Prevent future crisis and downturns by organizing the business

Enterprises today do not organize the business

Enterprises today do not understand the actual business. All business schools, management books, and management experience teach us to adopt an “organization theory” to organize the enterprise. An organization chart is contrived often with a lot of politics and infighting for personal advantage. The approved chart is laid over the business. The business changes while the organization remains rigid causing many unsolvable problems in reorganization, alignment, and unknown and unmanaged business activity.

If the business is not organized, the business cannot be planned, directed, controlled, or reported

Since the business is not organized, the enterprise must be managed by separate 20^th century management structures laid over the business; such as a strategic map or corporate plan, business processes and functions for direction, financial and cost accounts and quality structures for control, and data reconciliation and performance management for reporting. Each structure defines the enterprise differently, uses different information systems, and reports different entities that must be reconciled. These many overlaid structures are rigid and conflict with the actual business producing unmanaged high costs; excessive IT overheads; unknown data in costs, value, worth, returns, effectiveness, and quality; excessive and misleading information not related to the business, incomplete and inaccurate business management information; and many other unsolvable 20^th century management problems.

The business organization is capital that must be managed as capital solutions

The business organization is not a management prerogative or political football. The business organization is capital of worth that must be professionally managed to maintain an accurate view of the current and strategic business. The current business organization is business organization capital that is maintained for each change to the business. The strategic business organization is management strategy capital to define strategic value creation and result-performance development required to research new strategic results and acquire or develop new capital solutions needed to produce strategic results.

The business organizes the utilization of capital in performance to produce value in results

All the capital of worth invested in the business is organized as specific capital solutions in one complete set, as one component of the business. The economic output results of value produced across the business is organized in another complete set as a second component of the business. The business organization is similar to a spreadsheet, with results to produce across the columns and capital solutions available for utilization down the rows. The business is organized by implementing specific capital solutions along the performance row to a cell, called a performance domain, to produce a specific result in a result column. Performance domains are identified by result and capital solution in a complete set as the third component of the business.

The business is organized by describing capital available as solutions by capital category and capital class, by describing results to produce as chains and sets with relationships, and by describing performance domains where a solution is utilized to produce a result. This organizes the business structure to show any part of the business or to be inverted to show solutions producing specific results, such as a result unit or result manager.

The strategic future business structure is organized similarly by planning and organizing strategic results, planning new result research required, and planning the current and new acquired or developed capital solutions needed to produce strategic results.

Organization units and responsible managers are solutions implemented to produce results

One concern in 20^th century organizations is to show responsibilities and reporting relationships and positions. The organization unit, called a result unit is a business organization solution, and the manager called a result manager is a human personnel solution. These solutions are implemented to produced each result to meet result goals, established when the result was planned. The set of results to be produced by a human personnel solution can be described as a position. The basic set of capital to be utilized to produce all results by a particular result unit may be organized together as a capital module.

Capital is supported by defined capital result units for business, human, facility, and management capital. Revenue result units are organized for product support, product sales, after sales service, and other direct operational results. Investment result units are organized to manage, product and service result research investments, capital solution acquisition and development investments, and value creation over time. Result units are business organization solutions managed as business capital. Results are not assigned to organization units, rather result units are assigned by being implemented as solutions with responsibility to produce results and reach goals. The result unit has a module of implemented capital solutions utilized to produce results. As the result unit is implemented to produce new results, new solutions may be implemented. As existing results are completed and closed, the domains for solutions utilized are closed. The solutions are implemented to produce other results, as needed.

The complete business is organized into result groups that in turn organize about 20 key results across the business. Any number of set-results may be organized under a key result. End-results are produced directly by performance to produce a set-result. Result value-quality chains are organized as end-results that produce a final customer set-result, such as a sold product or service. Extracts from the business structure can be shown at any level of detail to to manage the organization for any part of the business.

Reporting relationships are shown by relationships between results

Reporting relationships are shown in the relationships between results. Upper management results relate to many lower-level results that must be produced under upper management. Lower-level results that are required and summarized io produce a higher-level results are related. Higher-level results that allocate a portion of a metric to a lower-level result are related. Results that form a managed chain are related. Results that have a specific impact on another result are related. The organized business structure is set up in a general ledger or relational data base management system to process actual business data on results, capital solutions, and performance domains.

The organized current and strategic business structures are used for all business management

The current and strategic business structures replace all the 20^th century management structures laid over the business. Result goals for strategic value creation and performance expectations for solutions utilized are set by time period to the strategic business to substantiate the strategic value planned. The current to strategic business structures are used for all planning, direction, control, and reporting.

Actual business data is captured on the organized business to report actual business management information

Business data is generated through the production of a counted volume of full or partial results. Business data is captured on capital solution utilization to produce the result for each performance domain for solution capacity utilization, performance costs and effectiveness, performance against expectations, etc. Business data is captured for each capital solution for solution capacity, total performance costs, result value-added contributions for investment return and future worth, etc. Business data is captured for each result for volumes, value, quality, total performance costs, value-added over costs, actual against goals, etc. Business transactions are generated to update financial and non-financial facility records. Business data and facility records are analyzed to produce management intelligence. Management information is reported on performance costs, result value and quality, result value-added, capital worth and investment returns, etc to enable direct business management. One set of consistent financial and non-financial management information enables good governance of the progress to the strategic business.

The business structure changes with every business change

All business decisions and changes involve business results added or closed and changes to the capital solutions utilized. Every decision is updated to the current and strategic business structures. Capital development is executed by result-performance development to acquire or develop new capital required in the strategic business structure to produce specific results of value. The current business structure is updated as new solutions and results are implemented, changed, or closed.

The organized business is the foundation for new 21^st century business management conventions and standards

21^st century business management uses the organized business structure to replace all structures now laid over the business, and provide the current and strategic business structures for all subsequent business management. The business structure is the foundation for all business organization, planning, direction, control, reporting, and governance. Enterprise business structures in a corporation consolidate into the corporation business structure. Enterprise business structures consolidate to market, industry, sector, or economy business structures. The organized business provides the foundation for new 21^st century management conventions, definitions, and standards..

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

Result-performance Management (R-pM) is the only source of knowledge on how to manage the actual business. R-pM knowledge is now being used by forward-looking enterprises 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 that provides the guidance for actual business management and maintains emerging 21^st century management conventions, definitions, and standards. Management consultants and solution providers, who base 21^st century business management services and products on R-pM knowledge, are licensed to help enterprises learn, organize, and manage the actual business. R-pM knowledge is available and business management is 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 organize, 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 an 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
• The Only Solution to the Economic Crisis; Manage the Business 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.