The only Way to Organize and Manage your Business

Manage Performance Utilization, Cost, Effectiveness, and Uncertainty

Optimize capital solutions utilized in performance to produce results for many benefits of 21st Century Management

The enterprise business operates through the utilization of capital solutions in performance to produce results. Capital solutions and results interact for good and for bad depending on how well the business is managed.

Business management manages the performance for all capital solutions utilized in one performance management dimension and the results produced in the second result management dimension. The main benefits of 21st Century Management comes from managing and optimizing each capital solution utilized in cost-effective business performance to improve the value added and quality of the business result produced along result chains and across the business.

What is Business Management?

Business Management manages the relationship between capital solutions invested in the business, the utilization of capital solutions in performance, and the results produced by the business. Business management invests in and develops qualified solutions to produce high value-quality results through cost-effective performance.

The business is organized as an enterprise Business Structure that is like a spreadsheet, with the Result Structure organizing results in columns across the top and the Capital Structure organizing capital solutions in rows down the left side. Each capital solution is implemented in a specific cell, or performance domain, in the Performance Structure to be utilized to produce a specific result, for every result that utilizes the solution. The domain captures actual business data on the capital solution utilized, the performance of the solution, and the result produced.

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The performance domain (Result-Solution) is updated for indicators against expectations each time a volume of the result is produced, and a business transaction is generated to update facility records. The result column totals all of the capital solutions utilized to produce the result to update result metrics against value and goals. The performance row totals all the results produced trough utilization of a capital solution to update capital measures against potential.

The power of Business Management

Business management manages and improves the relationships between results, capital solutions, and performance, for each performance domain in the business structure. Business management prevents the problems that caused the economic crisis through such 21st century business management principles as:

  • Define the value for each result in a chain from input results that the enterprise pays for through the output result values that internal customers pay. The total value of all results in the chain cannot exceed the final result value that the external customer is willing to pay
  • Capture all performance costs for all solutions utilized against the value of the result
  • Capture actual performance costs for human personnel time, facility cash and supply, and service or outsourced solution consumption, and generate performance costs to amortize the investment in acquired or developed solutions, as solution worth declines
  • Implement a result manager to manage the utilization of all solutions to produce a result volume and meet result goals
  • Utilize a performance manager for each solution to support solution implementation and utilization
  • Ensure positive result value-added by increasing result value, reducing performance costs, replacing ineffective solutions, or closing low-value results
  • Manage effectiveness as an attribute of performance to ensure that every solution deployed is the qualified solution for that result, and can perform effectively to produce a high-quality result
  • Define quality determinates and standards for results to manage each result produced to prevent or quickly identify defective or sub-standard results and to keep defective results out of the value-quality chain
  • Balance the volume of results against capital solution capacity to ensure that needed result volumes can be produced by utilization of the lowest-capacity solution, and to minimize over-capacity in other solutions
  • Manage the risk that a result may not come out as planned by modifying, hedging, or insuring the result, and by managing internal and external performance uncertainty through checks and back-ups on capital solution reliability
  • Manage all new or improved results in capital development and business change to ensure that the investment in capital solutions is justified by itemized result value-added over the payback period
  • Substantiate new investments and business change through new result goals accepted by result managers that require utilization of new capital solutions to add value to results to gain the payback
  • Manage the full capital development investment in the project business structure by managing the capital utilized in the project to develop and implement every new solution as a project result
  • Develop new capital solutions as results in capital projects to capture all development and implementation costs to set up the investment amount and the beginning balance to be amortized
  • Amortize each capital solution investment over the payback period, as performance costs, charged to results produced to manage result value-added and the return the investment
  • Attribute the result value-added contribution by capital solution utilized for the gain or loss on the solution investment to date, and the result value-added in future utilization and disposal to update solution worth

If you understand these principles, you will have an idea of the immense power of business management to optimize results and performance, and to provide breakthrough competitive advantage. Virtually every enterprise wants to employ these principles today, but cannot because the enterprise does not organize and manage the actual business.