There is no structure to develop packaged solutions that any enterprise can implement and utilize today

Packaged solutions today are designed and developed as solutions to be laid over the business rather that solutions that are implemented as part of the business. There are many unsolvable problems that hamper the integration of packaged solutions with other structures laid over the business and utilization of common solutions across business for effective business collaboration.

The business provides the standard structure needed for solutions that any business can use

When the business is defined and organized there is a consistent structure for developing and utilizing standard packaged application systems, business processes, information solutions, human capabilities, and other capital solutions to produce results. Capital solutions are designed to produce economic output results, result by result, across a chain of results needed for business success. All capital solutions are integrated in the capital structure to work together when utilized in performance to produce specific results.

Business management enables a new generation of simple and effective capital solutions to produce results

Business management organizes the business to provide the framework needed for a new generation of capital solutions that produce specific results and are designed to work together with other packaged and in-house solutions. Result chains are created by implementing solutions for each result that must be produced within the chain in the internal or external organization that can provide the most cost-effective performance to produce the highest value-quality result. [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...]

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...]

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...]

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...]

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...]

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...]

Alignment is an unsolvable 20^th century enterprise management problem

Many books have been written offering solutions to the "alignment problem"; to align outsourced and internal solutions, processes and information systems with the business, capital development and business operations, customer solutions and the business, etc. Despite all the books the alignment problem continues unsolved today.

The business must be organized to provide the structure for alignment

The alignment problem cannot be solved because the business is not organized. Capital investments in the business are not identified as specific solutions. Solutions provided by other parties such as outsourced solution providers, business partners, or customers are not identified as solutions to be managed. The results produced by the solutions are not identified as a set of economic outputs from the business. Therefore, the business cannot be organized by aligning the internal and external solutions utilized in performance with the result produced.

Aligned solutions are integrated to produce results as part of the business

When the business is organized all capital invested in the business and all the outsourced, business partner, or customer solutions utilized are aligned and related to the results produced by the solution. The full set of solutions can then be integrated to work together to produce a specific result. The result manager is responsible to utilized the full set of internal and external solutions to ensure that the result is produced to meet solution performance expectations and achieve result goals. [more...]

Many managers are interested in business management, but are concerned about the authenticity

Now with the economic crisis, 21^st century business management is gaining more recognition as the only solution to eliminate the 20^th century management problems that enabled the crisis. But, people ask how business management originated. Some people are concerned about the authenticity and viability of business management.

20^th century management problems were encountered and the need for business management was conceived piece by piece in work as a management consultant for over 30 years. I specialized in business organization, management improvement, and information system development projects with such firms as Booz Allen and Hamilton, Multinational Management, Price Waterhouse, A.T. Kearney, and Arthur D. Little.

Business management was originally developed as aids to capital solution development and management improvement projects

Business management concepts first evolved as an aid to business and information systems design and later to manage business change projects, both the project and the changes to the business as the results of the project. It became clear that the only solution to business organization and management problems was to organize and manage the business. Contrived organization and management structures laid over the business had to be eliminated.

Formal development of business management began in 2002

After retiring from active consulting, work began in 2002, to develop and document business management knowledge as Result-performance Management (R-pM) to provide the one structure to organize and manage the business. The Business Management Toolkit is now available, and continues to be developed as business management evolves. Business management is now launched for use by forward-looking enterprises that want to learn their actual business, and then organize and manage the business for breakthrough cost reductions and competitive advantages. Business management is available for use by governments as the basis for a Business Management Program, to solve the problems that caused the economic crisis and build a new architecture for corporate, industry, and economic management. [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...]