20^th century enterprise management problems are caused by conflicts between the actual business and enterprise organization and management structures laid over the business. 20^th century enterprise management “solves” the problems by laying ever more-complicated structures over the business, and adding more information technology overheads to manage the structures.

Dead-end 20^th century management problems can never be solved by laying new structures over the business

For years and years, many management books and expensive solutions have been sold to “solve” 20^th century enterprise management problems by new or improved structures laid over the business. But the “solutions” only compounded the problems. 20^th century enterprise management is a dead-end. All 20^th century management problems remain unsolved today. All we have done is to make the enterprise more complicated and created a gigantic IT infrastructure that cannot capture actual business data.

Enterprises are now waking up to the problem and organizing the business for 21^st century business management

There is only one solution to the problems with dead-end 20^th century enterprise management. Each enterprise must organize the actual business for integrated 21^st century business management. 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 is organized as one business structure that captures actual business data and reports actual business management information. The strategic business structure plans the future business. The business structure replaces all the enterprise management structures now laid over the business. The enterprises now organizing their business will have continuing competitive advantage over enterprise burdened with 20^th century enterprise management, and the advantage will continue even after followers start to manage their business..

Today's enterprise uses a myriad of management structures and information systems creating enormous information complexity. Each structure and system defines its own set of data entities and reports separate information. Enterprise management information systems attempt to reconcile data and integrate information into meaningful reports for management. But, no system today captures actual business data and no management information system reports actual business management information.

The business must be managed to capture business data and report business management information

21^st century business management organizes the business in order to manage economic output results produced, capital investments implemented, and the utilization of capital to produce results, as complete data sets. The business is organized as one integrated business structure to capture data on the utilization of capital in specific solutions to produce economic outputs in business results. Business data is captured in an integrated Business Information Base to provide access to one complete set of comprehensive business management information.

Data is reported on all results produced, capital invested in solutions, and capital utilized to produce results

Data is captured on capital solution capacity, qualifications, worth, and return; performance capacity utilization, cost, and effectiveness; and the volume, value, and quality of results produced. Strategic results and the solutions needed are maintained in the strategic business structure with plans for time periods and updated strategic estimates. Complete and comprehensive management information is reported on the actual business for effective 21^st century business management and good corporate governance..

Enterprises implement information systems to manage the enterprise, not the business. The many enterprise structures laid over the business require a massive workload in data collection and information processing, and produce a wide range of information concerning various enterprise entities, much of it conflicting and inaccurate. This produces enormous information complexity and excessive IT resources. Enterprises must make additional investments in hardware, information management systems, and IT architectures to attempt to manage the complexity. All the information gathered and reported describes the enterprise. No enterprise today captures actual business data.

Business management captures actual business data and reports information for utilization by the business

21^st century business management organizes information as capital for support and utilization. Actual business data is captured and managed as sets to know value, all costs, capital worth, investment returns, etc. All information is related to the business for utilization to produce results and for control of business information. Enterprise information not related to the business is no longer processed or maintained. All emails, Internet searches and downloads, file transmissions, etc in or out of the business relate to a specific business data entity.

All information is managed as one consistent Business Information Base

All information used by the business is referenced to one of six data sets that control common attributes and subsidiary data entities. The information is organized into one consistent, complete, and accurate Business Information Base. Information systems are reduced to direct system solutions to produce specific results. Large IT resources for enterprise information systems, data reconciliation, enterprise information management, portfolio and hardware management, and special information management systems are no longer needed..

20^th century management used today does not provide a framework for proper capital development. Capital development develops specific solutions that must be utilized by the business. Capital development incurs the costs of development and sets up the cost of capital utilization. But today, capital is not defined and managed as a set of capital solutions available to the business. Capital is categorized as employees, fixed assets, intangible assets, etc.

Implemented capital is utilized in business performance to produce output results of value. Result development provides the benefits of development and the value-added that provides the return on investment. But today, results are not defined and managed as a set to be produced by the business. Some results are managed as separate items, such as product, sales order, revenue, etc. 20^th century management manages capital development separate from the business to develop certain known capital.

The business must be organize to enable result-capital development

21^st century business management organizes the business in results that must be produced for business success, capital that must be invested in the business to produce results, and performance in the utilization of specific implemented capital as solutions to produce specific results. Once the business is managed, it is straight forward to identify new results required to improve and expand the business. Once the business is managed, it is also straight forward to identify the capital solutions needed to produce the results. New result development and new capital solution development is planned and managed as part of the business..

An organized business reorganizes with each business change. There is never a need for an organization study. The generally-accepted definition of the enterprise business is the activity of providing goods and services.

20^th century methods of business organization and management do not organize and manage the activity of providing goods and services. An enterprise organization structure is laid over the business, immediately creating the unsolvable re-organization problem.

20^th century enterprise management used today is a dead-end

Since the business is not organized, the business cannot be managed. Additional enterprise management structures are contrived for the strategy, plans, business processes, accounts, systems, development, reporting, etc. The many structures create business complexity, and each structure defines the enterprise through its own entities, creating enormous information complexity.

There are unlimited ways to contrive enterprise organization and management structures. The overlaid structures conflict with the actual business creating the unsolvable 20^th century business organization and management problems.

A new breakthrough to organize and manage the actual business for the 21^st century

Now we have a new breakthrough to eliminate 20^th century problems by actually organizing the business and using the business itself as one integrated structure for 21^st century management. The knowledge and procedures to organize and manage the business is provided by Result-performance Management (R-pM). All business organization, planning, direction, control, reporting, and governance use only the current and strategic business structures. Structures laid over the business, conflicts with the business, and unsolvable problems are eliminated..

Unsolvable problems of 20^th century enterprise management with reorganization, alignment, costs, value, worth, investments, returns, intangible assets, complexity, etc are well known. What is not well known is the cause; the failure to manage the business. Solutions are prevented by conventional thinking that allows only incremental improvements in the way that enterprises have always been managed and prevents the thinking needed to manage the actual business to eliminate the problems.

Conventional thinking limits the worth of individual human capital

People need to go beyond conventional thinking to gain new capabilities and knowledge to increase their worth by producing higher value results. But conventional thinking prevents this, because the enterprise has never managed human personnel, capabilities, and knowledge as capital, never developed human capabilities as solutions to produce results, never managed result value created, and never managed the worth of human capital.

All the enterprise needs to do is to organize the business for a base of new conventional thinking in the 21^st century

But the enterprise cannot organize the business, defined as "the activity of providing goods and services", because it is not the way things have always been done. High-worth human capital must go beyond conventional thinking to learn the actual business and gain the breakthrough competitive advantages of 21^st century business management. If you can go beyond conventional thinking and increase your own human capital worth, look at organizing the activity of providing goods and services for 21^st century business management, and provide a new base for conventional business management thinking in the 21^st century..

Enterprises can compete today, not because they are efficient and effective, but, because they are all inefficient and ineffective. The enterprise is managed, not the business, which consists of “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results”. All enterprises today lay organization and management structures over the business that conflict with the actual business and cause unsolvable problems that can never be solved by laying new structures over the business.

The first to organize the real business for 21^st century management gain significant competitive advantage

The business consists of three components: capital investments made in the business in specific capital solutions of developed worth, output results of value and quality that must be produced for business success, and performance in the utilization of specific solutions to incur costs and provide effectiveness to produce specific results. Organizing the business for 21^st century management provides immediate competitive advantage.

Manage capital worth and performance to minimize costs and maximize result value-added and quality across the business

In a managed business all management and personnel know the solutions they must utilize effectively and the value and quality they must produce in results. Capital is developed only to increase result value-added and the worth of human and other capital. Result value-added and quality are managed along the chain to produce high value-quality customer results. The actual business is managed to quickly change capital utilized and results produced and to integrate with suppliers, business partners, and customers for shared value-added. This provides measurable competitive differentiation and advantage not possible today with 20^th century enterprise management..

Enterprises today are defined and organized in many different ways, making it difficult to collaborate and employ common solutions. Enterprises think that they have their own distinctive way of "doing business". But, no enterprise actually understands the real business or the commonalities that must defined, organized, and managed to manage the business.

The commonalities of all businesses must be understood in order to define the actual business and organize and manage the business

All enterprises businesses have commonalities that must be understood and used as the foundation to build strong businesses that can collaborate easily and differentiate specifically where beneficial. 21^st century business management is based on the commonalities of all businesses that must be defined, organized, and managed. From analysis of business commonalities, the actual 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 knowledge required to organize and manage your actual business is available today

Result-performance Management (R-pM) shows how to organize the business into a common business structure to utilize investments in standard categories of capital solutions in performance to produce specifically defined results. The common business structure enables collaboration and utilization of common solutions and services for all businesses. R-pM shows how to differentiate your business in the value-quality of result design and the cost-effectiveness of capital solutions utilized in performance to produce value-quality results..

Companies and corporations today are arbitrarily organized and managed through structures laid over the business. The business is not organized, actual business data is never captured, and real business management information is never generated, recorded, or consolidated to describe the actual company, corporation, industry, or economy in real business terms.

Businesses must be organized as business structures that build up to multiple-business corporations, industries, and economies

Businesses must be organized instead of companies or corporations. The business organization structure must define economic output results produced in chains of results across the complete business, all investments made in the business as specific human and other capital solutions implemented to produce specific business results, and the utilization of each solution to incur the costs and to create the value in each business result. The consistently-defined organized businesses can then be consolidated into the complete economic output results produced by a corporation, industry, or economy. All capital investments are managed to know and consolidate the return in result value-added to date and the capital worth (asset value) in the projected continuing future result value-added. The utilization of all capital solutions in performance to produce results are managed to know and consolidate all result volumes produced, performance costs, result value created, result value-added over performance costs, performance effectiveness, and much more vital and accurate business management information.

21^st century business management provides the structure required to manage each business and consolidate multiple businesses

21^st century business management structures each enterprise business to manage all capital investments, the performance of each investment in the business, and the economic output results produced from the utilization of specific capital investments. Enterprise businesses are consistently consolidated to the corporation business to record and manage all businesses within the corporation. Consolidation is possible for all the businesses in an industry, market, economy, or other business indicator against which enterprise business data is collected..

As we said in many previous articles, the current economic crisis is caused by one fundamental problem, the failure to manage the business. Many large financial institutions and corporations have shown that they are unable to manage the various parts of the corporation in various divisions, business units, and subsidiary companies scattered around the world. Managers today think that they are managing their business. However, no manager today manages his actual business. Managers manage the enterprise through generally-accepted structures laid over the business. These overlaid structures hide the business and prevent actual business management.

You must learn your actual business and the entities that comprise your business

The generally-accepted definition of the business enterprise "the activity of providing goods and services". The enterprise must manage the utilization of capital in business activity or performance providing high-value and high-quality goods and services as results for its customers in order to manage the business directly. 20^th century management utilized today does not organize and manage the enterprise business, but rather organizes and manages the enterprise through structures laid over the business. This causes many unsolvable problems with reorganizations, unknown investments and returns, unknown capital worth, unknown result value and quality, IT overheads, misleading management information, change management, corporate governance, business collaboration, and on and on.

Gain control of your business and abolish structures laid over your business

The only solution to the problem causing the economic crisis is to manage your actual business. You must organize and manage your business activity in the utilization of capital as specific capital solutions. You must organize and manage your goods and services as specific economic output results that are produced by the business. The business is then organized as one integrated structure for all management needs by utilizing specific capital solutions in performance to produce specific results. Actual business data is captured on result volumes, value, and quality produced by the capacity, cost, and effectiveness of solutions utilized in performance. You have one consistent set of clearly-defined management information on the current business and progress to the strategic business defined by a strategic business structure. You can manage cost-effective performance to produce high-value and high-quality goods and services as input results to the customer business. Corporations manage various divisions, business units, and subsidiary companies as businesses that consolidate up to the complete corporation business..