Business Transformation from 20th Century to 21st Century Management
Business transformation was big ten to fifteen years ago. But, did it actually transform the business? Did it solve fundamental problems with a sound structure for on-going business success, or did it simply rearrange the management structures that cause business problems?
“Business transformation” could not transform the business, because the business was never organized
The enterprise business is defined as “the activity of providing goods and services“. Organize and manage the business means organize and manage “the activity of providing goods and services”.
20th century business organization structures never organized the business. If the business was organized, business change would change the organization automatically, instead of having separate reorganization and business change projects. The business changes with every business decision to change business activity or goods and services provided, not every few years when management decides it is time for business change. Since the business is not organized, “business change” and “business transformation” cannot actually change or transform the business.
20th century management manages the enterprise by laying structures over the business
20th century management manages the enterprise by laying organization and management structures over the business. Once an organization structure is laid over the business, the business can never be managed. Additional management structures for strategy, business processes, information systems, accounting, performance management, administration, etc must be laid over the business. Management information is reported against various contrived structures, producing inaccuracies, discrepancies, and complexity, without reporting the actual business.
Business transformation changed the organization, business process, information system, and other overlaid structures, rather than organizing the business. The benefits proved elusive and business transformation got a bad name. Some popular “business transformation” methods of the time are generally discredited today.
21st century management manages the enterprise business as one integrated structure .
In order to organize and manage the business, we must organize and manage “the activity of providing goods and services”. Business activity is the utilization of business capital in performance. Business goods and services are the economic output results produced by the business. We need one fundamentally correct way to organize the results that the business produces and the performance that produces the results as one business structure that integrates all management organizing, planning, directing, control, and reporting. We can then transform the unorganized and unmanaged business under 20th century management to an organized and managed business under 21st century management. 21st Century Management provides consistent conventions, definitions, and standards for efficient business management and collaboration.
Result-performance Management transforms the business from 20th century management to 21st century management
Result-performance Management (R-pM) is the conventional method to integrate organization and management with one 21st century business structure. R-pM organizes the business results produced and the performance solutions utilized as one business structure that changes with the business, and never needs further “business transformation” or reorganization. The one business structure integrates all business organization, planning, directing, control, and reporting. R-pM manages result value, performance costs, result value-added, result quality from performance effectiveness, capital worth, and and other parts of the actual business that are not managed today. R-pM eliminates 20th century structures, with the inherent high-costs and unsolvable problems.
Implementing R-pM is the final “business transformation” to transform the unorganized and unmanaged business under 20th century management to an organized business for 21st century management.
The R-pM Toolkit is the 21st Century Management Manual, to guide the final business transformation
R-pM implementation and utilization is guided by the R-pM Toolkit, the 21st Century Management Manual. The R-pM Toolkit contains the learning, procedures, and examples to organize the business for 21st century management, plus the 21st Century Management conventions, definitions, and standards. Join the R-pM Community at result-performance-management.com. to download your copy of the R-pM Toolkit to learn how to organize your business for 21st century management.
