Business owners and investors are the big losers from the financial crisis

Corporate management may have lost out on some big bonuses and property owners may have to wait for the worth of their properties to recover. But, the business owners and shareholders have lost on their investments due to the continuing failures of obsolete 20^th century management. They have invested in corporations and institutions that are unable to manage their business in the costs and planned worth of investments, the cost and effectiveness of specific capital solutions utilized in performance, the value and quality of results produced from performance, and the historic return and future solution worth from the value added to results. These failures cause the continuing cycle of corporate management problems.

Business owners and investors face growing risks from poor management

Corporate executives are burdened by lifetimes of misleading management teachings and experience and have no real incentive to change. The incentive and responsibility for change lies with the business owners, shareholders, and board representatives, who must demand change to 21^st Century Management with R-pM. The risk of no change is twofold 1) in continued poor corporate management and another cycle of problems, and 2) the significant advantages to competitors now organizing their businesses with R-pM.

R-pM gives enormous competitive advantage for minimal investment and risk

R-pM is mainly a change in thinking, which requires time to take hold. The existing business is gradually redefined into result value-quality chains and one integrated business structure. Obsolete structures laid over the business and unsolvable 20^th century management problems are gradually abolished.

As the enterprise learns R-pM, implementation accelerates and the competitive advantage of R-pM increases until the complete business is organized for 21^st Century Management.

Business owners and investors must lead the drive to use R-pM

Business owner and investors gain the most by being among the first to use R-pM, and lose the most to competitors using R-pM. They must ensure that their enterprise is not burdened by unsolvable problems and high cost overlaid structures, while competitors use R-pM to take away markets and profit [more...]

The ongoing credit crunch and growing financial crisis show the failures of 20^th century management used today

20^th century management lays organization and management structures over the business to manage the enterprise arbitrarily, rather than managing the business. 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.

The problems being experienced today invariably point to the lack of information and management of 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 methods.

The only solution to the current problems and to prevent any enterprise from experiencing the same problems is Result-performance Management (R-pM)

Now is the time to wake up to the problems of obsolete 20^th century management. 20^th century management used today is a time bomb for all business enterprises in the world. The enterprise either will experience similar problems and losses due to the inadequacy of 20^th century management methods or will lose out to competitors who are now abandoning 20^th century management and organizing their business with R-pM for 21^st Century Management. R-pM is the only way to clear away structures laid over your business, and organize your actual business as one business structure for complete, consistent, and accurate 21^st Century Management. [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...]

Today we have many generally-accepted accounting problems

Accounting is a major problem in the 20^th century enterprise. Management is faced with generally-accepted accounting problems. Financial records are missing for much of the business cycle. Management financial information is inconsistent, inaccurate, and incomplete. Many well-known problems like intangible assets, unknown costs, unknown capital worth, unknown investment returns, unknown value creation continue unsolved. Accounting is often equated to records management. Most enterprise non-financial records are scattered, missing, and mismanaged.

R-pM builds professional records management to manage all financial and non-financial facility records capital

Result-performance Management (R-pM) builds professional records management to provide complete financial and non-financial facility record capital solutions for 21^st Century Management. R-pM manages the full business cycle to keep accurate records on all performance costs, performance effectiveness, result volumes, result quality, result values, result value-added, tangible and intangible assets of positive capital worth, liabilities as specific solutions of negative capital worth, and accurate enterprise business net worth. R-pM provides one set of accurate management information on the strategic, planned, actual, and historic business. [more...]

20^th century management does not provide competitive differentiation and advantage for the 21^st century

Management structures laid over the business in today’s enterprises cannot create competitive differentiation and advantage from utilization of technology, the Internet, and intellectual capital. A new business structure is required to enable competitive advantage in the 21^st century. The obstacle is conventional thinking that prevents a complete new definition of the business and continues to improve obsolete management structures laid over the business.

The 21^st century presents new requirements for competitive differentiation and advantage

In the 21st century, business competition and collaboration can come from anywhere in the world. Competitive differentiation and advantage in the 21^st century requires that the business is simplified for fast and flexible change, is organized to utilize technology effectively and enable business communication and collaboration, and is managed to provide customer value and quality.

R-pM provides significant new competitive differentiators and advantages for the 21^st century

21^st century competitive differentiation and advantage is provided by Result-performance Management (R-pM). R-pM uses information technology to organize the actual business for significant competitive advantage in the 21^st century. R-pM organizes business capital invested, performance to utilize capital, and output results produced to provide competitive differentiation in high value and quality customer results. R-pM makes the unorganized business burdened by overlaid structures a distinct competitive disadvantage in the 21^st century. [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...]

20^th century management contrives a chart of accounts and follows fixed principles to record the enterprise

20^th century management does not organize, manage, record, or govern the business. Organization and management structures, such as budgets and the chart of accounts, are laid over the business to manage the enterprise. Accounting posts arbitrary enterprise accounts set up in the account structure. The business continually changes, while accounts may be periodically updated when there is no account to charge. The focus of accounting is on following accounting principles, rather than recording the actual business to provide complete, consistent, and accurate business management records and reports.

21^st Century Management records the actual business for one set of complete, consistent, and accurate management information

Result-performance Management (R-pM) organizes the actual business for 21^st Century Management. R-pM records the entities that comprise the business in the capital investments made in the business to provide one set of performance solutions of known worth, the one set of economic output results of known value that must be produced for business success, and the performance of the solutions to incur costs to produce total result costs and known result value-added. The one current and one strategic business structure is used to plan and record the complete business. Results record income, performance records expenditures, and capital records solutions of positive capital worth as assets and solutions of negative capital worth as liabilities. R-pm uses the business itself to plan and control all financial and non-financial business transactions and status against business plans [more...]

20^th century management used today is a dead-end that will never improve

21^st Century Management Magazine has published many articles on the unsolvable problems with 20^th century management. These problems have never been solved in spite of thousands of 20^th century management books written and solutions proposed. The problems will never be solved by continuing 20^th century management used by all enterprises today into the 21^st century.

20^th century management must be replaced by 21^st Century Management

20^th century management structures laid over the business and unsolvable problems caused by conflicts between the business and overlaid structures must be abolished. The only way to abolish structures laid over the business is to organize the actual business “the utilization of capital of worth in performance to incur costs and produce value in results” for 21^st Century Management.

R-pM is the only solution for 21^st Century Management

Result-performance Management is the only way to organize the business for 21^st Century Management. Once the business is organized all overlaid structures are removed and the business is managed directly to move from the current to strategic business. R-pM provides the breakthrough benefits of 21^st Century Management that are impossible today [more...]

Enterprises today have many problems with information management

Enterprises implement information systems to manage the enterprise, not the business. The many enterprise structures laid over the business require a massive workload in data collection and information processing, and produce a wide range of information concerning various enterprise entities, much of it conflicting and inaccurate. This produces enormous information complexity and excessive IT resources. Enterprises must make additional investments in hardware, information management systems, and IT architectures to attempt to manage the complexity. All the information gathered and reported describes the enterprise. No enterprise today captures actual business data.

R-pM organizes all information for support and utilization by the business

R-pM organizes information as capital for support and utilization. R-pM captures actual business data as a managed set to know value, all costs, capital worth, investment returns, etc. R-pM relates all information to the business for utilization to produce results and for control of business information. Enterprise information not related to the business is no longer processed or maintained. All emails, Internet searches and downloads, file transmissions, etc in or out of the business relate to a specific business data entity.

R-pM manages all information as one consistent Business Information Base

All information used by the business is referenced to one of six data sets that control common attributes and subsidiary data entities. The information is organized into one consistent, complete, and accurate Business Information Base. Information systems are reduced to direct system solutions to produce specific results. Large IT resources for enterprise information systems, data reconciliation, enterprise information management, portfolio and hardware management, and special information management systems are no longer needed [more...]