"Business Transformation" has never organized or transformed the business

"Business Transformation" brings shudders to many managers, who went through Business Process Re-engineering (BPR) and Enterprise Resource Planning (ERP) only to find that they spent a lot of money for different problems and limited benefits.

The problem was that "business transformation" did not transform the business. Transformation changed enterprise organization and management structures laid over the business. The enterprise business, the activity of providing goods and services, still was not organized or managed before or after the "business transformation".

The one "business transformation" is the transformation from enterprise management to actual business management

Enterprises need only one real business transformation to organize and manage the business with Result-performance Management (R-pM). Once the business is organized and managed through one business structure, there is never a need for business transformation, since the business organization changes naturally with business change. [more...]

20^th century business change does not change the business

20^th century "business change" cannot change the actual business, because the business is not organized or managed. 20^th century business change is change to contrived organization and management structures laid over the business. Contrived structures conflict with the actual business creating unsolvable problems that can never be solved by new or improved 20^th century structures. So, 20^th century business change propagates unsolvable problems. Any benefit from change is from incidental improvements made rather than managed project benefits.

R-pM provides an alternative to dead-end 20^th century management

Result-performance Management (R-pM) provides a new 21^st century alternative to 20^th century business change. R-pM organizes and manage the actual business in capital available to the business, output results expected from the business, and performance to utilize capital as performance solutions to produce results. Now, with R-pM, enterprises no longer need to continue costly 20^th century business change. Enterprises can gain real competitive advantage through actual business change with R-pM. Any business change project can be redefined to organize and manage the actual business and put the enterprise on the road to complete 21^st Century Management.

R-pM manages business change projects to change and manage the actual business

R-pM can be used for a business change application as a means of introducing R-pM to the enterprise. R-pM can be used to analyze the change, organize the part of the business involved, and manage the change project. R-pM applications are supported by the R-pM Toolkit, your 21^st Century Management Manual. Eventually, R-pM can be used to organize the complete enterprise business for 21^st Century Management, and completely eliminate unsolvable 20^th century management problems [more...]

20^th century management lays many organization and management structures over the business

20^th century management used today starts with an organization structure that is laid over the business, instead of organizing the business. This prevents integrated business organization and management. Additional structures are laid over the business for planning, directing, control, and reporting. Separate operation structures are used for the various functions and activities of the business. 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 management problems.

21^st Century Management integrates business organization, management, operations, and development

R-pM organizes the actual business for 21^st Century 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. R-pM uses the actual business as one structure for all organization and management needs [more...]

You cannot manage your business, because your business is not organized

20^th century management does not organize the actual business enterprise. Instead, an enterprise organization structure is laid over the business. The organization structure is the fatal error of 20^th century management. Once an organization structure is laid over the business, the business can never be managed.

Since your actual business has never been defined or organized, you cannot manage your business. You must manage artificial entities described in separate management structures laid over your business. You plan in corporate planning and budget structures, direct operations in business process and information system structures, administer through administration structures, control through an account structure, and report through performance management and reporting structures.

You can manage your business directly with Result-performance Management (R-pM)

Result-performance Management (R-pM) replaces 20^th century management structures with one 21^st century business structure to integrate business organization and management. All business organization, planning, directing, control, and reporting is against one business structure. Your business management and decisions involve the specific performance solutions used to produce specific business results. You manage result value, performance costs, result value-added, capital worth, and other attributes of the actual business that you have never managed in 20^th century management [more...]

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.

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.

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 performance with the goods and services provided as results.

Result-performance Management (R-pM) eliminates alignment problems by organizing the business for 21^st Century Management. Overlaid structures are replaced with one integrated business structure to align the organization, process, systems, accounts, and other structures as performance solutions deployed to produce specific economic output results. All performance solutions are aligned as one component of the business with the results produced as the other component of the business. [more...]

20^th century management continues today because all enterprises have the same costs and problems. Many 21^st Management Magazine articles have documented the significant advantages of using R-pM to manage the enterprise business, rather than managing the enterprise with 20^th century management.

The future playing field will no longer be level. Companies now implementing R-pM will have a significant competitive advantage over companies burdened with 20^th century costs and problems. It is time to leave the 20^th century behind. Your company can be among the leaders and enjoy the advantage of 21^st Century management, or stay among the followers and suffer the disadvantages of 20^th century management. [more...]

Today's business processes emphasize managing performance and "performance quality". But, people have difficulty defining "performance quality" and in identifying and correcting poor performance. If the business process output is not up to standard, it is difficult to identify what happened within the process and to prevent the problem from recurring.

"Quality" is not an attribute of performance. "Quality" is an attribute of the output result produced by performance effectiveness. We can see and determine the quality of the output result, where we cannot see or determine the quality of performance, if it is not witnessed. In order to manage quality we must manage each output result produced in the chain of results leading to the final process result. In order to manage the effectiveness of performance, we must manage the human and other performance solutions utilized to produce the result. A defective result in the chain it is caused by either a defective input result or ineffective performance. The chain is traced back to identify the defective result. Since performance solutions are managed, the ineffective solution can be corrected or replaced. But, this can only be done by managing result chains with Result-performance Management. [more...]

20^th century management provides many methods of cost accounting. None of the methods has been able to capture all costs and charge all costs to the proper entity to absorb costs. Known costs are captured from separate entities, such as employee, fixed asset, cash, and supplies. Costs are charged to entities like center, activity, station, etc, that show where the cost was incurred, but were not produced by the cost.

Management needs one entity that contains all the costs incurred by the business and one entity that was produced by the cost to absorb the cost properly. Result-performance Management (R-pM) provides the one entity "performance solution" that produces all costs. R-pM provides the one entity "result" that was produced by the cost to create value, and can properly absorb costs to know result value-added. Result-performance costing is the only method to know all performance costs, and to charge costs properly to the value of the specific result produced. [more...]

Business and competitive intelligence is high-worth capital of growing importance in the 21^st century enterprise. Most 20^th century enterprises do not manage intelligence as capital to develop the needed intelligence solutions. Much intelligence is left up to functions like management accounting and management information support. 20^th century enterprises are unable to deliver intelligence information solutions precisely where and when needed to produce management results.

Management intelligence must be managed as both management capital and as information capital. Intelligence is management capital that must be developed and supported by professionals with the required management research and analysis capabilities. Specific management intelligence performance solutions must be developed to support management at all levels to produce specific results. Management intelligence solutions must be integrated in the enterprise information base to be delivered or accessed as needed to produce results.

Result-performance Management provides the management capital management capabilities to develop intelligence to support management strategy and tactics capital, and to develop the specific management solutions needed. R-pM integrates management intelligence solutions by result and performance solutions, as needed, in the enterprise information base to be delivered, or accessed as needed, for management and governance results. [more...]

Business transformation got a bad name when it was misapplied to business process re-engineering and implementation of enterprise resource planning.

True "Business Transformation" moves an enterprise, organized and managed through structures laid over the business, to an enterprise that directly organizes and manages the business and never needs further transformation.

Result-performance Management (R-pM) provides the methods and guidance for true transformation to an organized and managed business. [more...]