Organize and Manage Results for Management by Objectives
We do not know the right way to organize the business, so we try to identify the best wrong way
On January 17, in the article Organizing through Theories and Infighting, we identified problems in organizing the conventional business enterprise. We do not know the one right way to organize, so we fight over, which is the best wrong way. Then, on April 13, 2006, we discussed how to organize the business as the activity of providing goods and services. The most important part of organizing the business of the enterprise is organizing results.
We must organize the enterprise to reach objectives as guided by Peter Drucker
In my days as a consultant studying organizations, I used to produce organizational alternatives. At that time, one of my biggest influences was Peter Drucker with his fine works on Management by Objectives and Managing for Results. The only problems I had with Drucker was that the objectives related to the employee rather than the organization, and results were moved to the future and placed outside the enterprise as the final result economic output. However, if we combine the principles of management by objectives and managing for results, we can see that enterprise strategic objectives should be defined by the future strategic results that the enterprise must produce. Near term objectives are achieved by producing final results from business performance.
We need to focus managers on producing results that lead to future strategic results
Drucker said to focus on the result not the activity, a sound concept that largely is ignored today. The results are organized first and activity must be organized to produce organized goods and services and other results. I saw that we needed to organize the enterprise by the organizational objectives, outputs, or results that had to be produced within the enterprise in order to produce the final results that met enterprise objectives. So, one alternative was to organize to produce results as they could be defined within the existing enterprise and the other alternative was a compromise more agreeable to client management, but not the bad organization management really wanted. Managers tended to be concerned more with organizing their political power, than organizing the business and the results they had to produce.
Result-performance Management (R-pM) provides the one right way to organize the enterprise business
Result-performance Management organizes the enterprise business for 21st century management. With R-pM, we have a chance to go back to Drucker’s principles to organize the business of the enterprise, based on the basic definition of the enterprise business as the activity of providing goods and services. This gives the R-pM definition of the enterprise as an endeavor that utilizes capital in performance to produce value in results. This definition shows the only right way to organize the enterprise results produced and to organize capital to be utilized to produce results. R-pM organizes the enterprise business to change as the business changes and eliminate future reorganizations.
21st Century Management eliminates 20th century problems
Result-performance Management (R-pM) eliminates business organization and management problems and other costly 20th century problems. Slash overheads and costs, simplify business management, and boost competitive advantage through R-pM, the conventional method for 21st Century Management.
Download your 21st Century Management Manual today
Your 21st Century Management Manual, The R-pM Toolkit, is available today and is under continual development to expand and refine 21st Century Management. The R-pM Toolkit is offered at a nominal price to encourage wide use of R-pM. Get your R-pM Toolkit, and future updates, at result-performance-management.com.
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