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.

20^th 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.

20^th 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 20^th century business organization and management problems.

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

Now we have a new breakthrough to eliminate 20^th century problems by actually organizing the business and using the business itself as one integrated structure for 21^st 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...]

Enterprises today cannot collaborate in result value and quality chains

Business collaboration is an unsolvable problem of 20^th century enterprise management used today. Organizations, processes, systems, accounts, reporting and other structures laid over collaborating businesses conflict and employ inconsistent definitions and methods. The problem is addressed by laying other structures over the businesses for data reconciliation, information management, or a contrived multi-business process. This does not enable real collaboration, but allows reporting on what is occurring across the collaborating enterprises.

Business collaboration is impossible until businesses are managed

By definition business collaboration requires that first each business that is to collaborate is managed. 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”. Each collaborator must manage the results of value and quality produced by the business, the capital of specific investment and operating costs utilized in the business, and the costs and effectivness of performance that produces each specific result.

Business management enables collaboration and management of shared value

When each collaborator manages the economic output results produced, capital investments implemented as solutions, and the performance of each solution to produce a result following 21^st century business management conventions, definitions, and standards, there can be real business collaboration. A result value and quality chain can be linked across businesses to produce each result where the best value and quality can be achieved, eliminate duplicated results, and control capital utilization to produce the maximum value-added in the final customer result from the chain. [more...]

You manage your personal business to utilize your capital in performance to produce value in results

You use natural common-sense business management for your personal business. You do not lay structures over your business. You utilize your time, capability, and possessions as capital solutions in your performance to produce personal results, such as item purchased, enjoyed night out, or exercised and fit body. The value of the result must exceed the cost incurred in performance to be happy with the result. Your performance uncertainty risks poor or delayed results. Your input result quality and performance effectiveness determine output result quality, such as a repaired household item. You do not follow processes; you produce results, as needed, or along a chain to a final result.

But, when you get to work you must follow enterprise processes and procedures

When you get to work you are unable to apply your natural business management. The enterprise you work for has never defined or organized the business. Results produced across the business have never been identified as a set to be managed. Capital investments in the business have never been identified as specific capital solutions that can be utilized in performance to produce results. Therefore, you must follow the processes, procedures, and systems laid over the business to produce selected output results. You are unable to manage the common attributes of capital, performance, and results that produce actual business data or to obtain actual business management information that is needed to manage the business. [more...]

Corporations today are not able to manage their businesses as part of a corporation business

All business managers are familiar with such 20^th century management problems as unknown costs, unknown value and quality chains, unknown investment costs, unknown return on investments 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 fundamental corporate management problem the failure to manage the corporate business. Corporations today lay organization and management structures over the businesses at headquarters, division, subsidiary, and other levels that prevent management of corporate businesses. The various corporate businesses cannot be consolidated into one corporation business.

Business management at all levels is the only solution for effective corporation business management

Business management is the only method available to consolidate and manage the corporation business. Each part of the corporation must be organized and managed 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...]

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...]

Actual business decisions are not supported by today's 20^th century enterprise management

All business decisions involve what do we want to accomplish in the business and how do we accomplish it. Each business decision seeks to answer the basic question: What specific output result is to be produced and what specific capital in human and other capital solutions are to be utilized to produce the result?

20^th century enterprise management used today does not support management decision-making. Results produced by the business and capital solutions utilized in business performance are not identified and managed as data sets or reported to management. Therefore, decisions cannot be implemented to change or improve the business. Changes are implemented through an organization structure, changes are executed through business process, information system, and function structures, changes are tracked through an account, costing, or quality structure, and changes are reported through financial statement and other management reporting structures. The actual decision is not recorded or reported.

Results produced and capital solutions utilized must be managed to implement, track, and measure management decisions

We can implement, followup, manage, and evaluate decisions made only if we implement, execute, track, measure, and report each specific result to be produced in the set of business results needed for business success; and the human and other capital investments utilized as specific capital solutions in the set of capital invested in the business. We must manage the value of the result produced, the cost of performance in producing each result in order to manage the value-added and other direct impacts of the decision on the business.

Organize the business as one business structure to manage all business decisions

Business management organizes business results produced and capital solutions utilized to produce each result. Management decisions are directly implemented, executed, tracked, measured, and evaluated. Good decisions are identified quickly and built upon. Bad decisions are identified quickly and changed. The business is flexible to quickly implement and change decisions to keep ahead of the competition. [more...]

The organization structure is the "fatal error" of 20^th century enterprise management

Once an enterprise organization structure is laid over the business, the business can never be managed. Consistent, comprehensive, and accurate business data can never be captured and reliable business management information can never be reported to management. The enterprise must be managed by laying business process, corporate plan, account chart, performance management, cost activity, quality assurance, data reconciliation, and other structures over the business. Data is gathered against arbitrarily defined overlaid structures, rather than the business, providing management with an overload of inconsistent, inaccurate, and very incomplete information.

Organize the business as one management and reporting structure

The business consists of three components: 1) results needed for success, 2) investments in capital solutions to produce results, and 3) the performance of each capital solution to produce each result. These three components are organized in the business structure for use in all business planning, direction, control, reporting, and governance. Actual business data is captured when capital solutions of worth and qualifications are utilized in cost-effective performance to produce value and quality in a result. The structures laid over the business are no longer needed. Management has one set of consistent, complete, and accurate information to manage the actual business. [more...]

There is but one natural way to organize and manage a business

You use the one natural way to organize your personal business. You produce results in the things you accomplish. To produce results, you acquire and maintain capital as solutions in your capability, time, tools, equipment, money, plans, instructions, etc. You utilize the capital solutions in your performance to produce a result of value, such as a prepared meal, arrived at a destination, a good time, etc. You manage your business through common sense. You do this instinctively because it is the only way to organize and manage your personal business or any other business.

Your company organizes and manages the company, rather than the business

But on your job, you no longer naturally utilize capital solutions to produce results. Your company does not organize or manage the business. The company lays contrived structures over the business to manage the company. All business schools, management books, packaged solutions, consulting advice, professional bodies, and on-the-job experience teach us to lay contrived structures over the business. You cannot manage or perform using common sense. You must follow various rules, regulations, and procedures to utilize arbitrary processes, systems, accounting, and other structures.

Use your natural method to organize your company business

Result-performance Management (R-pM) defines the natural way you organize your personal business. R-pM enables you to use your natural method of utilizing specific solutions in performance to produce specific business results. You will see improvement in the job you do today, and understand the potential to organize your company business for the breakthrough advantages of 21^st century business management. [more...]

20^th century enterprise management we use today presents many unsolvable problems

21^st Century Management Magazine has produced many articles describing the 20^th century enterprise management with the unsolvable problems all business enterprises suffer from today. The enterprise is organized and managed instead of the business. Enterprise organization and management structures conflict with the business, so that all enterprises confront reorganizations, unknown costs, unknown value creation, unmanaged value chains, investments not required by the business, intangible assets, change management, corporate governance, inaccurate accounting and management information, excessive IT overheads, and other continuing problems that can never be solved by managing the enterprise.

21^st century business management manages the business directly

21^st century business management manages the business as one structure for all organization, planning, direction, control, reporting, and governance. 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”. The business is organized as all capital invested in the business as specific solutions, economic output results required for business success, and the performance of the business in utilization of capital solutions to produce specific results. 21^st century business management provides the structures, principles, and rules to guide actual business management and eliminate the problems of 20^th century enterprise management. [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...]