Ten Rules for 21^st Century Business Management

A recent article in the Business Change Forum, discussed the top 10 unsolvable problems of 20^th century enterprise management caused by the failure to organize and manage the business. These unsolvable problems cause enormous expenditures and waste, unsuccessful projects, unknown management information, excessive IT and other solution investments, and all the other difficulties in getting around the problems every day. Before investing in more business change or more IT solutions, investigate business management to eliminate unsolvable 20^th century enterprise management problems by following ten important rules for 21^st century business management.

Organize your business for 21^st century business management

Dictionaries today define the business enterprise as “the activity of providing goods and services”. Business management organizes the activity as the utilization of capital in performance and the goods and services as results. The business organization produces the business structure that consists of results produced across the business, capital investments of worth available as specific solutions to produce results, and performance where a solution is utilized to incur costs to produce value in results. The business structure can show all or any part of the business. The business structure is a professionally-managed capital solution that integrates planning, operations, development, and control in 21^st century business management.

Managers already know the goods and services and other business results they produce and the human capability, business processes, facility equipment, management plans. and other capital solutions they utilize in business activity. Business management organizes this knowledge into one integrated business structure for complete business organization and management, to leave 20^th century enterprise management problems behind.

Follow ten rules for competitive 21^st century business management

Follow these ten organization and management rules for competitive 21^st century business management.

1. Organize and manage the business. Do not organize people, organize the output results to be produced, invested capital to be deployed as solutions, and performance in the utilization of specific solutions to produce specific results. Deploy a result unit as a business organization solution to produce each result. Deploy human capital, where capacity, capability, and knowledge is needed to manage and produce specific results.
2. Generate profits from a chain of managed value and quality. Define business processes and information systems by the results produced and manage each result in the result value-quality chain starting from input results from the supplier, result value-added along the enterprise result chain, and the final result to the customer. Integrate and manage the chain to help suppliers meet enterprise needs and to add more value by meeting customer needs
3. Organize and manage capital for high utilization and return. Organize tangible and intangible capital by the human capabilities required to develop, support, and improve. Manage all capital as solutions to reduce costs, improve utilization, redeploy quickly for result change, improve for higher-value results, and develop for new results. Learn solution cost and contribution to result value to assess solution worth. Eliminate information complexity by managing information capital properly, as part of the business
4. Keep financial and non-financial records on full business operations and development. Manage facility records of all results and capital utilized in performance for one integral set of financial, statistical, and qualitative information on the full business cycle for both operations and capital development. Provide complete and timely financial and non-financial record solutions to produce results. Manage and retain records on all emails, Internet information, file transmissions, etc related to business initiatives, decisions, transactions, and follow-up
5. Operate to optimize operations, result value-added, and the profit result. Provide and manage result value-added along result chains leading to the profit result. Optimize operations and the profit result by managing the volume, value, quality, goals, and risk of results by optimizing the capacity, cost, effectiveness, expectations, and uncertainty of the performance of capital solutions that produce the result. Operate through cost-effective performance producing value-quality results
6. Plan and govern the transition from today’s value to approved strategic value. Plan and approve intelligent strategic results in the strategic business structure, devise effective strategy and plan solutions, and provide the tactical guidance solutions to execute the strategy. Plan the new capital solutions to be developed and implemented to produce strategic results. Manage strategic value creation against result goals by time period, and manage implementation and utilization of new solutions to create new profit and shareholder value results in the strategic business.
7. Manage investments to gain a planned result value return. Establish investment result planning and management, develop capital to provide specific solutions needed to produce specific future results, itemize added result value benefit for each capital solution, substantiate new result value with result goals, itemize development costs for each solution with new performance expectations, manage development projects with a business structure to implement solutions as project results, utilize implemented solutions to produce new or improved business results, and measure business result value-added for the return on investment to date and future capital solution worth.
8. Manage human personnel, capability, and knowledge capital to increase human worth. Manage human personnel to provide and maintain personnel solutions ready to produce results, develop human capability to provide capability solutions to produce high-value results, and create and deliver human knowledge to know how to utilize solutions and produce results. Learn the portion of result value created in excess of development and performance costs to assess human capital worth.
9. Collaborate to maximize shared value and minimize shared costs. Standardize solutions to know all costs and to benchmark costs. Define results in a value-quality chain. Collaborate by re-linking the chain, where the most cost-effective performance gives the best value-quality result, to maximize shared value-added. Integrate chains with supplier and customer value-quality chains.
10. Employ 21^st century business management conventions and standards. Follow consistent descriptions, conventions, standards, and definitions to enable applicable business management education, specifically-needed human capability development, common low-cost solutions and services that any business can use, business to business communications and collaboration, business integration, and simplified and effective information system utilization.

None of these ten rules for 21^st century business management are possible under 20^th century enterprise management used today. These ten rules can be followed by any enterprise business for substantial competitive advantage through 21^st century business management. A new effective business management system can be implemented on any flexible general ledger system or relational data base management system to record and report results, capital solutions, and performance.

Eliminate wasteful structures and gain benefits not achievable today

These ten rules will look like extra work, because each rule is a beneficial new approach, not possible with 20^th century enterprise management. The ten rules and the one integrated business structure used for 21^st century business management replace all the 20^th century management structures and methods. The 20^th century management waste and problems that have been eliminated far offset new business management workloads to provide significant 21^st century business management benefits. Leave business and information complexity, reorganizations, change management, unnecessary IT investments, unknown costs and value, unknown worth and returns, and the multitude of other 20^th century enterprise management problems behind.

Result-performance Management (R-pM) provides the procedures to manage the 21^st century 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

The 2010’s will be the decade of business management. 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 white papers show 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 recovery during the 2010’s.

• 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.