Why we need a Business Organization and Management Breakthrough

You cannot manage your business today

You cannot manage your business, because your business is not organized. An organized business reorganizes with each business change. The correct definition of the enterprise business is “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results”. Today, you make capital investments in the business, but do not manage the capital items acquired or developed as part of the business. You must produce chains of economic output results across the business, but do not manage the outputs as part of the business.

20^th century theories and methods of business organization do not organize the business. Instead, they organize units and positions in an enterprise organization structure that is laid over the business. Since the business is not organized, the business cannot be managed. Enterprise management structures are contrived for strategy, business processes, accounts, projects, information systems, human resource management, performance reporting, administration, etc. and laid over the business, preventing actual business management and governance.

20^th century management is a dead-end with unsolvable problems that only get worse

Fundamental problems in reorganization, alignment, business complexity, change management, corporate governance, business records, cost and value management, investment management, human worth management, business collaboration, intangible assets, performance optimization, technology utilization, capital development, capital management, and on and on, have remained unsolved since the beginning of business, and will never be solved by contriving and overlaying new structures on the business.

20^th century structures do not build on a sound foundation of an organized business. They arose from the definitions, theories, and practices that arbitrarily evolved since the beginning of business. The structures were contrived before the availability of information technology (IT) to organize and manage the actual business. Since information technology evolved, IT has not been applied to organize the business. Information technology is applied to computerize 20^th century structures, making them even more costly and complex, and creating the gigantic IT overhead and information complexity problems. New information management structures and IT architectures just compound problems and increase costs. The validity of 20^th century structures is not because they are theoretically sound, but because they are generally-accepted.

Problems cannot be solved by new 20^th century structures or management books

New structures and books are based on the existing structures and the published record. New structures are laid over the business and old structures to get around problems, rather than organizing the business to replace old structures and eliminate problems. Business management magazine and book publishers require that new works be substantiated as “accurate”, through notes to prove that they use old 20^th century structures and thinking. Building on existing structures and knowledge can provide incremental improvements, but it also propagates fundamental problems and prevents new breakthroughs.

Any experienced manager or business change professional, who has tried improvements from business management books or implemented new enterprise organization or management structures, knows that the fundamental problems were not solved and actual benefits proved elusive. New 20^th century management solutions and structures can never solve unsolvable problems. The problems get worse as enterprises grow and IT utilization increases. A new breakthrough is needed for a fundamentally sound way to organize and manage the business enterprise.

The only solution is to organize the business for 21^st century management to leave 20^th century problems behind

Improving 20^th century methods is not the answer. It is a dead-end. Go back to the definition of the enterprise business as “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results”. The only way to organize the business is to organize three components:

1. Capital: The capital of worth invested in the business utilized as specific capital solutions
2. Results: The economic outputs that must be produced for a successful business
3. Performance Domains: The implementation and utilization of a specific capital solution to incur costs to produce value in a specific result

The answer is to organize the business into an integrated structure that organizes capital available to the business and results required by the business. The business is organized by organizing performance to deploy a specific solution with rules to produce a specific result. 21^st century business management takes advantage of information technology to capture actual business data and report the business as a by-product of daily business operations.

Enterprises make large investments in capital today, but are told not to manage capital worth and investment returns. Enterprises must produce results for success, but are told not to manage result value and quality. Business performance today does not manage actual business performance for costs incurred and value added, but measures and reports structures laid over the business.

All business decisions and business changes involve the results to produce and the capital to utilize. The organization changes with business change. The one business structure manages the actual business for all planning, direction, control, and reporting.

The business organization structure is not a management prerogative, but capital as a professionally-managed business solution. Management decides on strategic results to produce and strategic capital investments to develop the capital solutions needed to create strategic result value. Management can then manage the business in the utilization of capital solutions to produce value in results.

Businesses will continually change, but business management fundamentals are sound and not subject to change, so organizing the actual business is the final major change. All industries and types of endeavor utilize capital solutions in performance to produce results, so any enterprise can organize and manage the business. 21^st century business management provides breakthrough competitive advantages that are not possible with obsolete 20^th century enterprise management used today.

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. R-pM and business management are supported 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.