Why manage the business?
Submitted by bcfc on July 18th, 2008
Most managers think that they manage their business
Do you manage your business? What is the definition of the business that you manage? Ask a manager if he manages his business, the normal response is yes. Ask for the definition of the business they manage, and they do not have a precise definition. Most will describe the enterprise rather than the actual business.
No company, corporation, institution, or other enterprise manager manages the actual business today. The managers employ 20th century management to administer the enterprise. It is impossible to manage the business today, because the business has never been defined properly or organized.
The business to manage has never been defined and actual business management has never been taught
What is the enterprise business? There are many conflicting and imprecise definitions for the word “business”. Proper definition of the business is hampered by the definition of performance to include both the utilization of capital in actions executed and the results accomplished. Business schools and management books teach 20th century management to administer structures laid over the business, and do not define the actual business or teach us how to manage the actual business.
Outside of R-pM, there is no source of information on the real-life fundamentals of actual business organization and management. Since there has never been a precise definition of the business or teachings or books on actual business management, managers do not know what to organize in order to manage the business.
R-pM provides a precise definition of the business
So today, results, capital solutions, and performance in the utilization of capital to produce results continue to be confused by the definition of performance. We must separate results and capital utilized from performance using Result-performance Management (R-pM) in order to define and manage the business. [more...].
