Organize the Business to Eliminate Re-organization and other Unsolvable Problems

20^th century management lays an organization structure over the business

20^th century management organizes the enterprise, but not the enterprise business. An arbitrary organization structure is contrived from organization theories, business models, consultant studies and management decision, and is subject to politics and infighting. The organization objective is to define responsibilities and authority in units, functions, positions, and relationships, rather than organizing the business. Alternative organization structures may be contrived and the final enterprise organization structure is selected and laid over the business. This is the fatal error of 20^th century management. Once an organization structure is laid over the business, the business can never be managed.

20^th century organizations structures fix the results that the enterprise can produce. The organization budget and assigned capital is removed from enterprise control. The business is forced to adjust to whatever organization structured is laid over the business, and enterprise business flexibility is restricted.

The organization structure is fixed, while the business changes causing conflict and problems

All business management decisions boil down to what output results to produce, what capital solutions to invest in, and what capital solutions to utilize in business performance to produce a high-quality and valuable result. Whenever results or capital solutions change and the organization remains static, the pressure for organization change builds. Accumulated changes to results eventually necessitate substantial organizational change and re-organization projects, with consultants, change management, and other techniques to help the enterprise cope. The enterprise moves from one fixed organization structure to another fixed structure, and repeats the cycle.

The overlaid organization structure organizes the enterprise, instead of organizing the business. Since the business is not organized, the enterprise is forced to lay additional enterprise management structures over the business, to manage the enterprise, instead of managing the business.

21^st century business management organizes the business and the enterprise

The business organization is not a management prerogative or political football. The business organization is capital of worth that must be professionally-managed to update the business. 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 organizes results to be produced, human and other capital available, and the capital to utilize to produce a result. Management decides on near-term and strategic results to produce and capital to deploy or invest in to produce results. Business organization units are organized as a business solution and implemented to produce specific results.

The business organization defines the results management wants to produce and the way management wants to employ capital to produce results; but does not organize people, positions, and power. People are human capital solutions. Managers, other personnel, equipment, money, information, and other capital are solutions are organized by being implemented to business performance domains to produce specific results.

The enterprise and the business is organized by implementing solutions to produce results

The business is a living organization that changes with every business decision requiring new or closed results or new, deactivated, redeployed capital solutions. Results are defined with descriptions, metric determinates, and business data metrics. Capital solutions are defined by category and class of capital with descriptions and data measures. Performance domains are defined by the result and capital solution identifiers that comprise the domain, with cost and effectiveness determinates and performance indicators. The business is organized when solutions from the capital structure are implemented in performance domains in the performance structure to produce specific results in the result structure.

The responsibilities, authorities, and positions set in the enterprise organization chart are defined by the capital solutions implemented to produce the result, particularly the business organization and human personnel solutions. The organization is a business organization solution that describes the roles and relationships to produce results. Business organization units are described as result units responsible for specific sets of results. Results are not assigned to result units. Rather, result units are business organization solutions implemented to produce results. The result manager responsible for the result is implemented as a human personnel solution. Other capital solutions utilized by the unit are implemented separately to the results. The set of solutions that are generally utilized to produce all the unit’s results can form a capital module and be implemented and managed as a module. The business structure can be inverted to show the results under a result unit solution or result manager personnel solution responsibility.

The business organization structure changes as business decisions are implemented

The enterprise business can be viewed as a business structure that changes with every result added or closed, new solution implemented or closed, or solution redeployed to produce a different result. Re-organizations are eliminated. Results are implemented with result goals by period for comparison with actual result metrics captured. Capital solutions are developed with qualifications to produce results and overall solution potential for comparison with capital measures. Capital solutions are implemented in the performance structure to produce specific results with performance expectations for comparison with actual performance indicators.

All the work involved in developing, maintaining, and reporting against structures laid over the business today is eliminated. Information technology is employed to set up results, capital solutions, and performance domains to generate business transactions for every instance that a volume of a full or partial result is produced by the business as part of routine operations or within a managed reporting period. The organization focuses on utilizing implemented capital solutions to produce planned results and achieve result goals. Reorganizations and change management projects, now used to change structures laid over the business, are eliminated.

Result-performance Management (R-pM) is only way to organize the business

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. Business management knowledge and the Business Management Toolkit are available and supported today 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.