There are only two alternatives to manage the business enterprise

There is now an alternative to traditional 20^th century 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 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 R-pM used for 21^st Century Management to organize, plan, direct, control, report, and govern the actual business as one structure

With the advent of R-pM for 21^st Century Management, there is now a fundamental alternative to traditional management used throughout the 20^th century.

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. 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. 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 business capital 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. The enterprise must utilize capital in performance to incur the costs to produce each output result, yet does not manage business performance.

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 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. 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 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.

R-pM organizes the actual business for simple and basic 21^st Century Management

The only alternative is R-pM to organize the actual business for 21^st Century Management and leave unsolvable 20^th century problems behind. The definition of the business is “the utilization of capital of worth in performance to incur costs and produce value in results”. All business decisions and business change involve results produced and capital utilized in performance. R-pM organizes capital available to the business as performance solutions, organizes the economic outputs that must be produced for business success as results, and organizes business performance by deploying performance solutions and rules to be utilized to produce specific results. R-pM organizes the business 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 to provide accurate business management information. All information, including email and Internet content is referenced to a business entity in one official Business Information Base for one set of accurate and consistent business and management information. The business is poised to grow and leverage information technology for business benefit.

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

Eventually all enterprises will have to organize the business with R-pM for 21^st Century Management. Many businesses are interested in using R-pM, but are waiting for R-pM management consulting support or 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 R-pM that will provide a continuing edge over the competition.

R-pM is available for use today and is supported by the R-pM Toolkit to provide the instructions and guidance for enterprise and consultant use. The R-pM Toolkit establishes 21^st Century Management conventions and standards for common solutions any business can use and to facilitate business integration and collaboration. Learn more about R-pM and download your R-pM Toolkit at result-performance-management.com.