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Why we need a Business Organization and Management Breakthrough

December 21st, 2009

Today, we organize and manage the enterprise not the business

An organized business reorganizes with each business change. There is never a need for an organization study. The generally-accepted definition of the enterprise business is the activity of providing goods and services.

20th century methods of business organization and management do not organize and manage the activity of providing goods and services. An enterprise organization structure is laid over the business, immediately creating the unsolvable re-organization problem.

20th century enterprise management used today is a dead-end

Since the business is not organized, the business cannot be managed. Additional enterprise management structures are contrived for the strategy, plans, business processes, accounts, systems, development, reporting, etc. The many structures create business complexity, and each structure defines the enterprise through its own entities, creating enormous information complexity.

There are unlimited ways to contrive enterprise organization and management structures. The overlaid structures conflict with the actual business creating the unsolvable 20th century business organization and management problems.

A new breakthrough to organize and manage the actual business for the 21st century

Now we have a new breakthrough to eliminate 20th century problems by actually organizing the business and using the business itself as one integrated structure for 21st century management. The knowledge and procedures to organize and manage the business is provided by Result-performance Management (R-pM). All business organization, planning, direction, control, reporting, and governance use only the current and strategic business structures. Structures laid over the business, conflicts with the business, and unsolvable problems are eliminated. [more...]

Package simple and clear capital solutions for wide use in business

December 10th, 2009

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...]

Ten Rules for 21st Century Business Management

November 23rd, 2009

Obsolete 20th 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 21st century business management. Any responsibly-managed enterprise must investigate totally new methods to organize the business into one business structure for integrated 21st century business management and significant competitive advantage.

Follow the ten rules for 21st 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 21st century business management. Each rule provides new approaches and advantages never possible before with 20th 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 21st century business management.. [more...]

Change the business as the routine, without problems and high costs

October 19th, 2009

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 21st 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 21st century business management. 20th century business change and change management problems are left behind. [more...]

Rule No. 7: Manage all capital investments to gain a planned return

October 8th, 2009

20th century management cannot manage investments, development, or returns

20th century enterprise management develops capital as a tangible asset or project outcome. The specific capital items to be developed and the specific business improvements to be made are not defined or managed. So, it is impossible to plan and manage capital development to provide a measured return on investment.

Rule No. 7 of 21st century business management: Manage all capital investments to gain a planned return

The investment management problem is solved by rule no 7 of 21st century business management. All capital investments must manage the results to be produced by the investment as well as the capital needed as specific capital solutions. The increase in value in new and improved results and the development cost of specific capital solutions must be planned to justify the investment. Development project results are managed to implement solutions to create value and added result value is measured in operations know the return on investment.

Plan and develop both the results and capital solutions needed in results-driven capital development.

21st century business management replaces capital development with results-driven capital development to actually plan and manage capital investments and development for a measured return on investment. The return on investment is provided by the value created in results produced to date attributed to each capital solution utilized. [more...]

Replace Management Consultant Methodologies with Business Management Improvement

September 7th, 2009

The 21st Century Business Management Consulting Model organizes and manages the business to avoid unsolvable problems

Enterprises today do not manage their business. They manage the enterprise by laying organization, corporate plan, business process, account, and other structures over the business. Unsolvable problems occur due to clashes between overlaid structures and the actual business. The problems disappear when the actual business is organized to manage one business structure to integrate planning, directing, control, and reporting.

The 21st Century Business Management Consulting Model guides the enterprise and consultants to organize the actual business and work together to achieve new business value in result value-quality chains, result-performance costing, strategic value management, result-performance optimization, project result management, human capability management, and other new concepts not possible with 20th century enterprise management.

Opportunities are emerging for management consultants to support 21st century business management

21st century business management will ultimately replace obsolete 20th century enterprise management, creating a demand for business management consultants. The knowledge and procedures for managing the business and the 21st Century Business Management Consulting Model are provided and supported by Result-performance Management (R-pM). Business management and business management consulting sales and delivery are supported by R-pM websites, The R-M Business Management Toolkit, and other business management documentation. Professional management consultants and firms, who want to provide professional services that provide planned and measured enterprise benefit, will gain significantly by registering and practicing as 21st century business management consultants. [more...]

Is your Personal Capital Worth Restricted by Conventional Thinking?

June 22nd, 2009

20th century enterprise management problems can never be solved by conventional thinking

Unsolvable problems of 20th century enterprise management with reorganization, alignment, costs, value, worth, investments, returns, intangible assets, complexity, etc are well known. What is not well known is the cause; the failure to manage the business. Solutions are prevented by conventional thinking that allows only incremental improvements in the way that enterprises have always been managed and prevents the thinking needed to manage the actual business to eliminate the problems.

Conventional thinking limits the worth of individual human capital

People need to go beyond conventional thinking to gain new capabilities and knowledge to increase their worth by producing higher value results. But conventional thinking prevents this, because the enterprise has never managed human personnel, capabilities, and knowledge as capital, never developed human capabilities as solutions to produce results, never managed result value created, and never managed the worth of human capital.

All the enterprise needs to do is to organize the business for a base of new conventional thinking in the 21st century

But the enterprise cannot organize the business, defined as "the activity of providing goods and services", because it is not the way things have always been done. High-worth human capital must go beyond conventional thinking to learn the actual business and gain the breakthrough competitive advantages of 21st century business management. If you can go beyond conventional thinking and increase your own human capital worth, look at organizing the activity of providing goods and services for 21st century business management, and provide a new base for conventional business management thinking in the 21st century. [more...]

Integrate business organization and management through one business structure

May 28th, 2009

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

20th 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 20th century enterprise management problems.

21st century business management integrates business organization, management, operations, and development

The actual business is organized for 21st 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...]

Stop making dead-end 20th century management investments

May 18th, 2009

Enterprises continue to waste funds on dead-end 20th century management investments

20th century management investments have created the maze of organization and management structures laid over the business that cause today’s unsolvable problems with alignment, change management, unknown costs and value, unknown capital worth and investment returns, business and information complexity, business collaboration, and on and on. New 20th century management investments in reorganizations, enterprise information systems, process and performance improvements, IT architectures, etc are dead-ends that add to unsolvable problems.

It only requires a small alternative investment to organize the business for 21st century management

The alternative is to invest in managing the actual business to eliminate unsolvable 20th century management problems. The investment to organize and utilize existing capital to produce results along result value-quality chains and across the business is relatively small and one time. The big change is the change in thinking to understand and manage the actual business. Existing information systems can manage the business and existing processes and systems as solutions can be utilized to produce specific results. Once the business is organized all tangible and intangible capital invested in the business is organized as capital solutions of worth to be utilized in performance to incur costs and produce value in results. All structures laid over the business are cleared away to focus on business data collection and provision of information and other capital solutions needed for actual business management.

Once the business is managed, business change investments are minimized to new capital advances to produce valuable new results.

The only way to plan and develop capital for a planned and measured return on investment is to manage the business. Capital is managed to minimize investments to those essential to the actual business. Future investments are in capital solutions needed to produce specific new or improved results. The development costs are captured and amortized against results produced and return on investment in added result value-added is captured against the capital solution. [more...]

The Competitive Playing Field will no longer be Level

May 11th, 2009

All companies today are burdened by the same 20th century enterprise management problems

20th century enterprise management used by all companies today contains significant competitive disadvantages. But, 20th century enterprise management continues today, because all companies are burdened with the same costs and problems. The competitive playing field remains level, because no company organizes and manages the actual business. All companies lay organization, accounting, business process, administration, and other management structures over the business to manage the enterprise.

21st century business management is vastly superior to 20th century enterprise management

But what happens when one company organizes the actual business as one structure for 21st century management, clears away all the unwieldy structures laid over the business, and eliminates unsolvable 20th century management problems. That company jettisons excess costs, increases result quality and value-added, quickly develops and implements new capital, quickly introduce new and improved products and services, and reduce prices while increasing revenues. That company enjoys significant competitive advantage over companies still burdened with unsolvable 20th century management problems.

The future competitive playing field will no longer be level. Where will your company be? Among the leaders managing the business for competitive advantage or among the followers, still struggling with unsolvable 20th century management problems and falling further behind? [more...]