20^th century management lays strategic structures over the business

20^th century management contrives structures to define the corporate strategy in corporate plans, maps, investment plans, and other structures laid over the business. The strategic business is not planned. The overlaid structures do not relate to the actual business and may conflict with structures used to manage the corporation. Strategic value numbers are pulled out of the air. There is no good method to govern the transition from the current corporate status to the strategic objective. Corporate governance cannot govern the actual business, so it governs through compliance with arbitrary rules and regulations.

Rule No. 6 for 21^st Century Management states: Plan and govern the transition from today’s value to approved strategic value.

R-pM defines the current business to know result value, capital worth, performance costs, and investment returns to provide the foundation for planning the strategic business. The strategic business structure shows results to be produced and capital to be utilized at a 2-5 year strategic horizon. Strategic result value is substantiated in specific period by period result goals requiring growth in value of current results and the value of new results enabled by implementation of capital of worth.

R-pM provides information on the current to strategic business for management and good governance

R-pM enables good management and governance of the transition to the strategic business by reporting financial and non-financial status against result goals and performance expectations, updating strategic estimates, providing result evaluations and performance assessments, and providing management information on anticipated opportunities, threats, and developments. Good corporate governance ensures responsible business management and planned progress to the approved strategic business [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...]

20^th century management uses many different structures for planning and management

20^th century management does not plan or manage the business. Various planning and management structures are laid over the business. Various strategy documents, corporate plans, budget structures, etc. plan the corporation in different ways. But, no corporation plans the actual business to show the specific result values to produce month by month to create the strategic value in the future business results.

20^th century management cannot support good corporate governance

20^th century management governs the corporation through rules and regulations because the business is not organized and cannot be planned and managed to create strategic value. Regulatory requirements continue to add overheads to the corporation make 20th century management even more difficult.

R-pM organizes, plans, manages, controls, and governs the actual business

R-pM replaces all 20^th century management structures laid over the business with one business structure used for all organization, planning, directing, control, and reporting. A strategic business structure sets the strategic result value to be created and the capital investments needed. Transparent business management and corporate governance manage the transition of the current business to the strategic business. 21^st Century Management conventions, definitions, and standards provide benchmarks and guidance for business results and performance and good governance [more...]

20^th century management does not maintain accurate financial and non-financial records on the actual business

20^th century management used today does not keep records on the capital items utilized as performance solutions by the business as a set, and does not keep records on the output results produced by the business as a set. Thus, the business cannot be organized or managed and there is no set of complete and accurate records on the business to provide actual business management information. Instead, information is maintained against contrived structures laid over the business, such as organization, planning, budget and account, and reporting structures.

Accounting maintains a sub-set of enterprise records in financial and statistical accounts against a contrived chart of accounts. Financial records on the full cycle of performance costs and result value creation are not maintained. Many non-financial records that should be maintained are not considered as accounting responsibility and are never recorded and managed as information capital.

The records management problem is getting serious with the explosion in email, file transfers, and other records created, entering, and leaving the enterprise. The enterprise has no way to reference records to the actual business, to prevent records being lost due to information complexity, and to properly manage records as information capital.

Rule No. 4 for 21^st Century Management: Keep financial and non-financial records on full business operations and development

Management needs complete and accurate information on the actual business for good corporate governance and business management. This is not possible with 20^th century management, which does not organize or manage the actual business. 21^st Century Management requires accurate financial and non-financial records for the full cycle of business operations, along the chain of results produced by the business, and across the operation-development continuum.

R-pM maintains accurate financial and non-financial records on the actual business to provide accurate and complete management information

Result-performance Management (R-pM) organizes the actual business so that one set of accurate and complete facility records can be maintained on the business and accurate reports on the full business cycle of cost-effective performance producing value-quality results, the results from supplier-provided input results and through enterprise business results to final customer results, and the investment costs in new performance solutions and the return in new result value can be provided. R-pM broadens traditional accounting to professional records management [more...]

You cannot manage your business, because your business is not organized

20^th century management does not organize the actual business enterprise. Instead, an enterprise organization structure is laid over the business. The organization structure is the fatal error of 20^th century management. Once an organization structure is laid over the business, the business can never be managed.

Since your actual business has never been defined or organized, you cannot manage your business. You must manage artificial entities described in separate management structures laid over your business. You plan in corporate planning and budget structures, direct operations in business process and information system structures, administer through administration structures, control through an account structure, and report through performance management and reporting structures.

You can manage your business directly with Result-performance Management (R-pM)

Result-performance Management (R-pM) replaces 20^th century management structures with one 21^st century business structure to integrate business organization and management. All business organization, planning, directing, control, and reporting is against one business structure. Your business management and decisions involve the specific performance solutions used to produce specific business results. You manage result value, performance costs, result value-added, capital worth, and other attributes of the actual business that you have never managed in 20^th century management [more...]

All companies today are burdened by the same 20^th century management problems

20^th century management contains significant competitive disadvantages. But, 20^th century management continues today, because all companies are burdened with the same costs and problems. The competitive playing field remains level, because no company organizes and manages the actual business.

21^st Century Management is vastly superior to 20^th century management

But what happens when one company uses R-pM to organize the business for 21^st Century Management, to jettison excess costs, focus on increasing result quality and value-added, quickly develop and implement new performance, quickly introduce new and improved products and services, and reduce prices while increasing revenues. That company will enjoy significant competitive advantage over companies still burdened with unsolvable 20^th century problems.

The future competitive playing field will no longer be level. Where will your company be? Among the leaders employing R-pM for competitive advantage or among the followers, still struggling with unsolvable 20^th century problems and falling further behind [more...]

An organization structure is laid over the business, instead of organizing the business, so the business can never be managed

The fatal error of 20^th century management is the organization structure. Once and organization structure is laid over the business, the business can never be managed. If the business is organized the business organization changes with business change and there is no need for reorganization or change management. Since the business is not organized, additional structures must be laid over the business for management planning, directing, control, and reporting.

Rule No. 1 of the 10 rules of 21^st Century Management: Organize and manage the business

The conventional definition of the enterprise business is the activity of providing goods and services. The 20^th century enterprise has never organized or managed the activity of providing goods and services, but, instead, lays rigid enterprise organization and management structures over the business. Business change conflicts with the rigid structures, creating unsolvable problems that can only be eliminated by organizing the business for 21^st Century Management.

Result-performance Management (R-pM) organizes and manages one integrated business structure

Result-performance Management (R-pM) organizes the business as one structure to integrate enterprise business organization and management. Business activity is organized as capital utilized in performance solutions. Goods and services are organized as the results produced by business activity. Business results and performance solutions into are organized together into a business structure. The business is organized by deploying specific performance solutions to produce specific results. The one integrated business structure is utilized for all 21^st century management planning, directing, control, and reporting to leave 20^th century organization and management problems behind [more...]

All of us have heard of various alignment problems to align the organization, processes, information systems, human resource administration, financial and IT strategies, knowledge and capability development, accounts, capital development, outsourcing, supplier specifications, customer needs, tangible and intangible assets, etc with the business. All of these alignment problems are caused by rigid 20^th century organization and management structures that are laid over the business. The rigid structures conflict with the actual business, causing business change problems, and go further out of alignment as the business changes. Periodically new organization, accounting, process, administration, and other structures must be redesigned to align them closer to the business, and then the cycle is repeated.

Hundreds of books and solutions exist to solve the "alignment" problems, but alignment problems remain unsolved. Alignment problems can never be solved by laying new structures over the business, or by contriving methods to align overlaid structures with each other. The overlaid structures cannot be aligned with the business, because the actual business has never been defined or organized.

The solution to the alignment problem is obvious. The generally-accepted definition of the enterprise business is "the activity of providing goods and services". The business has two components: "the activity of providing" and "the goods and services provided". We must organize the business to align the business activity in performance with the goods and services provided as results.

Result-performance Management (R-pM) eliminates alignment problems by organizing the business for 21^st Century Management. Overlaid structures are replaced with one integrated business structure to align the organization, process, systems, accounts, and other structures as performance solutions deployed to produce specific economic output results. All performance solutions are aligned as one component of the business with the results produced as the other component of the business. [more...]

Today's business enterprise uses a myriad of management structures and information systems creating enormous information complexity. Each structure and system defines its own set of data entities and reports separate information. Enterprise management information systems attempt to reconcile data and integrate information into meaningful reports for management. But, no system today captures actual business data and no management information system reports actual business management information.

Result-performance Management (R-pM) organizes the business for 21^st Century Management. The one integrated business structure is used for a comprehensive and consistent Result-performance Management System to capture data on the utilization of capital in performance solutions to produce economic outputs in business results. Data is captured on performance capacity, cost, and effectiveness and the volume, value, and quality of results produced. Strategic results and the solutions needed are maintained in the strategic business structure with plans for time periods and updated strategic estimates. Complete and comprehensive management information is reported on the actual business for effective 21^st Century Management and good corporate governance. [more...]

Today's business processes emphasize managing performance and "performance quality". But, people have difficulty defining "performance quality" and in identifying and correcting poor performance. If the business process output is not up to standard, it is difficult to identify what happened within the process and to prevent the problem from recurring.

"Quality" is not an attribute of performance. "Quality" is an attribute of the output result produced by performance effectiveness. We can see and determine the quality of the output result, where we cannot see or determine the quality of performance, if it is not witnessed. In order to manage quality we must manage each output result produced in the chain of results leading to the final process result. In order to manage the effectiveness of performance, we must manage the human and other performance solutions utilized to produce the result. A defective result in the chain it is caused by either a defective input result or ineffective performance. The chain is traced back to identify the defective result. Since performance solutions are managed, the ineffective solution can be corrected or replaced. But, this can only be done by managing result chains with Result-performance Management. [more...]