One Structure for Organization, Operations, Development, and Management: the Business
Separate organization and management structures have always been laid over the business causing complexity
Since the beginning, enterprises have implemented organization, process, account, performance, project, IT architectures, administrative functions, and other structures. Each of these many structures must be maintained and managed producing business complexity. Many conflicting entities that define each structure produce information complexity, prevent consistent and accurate management information, and require high-cost information technology overheads. Each structure is fixed and rigid and conflicts with the ever-changing business. Periodically, reorganization and change management is required to bring the fixed structures into closer alignment with the business.
Experts have wanted to find one structure to organize and manage the enterprise as one consistent whole
Over the years, there have been many efforts to create one simple and consistently-defined structure for complete and consistent business data capture, reliable communications, accurate management information, use of common solutions, business collaboration, and other needs. The answer, so far, is to lay higher-level management structures over existing structures to reconcile data from various unrelated structures and to consolidate information. However, until now, no one has defined the one integrated structure that can replace all existing structures and be used to organize and manage any enterprise in any industry.
The one integrated structure has existed all along; it is the business
There is one structure. It has been there all along! That structure is the business itself!
Since the beginning, no one has actually analyzed the business to describe the entities that make up the business. Instead, we have described the enterprise as organizations, maps, accounts, processes, scorecards, activities, objects, programs, and other contrived structures that are laid over and hide the actual business. Today, there is no precise understanding of what comprises the actual business.
The business consists of three entities; results, capital solutions, and performance of a solution to produce a result
The enterprise business, is commonly defined today as “the activity of providing goods and services“. The activity is the utilization of capital invested in the business in business performance. Goods and services are economic output results of value produced by the business. A more precise definition of the business is “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results”. These definitions show that the business consists of three entities:
- Results: Economic outputs of value produced by the business, such as goods and services
- Capital Solutions: Specific human and other capital items invested in the business to create commensurate value and contribute to the worth of the business
- Performance Domains: The utilization of a capital solution in business activity to incur the cost to produce value in a specific result
The one business structure integrates the specific capital solutions invested in the business, the output results produced by the business, and the solutions utilized in performance to produce specific results. The business structure is similar to a spreadsheet, where each cell generates business transactions each time a solution is utilized to produce a volume of a result. The business transaction updates the performance domain, described by the cell, and the totals for the capital solution utilized and the result produced with actual business data that largely is unknown today.
The one business structure replaces all structures laid over the business today. The business structure is planned for the strategic business and time periods are planned for the convergence of the current business structure onto the strategic business structure. Actual business management information is reported against the structure and is used for all business organization, planning, direction, control, reporting and governance. The business structure can be processed with any modern general ledger system and reported with any modern management reporting system. The current and strategic business structures build the foundation for 21st century business management.
Result-performance Management (R-pM) provides the method to organize the business and utilize human and other capital, where needed to produce results
The source of knowledge for corporations to organize and manage their business is Result-performance Management (R-pM). R-pM shows how to organize results to be produced and then how to deploy and implement capital solutions where needed to produce results. Once the business is organized the business can be managed directly, without the need to lay enterprise organization and management structures over the 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 20th 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 21st century management conventions, definitions, and standards. Management consultants who base 21st 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 recession is explained in free downloads
Three free white papers explain the dead-end 20th 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 20th 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.
