There are only two alternatives to manage the business enterprise

There is now an alternative to traditional 20^th century enterprise management

The only two fundamental alternatives to organize and manage the business enterprise are:

• Organize the business enterprise: This is the method used today in 20^th century enterprise management to organize the enterprise with an organization structure and manage the enterprise with strategy, administration, accounting, process, and other management structures. The structures are laid over the business preventing organization and management of the actual business
• Organize the enterprise business: This is  21^st century business management to organize, plan, direct, control, report, and govern the actual business as one structure

With the advent of  21^st century business management, there is now a fundamentally correct alternative to traditional enterprise management used throughout the 20^th century and continuing today.

Structures laid over the business are eliminated in 21^st century business management and the business is managed directly as one structure with one consistent and complete set of real business data and business management information.

The enterprise has been managed through 20^th century management with mounting unsolvable problems

20^th century management has evolved over many years through a variety of structures contrived to organize and manage the enterprise. The basic structure is the organization structure that defines departments, functions, positions, reporting relationships, etc. Once an organization structure is laid over the business, the business cannot be managed. Additional structures like corporate plans, strategies, and budgets for planning; a chart of accounts, costing activities and centers, and quality measures for control; business processes, information systems, and administration functions for directing; and financial statements, scorecards, and data reconciliation for reporting are devised for enterprise management. These structures are also laid over the business to manage the enterprise, rather than the business. As information technology evolved, the structures were computerized to produce a wide variety of information systems and reported data elements.

The actual business is not defined and lies under the structures. The enterprise invests large amounts in capital of worth, yet does not manage the invested capital as a set of solutions to gain the return on investments. The enterprise must produce a chain of output results of value to be successful, yet does not manage the chain of business results as a set. The enterprise must utilize capital solutions in performance to incur the costs to produce each output result, yet does not manage business performance as a set of capital utilized to produce results.

The overlaid structures conflict with the actual business and cause unsolvable problems like reorganization, alignment with the business, business change management, unknown business data in costs, value, capital worth, and investment returns, an overload of enterprise management information but a lack of accurate business management information, unmanaged capital and intangible assets, unmanaged business performance, “business” and information complexity, and on and on. These problems can never be solved by laying new or improved structures over the business.

20^th century management is a dead-end that will only build bigger problems and higher costs

The only way 20^th century enterprise management can address problems is to lay more structures over the business. The development of Information Technology enables rapid enterprise expansion and change, but just adds to the problems of 20^th century management. Extensive IT resources are required to process overlaid structures and data elements producing an overload of conflicting reports. Additional IT structures are needed for data reconciliation and information integration. Actual business data is not captured and most of the information reported is not relevant to business management. As IT grows, more IT equipment and architectures are added for system portfolios, service management, facility management, etc. This never-ending spiral will just continue to add costs and overheads.

20^th century enterprise management is a dead-end that has never been able to solve existing management problems and will never be able to meet the needs for a flexible and growing business. New unsolvable problems are added to the list of old unsolvable problems.

Now you can organize your actual business for simple and basic 21^st century business management

The only alternative to enterprise management is to organize the actual business for 21^st century business management and leave unsolvable 20^th century problems behind. The definition of the business is “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results”. All business decisions and business change involve economic output results produced by the business and investments in capital utilized in business performance to produce the results. Capital investments that make capital available to the business are organized as capital solutions for specific business, human, facility, and management capital items. The economic outputs that must be produced for business success are organized as results, such as material inspected, product produced, service delivered, project complete, machine repaired, etc. Business performance is then organized by deploying and implementing capital solutions with rules to be utilized to produce specific results in performance domains, such as a human salesman solution responsible for an order booked result.

The business is organized as current and strategic business structures that are used for all business planning, control, directing, and reporting. All structures laid over the business, conflicting information related to the structures, and associated IT overheads and other costs are removed.

21^st century management is the future of business organization and management

The organized business provides for flexible business change and growth. IT is simplified to basic business processing solutions to produce specific results. Actual business data on performance costs, result value and quality, value added, capital worth, development costs and investment returns, etc are captured each time capital solutions are utilized in performance to produce a volume of full or partial results. Actual business data is processed to provide one consistent set of complete and accurate business management information. Business information is reported against actual business data entities in results produced, capital solutions utilized, internal and external enterprises, time periods, and business descriptors such as product groups, regions, customer segments, etc. All information, including email and Internet content is referenced to these business data entities in one official Business Information Base. The business is managed to grow and to leverage information technology for business benefit.

The sooner the business moves to 21^st century business management, the more experience and competitive advantages build

Eventually all enterprises will have to organize the business for 21^st century management. Many enterprises are interested in organizing their business, but are waiting for other businesses to show the way. These businesses are loosing the advantages of eliminating the vast IT overheads and gaining experience and competitive advantages with actual business management that will provide a continuing edge over the competition.

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.