The Breakthrough Advantage of 21^st Century Management

21^st Century Management provides breakthrough competitive advantage over enterprises that are still burdened by 20^th century management. Result-performance Management (R-pM) organizes and manages the enterprise business as one integrated structure to abolish unsolvable problems and provide breakthrough benefits that are not possible with 20^th century management.

A recent article “Do not manage the Business Enterprise, manage the Enterprise Business” explained some of the differences between managing the enterprise with 20^th century management and managing the enterprise business with R-pM for 21^st Century Management. This article explains some of the breakthrough advantages.

Minimize cost results by directly managing the business

Directly manage one business structure to eliminate costs, IT overheads, business and information complexity, time waste, and unsolvable problems of 20^th century structures laid over the business. All overlaid organization and management structures are incorporated as part of the business, as needed, and the remaining structures are eradicated to eliminate the costs of operating and maintaining the structures. Actual business data is captured on result value, performance costs, result quality, performance effectiveness, result volumes, result value-added, capital worth, etc that is not known today. One integrated business structure is used for complete and accurate management information, eliminating the complexity, inaccuracies, and contradictions in reporting against many arbitrary structures laid over the business. Manage all costs against the result produced, and eliminate low value results and associated costs.

Maximize revenue results by managing the results needed in a result chain

Revenues are produced by chains of specific results. Know and manage those results to be of high quality and value to meet strategic value creation goals. Eliminate administration, activities, tasks, functions, and work flows that waste time and money. Manage the solutions provided to produce results, result by result. Know result value, full performance costs, and the difference in result value-added. Manage positive result value added across result chains to maximize the revenue results.

Maximize profit results by managing the performance of all capital to increase value-added

Results are produced by utilizing capital provided as performance solutions. All capital, including unknown capital and “intangible assets, incur costs. Manage all capital as performance solutions utilized to produce results to minimize performance costs and help result managers increase result value-added. Specify new solutions that must be implemented to increase result value-added. Maximize result value-added to maximize contribution and profit results.

Maximize investment return results by properly managing capital development

Capital development arises from documented needs for new and improved performance solutions to increase result value or produce valuable new results. Development is substantiated by planned costs for all solution development that is justified by result value-added goals over the payback period. Development is managed for both specific new results and new and improved performance solutions that are utilized to provide the planned and measured return on investment results.

Maximize strategic result value by good governance of the transition to the strategic business

Plan the value of future strategic results, and the existing and new solutions needed, in the strategic business structure at a 2-5 year strategic horizon. Define result goals to create value time period by period to the horizon. Plan capital development needed to produce strategic results, and result value extended over the payback period. Manage the transition of the current business structure period by period to converge on the approved strategic business structure. Manage the contributions from the business to planned stakeholder and shareholder value results.

Maximize flexibility for common solutions, collaboration, and new opportunities

Know the business and manage business change as routine business. Modularize the performance producing results. Quickly add new results or discontinue completed results and redeploy managed performance solutions. Collaborate with partners in commonly-defined result value-quality chains. Integrate with supplier and customer chains. Anticipate and respond to new opportunities and threats.

The future playing field will not be level

All companies today use 20^th century management. All business schools, management books, consultants, and packaged solutions propagate 20^th century management. Enterprises can use 20^th century management to manage the enterprise, while the enterprise business remains unorganized and unmanaged, because all enterprises incur the same costs and problems. But, starting in 2009, the playing field will no longer be level. Enterprises now organizing the business for 21^st Century Management will have a breakthrough advantage over competitors still burdened with costs and problems of 20^th century management.

It is time to leave the 20^th century behind. Your enterprise can be among the leaders enjoying the advantage or among the followers suffering the disadvantages. Learn all about it in The R-pM Toolkit, your 21^st Century Management Manual, which is available today at result-performance-management.com.