The Business Change Forum discusses problems with 20^th century structures laid over the business today and the solution to organize the business with Result Performance Management for efficient, simple, and consistent 21^st Century Management

Rigid 20^th century structures cause unsolvable problems

Dead-end 20^th century management lays establishment, strategy, process, account, administration, IT, and other structures over the business, causing reorganization, change, alignment, complexity, cost, value, quality, investment, worth, collaboration, etc problems. Each structure requires extensive maintenance and IT resources and conflicts with the business causing costly problems by no means solved by more structures

Clear away overlaid structures by managing the business

The business is, “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in consequences”. Organize and manage the business to replace overlaid structures and eliminate unsolvable problems

Result Performance Management is the only way to organize and manage the business

Result Performance Management organizes consequences, capital, and performance to produce consequences in current and strategic business structures. Result Performance Management manages the costs and effectiveness of performance producing value and quality in consequences to capture actual business data and provide one set of business management information. Result Performance Management includes consistent 21^st Century Management conventions for collaboration and common services and solutions

Most recent discussions

20^th Century enterprises organize people in a rigid establishment structure

The common 20^th century method of business establishment is to define establishment units, positions, and reporting relationships in an enterprise organization structure. The objective is to organize functions and people. The establishment unit performs defined functions or duties. People are placed into positions, surrounded by an establishment unit. Often position or job descriptions are defined to show the scope of duties surrounded by the unit. Reporting relationships fix how positions and units report in the management line. The establishment structure is rigid and inflexible, restricting business flexibility.

20^th Century enterprises lay a rigid establishment structure over the business, making the need for reorganization

One of alternative structures is selected as the arbitrary establishment. Since the objective is to organize people, the structure does not organize the business, but is “aligned” with the business. Therefore, the establishment structure is implemented over the business. The establishment structure is rigid, while the business needs to change, making conflict. Each time the business changes the establishment structure is further out of alignment with the business. Eventually there is the need for reorganization to align another rigid establishment structure closer to the actual business.

We organize people, but people are just one category of capital

Why do we organize people? What are people? Many say that people are human capital. If people are human capital, why organize human capital and not other capital? If we are going to organize capital we must organize all capital. But we cannot organize all capital because capital is not defined to be organized. Human resources are defined as employees, but most capital is lumped as an asset, was produced as consequences of a project or a department effort and by no means defined, or is labeled as “intangible assets”.

We call it business establishment, but do we really organize the business

When we organize, we usually call it business establishment, but is it really business establishment. A previous post on the Judgment of Business said the generally accepted definition of business is “the activity of providing goods and services”. The article logically defined the business as “the utilization of capital in performance to produce value in consequences”.

If we are to truly organize the business, we must organize the “the utilization of capital in performance to produce value in consequences”. This means that the business establishment must organize the capital utilized in one structure and then organize the consequences produced as one structure. The business can be organized by assigning the capital to be utilized to the result to be produced.

It is vital to manage the actual business, and to organize people as individual performance solutions surrounded by one category of human capital that is utilized in performance to produce value in consequences.

In order to have a right business organization structure, we must organize the business as one business structure

The previous post in this series described the Judgment of the Business Structure that must be used to organize the business. The business structure defines the business establishment and is used for all aspects of business management. The business structure is made by combining the business performance solution structure and the business result structure into one holistic structure that defines the complete business.

The business is organized in the business structure when one specific solution in the business performance structure is deployed to produce a result in the business result structure. The business structure changes with each change to a performance solution in the solution structure or change to a result in the result structure, making the business very flexible. The business structure is used to record business transactions for the utilization of a solution to produce a result or for progress on a specific result.

The Business Structure is the most vital tool of 21^st century management

21^st century management manages the enterprise business as one integrated business structure. The enterprise business structure replaces the rigid establishment structure and all the other 20^th century structures laid over the business. The business structure provides one transparent view of the business used for all management and governance. It will be very vital to know how to organize your business as one integrated business structure as you go into 21^st century management.