The Top 10 Problems of 20^th Century Management

20^th century management problems are caused by structures laid over the enterprise business

The generally accepted “enterprise business” definition is the activity of providing goods and services. The failure of 20^th century management to organize and manage the activity of providing goods and services creates unsolvable management, business, and performance problems.

The fatal error of 20^th century management is laying a rigid and arbitrary enterprise organization structure over on the business, rather than organizing the business. Since the business is not organized the business cannot be managed, therefore, rigid enterprise management structures for planning, processes, systems, accounts, quality, administration, performance, reporting, etc must be contrived and laid over the business. Structures laid over the business conflict with the actual business, restrict business flexibility, move out of “alignment” as the business changes, and prevent direct business data capture and management.

20^th century management improvements can never solve unsolvable problems

We continue to teach 20^th century management, contrive new 20^th century structures and “business solutions” to lay over the business, and write more 20^th century management books, but we can never solve the top ten problems of 20^th century management.

1. Reorganization: Upheavals to lay a new rigid organization structure over the business that would never occur, if the business was organized
2. Accounting and Financial Management: Historic legacies focus on cash control and prevent professional records management and modern capital management
3. Investment Analysis and Development Project Management: The inability to itemize, plan, and manage the costs, benefits, and return of capital development investments
4. Administration: Performing functions, while leaving tangible and intangible capital utilization and improvement unmanaged
5. Performance Management: “Performance” definitions mix actions executed with the result accomplished, so business processes, performance management, and KPIs mix results and performance and manage “performance quality”
6. Business Complexity: Processes, systems, and other structures conflict with the actual business and create business and information complexity
7. Information Technology: Business systems, data, information solutions, networks, and architectures are managed as technology, not capital, creating a gap with the business and capital management problems
8. Change Management: Change management addresses the unnecessary conflicts between overlaid structures and the actual business
9. Corporate Governance: Problems are strengthened from the governance side, rather than organizing the business to be governed on the corporate side
10. Alignment: Rigid overlaid structures go out of alignment as the business changes

These and other unsolvable management problems are discussed, in detail, here at the Business Change Forum

Each of the top 10 management, business, and performance problems of 20^th century management, as well as the solution, are described in a referenced article.

Result-performance management (R-pM) eliminates the top 10 problems of 21^st century management

20^th century management problems are unsolvable, because they can never be solved by new or improved structures laid over the business. For example, the proliferation of emails and Internet searches have added to the problems of information administration and information complexity. Enterprises are now trying to solve these problems by laying various information categorization structures over the business and investing in more information technology for data reconciliation and enterprise information, record, document, and content management. This is a futile waste of money. The problems must be eliminated by directly organizing and managing the business as one simplified structure used for all business management and completely abolishing all structures laid over the business.

Result-performance management (R-pM) eliminates these top 10 problems and other fundamental problems of 20^th century management, by organizing the activity of providing goods and services. Business activity is organized as the utilization of capital in performance solutions and business goods and services are organized as results produced. Performance solutions utilized and the results produced are organized in one integrated business structure that is used for all 21^st century management. Existing business results produced and capital utilized are incorporated as part of the business structure. 20th century management structures, along with all unsolvable 20^th century management problems, are left behind.

Download your 21^st Century Management Manual today

Your 21^st Century Management Manual, The R-pM Toolkit, is available today and is under continual development to expand and refine 21^st Century Management. Get your R-pM Toolkit, and future updates, at result-performance-management.com. Then slash your costs, simplify your business management, and boost your competitive advantage through R-pM, the conventional method for 21^st Century Management.

This entry was posted on Friday, April 4th, 2008 at 00:02 and is filed under:
Forums: Administration and Capital Management, Capital Development Plans and Projects, Processes and Information Systems, Corporate Investment and Governance, Organization and Management, Strategy and Performance Management, Top Ten 20th Century Problems
Topics: Business Process Management, Capital Management, Change Management, Conventional Management Methods, Information System Implementation, Investment Management, Organization Methods, Outsourcing Management, Performance Management, Strategy Development, Best Practice Management
You can follow any comments to this entry through the RSS 2.0 feed. You can leave a comment, or trackback from your own site.