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...]

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

20^th century enterprise management used by all companies today contains significant competitive disadvantages. But, 20^th century enterprise 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. All companies lay organization, accounting, business process, administration, and other management structures over the business to manage the enterprise.

21^st century business management is vastly superior to 20^th century enterprise management

But what happens when one company organizes the actual business as one structure for 21^st century management, clears away all the unwieldy structures laid over the business, and eliminates unsolvable 20^th century management problems. That company jettisons excess costs, increases result quality and value-added, quickly develops and implements new capital, quickly introduce new and improved products and services, and reduce prices while increasing revenues. That company enjoys significant competitive advantage over companies still burdened with unsolvable 20^th century management problems.

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

The economic crisis and growing recession is caused by one problem: the failure to manage the business

20^th century management of all enterprises today lays organization and management structures over the business to manage the enterprise, rather than managing the business. This causes the fundamental problem in all enterprise management that has caused all previous crises and is the underlying cause of the current financial and economic crisis. The problem is the failure to manage the business.

The symptoms of current problems are numerous and complex. But, the problem is basic and simple. Today, all governments, enterprises, and experts are trying to understand the symptoms and to alleviate the symptoms. No one is trying to get beneath the layers of symptoms to solve the basic problem. The only real solution is to organize and manage the business to eliminate overlaid structures, capture actual business data, and produce one accurate set of transparent information needed to account for and manage the business.

20^th century management used today does not provide the information needed for business, financial, and economic management

20^th 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.

Financial institution and corporate problems invariably point to the lack of information on 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 20^th century management used by all enterprises today.

The only solution is to learn, organize, and manage the business for breakthrough advantage

To solve today's problems and prevent future losses, each enterprise must take advantage of advanced information technology (IT) to learn, organize, and manage actual business. 20^th century management used today evolved before IT and is a time bomb for all enterprises in the world. All enterprises either will experience continued losses due to the problems of 20^th century management or will lose out to competitors who are now organizing their business for 21^st Century Management.

The current and strategic business structures are managed for complete, consistent, and accurate 21^st Century Management information. The business provides a consistent and standardized architecture to summarize managed businesses into manageable corporations, industries, and economies for global financial, economic, and business management and future stability. [more...]

Economic output results produced by the business today are not managed or are managed as an isolated entity

20^th century management employed by all enterprises today does not define economic output results as an entity to be defined, measured, or managed. Most results produced by the business are never defined or managed. Some important recurring results are identified and managed as an isolated entity such as an order, a service rendered, a payment received, etc. Results produced across the chain to produce the managed entity are not identified or managed.

Result-performance Management manages all results produced by the business

Results are outputs that can be counted and measured. Results contain enterprise value, quality, costs, risk, value-added, and other metrics that are unknown today. Results provide the important outputs that must be produced to meet business objectives and achieve business success. Result-performance Management (R-pM) focuses the enterprise on producing results and on managing the business result by result, and achieving result goals period by period.

Capital solutions utilized in performance are measured and managed for each result

Each result is produced by utilizing implemented capital solutions in performance to incur costs and create value and quality. Every result has a customer who must be willing to pay a value to receive the result. The total result value of each result in a chain cannot exceed the final result value paid by the external customer. The result value less the total performance cost for the volume of results produced is the result value-added, which must be positive to justify producing the result. Result value-added is the main management metric of 21^st Century Management. [more...]

The economic crisis shows the problems with 20^th century Business Process Management

Financial institutions and other corporations state that they have problems due the the failure to manage asset value, full operating costs, and the margins in outputs produced. This is part of the basic problem causing the economic crisis, failure to manage the business. One of the major features of 20^th century management, Business Process Management, prevents management of the business. Corporations must manage processes and cannot manage specific capital investments, output results produced, and the performance of capital solutions utilized to produce a result.

Business processes must be replaced by result chains to manage costs, value, and quality

Rule 2 for 21^st Century Management is to: Generate revenues from a chain of known value. The rule says to define the results produced and manage each result in the result value-quality chain; starting from input results from the supplier, proceeding through result value added along the corporate chain, and ending at the final result to the customer. Business processes used today do not allow this. The corporation must redefine business processes by identifying the results produced and the capital solutions utilized within the process to isolate the most cost-effective performance to produce the highest value-quality result. Results must be managed result by result within a set to produce the input result to the customer value-quality chain.

R-pM manages result value-quality chains as part of the managed business

Result-performance Management is the only method to manage the corporate business and result value-quality chains to know full costs to produce a result, the value of the result, the value-added by performance as well as capital solution qualifications, performance effectiveness, and the quality result by result in the chain. R-pM ensures that customers receive managed value and quality in goods and services from the corporation. [more...]

The current financial crisis is caused by failure to manage capital worth as part of the business

Governments encouraged creation of mortgage securities to enable banks to loan more money and poorly-secured mortgages to enable low-income earners to own homes. Investment banks bundled mortgages to sell as capital investment security solutions, with unsubstantiated "asset value" or, in business terms, capital worth. A dangerous situation grew as housing prices spiraled up, while the actual worth of capital investment solutions decreased, but could not be managed by 20^th century management or detected by 20^th century accounting. The unaccounted for and unmanaged decline came to light as borrowers defaulted and suddenly we have a world financial crisis. The financial crisis shows the very serious unsolvable problems and significant financial losses incurred in the way all business are managed today that are explained in every article in 21^st Century Management Magazine.

Now is the time to replace 20^th century management with R-pM to ensure proper business management and prevent future crises

All financial and other business crises are caused by poor business management. The good business management needed is prevented by 20^th century management used by all government, financial, and other enterprises today. The only solution available is to enable good business management with Result-performance Management (R-pM) by clearing away 20^th century management structures laid over the business and managing actual business data and utilizing actual business management information. Specific capital solutions invested in the business and capital solution investments by the business must be managed for value-creation, costs of utilization, return on investments, and changing capital worth that is not managed today. Now is the time for governments, financial institutions, corporations, and other enterprises to wake up to fundamental management problems and institute the only solution to organize and manage the actual business. [more...]

The current financial crisis shows the need for actual best business management practices

After every corporate financial, management, or governance crisis or scandal the call arises for best business management practices. However, nobody knows what real best business management practices are, since no one has any experience in actually organizing and managing a business. The practices installed are never actual best business management practices, but are a collections of rules and regulations or methods to better manage structures that hide the business and prevent actual business management.

20^th century best practices are the best of bad business practices

20^th century best business practices are a collection of organization, process, system, and administration structures laid over the business for a particular purpose, which have proven effective elsewhere. All 20^th century best business practices are bad business practices, because they add to enterprise overheads and costs, and do not help the enterprise to operate or manage the actual business.

R-pM provides the business definitions and structure for good best practices

Result-performance Management (R-pM) instills best practices across the business for 21^st Century Management. R-pM manages the business by managing the capacity, investment, qualifications, reliability, return, and worth of capital solutions; utilization, cost, effectiveness, uncertainty, and value-added of each capital solution in guided performance; and the volume, total cost, quality, risk, value, and value-added of each result produced. The set of solutions deployed and utilized to produce a result is defined as a capital module. The capital module that produces the best value-quality result can be defined as a best practice. All best practices are then built into the business structure to operate and manage the actual business.

The only way to prevent future corporate financial, management, and governance problems is to use R-pM to organize and manage the businesses. Governments that want to improve local business competitiveness significantly and prevent future crises, must investigate R-pM. [more...]

There is no framework today to guide the development, implementation, and utilization of packaged solutions

Packaged solution providers have never had a consistent framework to design solutions that any enterprise business can employ. This has required that packaged solutions be very problem, function, or industry specific.

The only valid framework for packaged business and management solutions is the business itself

The framework needed to develop consistently-defined capital solutions exists, but it has never been used. That framework is the business.

R-pM organizes the three components that define the enterprise business in results required, capital solutions invested in the business, and the performance of specific solutions that produce specific results. Packaged solutions fit into the business organization and are utilized as part of the business to incur costs and create value in specific results.

R-pM provides consistent support for solution developers, implementation consultants, and solution users

The R-pM Toolkit provides the needed guidance for both the packaged solution developer and the solution user to ensure that solutions seamlessly fit into the enterprise business structure and can be utilized to produce the intended results.The Toolkit includes 21^st Century Management conventions, definitions, and standards that are followed so that any business reduce costs and improve the value and quality of results by using common packaged solutions and services. [more...]

Management capital is required to plan and manage a competitive business and create strategic value

Rule No. 6 of the 10 rules of 21^st 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. 20^th 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 21^st century manageme [more...]

R-pM organizes business results, capital, and performance in one business structure

Result-performance Management (R-pM) organizes and manages one integrated enterprise business structure. The business structure is comprised of the result structure to organize and relate results to be produced, the capital structure to organize the capital that is available to produce specific results, and the performance structure that shows specific performance solutions deployed with rules and exceptions to produce specific results.

The capital structure organizes capital available as performance solutions

A key component of the business structure is the capital structure that organizes enterprise capital as specific performance solutions that are available to produce specific results. Capital is categorized to be managed properly by the specific human capabilities needed. Capital is classified by the way it must be integrated and utilized to produce results effectively. Organized capital is defined as modules for easy deployment to a new result and replication to define capital needed for a similar result set.

Performance Management manages the deployment of qualified solutions to produce results

R-pM replaces administration, undefined capital, and intangible assets with Capital Management get the most out of all capital and know and manage the return on all capital investments. Performance Management manages the deployment of capital from the capital structure to the performance structure to provide qualified solutions needed to produce specific results effectively, to know all costs against result value, to manage the capacity producing a volume of results, and to manage the effectiveness needed for high-quality results.

A well-managed enterprise must manage the cost, capacity, and effectiveness of all capital in order to produce value-quality results. The enterprise can use R-pM to reduce costs significantly, know and improve capital worth, and ensure beneficial capital development investments [more...]