True Business Transformation to eliminate the Problems that caused the Economic Crisis

Business transformation has a bad name today because of past problems and failures

20^th century business transformation was a big thing over the past twenty years. But did it transform the actual business and solve fundamental problems with a sound structure for business success; or did it simply rearrange the 20^th century management structures and methods that are the cause of business problems? We see the problems suffered by financial institutions that cannot manage “asset value”, corporations that are unable to manage their businesses, and limited and inaccurate accounting that cause the financial crisis and economic recession.

20^th century transformation did not transform the actual business or provide expected benefits

20^th century business transformation changes the organization structure, strategy structure, business process structure, performance management structures, account structures, information technology architectures, management information structures, and other structures that are laid over the business, rather than organizing and managing the actual business. Conventional 20^th century enterprise organization theories never organized the business. If the business is organized, routine business change updates the business organization continually, instead of having separate business change and transformation projects.

The business changes with every business decision, not every few years when management decides it is time for business change. The only reason that business transformation is needed is because the business is not organized and managed. Conventional business change and transformation is not change to the business, but change to the structures laid over the business. Many 20^th century business transformation methods, like total quality management (TQM), business process reengineering (BPR), and activity-based costing (ABC) laid new contrived structures over the business, and are no longer considered viable today.

Business transformation must organize and manage the business as one structure

Business transformation describes what is needed to learn, organize, and manage the actual business for 21^st century business management. The objective of business transformation must be to organize and manage the actual business. The business is defined as “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results”. The business consists of output results produced, the capital investments in specific solutions, and solutions implemented and utilized in performance to produce specific results. 21^st century business transformation uses Result-performance Management (R-pM) knowledge in the final  transformation to organize the business for 21^st century business management. The business is organized as one integrated business structure that changes with the business and never needs further transformation.

21^st century business management uses one business structure to manage the current to strategic business

Business management provides the one fundamentally right way to organize the business. as the results that the business must produce for success, the capital solutions that must be available, and the performance that utilizes solutions to produce the results. Business management manages existing output results and capital solutions as part of the business, and removes structures laid over the business. Business management uses the business structure for all business organization, planning, direction, control, reporting, and governance.

Business management produces one set of consistent, complete, and accurate business management information to avoid the problems that caused the economic crisis.

• Result values and full performance costs to manage result chains and result value-added across the business
• Capital solution qualifications and performance effectiveness to manage result quality result by result
• Capital solution reliability to manage performance uncertainty producing result risk
• Capital solution capacity utilized in performance to produce a volume of results
• Planned strategic result value and the solutions required to produce the results
• Actual results against planned result goals and performance against ongoing expectations
• Period by period result value creation against goals, strategic result value, and updated strategic estimates for good governance
• New capital investments justified by the planned strategic result value-added
• Capital development projects managed as a business to know the amount invested in all tangible and “intangible” assets
• Individual capital solutions utilized to know the investment amount, the amortization of investments, and the return on investment
• The “asset value” which is the worth of each capital solution from utilization to produce result value over the remaining life, plus the result value planned from sale or disposal

Managers today do not know this and much more essential business management information in order to manage investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results.

21^st century business transformation implements the one right structure to manage the current to strategic business

Business transformation organizes the business structure that changes with business decisions to implement, activate, change, or close a result or capital solution. Business transformation usually consists of three phases 1) learn the business, 2) organize the business, and 3) manage the business.  First the business is learned by documenting the results that must be produced and the capital investments made that are available to be utilized as solutions in performance to produce results. The business then is organized by implementing capital solutions to domains to be utilized in performance to produce specific results, as another structure laid over the business, and business management is validated in parallel with existing enterprise management. As each area of the business is managed successfully, existing enterprise structures that are laid over the business become redundant and are eliminated.

21^st century business transformation transforms from the many enterprise structures laid over every business today to one structure for 21^st century business management.

21^st century business management eliminates 20^th century problems

Business management eliminates costly 20^th century problems that cause the financial and economic crisis. Business management maximizes capital worth, performance effectiveness and  result value, while minimizing capital investments, performance costs, and result risk.

Result-performance Management (R-pM) provides the knowledge needed for business transformation and management. The Business Management Toolkit, is available today to document and develop business management. The Business Management Toolkit subscription is offered at a nominal price to encourage wide management of  businesses around the world to prevent the problems that caused the economic crisis. Subscribe to the Business Management Toolkit, and receive future updates, at result-performance-management.com.

The Solution to the Economic Crisis is explained in free downloads

Three free white papers explain the dead-end 20^th century management problems 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 an 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 20^th century management problems and the 21^st century business management solution
• The Only Solution to the Economic Crisis; Manage the Business explains how to manage the business to capture actual 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 and manage economic cycles to prevent future crisis

These three white paper downloads are available free 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 password. Your email address is protected and used only for download problems and occasional R-pM Member news and white papers

This entry was posted on Tuesday, March 10th, 2009 at 01:46 and is filed under:
Forums: Capital Development Plans and Projects, Organization and Management, Business Change Methods, The Solution to the Economic Crisis
Topics: Breakthrough Innovation Management, Business Change Methodologies, Conventional Management Methods, Business Transformation
Result-performance Management (R-pM): The 21st Century Enterprise
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