Archive for the 'Strategic Management' Category
Business Owners and Investors must lead the way to 21st Century Management
October 2nd, 2008Business owners and investors are the big losers from the financial crisis
Corporate management may have lost out on some big bonuses and property owners may have to wait for the worth of their properties to recover. But, the business owners and shareholders have lost on their investments due to the continuing failures of obsolete 20th century management. They have invested in corporations and institutions that are unable to manage their business in the costs and planned worth of investments, the cost and effectiveness of specific capital solutions utilized in performance, the value and quality of results produced from performance, and the historic return and future solution worth from the value added to results. These failures cause the continuing cycle of corporate management problems.
Business owners and investors face growing risks from poor management
Corporate executives are burdened by lifetimes of misleading management teachings and experience and have no real incentive to change. The incentive and responsibility for change lies with the business owners, shareholders, and board representatives, who must demand change to 21st Century Management with R-pM. The risk of no change is twofold 1) in continued poor corporate management and another cycle of problems, and 2) the significant advantages to competitors now organizing their businesses with R-pM.
R-pM gives enormous competitive advantage for minimal investment and risk
R-pM is mainly a change in thinking, which requires time to take hold. The existing business is gradually redefined into result value-quality chains and one integrated business structure. Obsolete structures laid over the business and unsolvable 20th century management problems are gradually abolished.
As the enterprise learns R-pM, implementation accelerates and the competitive advantage of R-pM increases until the complete business is organized for 21st Century Management.
Business owners and investors must lead the drive to use R-pM
Business owner and investors gain the most by being among the first to use R-pM, and lose the most to competitors using R-pM. They must ensure that their enterprise is not burdened by unsolvable problems and high cost overlaid structures, while competitors use R-pM to take away markets and profit [more...]
20th Century Management Problems exposed by the Credit Crunch and Bankruptcies
September 18th, 2008The ongoing credit crunch and growing financial crisis show the failures of 20th century management used today
20th century management lays organization and management structures over the business to manage the enterprise arbitrarily, rather than managing the business. 20th 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 20th 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 20th century management. 20th 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 20th century management methods or will lose out to competitors who are now abandoning 20th century management and organizing their business with R-pM for 21st 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 21st Century Management. [more...]
Align Strategy, Organization, Systems, Assets, Processes, and Outsourcing with The Business
September 11th, 2008Many methods and books have addressed the alignment problem, but the problem remains unsolvable
The 20th 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 20th 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 21st 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...]
Result-performance Management: Three Dimensions of 21st Century Management
July 28th, 2008Today's enterprise cannot manage the business in capital, performance, or results
Today’s enterprise cannot manage the business, since organization, process, account, activity, human resource, and other rigid management structures are laid over the actual business. The business consists of capital invested as solutions in the business, business performance in the utilization of capital solutions, and output results produced by business performance. Structures laid over the business conflict with the real changing business causing unsolvable 20th century management problems.
Capital, performance, and results must be organized to organize the business
Result-performance Management (R-pM) organizes the business for 21st century management. R-pM organizes capital as business, human, facility, and management solutions. R-pM organizes results to produce revenues, manage and support capital, and manage and develop the current to strategic business. R-pM organizes performance to utilize specific solutions to incur costs to produce value in a result.
R-pM manages the business in three dimensions: result, performance, and management
R-pM manages results produced across the business to provide value and quality to customers and reach revenue result goals. R-pM optimizes performance for each capital solution utilized to produce results to provide high-worth solutions that produce result value and quality at a controlled cost to reach profit margin result goals. R-pM provides management over time to manage and collaborate in value-quality chains, to plan and manage capital development and result value-added benefits, and to govern the business to reach strategic value result goal [more...]
R-pM Principles for Competitive Differentiation and Advantage
July 24th, 2008All enterprises are burdened by 20th century management problems today
Enterprises can compete today, not because they are efficient and effective, but, because they are all inefficient and ineffective. All businesses today lay organization and management structures over the business that conflict with the actual business and cause unsolvable problems that can never be solved by laying new structures over the business.
The first to organize the real business for 21st Century Management gain significant competitive advantage
The business consists of three components: capital investments made in the business in specific capital solutions of developed worth, output results of value and quality that must be produced for business success, and performance in the utilization of specific solutions to incur costs and provide effectiveness to produce specific results. R-pm organizes the business for 21st Century Management to provide immediate competitive advantages.
R-pM manages capital worth and performance to minimize costs and maximize result value-added and quality across the business
With R-pM all management and personnel know the solutions they must utilize effectively and the value and quality they must produce in results. Capital is developed only to increase result value-added and the worth of human and other capital. Result value-added and quality are managed along the chain to produce high value-quality customer results. The actual business is managed to quickly change capital utilized and results produced and to integrate with suppliers, business partners, and customers for shared value-added. R-pM provides measurable competitive differentiation and advantage not possible today with 20th century management. [more...]
Professionally-Managed Management Capital
June 30th, 2008Management capital is required to plan and manage a competitive business and create strategic value
Rule No. 6 of the 10 rules of 21st century management with R-pM: Plan and govern the transition from today's value to approved strategic value. All management planning, directing, control, reporting, and governance is against the current and strategic business, with no overlaid structures. Management capital produces solutions to support management at all levels of the enterprise to plan and execute a strategy and protect shareholder value.
Management capital today uses structures laid over the business
Few enterprises have a disciplined set of management capital, particularly as related to the actual business. 20th century management and governance problems start as soon as an organization structure is laid over the business, instead of organizing the business so that the business can be managed. Management structures for strategy, planning, accounting, processes, reporting, etc. must be laid over the business as well, creating business and information complexity.
R-pM manages management capital as part of the actual business to support informed management
R-pM organizes the business in results needed for business success, capital invested in the business to provide solutions to be utilized, and performance in the utilization of solutions to produce results. R-pM develops and maintains management solutions to produce management results through three categories of capital: management strategy to plan and manage strategic result value, management tactics to guide and optimize results and performance, and management intelligence to inform of strategic and tactical status and forecasts.
Management capital specialists in each category develop professional capabilities in management analysis, research, and judgment to lead the enterprise in 21st century manageme [more...]
Use one Structure for Organization, Operations, Development, and Management: the Business
June 12th, 2008Enterprises today are organized and managed using many structures
Throughout the 20th century, we have implemented organization, process, account, performance management, and other structures. These many structures, and the different entities used, produce business and information complexity and many other problems. There has long been recognition of the problems. Many books have been written and additional management structures have been devised, but the problems remain.
Enterprises and management developers have been looking for one integrating structure
There are many efforts to replace these structures with one simple and consistently-defined structure for business collaboration, reliable management information, use of common solutions, and other needs. Until now, no one has defined the one integrated structure that can be used to organize and manage any enterprise in any industry. Each new structure is laid over existing structures compounding the problems.
The one integrating structure exists; it is the business itself
There is one structure. It has been there all along! That structure is the business itself!
The enterprise business is defined as “the utilization of capital of worth in performance to incur costs and produce value in results”. The business consists of three components:
- Business results produced as economic outputs of value from the business
- Capital in the specific performance solutions invested in the business
- Performance in the utilization of performance solutions to produce results
These components of the business are organized into the current and strategic business structures that replace all structures laid over the business for transparent management of strategic result value creation.
R-pM provides the only method to organize and manage the actual business
Today's unsolvable business problems are caused by conflicts between the actual business and structures laid over the business. Result-performance Management (R-pM) organizes the business, as current and strategic structures, for 21st century management. R-pM replaces all overlaid structures with the appropriate business structure and leaves unsolvable 20th century problems behind [more...]
Record Business Data, stop recording Irrelevant Corporate Data
June 5th, 2008Information systems gather corporate data that is irrelevant to the business
20th century information systems do not capture business data or provide the information needed to manage the actual business. 20th century information systems manage organization and management structures laid over the business. Management structures are arbitrary and define inconsistent data entities. Data on hundreds entities must be recorded throughout the corporation, and then processed and managed creating information complexity and providing mountains of confusing information.
R-pM organizes the business to capture actual business data
The objective of 21st century management is to organize and manage the business of the corporation. Result-performance Management (R-pM) directly organizes and manages the business to record actual business data and report business management information that is not available today. Timely integrated information solutions are delivered to produce specific business and management results. The business is defined by three information entities and managed through six information sets.
Business management information is used to manage the business directly
R-pM provides actual business management information on the worth and return of capital investments, utilization of capital in performance to incur costs and produce results, and results of value produced by the business. Once actual business information is provided, corporate information provided by overlaid 20th century structures becomes irrelevant and can be abolished. 21st century management can then concentrate on managing the business [more...]
Overcome dead-end 20th century management
June 2nd, 200820th century management used today is a dead-end that will never improve
21st Century Management Magazine has published many articles on the unsolvable problems with 20th century management. These problems have never been solved in spite of thousands of 20th century management books written and solutions proposed. The problems will never be solved by continuing 20th century management used by all enterprises today into the 21st century.
20th century management must be replaced by 21st Century Management
20th century management structures laid over the business and unsolvable problems caused by conflicts between the business and overlaid structures must be abolished. The only way to abolish structures laid over the business is to organize the actual business “the utilization of capital of worth in performance to incur costs and produce value in results” for 21st Century Management.
R-pM is the only solution for 21st Century Management
Result-performance Management is the only way to organize the business for 21st Century Management. Once the business is organized all overlaid structures are removed and the business is managed directly to move from the current to strategic business. R-pM provides the breakthrough benefits of 21st Century Management that are impossible today [more...]
21st Century Management Conventions and Standards
April 24th, 2008R-pM defines actual business organization and management
R-pM provides the concepts, procedures, and learning so that any enterprise can organize and manage the actual business. Part of R-pM is 21st Century Management to provide the framework for business operations, education, services, and solutions that can be utilized effectively by any business.
21st Century Management provides the framework for collaboration and common solutions
R-pM is designed to simplify the business and to provide the foundation for business collaboration and common education, services, and performance solutions that any business can use. This requires a minimum set of fundamentally-correct and consistent 21st Century Management conventions, definitions, and standards that are followed by R-pM users, educators, business management software and solutions, and service providers to reduce business costs and enable effective communications and collaboration.
21st Century Management is documented in The R-pM Toolkit.
21st Century Management descriptions are included in all R-pM Toolkit documentation. The 21st Century Management conventions, and definitions are included in the current R-pM Toolkit. Additional 21st Century Management conventions will be refined and included in future R-pM Toolkit updates. 21st Century Management standards will evolve as R-pM is employed in practice.
The R-pM Community can provide inputs into 21st Century Management
The intention is to make 21st Century Management a product of the R-pM community so that anyone can contribute their ideas and requirements to be reviewed for inclusion in the continuing development and refinement of 21st Century Management [more...]


