Many methods and books have addressed the alignment problem, but the problem remains unsolvable

The 20^th 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 20^th 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 21^st 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...]

Value has no value in 20^th century management used today

Value is an impressive word. People talk of value propositions, strategic value, value chains, value creation, and value management as if they were actually measuring and utilizing value as a day-to-day business metric. But looking further, we find that value is calculated from a contrived business overlay or formula.

20^th century enterprise organization and management prevents the utilization of value as a day-to-day business metric.

R-pM organizes the business to make value a manageable and valuable result metric

We must organize the business through Result-performance Management (R-pM) for day-to-day 21^st Century Management. Value is an attribute of output results produced by the utilization of capital in performance across the business. The value of input results from suppliers, plus each result in the business result chain, equals the value imparted to customer results in customer willingness to pay. [more...]

Value chain methods used today lay an additional contrived structure over the business

Methods used today lay contrived value-chains over the business. The chain is not integrated within the business to control actual costs against value-created or to produce value within total managed business value. These value chains have never been successful in actual business management.

R-pM is the first method to manage value chains as part of the managed business

There has never been a method to organize the business to provide natural value chains until Result-performance Management (R-pM).

R-pM employs information technology to manage all the results of value produced by the business and all capital solutions that incur costs in performance to produce each result. R-pM builds result value chains with end-results of value as a link in the chain, within a higher-level set-result that is the final result from the chain. Result relationships chain the end-result links together and each end-result to the final set-result. Each end-result has a managed value that adds to the total final set-result value.

The costs and value-added is managed at each link in the chain to manage total chain value-added

Supplier input results are transformed by performance through internal business results to customer final results. Each solution utilized incurs a performance cost. The total of solutions utilized is the cost of creating result value at each link. R-pM manages the end-result value-added at each link and the set-result value-added for the complete chain. Result value chains manage the value, quality, volume, risk, and goals for each result and the final result. Result value chains enable supplier-customer integration and business collaboration. [more...]

Effective business collaboration is prevented by 20^th century management

Each enterprise today lays a different collection of structures over the business, and each structure defines the enterprise differently and captures inconsistently-defined data against the various structures. The 20^th century method of business collaboration is for businesses to lay the same process, information system, or data reconciliation and information reporting structure over the business. This is very expensive and still does not provide a satisfactory solution, since none of the collaborators actually organizes or manages the business.

Rule No. 9 of 21^st Century Management: Collaborate to maximize shared value and minimize shared costs

Effective business collaboration and outsourcing requires that the business of each collaborator be managed. If the business is managed, there are common definitions, value creation, performance costs, and quality levels that can be managed for each business and across businesses. 21^st century management requires that businesses be managed to enable collaboration by maximizing shared value and minimizing shared costs.

R-pM is one simple business structure used by all businesses to enable collaboration and integration

Result-performance Management organizes the business for 21^st Century Management to define the results, result quality, result value, result costs, and result value-added across the business. The capital utilized to produce each result is defined as performance solutions to know performance costs against the result. The business structure can be managed within a business or across businesses to create result value-quality chains where each result is produced for the highest value and quality for the lowest cost [more...]

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

The 20^th century business is not organized. Therefore, operations in the capital utilized as specific performance solutions to produce specific output results cannot be managed. If 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 Management "Operate to optimize operations, result value-added, and the profit result"

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

R-pM manages cost-effective performance to produce value-quality results and profits

Performance is managed to capture the cost of development or improvement, meet expectations in performance, integrate with other solutions of the same class for the same result, and manage the cost, effectiveness, capacity, and uncertainty of each solution.

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 against performance as the routine, High-value results are periodically optimized by managing the volume, value, quality, goals, and risk of results by optimizing the capacity, cost, effectiveness, expectations, and uncertainty of the performance solutions that produce the result. Optimizing ensures that performance is cost-effective to produce high value-quality results to return investments in performance solutions, and provide the result value-added that contributes to the profit result [more...]

20^th century management lays many organization and management structures over the business

20^th century management used today starts with an organization structure that is laid over the business, instead of organizing the business. This prevents integrated business organization and management. Additional structures are laid over the business for planning, directing, control, and reporting. Separate operation structures are used for the various functions and activities of the business. Different structures are used for investment planning and capital development. The proliferation of structures creates business and information complexity. Rigid overlaid structures conflict with the actual business causing the wide range of unsolvable 20^th century management problems.

21^st Century Management integrates business organization, management, operations, and development

R-pM organizes the actual business for 21^st Century Management. One business structure defines the current business and another defines the desired strategic business, so that management organization, planning, directing, control, and reporting are focused on the transition from the current to strategic business structure. Business operations are organized by result groups within the business structure to produce specific chains of results. Capital development is organized and managed through sub-sets of the structure for results and performance solutions to be developed. Projects are managed through a project business structure that organizes new results and solutions being developed and the capital assigned to the project as specific performance solutions. R-pM uses the actual business as one structure for all organization and management needs [more...]

Business processes and information systems laid over the business 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.

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

Result-performance Management (R-pM) organizes the performance producing each result and organizes results as value-quality chains to manage cost-effective performance producing value-quality results to provide high value and high quality customer results.

R-pM produces customer business results from result value-quality chains

R-pM redefines business processes and information systems 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. R-pM manages result value-added to contribute directly to the profit result. R-pM enables the business to integrate and manage the chain to help suppliers meet enterprise needs and to add more value by meeting customer needs [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...]

20^th century management provides many methods of cost accounting. None of the methods has been able to capture all costs and charge all costs to the proper entity to absorb costs. Known costs are captured from separate entities, such as employee, fixed asset, cash, and supplies. Costs are charged to entities like center, activity, station, etc, that show where the cost was incurred, but were not produced by the cost.

Management needs one entity that contains all the costs incurred by the business and one entity that was produced by the cost to absorb the cost properly. Result-performance Management (R-pM) provides the one entity "performance solution" that produces all costs. R-pM provides the one entity "result" that was produced by the cost to create value, and can properly absorb costs to know result value-added. Result-performance costing is the only method to know all performance costs, and to charge costs properly to the value of the specific result produced. [more...]

The 20^th Century Corporation has a problem defining value and managing value creation. Value is not organized and managed within the corporation as part of the routine. Methods and formulas are contrived to calculate numbers called "value". Business collaboration for shared value remains an elusive goal.

Result-performance Management (R-pM) organizes the business as results, the economic outputs that contain value, and as performance solutions, the capital consumed to incur the cost of producing the value. Value is an attribute of each result and is determined and utilized as a routine management metric.

R-pM is the only to way to redefine monolithic business processes as manageable result value-quality chains. R-pM enables value-quality chains, value and value-added management, strategic value creation, business collaboration for shared value, and integration with supplier and customer value-quality chains. [more...]