the most experience in actually managing business change. Governor Palin is not running on years of “experience”, but on specific accomplishments as an executive in effecting change. [more...]

Value has no value in 20^th century management used today

Value is an impressive word. People talk of value propositions, strategic value, value chains, value creation, and value management as if they were actually measuring and utilizing value as a day-to-day business metric. But looking further, we find that value is calculated from a contrived business overlay or formula.

20^th century enterprise organization and management prevents the utilization of value as a day-to-day business metric.

R-pM organizes the business to make value a manageable and valuable result metric

We must organize the business through Result-performance Management (R-pM) for day-to-day 21^st Century Management. Value is an attribute of output results produced by the utilization of capital in performance across the business. The value of input results from suppliers, plus each result in the business result chain, equals the value imparted to customer results in customer willingness to pay. [more...]

There is no framework today to guide the development, implementation, and utilization of packaged solutions

Packaged solution providers have never had a consistent framework to design solutions that any enterprise business can employ. This has required that packaged solutions be very problem, function, or industry specific.

The only valid framework for packaged business and management solutions is the business itself

The framework needed to develop consistently-defined capital solutions exists, but it has never been used. That framework is the business.

R-pM organizes the three components that define the enterprise business in results required, capital solutions invested in the business, and the performance of specific solutions that produce specific results. Packaged solutions fit into the business organization and are utilized as part of the business to incur costs and create value in specific results.

R-pM provides consistent support for solution developers, implementation consultants, and solution users

The R-pM Toolkit provides the needed guidance for both the packaged solution developer and the solution user to ensure that solutions seamlessly fit into the enterprise business structure and can be utilized to produce the intended results.The Toolkit includes 21^st Century Management conventions, definitions, and standards that are followed so that any business reduce costs and improve the value and quality of results by using common packaged solutions and services. [more...]

Capital development and support and capital utilization in performance is not managed today

Capital, utilized to produce results, cannot be managed if it resides in a responsibility center, is administered by a function, or is labeled as an "intangible asset". Some capital may be defined as an asset for depreciation, but capital is not managed as the solutions needed by the business. Enterprises make large investments in capital and then fail to manage the utilization of the capital to create known value in results and provide the known return on the capital investment.

21^st Century Management requires Capital Management and Performance Management

One key element of 21^st century management is proper capital management to define all capital as specific solutions. Capital Management manages solutions for planning, development, support, and operation.

Within Capital Management is Performance Management, so that a performance manager manages the utilization of each solution in performance to deploy and maintain a qualified solution that meets expectations, to be utilized by a result manager to produce results.

R-pM manages capital and performance as components of the business to produce results

Result-performance Management (R-pM) organizes and manages 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”. Capital is managed to be of high-worth, by being developed to add specific result value and then being utilized in performance for a managed performance cost and effectiveness to create greater value and quality in the results produced. The return on the capital investment and the capital solution worth can be known only by measuring the value-added to results attributable to the solution over its useful life. [more...]

Business information is inconsistent, incomplete, and inaccurate in today's enterprise

Enterprises have much to gain by properly organizing and leveraging information to provide value. Information is not managed properly for support and utilization in today’s enterprise. The business is not organized and managed to capture information produced directly by the business and to apply information directly to the business. The categories of information are not supported as information capital to produce business results. There are no precisely-defined data entities to integrate information from the various systems into a business information base for consistent management information. Most direct business data is never captured and management information is reported in conflicting and inaccurate sets.

The information complexity and accuracy problems are addressed by additional information technology investments

Each management structure and information system defines the enterprise differently producing the information complexity and accuracy problem. Large information technology investments for data reconciliation, enterprise information management, IT architectures, specialized knowledge and records management, etc can never solve the problems.

R-pM integrates actual data, knowledge, records, and intelligence in one Business Information Base

R-pM provides the proper support for information capital to provide information solutions, to utilize solutions to capture data and apply information directly for the business, and to integrate information on the business in one consistent and accurate Business Information Base for transparent management and good corporate governance. [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...]

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...]