How Business Owners Benefit from Managing their Business
Business owners and investors lose the most due to the unmanaged business
Business enterprises today manage the enterprise as a company, corporation, or other form of organization. The business owner and shareholder profits are reduced due to the waste and inefficiencies involved in managing the enterprise using structures laid over the business. The enterprise invests in capital, but the capital investments are not defined or managed as part of the business. The enterprise must produce specific goods, services, and other output results to be successful, but these results are not defined and managed as part of the business. The capital investments must be utilized in business performance to produce specific results but business performance is not defined or managed. The rigid enterprise organization, corporate plan, financial account, cost account, business process, performance management, and other structures, used for enterprise management, conflict with the changing business causing unsolvable 20th century enterprise management problems.
Business owners have the most to gain from directly 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 results”. The business can be organized only by organizing specific capital investments in the business as specific human and other capital solutions of managed worth to be utilized in business performance, organizing specific output results of managed value that must be produced by business performance, and organizing business performance in the utilization of specific solutions to produce specific results to manage costs and result value-added across the business. Organizing the business for 21st century management slashes costs and compounds competitive advantage.
Business owners, from small businesses to corporate investors, have the most to gain by organizing and managing the business. Owners reduce costs significantly by removing structures laid over the business that consume most of management and much personnel time. The business is simplified to essential outputs of value in results, investments in capital of worth, capital solutions utilized that incur costs, related enterprises, business descriptors to report the business, and management time periods. Information systems can be simplified to direct business management systems. Owners eliminate the information mess and use real business information in the value of the results produced, full performance costs, the value added to results, and the real worth of their business and the capital they use.
Management and staff are focused on producing valuable business results. Routine administration is replaced by capital management to provide qualified solutions needed to produce results. A result manager is responsible for each result and a performance manager is responsible for each solution provided.
The business strategy is defined as a strategic business structure that defines the strategic result value to be created and the strategic capital solution investments needed that are justified by specific result value. Business owners and executives are responsible to manage by time period for current results against goals and performance against expectations with current estimates against planned strategic result value and capital solution availability and costs.
Most business owners think that their business is organized and managed
Business owners are under the impression that the business that they own is organized and managed. Small business owners can manage just by knowing what is going on. But, when the business grows to where they must depend on others to manage the business, owners need to define their business clearly, and reconsider what is organized and managed. The first step is to recognize that the business is not organized and that continual problems with reorganizations, unknown costs, unmanaged investments and returns, unknown value chains, unknown strategic value creation, unknown asset values or capital worth, etc can be eliminated by organizing and managing the business.
Business owners must take charge to organize and manage their business
Business owners have the ultimate responsibility for their business. This responsibility cannot be delegated to others. The business owner must ensure that the business is organized and managed properly.
Results are the inputs to and the outputs from business performance. A result is a specific accomplishment, like customer order recorded, that can be counted and measured. Every result has a customer who is willing to pay a value to receive and utilize the result. Capital is utilized through solutions to produce results. Each solution requires an investment that must be managed to amortize over the solution life as performance costs. A solution is an item of capital, like a human salesmanship capability solution, utilized to produce the result. Business performance is managed by managing each capital solution utilized to produce each result. Performance costs for each solution are charged to the result and the total result value added is pro-rated back to the solution to manage the return on the solution investment to date, and the future capital worth. Actual business data is captured to update the business management system and produce business management information that is not reported today. The business organization is updated with each result or capital solution change.
Business management optimizes capital capacity utilization in performance for result volume, performance costs against result value, performance effectiveness for result quality, performance uncertainty that introduces result risk, and performance expectations to reach result goals.
As the business is organized and managed, the organization and management structures laid over the business today that cause unsolvable problems and prevent business management are eliminated.
Organizing and managing the business benefits capable and productive management and staff. Managing the business focuses on the results the business must produce, organizes capital to be properly managed by those with the capability, clarifies responsibilities, eliminates counter-productive empires with their own agenda, simplifies the capital solutions needed, and clearly reports the business for good management and governance.
Many inside and outside the business with a vested interest in current methods will resist efforts to organize and manage the business. This must be recognized and managed by business owners to eliminate unsolvable 20th century problems and gain the advantages of 21st century business management.
Result-performance Management (R-pM) provides the knowledge for actual business management
Result-performance Management (R-pM) is the only source of knowledge and expertise on how to manage the actual 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. Business management knowledge and the Business Management Toolkit are available and supported today at result-performance-management.com.
The Solution to the Economic Crisis 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.
