We manage our personal business, but cannot apply the experience to manage the enterprise business

The enterprises, where we work, do not manage the business

Enterprises today do not manage the business, which is defined as “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results”. Instead of organizing the actual business, an organization structure organizes people, positions, functions, and reporting relationships and is laid over the business. The organization structure is the fatal error of 20^th century management. Once an organization structure is laid over a business, the business cannot be managed. The enterprise is managed using process, function, account, performance management, activity, and other structures laid over the business.

We utilize our capital in our performance to produce results naturally, utilizing common sense

We all know how to manage a business. We naturally manage our personal business using common sense. We do not lay organization charts, business processes, or functional procedures over our personal business. We manage our personal business as a chain of results to be completed: such as up and dressed, breakfast prepared, breakfast consumed, and arrived at work. In order to complete each result, we utilize our personal capital in our time, capabilities, knowledge, possessions, supplies, tactics, and process followed. Each capital item is a specific solution used to produce specific results. The utilization of a solution to produce a specific result is our performance. The performance could be our cooking capability solution to transform input results like ham and eggs into an output result breakfast, or utilization of our automobile, gas supply, time, driving capability, and knowledge of the way solutions to complete the arrived at work result.

We naturally perceive capital measures, performance indicators, and result metrics

Each of the capital solutions we utilize is measured by capital measures. The utilization of each solution in performance is measured by performance indicators. The output results we produce are measured in result metrics, as shown in the following diagram. The capital measures, performance indicators, and result metrics define and measure the common attributes of capital, performance, and results that generate actual business data and actual business management information that is unknown to management today.

We recognize our own limited capacity that we can utilize in performance to produce a volume of full or partial results in a time period. When our carrying capability is utilized, our carrying capacity limits the volume of items that can be included in a carried to a destination result in one performance session.

The value of each result must exceed the cost of input results plus the cost of cash and other capital consumed in order for us to be happy with the result. When we go out for dinner and drinks, the value in the pleasure we receive must exceed the cost for us to say we had a good night out. In other words, the result must have a positive value-added.

We invest in our house, which tends to decline in worth as it is utilized and ages. The cost of this decline is covered by the value of having a roof over our heads. Our house may also decline in worth due to declining sale prices for houses in the local market, which lowers our sale or disposal capital worth. This concerns us if we plan to sell and may have additional costs in the reduction of our house worth to the price we can receive, but does not concern us so much if we plan to utilize the house for many more years, if the sale or disposal worth in the future should tend to be higher.

The quality of input results, qualifications of solutions, and effectiveness of our performance determines the quality of our output result. A rotten egg, sticky frying pan solution, or distraction during our cooking performance can produce a low-quality breakfast result.

We realize that the reliability of our solutions utilized and uncertainty in our performance introduces risk that our results may not be completed as planned. If our alarm clock solution fails and our performance in arising is delayed, we may not be able to produce all the results planned for the day.

We recognize that investments we make, such as in our house or automobile, are paid back each day as they are utilized to provide value that covers the actual costs in solution worth decline, plus value-added productivity that provides the gain in the return on our investment. We can see our own personal capital worth in our capability to produce results of value over a future time period that covers our cost and provides a value-added productivity to our enterprise.

We know that a defective capital solution, such as our refrigerator, may cause performance problems in keeping items cold, which could produce result symptoms like melted ice cream. We know that the symptom can only be removed by solving the performance problem by repairing the refrigerator solution or installing a new solution.

We buy new capital solutions because they have the potential to produce specific results of value to us that exceeds the cost of the solution. We set expectations for the utilization of the solutions in performance to reach a certain volume and value of results, which are our result goals. We may purchase a home computer and Internet connection to provide entertainment and information from the Internet. We ensure that the computer has the audio-visual features needed to provide the potential. We expect that the connection will be available with sufficient speed when performance is required to meet our goals in entertainment and information value.

We do not think of these things day to day in the management of our business. We do this because it is common sense. We manage out business naturally, without thinking about managing our business.

Once we arrive at work, we cannot apply our business management experience

But once we arrive at work, we set our natural business management aside and follow the reporting relationships, processes, information systems, accounts, and other structures in the performance of the business. The specific results that must be produced in chains across the business for success are not defined. The capital investments in the business as specific solutions required to produce each result are not defined. Therefore, the cost and effectiveness of utilization of solutions in performance cannot be managed to produce value and quality in specific results in operations and development.

The enterprise we work for must organize the business for 21^st century business management

The enterprise management must open their minds to replace artificial 20^th century enterprise management through structures laid over the business with natural and effective 21^st century business management to eliminate 20^th century management problems and allow us to apply our natural business management capability.

Result-performance Management (R-pM) provides the knowledge and procedures for actual business management and reporting

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 recession 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.