20^th century capital development is ad-hoc and separate from the business

Capital is not acquired, developed, or managed as part of the business today. Capital financial investments are made by a financial unit in isolation from the business or returns needed for the business. Capital development investments are normally ad-hoc projects to produce a new fixed asset or to lay a new structure over the business. The specific solutions involved, the investment cost by solution, or the output results of benefit to be produced by the investment rarely are known.

Capital development must develop specific solutions to utilize in performance to produce measured results

Capital solutions needed by the business must be planned and developed by result to be produced by utilizing the capital. Each result absorbs a portion of the investment cost and provides a value-added to contribute to the return on the solution investment. The full set of solutions needed to produce the result must be planned and integrated to produce results successfully with a high value-added. Capital solutions must be produced as results of a development project to utilize project capital and capture full costs of the solution. The solution is implemented with the investment balance to be amortized against the results produced over the solution life.

21^st century capital development produces result value-added for solution return and worth

Implemented solutions are utilized to produce each volume of output results. The performance costs are captured against each result and reduce the unamortized investment balance and capital worth to pay back the investment. The result value-added over total performance costs should be positive to provide a further gain on the investment. The future solution worth is determined by the continuing absorption of performance costs until paid back and the future result value-added from solution utilization over the remaining life and later sale or disposal. [more...]

Management consultants fail to address the unsolvable problems faced by all enterprises today

Most of the financial institutions, corporations, and other enterprises that have management problems retain management consultants for advice and management improvements. No current management consultant has the outlook or capability to help their client eliminate the one problem that holds back all enterprises and causes unsolvable management problems, the failure to manage the business.

All consultants today promote dead-end 20^th century enterprise management

Much change management consulting has been packaged into business services provided by hired staff, rather than professional problem solving for measured improvement. Recent books and media publicity show cases where the enterprise did not receive the professional services expected from management consultants. All consulting services today promote obsolete 20^st century enterprise management to lay new or improved organization, account, system, and other management structures over the business.

A new business management consulting model is available to restore professionalism and prevent business problems

A 21^st century business management consulting model is now available to help enterprises organize and menage the business to eliminate problems by providing:

• Services based on organizing the business for 21^st century management
• A method for the enterprise to lead and participate properly in business change
• A clear framework to manage the scope and participation for both parties
• Methods and tools that both the enterprise and consultant understand and use
• Planned and measured value of the consultant and success of the enterprise

The model builds enterprise capabilities to manage the business and business change, and focuses consultants on high-value professional results the client enterprise cannot achieve on its own.

The business management consulting model organizes services within an enterprise, market, industry, or economy business structure

The 21^st century business management consulting model scopes all services within a business structure, and extends the structure to cover the complete enterprise, enterprise businesses within a corporation business, and businesses within markets, industries, and economies. All services provide a measurable result value-added return to the client enterprise and service users. [more...]

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

20^th 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 21^st century business management: Manage all capital investments to gain a planned return

The investment management problem is solved by rule no 7 of 21^st 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.

21^st 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...]

Enterprises today are organized and managed using many structures

Throughout the 20^th century and continuing today, enterprises implemented organization, process, account, performance management, and other structures. The different entities used to describe each structure, produce business and information complexity. The fixed structures conflict with the changing business causing many other known 20^th century enterprise management problems. Many books have been written and additional management structures have been devised, but the problems remain.

Enterprises and management developers have been looking for one integrating structure

There have been many efforts to replace these structures with one simple and consistently-defined structure for business collaboration, reliable management information, use of common solutions, and other needs. Until now, no one has defined the one integrated structure that can be used to organize and manage any enterprise in any industry. Each new structure is laid over existing structures compounding the problems.

The one integrating structure exists; it is the business itself

There is one structure. It has been there all along! That structure is the business itself!

The enterprise 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”. The business consists of three components:

• Business results produced as economic outputs of value from the business
• Capital in the specific solutions invested in the business and implemented to produce results
• Performance in the utilization of each capital solution to produce each result

These components of the business are organized into the current and strategic business structures that replace all structures laid over the business for transparent management of strategic result value creation.

R-pM provides the only method to organize and manage the actual business

Today's unsolvable business problems are caused by conflicts between the actual business and structures laid over the business. Result-performance Management (R-pM) provides the knowledge and procedures to organize the business, as current and strategic business structures, for 21^st century management. All overlaid structures are replaced by the business structure to leave all unsolvable 20^th century management problems behind. [more...]

It is impossible to manage capital development properly today with 20^th century management

20^th century management used today does not provide a framework for proper capital development. Capital development develops specific solutions that must be utilized by the business. Capital development incurs the costs of development and sets up the cost of capital utilization. But today, capital is not defined and managed as a set of capital solutions available to the business. Capital is categorized as employees, fixed assets, intangible assets, etc.

Implemented capital is utilized in business performance to produce output results of value. Result development provides the benefits of development and the value-added that provides the return on investment. But today, results are not defined and managed as a set to be produced by the business. Some results are managed as separate items, such as product, sales order, revenue, etc. 20^th century management manages capital development separate from the business to develop certain known capital.

The business must be organize to enable result-capital development

21^st century business management organizes the business in results that must be produced for business success, capital that must be invested in the business to produce results, and performance in the utilization of specific implemented capital as solutions to produce specific results. Once the business is managed, it is straight forward to identify new results required to improve and expand the business. Once the business is managed, it is also straight forward to identify the capital solutions needed to produce the results. New result development and new capital solution development is planned and managed as part of the business. [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...]

Capital solutions are not implemented today to produce specific benefits

Your enterprise likely has implemented information systems or major capital solutions. Were the benefits or return based on a quantified list of specific benefits and not just estimates of increased sales or revenues? Did users have goals to achieve the return on the investment? Were change management problems or resistance prevented by professionally-managed implementation of human and other solutions? Was professional support for all new or changed solutions established as the routine? Was the investment planning and capital development professionally managed? Were consultants utilized to achieve the return on the investment? Was the return on investment managed and measured?

20^th century management does not enable capital management and measured return on capital investments

If you can answer yes, your enterprise is a rare exception. 20^th century management has many inherent obstacles to overcome to implement new solutions to produce managed value-added to provide an measured return. The enterprise must organize and manage the business first, in order to manage change and improvement to the business effectively. Otherwise the enterprise will continue to implement new solutions to produce old problems.

R-pM organizes the business to implement specific capital solutions to add value to business result produced

The prior article showed how to design packaged solutions that any enterprise can use. In order to produce planned business benefits and gain the return, the business must be organized and managed using Result-performance Management (R-pM). Results must be defined to plan and manage value-added by implemented solutions. Capital solutions must be organized for professional support. Specific solutions required must be integrated and utilized in performance to produce specific results. The return on investment comes from added result value-added over the payback period compared to result value-added with no improvement. [more...]

Business change is a mystery because the business is not managed

Business change is a mystery in 20^th century management today with “intangible assets”, “unknown costs”, unmanaged value, and “ad-hoc projects”. In order to manage change to the business, the enterprise must first organize and manage the business to manage all capital solutions utilized in performance to produce specific results.

"Business change" does not change the business, but changes structures laid over the business

20^th century "business change" changes organization, business process, information system, account, and performance management structures laid over the business. The actual business lies buried under the structures and changes continually with each result or capital solution change. "Business change" is periodic to align overlaid structures with the business and to lay new structures over the business.

R-pM directly changes an organized business as part of the daily routine

Result-performance Management (R-pM) organizes the business to take the mystery out of business change. R-pM manages the results and capital solutions that change day to day to continually reorganize the business. Business change projects use R-pM to implement specific new capital solutions to add value to specific results, provide effective project management, set operational responsibilities for results against goals and solution performance against expectations, measure the return on change investments, manage costs arising from change, manage solution and business worth, and enable beneficial business change management consulting services. [more...]

All capital development is result-capital development to develop solutions to produce results

All capital development develops capital as performance solutions to be utilized to create additional value in output results produced by the business. The additional value of output results provides the return on the capital development investment. If the performance solutions utilized and the results produced by the business are not managed, capital development cannot be managed properly and the return on investment cannot be measured. Therefore, capital development must be planned and managed as result-capital development.

20^th century management does not organize or manage results or performance

20^th century management does not manage the business. Specific results produced and performance solutions utilized are not defined and managed as sets. Added result value cannot be managed to provide benefits and specific performance solutions developed cannot be managed to know costs. Capital development is a separate exercise to develop performance or tangible assets to produce some estimated return on investment.

R-pM manages result-capital development as part of the business for measured and managed return

The answer for all future result-capital development is Result-performance Management (R-pM) to organize the business for 21^st Century Management. R-pM manages performance solutions utilized and the business results produced to plan and manage the value added to results. R-pM manages new performance solution development to produce new or improved results. R-pM manages each result-capital development project as part of the business with its own project business structure. R-pM manages implemented solution development and operating costs and the additional value-added to results to measure the actual return on investments. R-pM is the essential approach for any new result-capital development. It is all described in The R-pM Toolkit, your 21^st Century Management Manual [more...]

Human resource and capital management of today essentially administer human resources as employees and develops human capital to meet general performance needs. Human capabilities required by the business are not defined or managed as capital. Knowledge solutions to develop human capital or for human capital to utilize solutions to produce results are not defined or managed as capital.

R-pM develops all capital, including human capital, to produce specific result value-added. Human capital in personnel learning, specific human capability development, and knowledge development is managed to add value to specific business results. Management knows the personnel, capability, and knowledge solutions utilized to create result value and the value-added to results. Management can assess the worth of human capital and plan human capital development to meet needs to increase the value of specific results or to produce valuable new results. Human capital has a stake in the enterprise business and knows that increasing result value-added increases human capital worth and justifies increases in human capital performance costs. [more...]