Today, the enterprise is managed through structures laid over the business
The 20th century enterprise does not have a consistent and uniform framework for management. Many articles in 21st Century Management Magazine discuss the problems with contrived structures laid over the business that prevent actual business management. Organization and management structures are contrived for separate purposes and often conflict with each other and leave unfilled management gaps. Management plans, directs, reports, accounts, and governs using many different structures and data entities that the enterprise decides to define and measure. Actual business entities are not identified and managed, so actual business data cannot be captured, and business management information cannot be reported to management. The economic crisis shows problems that fester in the business under overlaid structures unknown to management, until there is sudden discovery and crisis.
The actual in-operation and strategic business is managed through the few components and data entities actually needed
The complete business is simplified down to the three essential components that are planned in the strategic business structure and managed in the current in-operation business structure. Only three additional data sets are required for actual business management. The strategic business structure shows planned results and new and improved capital solutions at the strategic horizon. 21st century business management manages results and performance against goals and expectations within each month and governs the transformation of current results against goals month by month to create value in approved strategic results.
The third and final phase of R-pM transition is “Manage the Business”
The third and final phase in the transition to R-pM is “manage the business”. R-pM shifts management focus away from functions, position, tasks, assignments, performance quality, and process outputs to focus on each result required in a chain of results ensuring customer satisfaction. R-pM manages performance in the solutions utilized to produce each result, result by result, in the chain.
After the business is organized, R-pM can be utilized in parallel with existing structures. As the enterprise ensures that R-pM provides all the required functionality, each overlaid structure is discontinued along with the information systems and workloads used to maintain the structure. R-pM eliminates all overlaid structures that hide the business and produce associated business complexity. Unsolvable problems are no longer hidden in the business under overlaid structures.
Every part of the business is under three dimensions of management
Every part of the business is under three dimensions of management for the result produced, the performance of capital solutions utilized, and management time period by time period. The three dimensions of management ensure that all delays or failures are known and managers have assistance in resolving business problems. Problems that may hamper strategic value creation are foreseen and prevented. R-pM provides transparent business management to utilize managed capital solutions in performance to meet expectations in order to produce managed results and achieve result goals for each period, and period by period to create managed strategic result value.
Management has the new information needed to manage the actual business
Management utilizes information not available today to manage the business. R-pM provides new sets of result metrics, capital measures, and performance indicators that plan and measure the actual business. Result metrics like volumes, value, quality, risk, symptoms, and value-added are managed result by result, across a result chain, and up result sets against goals at every level. Capital measures like capacity, investment, qualifications, reliability, return, worth, cause and solution, are managed solution by solution against potential. Capital solutions implemented in a domain to produce a result are managed by performance indicator for capital utilization, performance costs, performance effectiveness, performance uncertainty, result value-added contribution by the solution, and performance problems against expectations. The information is analyzed to prevent business problems and optimize the business.
The business is managed to eliminate problems and produce results
The business structure consists of the result structure to organize all results required, the capital structure to organize all solutions available, and the performance structure to manage specific solution utilization to produce specific results. Results are managed by column in the performance structure to ensure that all solutions produce a high value-quality result against goals. Capital solutions are managed in the capital structure to develop and improve qualified solutions needed, to determine return on investment, and to maintain the worth of solutions. Solution utilization is managed by row in the performance dimension to ensure that qualified solutions are implemented and maintained for each result.
Business structures are managed period by period in the management dimension to achieve goals and converge on the approved strategic business structure. Structures laid over the business and their unsolvable problems are eliminated.
The business is managed to ensure customer satisfaction
The business structure is used for all business management. Instead of an organization structure, the business is organized. Instead of strategic maps and corporation plans, the business is planned. Instead of directing functions, performance, and processes, the business is directed. Instead of controlling accounts, activity costs, and quality structures, the business is controlled. Instead of reporting statements and scorecards, the business is reported. Instead of governing rules and compliance, the business is governed. The full set of result metrics, capital measures, and performance indicators is used to analyze and optimize the business. Business problems that fester in the business today and cause crisis are anticipated and prevented. Problems that occur are quickly isolated to a performance domain. Essential results are produced of the high quality and value to ensure customer satisfaction.
The R-pM Solution to the Economic Crisis is explained in free downloads
Three free white papers explain the dead-end 20th century management problems that caused the economic crisis, the way R-pM eliminates the problems, and a government program to address the crisis by stimulating the economy, solving the problems, building an architecture 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 20th century management problems and the R-pM solution
- The Only Solution to the Economic Crisis explains how R-pM manages the business to capture actual business data and provide management the information needed for actual business management
- A Government Business Management Program to Answer the Economic Crisis outlines a government program to encourage business management 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 and password. Your email address is protected and used only for download problems and occasional R-pM Member news and white papers.
