Logo: Feedburner Archive for the 'Strategic Management' Category

Record Business Data, stop recording Irrelevant Corporate Data

June 5th, 2008

Information 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, 2008

20th 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, 2008

R-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...]

Managers cannot make actual business decisions today

April 21st, 2008

No enterprise manager today makes actual business decisions

Managers today lack the business context, business management information, and the actual business management experience needed to make decisions on business organization and management. Any actual business decision could never be implemented because the business is not defined or organized.

All managers make enterprise management decisions to change structures laid over the business

Enterprises today use 20th century management to manage the enterprise with structures laid over the business. Management decides on changes to the organization, business process, information system, or other overlaid structure rather than changing the actual business.

R-pM manages and reports the business to provide the context for business decisions

All business decisions are an informed change to a result produced by the business and the capital utilized as performance solutions to produce results. Business decisions are directly implemented to the business to produce a new result or utilize improved solutions. Business decisions are made, reported, and managed in the business context of performance cost and result value change, performance effectiveness producing result quality, result value-added affecting capital worth, actual achievement against result goals, progress to strategic result value, and other business management information not provided by 20th century management [more...]

20th century management problems can only get worse and never get better

April 17th, 2008

Unsolvable 20th century management problems are caused by structures laid over the business

20th century management problems are caused by conflicts between the actual business and enterprise organization and management structures laid over the business. 20th century management “solves” the problems by laying ever more-complicated structures over the business, and adding more information technology overheads to manage the structures.

Dead-end 20th century management problems can never be solved by laying new structures over the business

For years and years, many management books and expensive solutions have been sold to “solve” 20th century management problems by new or improved structures laid over the business. But the “solutions” only compounded the problems. 20th century management is a dead-end. All 20th century management problems remain unsolved today. All we have done is to make the enterprise more complicated and created a gigantic IT infrastructure that cannot capture actual business data.

Enterprises are now waking up to the problem and using R-pM to organize the business for 21st Century Management

There is only one solution to the problems with dead-end 20th century management. Each enterprise must use R-pM to organize the actual business for integrated 21st Century Management. The enterprises now using R-pM to organize their business will have continuing competitive advantage over enterprise burdened with 20th century management, and the advantage will continue even after followers start to use R-pM [more...]

R-pM for Socially-responsible Business Management

April 3rd, 2008

20th century management produces waste and inefficiency

20th century management requires enormous overheads and waste by laying many organization and management structures over the business rather than organizing and managing the business directly. Business, human, and management capital is not developed and managed to be utilized effectively by the business. Management does not have the information or methods for socially-responsible business management.

R-pM organizes the business for socially-responsible 21st Century Management

Result-performance Management (R-pM) is the future of socially-responsible business management. R-pM organizes and manages the business directly to eliminate wasteful overheads, utilize energy and supplies efficiently, maximize human capabilities, and apply responsible management policies and practices [more...]

Rule No 10: Employ 21st Century Management conventions and standards

March 17th, 2008

Conventions, definitions, and standards used in 20th century management are inconsistent and confusing

20th century 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 21st Century Management: Employ 21st Century Management conventions and standards

The 21st century business must avoid the problems inherent in 20th century management. This is done by organizing the business with R-pM for 21st Century Management. 21st Century 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.

R-pM provides one consistent set of conventions, definitions, and standards for 21st Century Management

21st Century Management conventions, definitions, and standards are defined, updated, and maintained in the R-pM Toolkit to support the application and use of R-pM. The conventions, definitions, and standards can be followed by any education institution, solution developer, or service provider to meet the needs of any 21st century enterprise [more...]

Broaden financial accounting to provide professional records management

February 28th, 2008

20th century accounting does not keep complete or accurate financial records on the business

Rule No. 4 of the 10 rules of 21st century management with R-pM: Keep accurate financial and non-financial records on full business operations and development.

Today's enterprise faces many obstacles to professional record capital management because of several 20th century problems. Financial accounting is often seen as enterprise records management, but maintains a professional view of what it will record, and acts as an administrative function rather than professional records management. Financial accounting records some financial data against a chart of accounts laid over the business. Financial accounting does not keep complete and accurate financial and non-financial records of the actual business. Most other enterprise records are not maintained as enterprise capital to be available to provide needed performance solutions. Records management is a growing problem in today's enterprise requiring a comprehensive professional records management solution.

R-pM enables complete and accurate financial and non-financial records against the actual business

R-pM maintains all business management information against one business structure to integrate organization, planning, directing, control, and reporting. Structures laid over the business are removed. Management information includes result value, capital worth, performance costs, and result investment returns that are "unknown" today. Tangible information capital is maintained as facility records to record all financial and non-financial business transactions and activity in computer records, documents, images, archives, etc. Accounting is one sub-set of professional records management.

R-pm provides an opportunity for accounting to broaden to professional records management

R-pM provides a unique opportunity for the accounting profession to expand to professional records management. R-pm eliminates unsolvable accounting and financial management problems. Professional facility records management maintains financial and non-financial facility records of the actual business, and provides information capital solutions from records, where needed to produce results at all levels of business management [more...]

Rule No. 7: Manage investments to gain a planned result value return

February 25th, 2008

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

20th 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 21st Century Management: Manage investments to gain a planned result value return

The investment management problem is solved by rule no 7 of 21st 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...]

Rule No. 6: Plan and govern the transition from today’s value to approved strategic value

February 18th, 2008

20th century management lays strategic structures over the business

20th 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 21st 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...]

Organize with R-pM for 21st Century Management

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