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...]

Enterprises today cannot collaborate in result value and quality chains

Business collaboration is an unsolvable problem of 20^th century enterprise management used today. Organizations, processes, systems, accounts, reporting and other structures laid over collaborating businesses conflict and employ inconsistent definitions and methods. The problem is addressed by laying other structures over the businesses for data reconciliation, information management, or a contrived multi-business process. This does not enable real collaboration, but allows reporting on what is occurring across the collaborating enterprises.

Business collaboration is impossible until businesses are managed

By definition business collaboration requires that first each business that is to collaborate is managed. The 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”. Each collaborator must manage the results of value and quality produced by the business, the capital of specific investment and operating costs utilized in the business, and the costs and effectivness of performance that produces each specific result.

Business management enables collaboration and management of shared value

When each collaborator manages the economic output results produced, capital investments implemented as solutions, and the performance of each solution to produce a result following 21^st century business management conventions, definitions, and standards, there can be real business collaboration. A result value and quality chain can be linked across businesses to produce each result where the best value and quality can be achieved, eliminate duplicated results, and control capital utilization to produce the maximum value-added in the final customer result from the chain. [more...]

You manage your personal business to utilize your capital in performance to produce value in results

You use natural common-sense business management for your personal business. You do not lay structures over your business. You utilize your time, capability, and possessions as capital solutions in your performance to produce personal results, such as item purchased, enjoyed night out, or exercised and fit body. The value of the result must exceed the cost incurred in performance to be happy with the result. Your performance uncertainty risks poor or delayed results. Your input result quality and performance effectiveness determine output result quality, such as a repaired household item. You do not follow processes; you produce results, as needed, or along a chain to a final result.

But, when you get to work you must follow enterprise processes and procedures

When you get to work you are unable to apply your natural business management. The enterprise you work for has never defined or organized the business. Results produced across the business have never been identified as a set to be managed. Capital investments in the business have never been identified as specific capital solutions that can be utilized in performance to produce results. Therefore, you must follow the processes, procedures, and systems laid over the business to produce selected output results. You are unable to manage the common attributes of capital, performance, and results that produce actual business data or to obtain actual business management information that is needed to manage the business. [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, management information is reported in conflicting and inaccurate sets, and actual business management information remains unknown.

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 produce excessive enterprise overheads and never solve the problems.

The managed business integrates actual data, knowledge, records, and intelligence in one Business Information Base

The only solution is to manage the business directly to capture actual business data and produce information capital solutions needed to manage the business directly. Business management 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...]

20^th century enterprise management manages the enterprise, not the business

20^th century management used today manages the enterprise by laying organization and management structures over the business. We are familiar with the organization structure that requires periodic reorganization, and management structures in the corporate plans, business processes, information systems, account charts, and reporting structures used every day. These structures record a multitude of data entities and can report mountains of information, but do not record actual business data or report actual business management information.

21^st century business management manages the business to manage the enterprise

21^st century business management organizes and manages the enterprise business as one integrated business structure. The enterprise is managed by managing the business of the enterprise. Business is “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results”. 21^st century management manages the three entities that comprise the business: capital investments in the business, business performance in the utilization of the capital, and business results produced by performance. All business data is captured in one structure and one consistent, complete, and accurate set of business management information is reported.

There is only one source of knowledge for 21^st century business management

Result-performance Management (R-pM) provides the concepts and procedures for 21^st century business organization and management. The knowledge to manage any business is provided in the Business Management Toolkit. The toolkit is continually updated and expanded to guide 21^st century business management. [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...]

Today, data is collected and information is reported against structures laid over the business

Today, companies and other enterprises collected data against organization, account, activity, process, information system, and other structures laid over every business. Enormous amounts of data is collected against the overlaid structures, but actual business data is never captured and actual business management information is never reported. Enterprise and corporation management is hampered by the overload of conflicting information on enterprise structures and the lack of management information on the actual business.

Business management captures actual business data and reports actual business management information

Business management captures one set of complete, consistent, and accurate data against the actual business structure and reports one set of relevant, complete, and accurate management information. Actual business information is reported at the enterprise business level and consolidated in the corporation business structure at the corporate level. Government business reporting requirements can consolidate consistently defined enterprise business data in government business structures by industry, economic sector, market, or economy.

Management has the complete and accurate information to manage and optimize the business and new investments in the business

Management has information that is not available today to manage the actual business. Capital investments are managed to provide the planned and measured return and to manage the ongoing worth of capital solutions utilization and eventual sale or disposal. This includes the "asset value" of capital investments in securities and other instruments to produce income, dividend, and growth results. Business operations are managed as result value-quality chains to manage result value-added across the business to produce profit and shareholder value results. Management has one set of management information needed for business organization, planning, direction, control, reporting, and governance. [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...]

There is but one natural way to organize and manage a business

You use the one natural way to organize your personal business. You produce results in the things you accomplish. To produce results, you acquire and maintain capital as solutions in your capability, time, tools, equipment, money, plans, instructions, etc. You utilize the capital solutions in your performance to produce a result of value, such as a prepared meal, arrived at a destination, a good time, etc. You manage your business through common sense. You do this instinctively because it is the only way to organize and manage your personal business or any other business.

Your company organizes and manages the company, rather than the business

But on your job, you no longer naturally utilize capital solutions to produce results. Your company does not organize or manage the business. The company lays contrived structures over the business to manage the company. All business schools, management books, packaged solutions, consulting advice, professional bodies, and on-the-job experience teach us to lay contrived structures over the business. You cannot manage or perform using common sense. You must follow various rules, regulations, and procedures to utilize arbitrary processes, systems, accounting, and other structures.

Use your natural method to organize your company business

Result-performance Management (R-pM) defines the natural way you organize your personal business. R-pM enables you to use your natural method of utilizing specific solutions in performance to produce specific business results. You will see improvement in the job you do today, and understand the potential to organize your company business for the breakthrough advantages of 21^st century business management. [more...]