Integrate business organization and management through one business structure

20^th century management lays separate structures over the business

20^th century 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 an organization structure over the business
• Planning lays corporate plans, budgets, strategies, and other structures over the business
• Direction uses various overlaid structures for the organization, plans, processes, systems, etc
• Control uses a chart of accounts and cost structures for activities, stations, products, etc
• Reporting uses performance management structures like scorecards and dashboards and other reporting structures

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 Management supersedes 20^th century management, by employing Result-performance Management (R-pM) to organize and manage the business through one business structure. The 21^st century business definition is “the utilization of capital in performance to produce value in results”. Business activity is utilization of capital, which is organized as performance solutions. Goods and services are final results that go to the customer, which are produced by a chain of business results. The business is organized when specific performance solutions are deployed to produce specific results.

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

One business structure is used to organize the capital utilized as performance solutions and economic outputs produced by the business as results. The business is organized when specific performance solutions are deployed to incur costs 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 abolished.

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 performance solutions. Revenue results manage the main business line. Investment results manage the utilization of profits and funds for 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 performance 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 performance 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 performance solutions to be developed in the project and the capital to be utilized as performance solutions to execute the project. Development costs are captured and knowledge and documentation records are provided for each new solution and result implemented.

Gain competitive advantage by integrating your actual business organization and management

Leave obsolete 20^th century management behind. R-pM can be used to organize any business for 21^st century Management. Gain competitive advantage by abolishing the costs and unsolvable problems of 20^th century management structures, by managing the value and quality of results delivered to the customer, and by governing the transition from the current business to the strategic business. It is all documented in The R-PM Toolkit, available for download at Result-performance-Management.com.