The Definition of 21^st Century Business Management

20^th century enterprise management used today organizes and manages the enterprise

Traditional 20^th century enterprise management manages the enterprise, but does not organize or manage the business. Instead, an enterprise organization structure is laid over the business. Since the business is not organized, the business or change to the business cannot be managed. Additional management structures are laid over the business for strategies, processes, systems, accounts, administration, and other needs. The overlaid structures conflict with the actual business causing unsolvable business organization and management problems.

21^st century business management is designed to organize the business naturally and eliminate the problems of 20^th century enterprise management. This article defines 21^st century business management and establishes specific 21^st century business management principles.

Definition of 21^st century business management

21^st century business management definition is “organize and manage the current to strategic business as investments in capital, implemented as measured capital solutions to add value to specific planned results for measured value-added return and capital worth, and manage capital utilized in performance to incur costs and create value in counted and measured output results”.

Principles of 21^st century business management

21^st century business management incorporates specific principles:

• All economic outputs produced by the business are defined as results, by the way that they are counted, at some level across the business, such that all business activity is directed to a result, and all capital is utilized to produce a result
• Business results are defined by the result metric used to count the results and are measured for volume, value, total cost, value-added, quality, risk, and cumulative performance for other metrics, and managed against goals
• All capital invested in the business is defined as specific solutions that are implemented to produce specific results and are integrated with other solutions that are implemented to produce the same result
• Capital solutions are measured for capacity, investment amount, amortization and other performance costs, unamortized balance, qualifications to produce results, reliability in business performance, future worth to the business, return on investment and other capital measures, and managed against capital potential
• Capital solutions are utilized in business performance to produce the results they are implemented to produce and to generate business transactions for the volume of results produced
• Capital solution utilization in performance to produce a result is measured for cost, effectiveness, capacity utilization, uncertainty, result value-added contribution, and other performance indicators and managed against performance expectations
• All capital utilized by the business is organized for support by the human capability required for operation, maintenance, support, and development
• Capital investments are implemented as solutions in performance domains to produce specific results in one integrated business structure that is used for all organization, planning, direction, control, reporting, and governance
• Performance is managed result by result along result chains to manage all capital solutions utilized to produce result value-added and quality
• Existing business processes and information systems are defined and utilized as solutions to produce specific results, such as product sold, order delivered , and  customer account updated
• Actual business data is captured or refined to know result value, performance costs, result value-added, performance effectiveness, result quality, capital worth, etc and to report one set of concise and consistent business management information against result goals, capital potential, and performance expectations
• The future business objective is defined as a strategic business structure at a strategic horizon date, showing the result value created and capital investments required to acquire and develop new capital solutions
• The business is managed in three dimensions, result such that a manager is responsible for each result produced, performance such that a manager is responsible for each capital solution implemented, and management such that top management is responsible for progress period by period to the strategic business structure
• All capital development and business change is planned to provide specific solutions needed to add value to results to meet accepted future result goals and gain the return on investment
• All capital development and business change is managed through a project business structure to utilize project capital solutions to produce project results that acquire, develop, implement, and document new or improved business results and capital solutions and to capture all acquisition, development, and implementation costs by solution
• All newly developed capital solutions are implemented to create measured planned value in results, to charge performance costs against results produced, and to show the return on the solution investment and substantiate solution worth from attributed result value created
• The business is governed by managing operations and development time period by period to the approved strategic business structure

These principles are fundamental to good organization and management of any business, but cannot be employed today, because the business is not organized. The principles may seem like extra work, but they replace what management is doing today to reduce actual work. 21^st century business management is natural, since we all naturally utilize our own time, capabilities, possessions, money, strategies, tactics, information, and other capital solutions in our personal performance to produce our personal results. We do not lay organization or management structures over our personal business.

21^st century business management leaves 20^th century enterprise management problems behind

21^st century business management organizes the business as one business structure to eliminate the need for structures laid over the business. Actual business data is captured and one complete and consistent set of business management information is provided on results produced, capital solutions utilized, enterprises interacting with the business, descriptors of the business such as product group or customer segment, and time periods. Information reported to management today is inaccurate and irrelevant to direct business management.

21^st century business management simplifies all management needs to the actual business and leaves 20^th century enterprise management problems behind.

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. 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 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.