Month: September 2023
Throughout the 20th century, various business methods for operating and developing the company have been contrived and refined, becoming the conventional business methods that we use today. We improve management and effect business change by laying new contrived business methods and structures over the methods in place. Even with all the improvements, we continue to have fundamental problems with re-organizations, intangible assets, accounting limitations, cost control, information management, alignment, etc. Even with all the business organization and management methods, we still have not found the one right method to organize and manage the company business.
Until now. Result-performance Management, newly launched in 2008, provides the one right method to organize and manage the business in the 21st century company, and leave problems with 20th century business methods behind.
Conventional business methods are the generally-accepted wrong ways
Over the past decade, we implemented breakthroughs like business process re-engineering, business transformation methods, business performance management, and enterprise resource planning. But, these turned out to be just new names for conventional business methods to do the same old things.
Why are there so many different business methods to do the same thing? Why isn’t there just one right business method? It is simply because all of these different business methods are wrong methods, and we do not know the one right business method. Since all the different business methods we use are wrong, we can only define the right method by identifying the wrong methods that are generally-accepted. The basis for our management and accounting methods is not that they are the fundamentally-sound and understood right business methods, but that they are the generally-accepted wrong business methods. When we come up with the one right business method, it will be known and accepted, and all of the wrong business methods will be obsolete.
Conventional thinking prevents the new breakthrough needed
Since the beginning of business, no one has ever stopped to think, “Are the business methods that have always been used the best business methods”. We accept existing business methods as the basis and try to improve the methods.
New business methods contrive ways to alleviate the symptoms of fundamental problems inherent in the way things have always been done. This we can do ad infinitum without ever solving the problems. How many methods do we have and how many books have been written about corporate governance, business organization, change management, investment management, capital development, performance management, cost and value accounting and management, solution alignment, intangible assets, business collaboration, etc. Why do we keep coming up with new business methods, if previous business methods were supposed to have solved the problem?
Management improvement books are written using the existing body of knowledge or published record as the valid basis. Many of the books cut, reorganize, and paste what has already been written. Other books describe innovative ways enterprises are coping with contrived business methods. These approaches prevent new breakthroughs and can, at best, produce some incremental improvement.
Conventional 20th century business methods do not organize and manage the business
The problem is that conventional business organization and management methods do not organize and manage the business. Instead we contrived business methods to organize and manage people, departments, functions, activities, duties, positions, tasks, and numerous other entities. Each business method defines these entities in its own way. Each method is laid over the business obscuring the actual business and compounding the problems of business change. The many different business methods describe the company with different entities and definitions creating information complexity and proliferation of information systems.
The organization structure is laid over the business. The business changes, while the organization structure remains rigid, building pressure for reorganization and upheaval. Other business methods and structures are laid over the organization structure. The actual business lies hidden under a proliferation of methods.
We need one right way to organize and manage the business
We need to step back and take a completely new look at the basics of our company business and build the one right method to organize and manage the business. Conventional business organization and management methods manage contrived entities, but fail to specifically define the business and manage specific business entities.
The business definition is investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results. Conventional business management methods do not identify and manage the three entities that define the business and must be managed:
1. Results: Specific economic outputs of value and quality produced at any level from business performance
2. Capital: Specific invested capital available as solutions to be utilized in business performance
3. Performance: Utilization of a specific solutions of worth to incur costs to produce specific results
These three entities are used in Result-performance Management (R-pM) to organize the company. Any other entities used must be defined in terms of results produced, capital investments as solutions, and performance in solutions utilized to produce results.
The business organization changes naturally as results are added, changed, or deactivated. The business organization changes with each new capital investment to implement solutions or to discontinue old solutions. Human capital personnel and capabilities are deployed as solutions where they have the capability to manage and produce results. Other capital is deployed as well as specific solutions to be utilized in performance to produce a result. The business organization changes with each redeployment of a solution to be utilized in performance to produce a result.
R-pM is the new breakthrough needed to organize the business
R-pM is a new breakthrough that defines the results that enterprise management wants to produce and adds and deletes results as needed. R-pM defines the capital utilized as solutions in performance, to show how costs are incurred. R-pM deploys solutions to be utilized in performance to the results to be produced to show total performance costs against the result value created.
Once the organization is simplified, R-pM manages the enterprise in three dimensions for ongoing advantage
1. Result: Manage economic output to reach revenue goals
2. Performance: Manage invested capital in performance to reach profit-margin goals
3. Management: Manage operation and development goals by time period for return and strategic value
R-pM develops new capital solutions over time to create value in new results. R-pM governs the company business performance over time to create strategic value.
R-pM is one simple integrated business method for 21st century management
R-pM removes conventional business complexity and provides one simple integrated business method that eliminates re-organizations, intangible assets, misalignments, ad-hoc development, change management, and unknown costs. R-pM enables strategic value creation, result value-quality chains, transparent governance, innovation technology management, beneficial development, cost and value accounting, result-performance optimization, business collaboration, consulting professionalism, solution-sharing, and many other advantages prevented by 20th century business methods.
When we employ R-pM, we have the one fundamental right business method to organize and manage any enterprise for 21st century management, and leave all the obsolete wrong business methods and unsolvable 20th century problems behind.
Much has been written about the attainment of rosy status for businesses, however many business related personnel have never heard the business management consultants phrase of rosy business.
In its basic format, this phrase is consultancy jargon for a newly developed business, or one which has been trading for typically less than 3 years. A business which has obviously survived the very high percentage of failed businesses rate, and has attained some level of business growth.
Typically in relation to business development, business consultancy firms and many an individual business consultant suggest that a rosy business generally finds itself positioned very firmly at the financial tipping point.
Most businesses blocked at the tipping point generally seek outsourced consultancy expertise to drive their business into exponential business growth.
Historically most businesses strive for rapid growth in sales and profitability and therefore continuously looks for business development and growth opportunities. With the availability of resources such as the Internet, the world has literally shrunk into a global village and businesses have a tremendous potential to market their products to the entire world.
However, in order to succeed, every business organization needs to ensure that business performance parameters which reflect the overall condition of the business are healthy or rosy in other words. Rosy business top 5 secrets to a successful business outlines this concept.
Many small and medium business enterprises today have an opportunity of working with large global business corporations which select their suppliers and business partners based on various business parameters which reflect the true picture of the business.
Being a rosy business is all about maintaining healthy business parameters like financials, employee satisfaction, quality certifications and quality performance, commitment to protection of environment, safety etc.
It is necessary that the business organization is capable of demonstrating its commitments and efforts on all these fronts to its client organizations. Only those businesses that demonstrate their ability and commitment to maintaining healthy business parameters and continuous improvements in all business areas will succeed in growing their businesses.
A large number of business organizations engage the services of business management consultants for strategic business consultancy improvement initiatives and also get their management teams to go through different business training courses to ensure their teams remain well updated.
Business consultancy firms provide vital inputs to business organizations in many different areas such as product and process quality improvement plans, lean manufacturing, lean supply chains and other important business functions. Many business consultancy firms place increased emphasis on continuous improvements and process reengineering which has helped many small and large business corporations improve their business parameters to the levels comparable with those of the top world class corporations.
Rosy Business Top 5 Secrets To A Successful Business #1 Business Vision
Most business consultancy firms and business management consultants suggest that without a business vision it is unlikely that the business would have achieved rosy status in the first place.
Irrespective of the prior business vision, it is wise to understand that if you have contracted an outsourced business consultant because you find your business is blocked at the financial tipping point, then you need proven business development and successful business management skills.
One of the first things a proven growth consultancy specialist will outline is that the original thinking which got your business to where it is today is unlikely to be the same thinking to grow your business beyond the financial tipping point. One aspect to be considered for your senior staff is the provision of business training courses.
Rosy Business Top 5 Secrets To A Successful Business #2 Business Growth
Any aspect of business development and business growth is a major undertaking and one which should only be implemented after serious research and consultancy advice from one of the proven business consultancy firms.
Not every business consultant is skilled in achieving business growth and the successful business management skills required to manage that growth.
Many professional business management consultants advocate that every member of the business team attend business training courses directly related to the business growth strategies planned for the business.
Rosy Business Top 5 Secrets To A Successful Business #3 Business Development
The provision of business training courses and the participation of every employee in the business, grants a bottom up, top down insight into the businesses new growth vision.
Business consultancy firms and business management consultants understand the difficulties of business development and the subsequent issues involved in successful business management.
Every business consultant providing business development consultancy knows that one of the most difficult aspects of taking a rosy business into a truly successful business is the change factor.
Many directors and employees find change very difficult to cope with. This is widely accepted in Business consultancy firms as taking people out of their comfort zone is always problematic.
Rosy Business Top 5 Secrets To A Successful Business #4 Business Training Courses
Many business owners wince when business consultancy firms or business management consultants recommend business training courses. A number of small to medium business managing directors feel there is no need for business training courses, because they have personally never attended any business related training programmes themselves.
This is often a huge barrier to business development and company growth for a business consultant who likely knows that approximately 97% of all small to medium size business managing directors have received no business, or no academic business management training.
Many of these MD’s feel threatened by the fact that their workforce may become more qualified than them. Consultancy may map out your strategic business growth plan, but without providing professional industry specific business training courses they may be unable to provide ongoing successful business management.
Rosy Business Top 5 Secrets To A Successful Business #5 Successful Business Management
It’s a fact that it is no use outsourcing the best business consultancy firms or contracting the finest business management consultants who deliver the most professional business training courses to kick start your business development if your business does not retain a proven business consultant to implement successful business management strategies to ensure long term sustainable business growth.
Although consultancy is a great help in achieving business growth beyond the financial tipping point it is no substitute for having a proven expert nurturing your successful business management.
Think of building the world’s greatest ever cruise liner, investing millions of pounds in the research, planning construction, fitting out and staffing the liner. Then stocking up on food and drink required for high fee paying customers, and then sourcing these customers.
And finally after years of hard work and millions and millions of pounds the harbour master pilots the ship out of the harbour and then hands over control to a captain who has never sailed a ship before. It’s clearly a plan that is pre-programmed for failure; in fact it’s almost one of Titanic proportions.