Information systems today collect extensive data against structures laid over the business
20th century enterprise management used today collects a wide range of data on enterprise structures laid over the business in many information systems. Structures include the organization structure, corporate plans, business processes, various information system data structures, charts of account, activities for costing, quality control structures, performance management structures, and so on. Mountains of information can be reported to management. But, each structure is designed for a specific purpose and often conflicts with other structures. So information collected and summarized across structures can be inconsistent and misleading. The many structures and information systems produce information complexity requiring additional structures for data reconciliation and enterprise information management. The stress is on information quantity, rather than information quality. Special reporting structures are laid over the business for dashboards, specialized management reporting and government compliance reporting. Special management reporting techniques are required for drill downs, cross referencing, and information extraction.
Actual business data is not captured and business management information is not reported
But, in spite of all the information available, one fundamental problem remains. The actual business is not managed or measured, so data cannot be collected on the performance of the business and no management information can be reported on the actual business. 20th century management reporting requires excessive information system resources to process data unrelated to the business. Only incidental information reported here and there may accurately report an element of the business. Financial statements and other management reports are only as accurate as the definition of entities and alignment of the structure used with the business. Since the actual business is unknown, reported management information is generally-accepted as accurate.
The entities that comprise a business are not defined as data sets to record and report business information
When actual business information is analyzed, it relates to a result, a capital solution, or an enterprise. But today data is not identified by the key business entity within a managed information set. All enterprise management today is hampered by the lack of any reporting on full performance costs, business value created, value-added by operations across the business, the value to be added to the business to justify new investments, the actual costs and payback for specific investments in the business, the worth of capital investments, current business net-worth, the disposal worth of solutions when sale or retirement is needed, gain and losses on specific capital investments, strategic value, goals for strategic value creation, qualifications of capital for use by the business, utilization of capital capacity, realistic expectations for performance, the effectiveness of performance, the quality produced across the business, the risks present across the business, the management of uncertain customer performance, performance problems causing result symptoms, shareholder value created by the business, and on and on. This lack of information prevents management of the actual business and effective corporation management that leads to the losses and failures witnessed daily during the economic crisis. Corporations suffer losses because business management information cannot be consolidated to manage the corporate business. The economic crisis shows also that government regulatory agencies do not have the enterprise and corporation business management information needed to carry out regulatory responsibilities effectively.
Business management reports one set of relevant, complete, and accurate business management information
Business management concentrates on the narrow set of details needed to manage the actual business. 21st century business management information is reported against one structure; the business. Managers quickly learn to use a new set of business management information to manage their part of the business. They invariably realize that 20th century management reporting structures are inaccurate and irrelevant to the business. Management information is built up from business transactions generated when a capital solution is utilized to produce a volume of a result, real-time as produced or, if needed, built up over a reporting period. Business transactions capture both financial and non-financial data to update one complete and accurate set of business management records. Business transaction provide double entry and balancing of data against result and capital solution records. Subsidiary records existing today are reported by result such as material received, products produced, sales orders, customer payments, work orders, personnel actions completed, etc. Subsidiary records are reported by solution for systems, employees, fixed and financial facility assets, supplies in inventory, cash, etc. Business descriptors are established as data entities for all the attributes of results, capital solutions, and enterprises, plus other ways the business is viewed, such as product or service line, market, customer segment, region, legal requirements, and other desired business reporting perspectives.
Complete and consistent management information is recorded in the business information base
All business decisions and management actions boil down to the results to produce and the capital solutions to utilize. Results produced and capital solutions utilized can be reported in many formats for any combination of measures. Management information is simplified to that directly related to the current and strategic business. All information capital is managed in one business information base as business data, human knowledge, facility records, and management intelligence. All information is related to one or more business data entities for control and access.
The emphasis is placed on information quality and detail, rather than information quantity. Full information is available on the actual business, and other information of interest to the business and management can be maintained, by business descriptor. All information in integrated and referenced by business data entity in a business information base. All the data required for accounting is updated to the business information base and all the information required for financial and statutory reporting is maintained in the business information base.
The enterprise business information base organizes business data, human knowledge, facility records, and management intelligence
One consistent set of business data is maintained in the business information base. The business information base organizes all business data, human knowledge, facility records, and management intelligence for access and use by the business. Records and information are captured for all on-line and off-line documents, emails, correspondence, file transmissions, Internet postings and downloads, images and other multimedia, etc related to the business. The business information base relates all information to a business data entity, so that all related information is accessed through the data entity. Information capital solutions are developed and added to the business information base to be utilized to produce management and operational results. Business data solutions set up new data records, provide business information base operation and maintenance, and maintain business information base access and security. Human knowledge solutions provide learning for human capability development and instructions to utilize capital solutions and to produce high-quality results. Facility record solutions provide management at all levels with financial and non-financial business status and progress to the strategic business. Management intelligence provides management information solutions on current and future meaning from analysis of business data and facility records, and researched solutions to understand markets, products, competitive efforts, opportunities, and threats.
Corporate and government business information bases consolidate enterprise business information
Corporate business information bases build up logically from enterprise business information bases, so that information reported at the corporate level can be traced back to the enterprise business level or projects or campaigns within the enterprise business. Enterprise businesses within the corporation can be consolidated by product line, division, sector, industry, or other business descriptor of interest to the corporation.
Government reporting on the business builds up to consistent government business information base consolidating current and planned enterprise businesses for market, financial, industry, and various economic sector information for integration with other statistics on trade, consumer spending, labor, stock markets, monetary indicator, imports and exports, etc to analyze industries, markets, financial utilization, economic cycles, etc to prevent the lack of information that enables economic and financial crisis.
The business information base provides information for evaluations, assessments, decisions, collaboration, and other management needs
Business management information provides the foundation to evaluate result symptoms and identify performance problems to take precise action. Goals and expectations and strategic values are re-estimated and tracked against plans. Results are periodically evaluated to update result value, determinates, and other attributes. Capital solutions are periodically assessed to update capital worth, determinates, and other attributes. All result metrics, performance indicators, and capital measures can be reported in any combination and linked to enterprises, business descriptors, and time periods for the current, planned, or strategic business. Management can then manage the relationship between results, capital solutions, and performance, to optimize the business, foresee exceptions, and prevent problems. Reporting can combine consistently-defined businesses within a corporation, industry, region, economy, or other business descriptor. Collaboration across business and integration with supplier and customer businesses can be consistently reported by all businesses.
Business management removes information complexity and focuses on reporting the actual business through one set of consistent and non-duplicating business information related directly to the business. Reporting structures laid over the business for data reconciliation, enterprise information management, dashboards, etc are no longer necessary. Result and performance reporting provides accurate information to improve on the information 20th century performance management provides, plus valuable new business information.. Results, capital utilization, and performance domains are reported over the management dimension to show planned, actual, and estimated period by period. Detailed reporting by capital category, class, or solution type on planning, development, utilization, and disposal is provided in many variations. Capital investments, result research, and strategic value creation can be reported from many perspectives. Enterprises are reported to show all interactions within the business, within the corporation, and outside the business. Business descriptors relate to information in the business information base to report by customer segment, market, region, product, project category, service line, supply chain, economic sector, or other descriptor of interest to the business.
Business management is based on complete, consistent, and timely business management information
Management reporting is through one set of consistent, complete, and accurate information on the actual business. Management reporting provides the information on the attributes of specific results, capital solutions, and performance domains needed to optimize results and performance for the best enterprise. Business within the enterprise in projects, programs, and campaigns are reported as part of a managed enterprise business, and the enterprise business is reported as part of a managed corporate business. Management intelligence solutions analyze business data and facility records and research the external business environment to provide management information. Management solutions provided in business data, human knowledge, facility records, and management intelligence is maintained for access in the business information base. Consistent business information is organized and consolidated by data entity or business descriptor for access to all related information. Business management eliminates all the unnecessary structures and data capture unrelated to the business to reduce IT facilities and overheads. IT facilities focus on processing actual business data and the business information base to provide management one consistently-defined set of management information. Business management is enabled by providing new information that is not available to management today to manage result value-quality, capital investments and qualifications, performance cost-effectiveness, investment returns and capital solution worth, strategic value creation, and other aspects of the actual business.
Result-performance Management (R-pM) provides the knowledge and procedures for actual business management and reporting
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 20th 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 21st century management conventions, definitions, and standards. Management consultants who base 21st 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 20th 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 20th 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.
