Stop making dead-end 20^th century management investments

Investments in 20^th century management caused today’s unsolvable problems

Over the years, enterprises have invested massive amounts in enterprise organization and management structures that are now laid over the business. Every organization study, business process re-engineered, enterprise information system implemented, chart of accounts designed, costing centers and activities defined, administrative function installed, human resource jobs or scales described, and other business performance and management improvements implemented added to structures laid over the business and contribute to today’s unsolvable 20^th century management problems.

Enterprises are still making dead-end investments today

Enterprises are still designing and implementing 20^th century management structures that are laid over the business instead of organizing and managing the actual business. Each structure describes the enterprise using different terminology. The more structures that are laid over the business, the more difficult the enterprise is to manage and the greater the business and information complexity problems. The maze of structures also create the need of additional investments in IT data reconciliation and enterprise information management systems, IT architectures, IT-business alignment methods, contrived value chains, etc. Each investment is a dead-end that can never solve unsolvable business problems and often does not provide a positive return to the business.

Additional 20^th century management investments compound unsolvable problems

The enterprise today has no way to relate new investments to the actual business or to analyze and plan the actual return on the investment from utilization of the capital acquired and implemented in the business. Investments are shots in the dark in the hope of making the enterprise easier to manage and operate and providing some estimated return. Each future 20^th century management investment will be more funds wasted on another dead-end that just compounds unsolvable problems. The only way forward is to organize the actual business for 21^st century management and leave all overlaid structures behind.

The only way to analyze, justify, plan, and manage investments is as part of the business

The actual 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 three components of the business: capital invested in the business as specific solutions, output results accomplished by the business, and performance of the business in the utilization of capital solutions to produce specific results. All new investments are in capital to be utilized by the business in performance to produce value in results. Even physical investments like a building or plant must be utilized to create result value or provide income results. The return on investment comes from the attributable result value-added by the investment over the payback period. The benefit of the investment and the potential and actual result value added can only be determined when the business is organized and managed.

Investments to organize the business are relatively small

Organization of the business for 21^st century management does not require a large investment per se. Existing capital is analyzed and organized as solutions. Existing results are organized along result chains across the business. The business is organized by creating performance domain records to set the rules for utilizing a capital solution to produce a result within one business structure. Once the business is organized, the business can be managed in operations and development. Existing information systems normally can be utilized to manage defined results, capital solutions, and performance domains. Existing information systems and business processes are integrated and organized as business process solutions to produce each specific result. Any business change to add or close a result or change a capital solution is updated to the business structure.

Future investments are limited to capital needed to produce results

Once the business is organized, the business is managed directly and all overlaid structures are discontinued. Any new investments are to acquire or develop a specific item of capital as a solution to produce a result or set of results. The result value with and without the investment can be projected to provide the added result value-added that justifies the investment. Development and implementation costs are captured against the capital solution to establish the investment cost and the unamortized balance. The investment is implemented to produce new or improved results and theinvestment costs are amortized against the result and the result value-added is measured to add to the return on investment. All future investments are minimized to capital actual required and utilized by the business to provide a positive measured return on investment in the value added to results that utilize the capital.

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

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. R-pM and business management are 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 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.