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

Today's enterprise faces many obstacles to professional record capital management because of several 20^th century management 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. 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 actual business data is not captured in financial, statistical, or cost accounts or other enterprise records today. Most other enterprise records are not maintained as information capital to be available to provide needed management information solutions. Problems with intangible assets, unknown value creation, unknown costs, unknown capital worth, inaccurate business net worth, etc have never been solved. Records management is a growing problem in today's enterprise requiring a comprehensive professional records management solution.

21^st century business management maintains complete and accurate financial and non-financial records of the actual business

Business data and record transactions are captured against one business structure to integrate organization, planning, directing, control, and reporting. Structures laid over the business and irrelevant bases of data collected against the structures are removed. Management information includes result value, performance costs, result value-added in excess of costs, capital worth, and capital 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 continues independently but can be incorporated as one sub-set of professional records management.

Business management provides an opportunity for accounting to broaden to professional records management

Managing the actual business provides a unique opportunity for the accounting profession to expand to professional records management and eliminate 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...]

Business information is inconsistent, incomplete, and inaccurate in today's enterprise

Enterprises have much to gain by properly organizing and leveraging information to provide value. Information is not managed properly for support and utilization in today’s enterprise. The business is not organized and managed to capture information produced directly by the business and to apply information directly to the business. The categories of information are not supported as information capital to produce business results. There are no precisely-defined data entities to integrate information from the various systems into a business information base for consistent management information. Most direct business data is never captured, management information is reported in conflicting and inaccurate sets, and actual business management information remains unknown.

The information complexity and accuracy problems are addressed by additional information technology investments

Each management structure and information system defines the enterprise differently producing the information complexity and accuracy problem. Large information technology investments for data reconciliation, enterprise information management, IT architectures, specialized knowledge and records management, etc produce excessive enterprise overheads and never solve the problems.

The managed business integrates actual data, knowledge, records, and intelligence in one Business Information Base

The only solution is to manage the business directly to capture actual business data and produce information capital solutions needed to manage the business directly. Business management provides the proper support for information capital to provide information solutions, to utilize solutions to capture data and apply information directly for the business, and to integrate information on the business in one consistent and accurate Business Information Base for transparent management and good corporate governance. [more...]

Obsolete 20^th century enterprise management, used today, causes many unsolvable problems like unknown costs, unknown value creation, unknown capital worth, and unknown investment returns. The costly problems that hamper enterprise performance are left behind easily by using Result-performance Management (R-pM) knowledge and procedures for 21^st century business management. Any responsibly-managed enterprise must investigate totally new methods to organize the business into one business structure for integrated 21^st century business management and significant competitive advantage.

Follow the ten rules for 21^st century business management

Ten rules are provided as a guide to organize and manage results, capital solutions, and performance as one integrated business structure to ensure effective 21^st century business management. Each rule provides new approaches and advantages never possible before with 20^th century enterprise management. These ten rules are explained in the following articles. Details and procedures and are contained in the Business Management Toolkit. Download the Business Management Toolkit at result-performance-management.com and then organize your business to follow the ten rules for 21^st century business management.. [more...]

Rule No. 1 of the 10 rules of 21^st century business management: Organize and manage the business

The conventional definition of the enterprise business is the activity of providing goods and services. The 20^th century enterprise has never organized or managed the activity of providing goods and services, but, instead, lays rigid enterprise organization and management structures over the business. Business change conflicts with the rigid structures, creating unsolvable problems that can only be eliminated by organizing the business for 21^st century business management.

Eliminate unsolvable problems by organizing and managing one integrated business structure

The business must be organized as one structure to integrate enterprise business organization and management. Business activity is organized as capital solutions utilized in performance. Goods and services are organized as the results produced by business activity. Business results and capital solutions are organized together into a business structure. The business is organized by deploying specific capital solutions to performance domains to utilize in performance to produce specific results. The one integrated business structure is utilized for all 21^st century management planning, directing, control, and reporting to leave 20^th century organization and management problems behind. [more...]

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...]

Governments and corporations are looking for a unifying structure for best business market, financial, and economic management

Over the past year, governments have been meeting to construct an international response to the economic crisis. They discussed new best business management practices to solve problems that caused the crisis, and new structures for the financial system and economic management to prevent future crises. Again, as always in the past, they failed to comprehend and address the unsolvable 20^th century enterprise management problems that cause the crisis. Governments add new practices and regulations on top of existing dead-end 20^th century enterprise structures, and claim to have solved the problem.

In order to make real progress, those involved must set current structures aside and take a completely new look at what comprises a business and how businesses relate to industries, markets, financial systems, and economies.

Business management is the only solution available to eliminate unsolvable problems that caused the crisis

The actual business is “investments in capital as solutions of worth utilized for cost and effectiveness of performance to produce value and quality in results”. 20^th century enterprise management structures are replaced by one business structure to eliminate unsolvable problems in unknown capital solution investments in the business, unknown economic output results produced in chains across the business, unknown value of results from the business, unknown costs of performance to produce results, unknown value-added to manage the complete business, unknown performance effectiveness to manage result quality, unknown returns on capital investments from the added value to results, unknown capital worth in future output and disposal result value, and on and on. Business management captures actual business data to manage all corporations, financial institutions, and other enterprises properly and to report on the actual business to regulators.

The business is the only unifying structure to integrate corporation, market, industry, financial, and economic management to prevent future crises

Business management builds up from the business structure to consolidate actual business in structures by corporation, industry, or economic area or sector to consolidate actual business data. Data can be consolidated by market for business input and output results and capital solution utilization. Industries, such as the financial industry, can be managed for the value and quality of results and the utilization of financial and other capital solutions. Economies and markets can be clearly viewed and managed to identify and plan for cycles, to anticipate and plan for surpluses and shortages, to manage interest rates and monetary supply, to plan and manage trade, and take other actions that are prevented by obsolete 20^th century enterprise management today. [more...]

Management consultants fail to address the unsolvable problems faced by all enterprises today

Most of the financial institutions, corporations, and other enterprises that have management problems retain management consultants for advice and management improvements. No current management consultant has the outlook or capability to help their client eliminate the one problem that holds back all enterprises and causes unsolvable management problems, the failure to manage the business.

All consultants today promote dead-end 20^th century enterprise management

Much change management consulting has been packaged into business services provided by hired staff, rather than professional problem solving for measured improvement. Recent books and media publicity show cases where the enterprise did not receive the professional services expected from management consultants. All consulting services today promote obsolete 20^st century enterprise management to lay new or improved organization, account, system, and other management structures over the business.

A new business management consulting model is available to restore professionalism and prevent business problems

A 21^st century business management consulting model is now available to help enterprises organize and menage the business to eliminate problems by providing:

• Services based on organizing the business for 21^st century management
• A method for the enterprise to lead and participate properly in business change
• A clear framework to manage the scope and participation for both parties
• Methods and tools that both the enterprise and consultant understand and use
• Planned and measured value of the consultant and success of the enterprise

The model builds enterprise capabilities to manage the business and business change, and focuses consultants on high-value professional results the client enterprise cannot achieve on its own.

The business management consulting model organizes services within an enterprise, market, industry, or economy business structure

The 21^st century business management consulting model scopes all services within a business structure, and extends the structure to cover the complete enterprise, enterprise businesses within a corporation business, and businesses within markets, industries, and economies. All services provide a measurable result value-added return to the client enterprise and service users. [more...]

20^th century management does not maintain accurate financial and non-financial records on the actual business

Management needs complete and accurate information on the actual business for good corporate governance and business management. This is not possible with 20^th century management used today, which does not organize or manage the actual business. Records are not kept on the capital investments utilized as capital solutions by the business as a set or on the economic output results produced by the business as a set. Thus, there is no set of complete and accurate records on the business to provide actual business management information. Instead, information is maintained against contrived structures laid over the business, such as organization, planning, budget and account, and reporting structures.

Instead of accounting for the business, a chart of accounts is laid over the business. Accounting maintains a sub-set of enterprise records in financial and statistical accounts. The full cycle of performance costs incurred and result value created is not recorded. Many non-financial records that should be maintained are not considered as accounting responsibility and are never recorded and managed as information capital.

The records management problem is getting serious with the explosion in email, file transfers, and other records created, entering, and leaving the enterprise. The enterprise has no way to reference records to the actual business, to prevent records being lost due to information complexity, and to properly manage records as information capital.

Rule No. 4 for 21^st century business management: Keep financial and non-financial records on full business operations and development

21^st century business management requires accurate financial and non-financial records for the full cycle of business operations, along the chain of results produced by the business, and across the operation-development continuum. Business management maintains financial and non-financial records on the actual business to provide accurate and complete management information. The actual business is recorded so that one consistent set of accurate and complete facility records can be maintained on the business and accurate reports on the full business cycle of cost-effective performance producing value-quality results, the results from supplier-provided input results and through enterprise business results to final customer results, and the investment costs in new capital solutions and the return in new result value are provided. 21^st century business management broadens traditional accounting to professional records management for complete financial and non-financial business records. [more...]

Business change and change management are major problems faced by enterprises today

Business change today involves major projects to lay new organization, process, account, performance management, or other structures over the business. Business change today is change to structures laid over the business, but does not change the actual business, which lies hidden under overlaid structures. Business change involves significant investment and often requires management consultants and change management services.

Business change problems are eliminated by organizing and managing the actual business

The business must be organized and managed in order for the business to be changed. The business consists of capital investments in the business organized as specific capital solutions, economic outputs produced by the business organized as specific results, and business performance in the utilization of a specific capital solution in a performance domain to produce a specific result. Capital solutions, results, and performance domains are organized as data sets to manage the attributes, determinates, and measures of each. All business decisions and business changes involve results to add, improve, or close in order to improve the business; and capital solutions to acquire, develop, implement, improve, or close in order to produce results.

Business change is routine with 21^st century business management

The actual business organizes results, capital solutions, and performance domains in the current in-operation and strategic business structures. Business change is routine to add, improve, or close results by implementing, improving, or redeploying the capital solutions that produce the result. Business change for improvement involves planning new results needed and the capital solutions that must be acquired and developed and implemented to produce the result. Business change is a routine part of 21^st century business management. 20^th century business change and change management problems are left behind. [more...]

Capital investments must be organized as solutions to be implemented and utilized as part of the business

Many articles discuss how business results and capital solutions must be organized together in a business structure, to organize the business as “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results”. Capital solutions are organized into a capital structure by category in the human capability needed to develop and support specific solutions and by class in the business utilization of solutions to be ready to produce output results, to produce specific output results, and to have the information to produce and document results.

Capital management manages capital solution acquisition, development, implementation, and support

Capital management is fundamental to acquire, develop, and support capital utilized to produce results, and performance management is fundamental to implementing and maintaining cost-effective solutions to produce value-quality results. Organized and managed capital is required to eliminate intangible assets, unknown costs, underutilized capital, business complexity, unknown capital worth or asset value, and other unsolvable problems. Organized and managed capital is required to establish value chains, develop capital for precise business needs, respond quickly to add or delete business results, optimize operations, have skills and responsibilities for capital development, measure the precise return on capital investments, and gain other benefits prevented by the unorganized and unmanaged capital used today. [more...]