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...]

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 business 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 for value creation, performance costs, quality levels, and other business measures that can be managed consistently for each business and across businesses. 21^st century business management requires that businesses be managed to enable collaboration by maximizing shared value and minimizing shared costs.

One simple business structure is used by all businesses to enable collaboration and integration

21^st century business management organizes the business as one consistent structure to define the results, capital investments, and capital utilization in performance to produce results. Results produced by the business are defined to know result volumes produced, result quality, result value, result costs, and result value-added across the business. The capital investments in the business are defined as capital solutions to know investment amounts and unamortized balances, investment returns, and capital solution worth. Capital solutions utilized to produce each result are defined to know performance costs incurred against the result and the value added to 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 lays many organization and management structures over the business

20^th century enterprise management used today lays an organization structure over the business, instead of organizing the business. Since the business is not defined and organized it is impossible to integrate business organization and management in one business structure. Additional structures are laid over the business for planning, directing, control, and reporting, such as corporate plans, business processes, account charts, and scorecards. 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 enterprise management problems.

21^st century business management integrates business organization, management, operations, and development

The actual business is organized for 21^st century business 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. The actual strategic and current business structures are used for all organization, management, and governance needs. [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 is caused by the failure to manage the business and results as part of the business

The business is “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results”. In order to manage the business, three components of the business must be managed; the capital investments in the business as capital solutions of worth, performance of the business in utilization of specific capital solutions to incur costs and produce specific results, and output results of managed value and quality produced across the business.

20^th century management utilized by all corporations, financial institutions, and other enterprises today do not identify or manage specific capital solution investments as a complete data set and do not identify or manage specific output results produced as another data set. Financial institutions are not able to manage "asset value" in the worth of solutions in their investment portfolios. Corporations are not able to manage diverse businesses within the corporation as part of an integrated and managed corporate business. These are examples of causes cited for business failures and downturns that caused the economic crisis.

Result-performance Management organizes and manages the actual business and results as part of the business

R-pM organizes and manages one integrated enterprise business structure. The business structure is comprised of the result structure to organize and relate results required for business success, the capital structure to organize capital solutions available, and the performance structure to implement the capital that is utilized to produce specific results.

The key component of the business structure is the result structure that organizes economic outputs to be managed for the volume, value, and quality that lead to revenue, profit, and stakeholder value results. All enterprise management responsibilities are to produce specific results. Strategies are organized by the strategic results to produce in the strategic result structure. A well-managed enterprise business must manage the value and quality of all results produced by the utilization of specifically-qualified and cost-effective capital solutions. [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...]

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...]