20^th century enterprise 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 enterprise management caused by organization and management structures laid over the business. These problems have never been solved in spite of thousands of 20^th century management books written and solutions proposed to add or improve overlaid structures. The problems will never be solved by continuing 20^th century enterprise management, used by all enterprises today, into the 21^st century.

20^th century enterprise management must be replaced by 21^st century business 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 “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results” for 21^st century business management.

R-pM provides the knowledge and procedures for 21^st century business management

Result-performance Management (R-pM) shows 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 the planned strategic business. 21^st century business management provides the breakthrough benefits of a managed business that are impossible to achieve today. [more...]

The "alignment' problem hampers all enterprises today

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.

All attempts to solve the alignment problem have failed and the problem remains unsolved today

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.

21^st century business management eliminates 20^th century alignment problems

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 capital solutions utilized performance with the goods and services provided as results. This eliminates alignment problems by organizing the business for 21^st century business management. [more...]

Information Technology is a high-cost corporate overhead today

The typical corporation spends enormous sums on Information Technology and has many complex enterprise information systems, but still does not have an information system to manage the actual business, The corporation has much capital administered as IT instead of being managed for corporate benefit, and has much information administered as technology instead of being managed to provide information solutions for business and management results.

Reduce enterprise information systems to essential business processing and management

The key to proper information system utilization and information technology management is 21^st century business management. Result-performance Management (R-pM) provides the knowledge and procedures to use IT to manage the actual business as one simplified Business Management System. System processing routines or simplified application programs are designed and managed as capital solutions integrated with the business process, where needed, to produce a specific result. Other overlaid 20^th century information systems, duplicated and irrelevant information, and the need for a large IT overheads are eliminated. All capital, including IT and information capital, is developed and supported through capital management to produce specific results.

Manage data, knowledge, records, and intelligence as information capital

The managed business manages all information as capital to produce data, knowledge, record, and intelligence solutions needed to produce specific business results. All information in the enterprise references a business data entity as part of one integrated Business Information Base. Information technology capital, support, and capabilities are integrated as part of normal 21^st century business capital management, replacing the IT organization and eliminating excessive IT costs. [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...]

All enterprises are burdened by obsolete 20^th century management today

Enterprises can compete today, not because they are efficient and effective, but, because they are all inefficient and ineffective. The enterprise is managed, not the business, which consists of “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results”. All enterprises today lay organization and management structures over the business that conflict with the actual business and cause unsolvable problems that can never be solved by laying new structures over the business.

The first to organize the real business for 21^st century management gain significant competitive advantage

The business consists of three components: capital investments made in the business in specific capital solutions of developed worth, output results of value and quality that must be produced for business success, and performance in the utilization of specific solutions to incur costs and provide effectiveness to produce specific results. Organizing the business for 21^st century management provides immediate competitive advantage.

Manage capital worth and performance to minimize costs and maximize result value-added and quality across the business

In a managed business all management and personnel know the solutions they must utilize effectively and the value and quality they must produce in results. Capital is developed only to increase result value-added and the worth of human and other capital. Result value-added and quality are managed along the chain to produce high value-quality customer results. The actual business is managed to quickly change capital utilized and results produced and to integrate with suppliers, business partners, and customers for shared value-added. This provides measurable competitive differentiation and advantage not possible today with 20^th century enterprise management. [more...]

Today, your actual business is hidden under 20^th century enterprise management structures

As we said in many previous articles, the current economic crisis is caused by one fundamental problem, the failure to manage the business. Many large financial institutions and corporations have shown that they are unable to manage the various parts of the corporation in various divisions, business units, and subsidiary companies scattered around the world. Managers today think that they are managing their business. However, no manager today manages his actual business. Managers manage the enterprise through generally-accepted structures laid over the business. These overlaid structures hide the business and prevent actual business management.

You must learn your actual business and the entities that comprise your business

The generally-accepted definition of the business enterprise "the activity of providing goods and services". The enterprise must manage the utilization of capital in business activity or performance providing high-value and high-quality goods and services as results for its customers in order to manage the business directly. 20^th century management utilized today does not organize and manage the enterprise business, but rather organizes and manages the enterprise through structures laid over the business. This causes many unsolvable problems with reorganizations, unknown investments and returns, unknown capital worth, unknown result value and quality, IT overheads, misleading management information, change management, corporate governance, business collaboration, and on and on.

Gain control of your business and abolish structures laid over your business

The only solution to the problem causing the economic crisis is to manage your actual business. You must organize and manage your business activity in the utilization of capital as specific capital solutions. You must organize and manage your goods and services as specific economic output results that are produced by the business. The business is then organized as one integrated structure for all management needs by utilizing specific capital solutions in performance to produce specific results. Actual business data is captured on result volumes, value, and quality produced by the capacity, cost, and effectiveness of solutions utilized in performance. You have one consistent set of clearly-defined management information on the current business and progress to the strategic business defined by a strategic business structure. You can manage cost-effective performance to produce high-value and high-quality goods and services as input results to the customer business. Corporations manage various divisions, business units, and subsidiary companies as businesses that consolidate up to the complete corporation business. [more...]

Corporations today are not able to manage the business causing the economic crisis

All business managers are familiar with such 20^th century management problems as unknown costs, unknown value and quality chains, unknown investment amounts and return in specific capital items, unknown capital worth (asset value), intangible assets, inaccurate and missing management information, and on an on. These unsolvable problems are symptoms of the one corporate management problem that caused the economic crisis; the failure to manage the corporate business. Corporations today do not have the management information or tools to solve the problems and prevent future problems. The various corporate businesses cannot be consolidated into one corporation business.

Government responses to the economic crisis do not address the one fundamental problem

Governments and "experts" propose solutions to the economic crisis that are the usual economic recovery, corporate rescue, and added regulation. No one is trying to identify and solve the fundamental problem in order to prevent recurrence. Measures proposed encourage corporations to proceed as usual, and not take the needed steps to manage the corporate businesses to gain significant competitive advantage and to prevent the problems that will lead to future economic crisis.

R-pM is the only solution for effective corporate business management

Result-performance Management (R-pM) is the only method available to consolidate and manage the corporation business. R-pM organizes and manages each part of the corporation as a business. Businesses at a lower-level add into the businesses at a higher-level until the corporation is managed as one business with one complete, accurate, and transparent business structure. All 20^th century management structures laid over corporate businesses at all levels and the related unsolvable problems are left behind. [more...]

Information systems today report massive amounts of information, but no information on the actual business

Information complexity is a common outgrowth of contrived organization and management structures laid over the business. The organization structure creates entities for unit, position, job, function, manager, etc. Management structures create entities for objective, process, center, account, group, activity, responsibility, object, station, and on and on. Each generally-accepted structure uses different entities and different names and definitions for the same entity, preventing information integration and reconciliation. Although much work and many information systems are involved, no actual business data is captured and no actual business management information is reported for management use.

R-pM manages one set of consistent, complete, and accurate business management information

Result-performance Management (R-pM) utilizes modern information technology to organize the business for 21^st century management. R-pM stresses information quality to report one consistent set of information to manage the actual business. R-pM eliminates information complexity by organizing and managing the business through six information sets to define precise capital solutions utilized by the business, business performance, business results, business interactions, and business change over time. [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...]