Every enterprise faces unsolvable problems with 20th century management. Enterprises around the world begin business change projects every day in hopes of solving the unsolvable problems. But, 20th century “business change” cannot change the actual business. The 20th century business, defined as “the activity of providing goods and services”, has never been organized. So, the change is to organization, strategic planning, business process, information system, account, performance management, administration, or other structures that are laid over the business.
20th century business change lays new structures over the business
The 20th century management approach is to acquire or develop a new structure to lay over the business. Replacing or improving existing organization, planning, process, system, account, or other structure does not solve the unsolvable problems, with the change application:
- An organization structure laid over the business, constrains the business, hampers real business change, causes business alignment problems, and eventually requires more reorganization
- Strategic planning methods and corporate plans are laid over the business, but management still cannot plan actual strategic value or manage the business to create future value
- A new business process is laid over the business, but costs, value, and quality in the chain of business results hidden under the process still are not identified or managed
- New information systems process all kinds of information on various structures, rather than the actual business, and increase information complexity and IT overheads
- A new chart of accounts laid over the business, does not record the actual business or provide accurate financial and non-financial information for good management and governance
- Performance management structures laid over the business combine goods and services with the activity as “performance” preventing management of actual business results and performance
Other business changes may change additional structures laid over the business.
20th century management does not provide a method to plan or manage business change. Benefits of change are estimates or contrived through a calculation. Change projects are not organized or managed to implement the benefits of change. The enterprise may engage management consultants to implement the business change. They may hire change management consultants to address the problems in 20th century “business change” and problems that remain after the change. Even with all this, unsolvable 20th century management problems remain unsolved.
Most enterprises have experienced the waste and failures of dead-end 20th century business change
Most corporations and other enterprises have experienced the waste and failures in business change projects like business process reengineering, enterprise resource planning systems, and other popular business changes. 20th century management is a dead-end that cannot solve yesterdays, todays, or tomorrow’s management problems. Yet corporations continue waste shareholder funds on ineffective and obsolete 20th century management in their business change.
Now there is an alternative to 20th century management, Result-performance Management
In the past, there was no alternative to 20th century management. But today there is an alternative, Result-performance Management (R-pM). The business can be defined precisely as “the utilization of capital of worth in performance to incur costs and produce value in results”. Every actual business change is a change to an output result produced by the business or capital utilized as performance solutions. R-pM organizes the actual business for 21st century management. Normal business change is routine to simply change performance solutions. used in business activity, or business results, such as goods and services, organized in one business structure. 21st century business change implements new capital as specific performance solutions to be utilized in performance to add value to new or improved results.
R-pM can improve change and provide a measured return for any business change project
R-pM must be used at a minimum to analyze the results and performance solutions involved in the change and manage the change project, for significant 20th century management improvement.
R-pM can introduce 21st Century Management to the enterprise through an R-pM application. R-pM can be used for any business change application to organize the results and performance solutions involved in that area. Many general ledger and relational database management systems can be utilized to process actual business entities in results and performance solutions. R-pM provides clear methods to itemize and manage the benefits of change and to manage the change project directly to implement measurable benefits and return. This is explained in the R-pM Business Management Guide “How to Manage Business Change” available for download at Result-performance-Management.com.
R-pM applications are supported by the R-pM Toolkit and 21st Century Management Consultants
Management consultants are now supporting R-pM. Ask your management consultant about licensing and learning R-pM to support your enterprise in 21st Century Management.
All R-pM use and applications are supported by The R-pM Toolkit, your 21st Century Management Manual, available to R-pM Community Members at result-performance-management.com.
