Business processes and information systems laid over the business today prevent management of costs, value, and quality

20^th century management lays monolithic business processes and information systems over the business to manage business performance. Results produced by the business are defined as performance and are not specifically identified and managed as a set or chain leading to final results that go to the customer. This prevents to business from managing the cost of producing a result, the result value, the result quality, and the result value added. Much time and money is wasted trying to reconcile ill-defined processes and systems for business collaboration, since result chains cannot be organized or managed.

Rule No. 2 of the 10 rules of 21^st century business management: Generate profits from a chain of managed value and quality

21^st century business management organizes the capital investments available to be utilized in business performance, performance producing each result, and business output results as value-quality chains. This allows capital solutions to be utilized in cost-effective performance to produce value-quality results leading to high-value and high-quality customer results.

Customer results are outputs from managed result value-quality chains

Business management redefines business processes and information systems as process solutions by the results produced and manages each result in the result value-quality chain starting from input results from the supplier, result value added along the enterprise result chain, and the final result to the customer. Result value-added is managed across the chain to contribute directly to the profit result. The business can integrate and manage the chain to help suppliers meet enterprise input needs and to add more value by meeting customer needs. [more...]

20^th century enterprise management cannot optimize operations in the capital solutions that produce output results

The 20^th century enterprise today is organized, but the business is not organized. Capital investments in the business are not organized to implement and utilize capital solutions as part of the business. Therefore, business operations in the capital utilized as specific capital solutions, the performance of the solution to produce specific output results, and results produced cannot be managed. If business operations are not managed, performance cannot be optimized to produce high-quality results and the result value-added that contributes to the profit result.

Rule No. 5 for 21^st century business management "Operate to optimize operations, result value-added, and the profit result"

The ten rules for 21^st century business management help each enterprise to understand how well positioned they are to compete with the coming 21^st century business environment. Rule No 5: "Operate to optimize operations, result value-added, and the profit result" establishes an enterprise routine of managing and supporting capital solutions, managing the utilization of a solution in performance to produce a result, managing the results produced, and managing the return on investment and contribution to profits over time.

21^st century business management manages cost-effective performance to produce value-quality results and profits

Capital is managed to capture the cost of development or improvement, to ensure solutions are qualified to produce the desires results, to capture the result value created to determine the return of investment and the continuing solution worth, and to optimize the investment, qualifications, capacity, and reliability of each solution.

Performance, in the utilization of a solution to produce a result, is managed to meet expectations in performance, to work together with other solutions to produce the same result, and to optimize the cost, effectiveness, capacity utilization, and uncertainty of each solution utilized.

Results are managed to utilize integrated solutions to reach result goals, to create result value greater than total performance costs for result value-added, to produce a high-quality result, to produce the expected volume of results on time, and manage the risk of a poor result.

Results are managed with the capital solutions utilized and performance as the routine, High-value results are periodically optimized by managing the volume, value, quality, goals, and risk of results by optimizing the capital solutions utilized and the performance of the solutions. Optimizing ensures that performance is cost-effective to produce high value-quality results, to return investments in capital solutions, to manage and maintain capital worth, and to provide the result value-added that contributes to the profit result. [more...]

20^th century enterprise management defines performance to include capital, solution utilization, and results

20^th century management used by all enterprises today defines performance to include capital utilized in actions executed and the results accomplished. This definition prevents capital solutions, utilization of a solution to produce a result in performance, and economic output results produced from being managed as separate entities. Key performance indicators mix capital, performance, and results together.

Capital solutions, solution utilization in performance, and results must be defined as separate sets in order to manage the business

The actual business is organized, planned, and managed through three entities; capital solutions invested in the business, utilization of solutions to produce results in performance, and the output results produced. These three entities are not defined as data sets today, so the business cannot be managed. Instead the enterprise is managed by laying organization, account, performance management, and other structures over the business.

21^st century business management optimizes capital solutions, capital solution utilization in performance, and results to optimize the business

Once capital solutions, solution utilization to produce results in performance, and results produced are described, organized, and measured by specific attributes in data sets, the business can be managed. The related attributes in capital measures, performance indicators, and result metrics are managed in capital development and operations for cost-effective performance to produce value-quality results to optimize the business. [more...]

20^th century enterprise management administers human resources as employees

20^th century enterprise management administers human resources and is unable to manage human capital as capital utilized by the business. The business is not organized to produce specific economic output results and human capital is not organized as capital solutions, within the full set of capital solutions utilized to produce the results. Human capital management addresses general human resource development, rather than specific development to add value to the business and increase human capital worth.

Rule No. 8 of 21^st century business management: Manage human personnel, capability, and knowledge capital to increase human worth

Human capital must be managed as readiness capital to keep personnel ready to produce results, production capital to provide the capabilities to produce specific results, and information capital to provide the knowledge required to produce high value-quality results. The objective of human capital management must be to increase human capital worth by producing results of higher value to the business.

The enterprise must organize the business to utilize human capital to produce business results

To follow Rule No. 8, the enterprise must organize the business to invest in and utilize human and other capital as specific solutions in performance to produce high value and high quality results. Human capital is maintained to be ready to produce results. Human capital is developed as capability solutions to utilize specific business processes to produce specific results. Human personnel and capabilities also are supported with the knowledge needed utilize other capital solutions and to produce specific results. [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...]

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...]

The "alignment' problem hampers all enterprises today

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.

All attempts to solve the alignment problem have failed and the problem remains unsolved today

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.

21^st century business management eliminates 20^th century alignment problems

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 capital solutions utilized performance with the goods and services provided as results. This eliminates alignment problems by organizing the business for 21^st century business management. [more...]

Key performance indicators measure the enterprise and not the business

Key performance indicators produced today measure the various organization, process, system, performance management, and other structures laid over the business, rather then the actual business. To measure and manage the business, the attributes of capital utilized as solutions, output results produced, and performance in the utilization of a capital solution to produce a result must be measured and managed.

Key performance indicators mix capital, results, and other entities together under the heading performance

Performance is defined to include both the actions executed and results accomplished. This prevents the actual business from being organized and managed. Many performance indicators measure capital, results, and other entities. Very little actual business performance is measured of managed. Most actual business performance in costs, effectiveness, problems, uncertainty, value creation, etc remains unknown.

We must separate capital solutions, output results, and performance to measure and record the actual business

In order to manage the actual business, we must organize results, capital solutions, and performance of solutions to produce results in one business structure. Specific capital solutions are then implemented for utilization in performance to produce specific results. At this point, performance domain records are set up for each capital solution and result combination to capture the performance of the specific solution to produce the specific result in capacity utilization, costs, expectations, and other indicators. Performance transactions record actual performance costs, effectiveness, etc producing result value, quality, etc. Performance records, plus capital solution and result totals are updated, as needed, for each instance of performance. [more...]

Most enterprises today do not organize or manage their business

Today, there are few examples of enterprises or industries that intrinsically organize and manage their business to define the output results they must produce, have result goals they strive to exceed, invest in the specific capital solutions needed to produce results, develop solutions to add value to results, relate their performance to results, manage performance uncertainty to reduce result risk, utilize result value-quality chains, differentiate through performance and results, and pay based on results.

Professional golfers employ natural 21^st century business management

Professional golf is one industry that intrinsically employs natural business management. Each professional golfer and those the golfer employs is an enterprise. The golfer separates results from performance, and organizes his business to utilize capital effectively in performance to produce quality results. Like any enterprise, the professional golfer's competitive differentiator is the totality of how well he develops and utilizes his capital solutions in his performance to produce value and quality in results.

Learn how to organize and manage your business from the professional golfer

Other industries can learn about organizing the business for 21^st century management from professional golf, to develop cost-effective performance to produce value-quality results. If you are a golfer, learn about managing your enterprise business from the way you manage your golf game. [more...]

Today's information systems do not capture and report actual business data

Today's 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.

The business must be managed to capture business data and report business management information

21^st century business management organizes the business in order to manage economic output results produced, capital investments implemented, and the utilization of capital to produce results, as complete data sets. The business is organized as one integrated business structure to capture data on the utilization of capital in specific solutions to produce economic outputs in business results. Business data is captured in an integrated Business Information Base to provide access to one complete set of comprehensive business management information.

Data is reported on all results produced, capital invested in solutions, and capital utilized to produce results

Data is captured on capital solution capacity, qualifications, worth, and return; performance capacity utilization, 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 business management and good corporate governance. [more...]