The Organization Structure is not a Management Prerogative

Organization structures are contrived, approved by management, and laid over the business

Whenever a business needs to be organized, an enterprise organization structure sets entities to manage like units, functions, and positions. The business is not organized, so the rigid organization is further removed with each business change, eventually requiring “reorganization” to align another structure closer to the business.

The organization structure is the “fatal error” in 20^th Century organization and management

Once an enterprise organization structure is overlaid on the business, the business can never be managed. The enterprise is forced to use enterprise management structures like strategy maps, business processes, charts of accounts, salary scales, scorecards, etc. that define additional entities to manage and also are overlaid on the business.

The business organization is a professionally-managed performance solution

The business is the activity of providing goods and services. The business activity employs capital, so the capital must be organized. The business goods and services are economic outputs produced by the business, so the economic outputs must be organized. Result Performance Management is the conventional method to organize the business for 21^st century management. Result Performance Management organizes capital as performance solutions and economic outputs as results in a business organization structure.

The business organization structure is business capital that must be professionally managed like all other capital. The business organization of results and the deployment of qualified and approved human and other capital to produce results is a performance solution, similar to a business process, human capability, or facility equipment.

The business organization is not a management prerogative

Management decides on the strategic results to be produced by the business and the capital investments in performance solutions needed to produce the results, as part of the enterprise strategy. Goals are set for results to be produced and expectations are set for performance solutions for each time period on the way to the strategic horizon.

The business organization structure is used for direct business management and good corporate governance

The business organization is one integrated business structure used for all planning, control, record-keeping, reporting, and management. The business is simplified to only the basic entities and common definitions for direct management of results and capital utilized. All overlaid structures are removed for transparent business management.

21^st Century Management eliminates 20^th century problems

Result Performance Management eliminates the reorganization problem and other costly 20^th century problems. Slash costs, simplify business management, and boost competitive advantage through Result Performance Management, the conventional method for 21^st century management.

Filed under: Best Practice Management • Business Change Methodologies • Corporate Governance • Organization Methods

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