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...]

20^th century enterprise management defines performance to include capital, solution utilization, and results

20^th century management used by all enterprises today defines performance to include capital utilized in actions executed and the results accomplished. This definition prevents capital solutions, utilization of a solution to produce a result in performance, and economic output results produced from being managed as separate entities. Key performance indicators mix capital, performance, and results together.

Capital solutions, solution utilization in performance, and results must be defined as separate sets in order to manage the business

The actual business is organized, planned, and managed through three entities; capital solutions invested in the business, utilization of solutions to produce results in performance, and the output results produced. These three entities are not defined as data sets today, so the business cannot be managed. Instead the enterprise is managed by laying organization, account, performance management, and other structures over the business.

21^st century business management optimizes capital solutions, capital solution utilization in performance, and results to optimize the business

Once capital solutions, solution utilization to produce results in performance, and results produced are described, organized, and measured by specific attributes in data sets, the business can be managed. The related attributes in capital measures, performance indicators, and result metrics are managed in capital development and operations for cost-effective performance to produce value-quality results to optimize the business. [more...]

Most enterprises today do not organize or manage their business

Today, there are few examples of enterprises or industries that intrinsically organize and manage their business to define the output results they must produce, have result goals they strive to exceed, invest in the specific capital solutions needed to produce results, develop solutions to add value to results, relate their performance to results, manage performance uncertainty to reduce result risk, utilize result value-quality chains, differentiate through performance and results, and pay based on results.

Professional golfers employ natural 21^st century business management

Professional golf is one industry that intrinsically employs natural business management. Each professional golfer and those the golfer employs is an enterprise. The golfer separates results from performance, and organizes his business to utilize capital effectively in performance to produce quality results. Like any enterprise, the professional golfer's competitive differentiator is the totality of how well he develops and utilizes his capital solutions in his performance to produce value and quality in results.

Learn how to organize and manage your business from the professional golfer

Other industries can learn about organizing the business for 21^st century management from professional golf, to develop cost-effective performance to produce value-quality results. If you are a golfer, learn about managing your enterprise business from the way you manage your golf game. [more...]

Today's information systems do not capture and report actual business data

Today's enterprise uses a myriad of management structures and information systems creating enormous information complexity. Each structure and system defines its own set of data entities and reports separate information. Enterprise management information systems attempt to reconcile data and integrate information into meaningful reports for management. But, no system today captures actual business data and no management information system reports actual business management information.

The business must be managed to capture business data and report business management information

21^st century business management organizes the business in order to manage economic output results produced, capital investments implemented, and the utilization of capital to produce results, as complete data sets. The business is organized as one integrated business structure to capture data on the utilization of capital in specific solutions to produce economic outputs in business results. Business data is captured in an integrated Business Information Base to provide access to one complete set of comprehensive business management information.

Data is reported on all results produced, capital invested in solutions, and capital utilized to produce results

Data is captured on capital solution capacity, qualifications, worth, and return; performance capacity utilization, cost, and effectiveness; and the volume, value, and quality of results produced. Strategic results and the solutions needed are maintained in the strategic business structure with plans for time periods and updated strategic estimates. Complete and comprehensive management information is reported on the actual business for effective 21^st century business management and good corporate governance. [more...]

Today it is not possible to manage businesses as part of a corporation, industry, or economy

Companies and corporations today are arbitrarily organized and managed through structures laid over the business. The business is not organized, actual business data is never captured, and real business management information is never generated, recorded, or consolidated to describe the actual company, corporation, industry, or economy in real business terms.

Businesses must be organized as business structures that build up to multiple-business corporations, industries, and economies

Businesses must be organized instead of companies or corporations. The business organization structure must define economic output results produced in chains of results across the complete business, all investments made in the business as specific human and other capital solutions implemented to produce specific business results, and the utilization of each solution to incur the costs and to create the value in each business result. The consistently-defined organized businesses can then be consolidated into the complete economic output results produced by a corporation, industry, or economy. All capital investments are managed to know and consolidate the return in result value-added to date and the capital worth (asset value) in the projected continuing future result value-added. The utilization of all capital solutions in performance to produce results are managed to know and consolidate all result volumes produced, performance costs, result value created, result value-added over performance costs, performance effectiveness, and much more vital and accurate business management information.

21^st century business management provides the structure required to manage each business and consolidate multiple businesses

21^st century business management structures each enterprise business to manage all capital investments, the performance of each investment in the business, and the economic output results produced from the utilization of specific capital investments. Enterprise businesses are consistently consolidated to the corporation business to record and manage all businesses within the corporation. Consolidation is possible for all the businesses in an industry, market, economy, or other business indicator against which enterprise business data is collected. [more...]

Performance management today mixes capital utilized, performance, and results accomplished together

Performance management is a popular form of 20^th century enterprise management. But performance management mixes the capital utilized, the performance in the utilization of capital, and the results produced together. This prevents real business management to manage the utilization of specific measured capital solutions, in measured specific actions of performance, to produce specific measured results. Performance indicators do not distinguish capital solutions, solution performance, and results produced.

R-pM separates capital solutions, performance, and results to manage the business

The business is defined as “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, capital solutions, solution performance, and results produced must be managed as separate components of the business. Capital solutions are qualified to produce specific results before being acquired and implemented. Capital solutions are planned with the potential to produce results and measured through capital measures. Performance is the utilization of a specific solution to produce a result. Performance is planned through a level of expectation and measured through performance indicators. Results are planned to produce a volume or count of results of value through result goals and measured through result metrics. This enables all components of the business to be measured and managed as separate entities in business performance in order to manage the actual business. [more...]

Capital investments today are not managed as specific solutions to produce business results

20^th century management employed by all enterprises today does not identify specific capital solutions as an entity to be defined, measured, or managed. Some obvious capital assets like employees, fixed assets, and money are identified and managed as separate assets. Many high worth assets are never defined or are labeled as "intangible assets". The full amount invested in capital solutions, the decline in solution worth producing performance costs to amortize the investment, the return on investment in the solution, and the current capital worth or "asset value" of the solutions are unknown. Unknown and unmanaged capital is a major contributor to financial losses that led to the current economic recession.

Result-performance Management manages all capital investments in the business

Result-performance Management (R-pM) identifies all capital investments as specific solutions intended to produce specific results. The full scope of solutions needed to produce a result are defined, with the qualifications needed for each solution. The expected result value increase with the investment is planned and must exceed the development and implementation costs to justify the investment. Result value is attributed to solutions utilized by the contribution of the solutions to producing a good result. The attributed result value for each solution over its expected life and disposal is the planned solution worth that must cover the solution investment.

Capital solution performance to produce results and result value-added is measured and managed

Each capital solution is implemented to produce one or more results in performance. The solution worth declines as the solution deteriorates or becomes outdated. The decline generates performance costs that are spread across the results that utilize the solution. Utilization of the solution also creates result value that leads to customer revenues. The portion attributed to the solution covers the solution costs and provides the gain or loss for the return on investment in the solution. The expected future attributed result-value to cover the costs and gain in the solution over the remaining life, plus solution sale or disposal result value is the current solution worth, which must exceed the unamortized investment balance. These capital measures largely are unknown today, but are important for the proper management of the business and prevention of financial, capital, and economic problems. [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...]