Does your Enterprise organize the Business?
Does your organization structure organize your business?
If you ask most managers if their enterprise organizes the business, they will answer “yes”. However, if you ask them to described how the business in organized they will say that the business is organized into departments, functions, regions, etc. But, is this organizing the business?
Look up the definition of enterprise business. You will likely find that the enterprise business is “the activity of providing goods and services”. When you organize your business, do you organize “the activity of providing goods and services”?
20th century organization theories organize people and responsibilities
20th century business organization theories provide all kinds of ways to organize people, regions, responsibilities, etc. but they do not organize the business. Instead, they contrive different kinds of organization structures that are overlaid on the business. If the organization structure organized the business, the organization structure would change with business change. The business changes, while the organization structure is rigid, requiring periodic reorganizations to align the structure closer to the business.
Organize the activity of providing goods and services
So take another look at your business as “the activity of providing goods and services”. How can you organize your business, so that the organization changes as the business changes? The definition shows that the business has two parts:
- The activity, which is the actions or performance of the business
- The goods and services, which are the outputs or results from the business
When we organize the activity, we organize people and the processes, methods, systems, information, and other tools that they use. In effect, we organize the capital that we invest in and utiilize to provide goods and services.
When we organize goods and services, we organize the economic outputs or results produced by the business. The business produces many results in order to provide goods and services.
Organize the business so that the business can be planned, measured, and reported
When we organize the capital used in business activity, we organize the performance solutions that we have invested and developed. Costs arise from consuming capital in business activity, so we have organized our costs.
When we organize goods and services and other results, we organize the things we want to produce and sell to earn revenues and profits. These goods and services must be of high quality and provide value to customers. Therefore, when we organize our economic output in results we have organized our quality and value.
This is just the start of what we can do. However, we cannot do any of it until we organize the business.
The objective of Result-performance Management (R-pM) is to organize the business for 21stcentury management
Result-performance Management simplifies and organizes the enterprise business through the goods and services and other results produced and through the business activity in the performance of human and other capital. The first rule of R-pM is to organize and manage the business. Learn R-pM to know how to organize your business.
21st Century Management eliminates 20th century problems
Result-performance Management (R-pM) eliminates the reorganization problem and other costly 20th century problems. Slash costs, simplify business management, and boost competitive advantage through R-pM, the conventional method for 21st Century Management.
Download your 21st Century Management Manual today
Your 21st Century Management Manual, The R-pM Toolkit, is available today and is under continual development to expand and refine 21st Century Management. Get your R-pM Toolkit, and future updates, at result-performance-management.com.
