Do not manage the Business Enterprise, manage the Enterprise Business

Replace 20^th century management with 21^st century management

The business enterprise is managed through 20^th century management by laying structures over the business. First, an organization structure is laid over the business preventing the business from being managed. Management structures are laid over the business for strategy, processes, systems, accounts, administration, performance management, and other needs. Many 20^th century methods and books proclaim to show “business organization and management”. However, the business of the enterprise “the activity of providing goods and services” has never been organized or managed.

The enterprise business is managed by organizing the “the activity of providing goods and services”. Business activity is the utilization of capital to provide goods and services. Goods and services are the output results provided by the business. Therefore, the business has two components that must be managed for 21^st Century Management.

• Capital utilized in business activity: This capital utilized in the business must be organized as performance solutions in order to be utilized
• Goods and services and other business outputs: Economic outputs must be organized as specific results in order to be provided by the business

The enterprise business can only be managed by managing the utilization of capital as performance solutions to produce value in results.

Replace structures laid over the business with one business structure

The business enterprise structures laid over the business have their own definition and description that must be managed. Organization, business process, information system, chart of accounts, personnel management, asset management, performance management, and other structures, require that information be maintained on conflicting and separately-defined entities. This leads to the business and information complexity problems, while preventing capture of actual business data.

The enterprise business is managed as one business structure, consisting of the results produced by the business and the capital in performance solutions utilized by the business. Human capital utilize time, capabilities, and knowledge and other needed solutions to produce results. Business data is captured on the volume, value, and quality of results produced and the capacity, cost, and effectiveness of the solutions utilized.

Replace performance management with Result-performance Management

The business enterprise manages performance. Results are not specifically defined. Performance is the time and effort consumed in administration, functions, tasks, etc. which keep people busy, but can continue indefinitely.

The enterprise business manages both the value and quality of results produced and also the cost and effectiveness of the performance solutions utilized. The focus is on achieving result goals through utilization of qualified performance solutions that meet expectations. Results are maximized and performance is minimized.

Replace business processes and systems with result chains and modular solutions

The business enterprise utilizes monolithic business processes and information systems that mix results and performance together and require large information technology overheads. The structures fix and restrict the output results that can be produced.

The enterprise business consists of result value-quality chains that naturally lead to a final result that goes to the customer. Each result in the chain utilizes a specific set of capital as a performance module. The chain can be modified easily and business partners can participate in the chain. Processes and information systems are simplified to small business-system process modules for each result.

Replace administration with capital management

The business enterprise organizes administration functions to administer financial, human, information technology, and other tangible capital. Administration functions keep capital functioning rather than managing utilization by the business. Much capital is not defined or is labeled as intangible assets.

The enterprise business organizes and manages all capital as performance solutions by producing capital results. Capital is organized as business, human, facility, and management capital to provide professional support capabilities. Capital is managed for operation, development, and support. Performance of the capital is managed to provide qualified solutions and support utilization by result managers.

Replace change management problems with managed business change

The business enterprise does not manage the business, so is unable to manage change to the business. The overlaid structures are rigid while the actual business changes creating pressures for change to align structures with the business. Business change and capital development are mysteries. The benefits of change and development cannot be precisely defined. Change project management is haphazard. Actual returns on investments are unknown. Change management services address symptoms rather than the actual problem.

The enterprise business changes with every change to a result produced or a performance solution utilized. New or improved results may require capital development to provide specific new performance solutions. Capital development is planned and managed to add value to results. The project has its own business structure to produce new solutions as project results. Project results are implemented as new performance solutions to produce the added result value for the return on investment.

Replace strategic estimating with actual strategic value creation

The business enterprise has no means of planning and managing strategic value. Future value can be estimated for sales or revenues, but the actual means of creating the value cannot be planned.

The enterprise business is planned through a strategic business structure that shows all the strategic results to be produced to create strategic value and the capital investments in performance solutions that must be developed or improved to produce strategic result value. Good corporate governance manages result value-added and result goals period by period as the current business structure progresses to the strategic business structure.

Replace inaccurate contrived information with complete and accurate business records and information

The business enterprise reports against contrived structures that can produce mountains of reports but cannot report the actual business. Accounting is against a contrived chart of accounts that does not identify most costs, intangible and unmanaged assets utilized, capital worth, value of business production, and does not record non-financial business documentation and information.

The enterprise business is completely and accurately documented as professionally-managed facility records capital to record result value produced and other result metrics, all performance costs incurred and other performance indicators, business transactions and interactions, progress against goals and expectations by time period, capital worth assessments, strategic estimates, and other financial and non-financial documentation.

Replace outdated management methods with Result-performance Management

The business enterprise is managed by all kinds of performance management and other techniques. Business process management manages contrived business processes. Software companies produce large complex enterprise information systems that are implemented over the business, require large IT overheads, and restrict business flexibility. Management consultants recommend 20^th century management methods to manage the business enterprise.

The enterprise business is managed by Result-performance Management (R-pM) following 21^st Century Management conventions and standards. R-pM consultants provide 21^st Century Management Consulting to assist enterprises to organize and manage the business. 21^st century business solutions provide modular software and other solutions to produce specific results, result by result, to provide for fast and flexible change. The means to manage the enterprise business is provided in the R-pM Toolkit, your 21^st Century Management Manual, available now at result-performance-management.com.