Integrate business organization and management through one business structure

20^th century management lays separate structures over the business

20^th century enterprise management does not organize or manage the business, “the activity of providing goods and services”. Instead, a variety of organization and management structures are laid over the business. Each management function is performed by a different structure:

• Organization lays organization, human resource, and reporting structures over the business
• Planning lays corporate plans, budgets, strategies, and other structures over the business
• Direction overlays various structures for processes, functions, systems, etc
• Control overlays a chart of accounts, separate cost structures for activities and centers, quality structures, etc
• Reporting overlays data reconciliation, information management, performance management scorecards and dashboards, etc

Other structures are used for specific business operation such as:

• Supply chain management to manage logistics
• Production management and quality control to manage production
• Customer relationship management to manage customer delivery and services
• Enterprise resource planning to manage administration

Still other structures are required for capital development:

• Investment analysis structures and techniques to plan development investments
• Project management structures to manage project activities
• Project follow up structures for the utilization of developed capital in operations

Each of these structures defines different entities that must be recorded, reported, and managed. Each structure has its own set of business and information system processing overheads. The proliferation of structures and entities produces mountains of information, but no management information on the actual business. The separate structures and systems produce business and information complexity and the large data reconciliation problem. Additional structures, systems, and overheads are required to manage the structures and extract and reconcile data available from the structures.

21^st century management integrates business organization and management in one business structure

21^st century business management supersedes 20^th century enterprise management, by organizing and managing the business through one business structure. The 21^st century business definition is “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results”. Business activity is utilization of capital, which is organized as capital solutions. Goods and services are final results that go to the customer, which are produced by a chain of business results. All results produced by the business are organized as a set of results. The business is organized when specific capital solutions are deployed to performance domains to produce specific results.

Management organization, planning, direction, control, and reporting in integrated in the business structure

One business structure is used to organize all capital invested in the business as individual solutions and all economic outputs produced by the business as individual results. The business is organized when specific capital solutions are implemented to a result-solution domain to incur costs and to create value in specific results.

A strategic business structure shows the results to be produced and the performance solutions needed at the strategic horizon. The convergence of the current business structure on the strategic business structure is used for all management organization, planning, directing, control, and reporting. Planned, estimated, and actual management information is provided on the few entities involved in the actual business such as result value, performance costs, result value-added, capital worth, result quality, performance effectiveness, etc.

Capital utilized and results produced by 20^th century management are incorporated in the business structure. All 20^th century organization and management structures laid over the business and the related workloads and costs are eliminated.

Business operations are integrated through the result groups produced by the business

Business operations are managed through result groups within the business structure for capital management, revenue management, and investment management. Capital results manage the development, provision, and support for capital utilized as solutions. Revenue results manage the main business line. Investment results manage the utilization of profits and funds for result research, capital development, and shareholder value results. Result chains are managed to utilize capital properly by result, manage costs incurred and value created, and manage result value-added across result chains.

Capital development is integrated with operations to provide the new results and solutions required by the strategic business

Capital development is planned to provide the capital solutions needed to create value in strategic results defined in the strategic business structure. A development business structure is planned to show the specific results to be improved or added and the specific solutions to be developed to produce the results. The investment benefit is in the result value added over the payback period. The investment cost is in the development and utilization of solutions to produce the results. The investment return is from the added result value-added over costs with the investment compared to the result value-added with no investment.

Capital development projects are managed with their own business structure to show new results and capital solutions to be developed in the project and the capital to be utilized as capital solutions to execute the project. Development costs are captured and knowledge and documentation records are provided for each new solution and result implemented.

Result-performance Management (R-pM) provides the knowledge for actual business management

Result-performance Management (R-pM) is the only source of knowledge and expertise on how to manage the actual business. Forward-looking enterprises are now using R-pM guidance to organize and manage their business to gain breakthrough advantages over competitors burdened by unsolvable 20^th century management problems. Business management is explained and documented in the Business Management Toolkit. The Toolkit provides procedures for actual business management and maintains emerging 21^st century management conventions, definitions, and standards. Management consultants who base 21^st century business management services on R-pM knowledge are licensed to help enterprises learn, organize, and manage the actual business. R-pM and business management are supported at result-performance-management.com.

The Solution to the Economic Crisis is explained in free downloads

Three free white papers explain the dead-end 20^th century management problems, such as the failure to plan, account for, and manage the actual business, that caused the economic crisis, the way to eliminate the problems, and a government program to address the crisis by stimulating the economy, solving the problems, building a structure for financial and economic management, and organizing local businesses to flourish in the eventual recovery.

• How to Eliminate Problems that caused the Economic Crisis explains the major unsolvable 20^th century management problems and the solution to eliminate the problems
• Business management; the only Solution to the Economic Crisis explains how to plan and manage the business to capture business data and provide management the information needed for actual business, corporation, industry, and economic management
• A Government Business Management Program to Answer the Economic Crisis outlines a government program to encourage business management, stimulate the economy, restore confidence, organize businesses to flourish in the recovery, and manage economic cycles to prevent future crisis

These three white paper downloads are available to R-pM Community Members at result-performance-management.com. There is no cost or obligation to join the R-pM Community. Join by entering your email address and personal password. Your email address is protected and used only for download problems, product updates, and occasional R-pM Member news and white papers.