The 20th aeon action does not administer business reality! Business absoluteness is authentic by two entities:
– Results: The specific bread-and-butter outputs from the accumulation of the business
– Achievement Solutions: The invested basic accurately activated to aftermath specific results
The action accept to adapt and administer after-effects and achievement solutions in adjustment to adapt and administer business reality.
The abortion of the 20th aeon action to adapt and administer business absoluteness creates baffling management, business, and achievement problems. The 20th aeon action defines both the achievement solutions activated and the after-effects produced as performance. This awry analogue prevents administration of business reality. So, instead, we concoct assorted added methods as overlays on the business and administer entities like departments, jobs, positions, functions, and processes.
We abide to bury new methods and abode bags of books, but we accept never apparent the top 10 administration problems in the 20th aeon enterprise.
1. Reorganizations: We accept never organized the business. Instead, we adapt people, positions, power, and backroom and bury adamant apish alignment structures on the business. The business accept to acclimatize to the organization. Business change makes it added difficult to adjust, until there is a above about-face alleged the reorganization. We again concoct addition approximate alignment and echo the cycle.
2. Accounting and Banking Management: Historically, the action bare to assure banknote and so set up banknote and accretion accounting and banking management. Accounting and banking administration absorb this bequest and, consequently, anticipate avant-garde annal administration and absolute basic management. Accounting prevents banking annal on costs, amount created, and absolute basic worth. Banking administration concentrates on easy-to-manage banknote and banking investments and prevents administration of high-worth basic that is “administered” or is labeled as “intangible assets”.
3. Investment Analysis and Basic Development: The action is clumsy to catalog and plan the allowances of basic development investments, and is clumsy to administer development of allowances and acknowledgment on investments. Investment allowances are apish estimates that cannot be managed. There is no administration albatross for the appliance of developed achievement solutions, to ensure the return.
4. Administration: Administration performs functions, rather than bearing results, and prevents able basic management. The action invests in basic that ends up getting administered, rather than managed for benign utilization, continuing improvement, and a top acknowledgment on the investment.
5. Achievement Management: Achievement is authentic to cover not alone the accomplishments of performing, but aswell the after-effects produced. This agency that achievement and the after-effects produced are alloyed calm as key achievement indicators and in the assorted achievement administration methods employed. This analogue of achievement prevents the 20th aeon action from managing business reality.
6. Business Complexity: Every new method, re-engineered process, implemented system, blueprint of accounts, etc. is an bury on the business and adds to business complexity. Apish entities are managed preventing compassionate of business reality. New after-effects and achievement are added but are not managed as an action whole, for advance or abatement if not needed.
7. Advice Technology: Advice systems and solutions are managed as technology. IT covers strategy, planning, business application, technology, and architectonics management. This prevents one chip action action and chip business basic and support. The assorted basic requires abounding capabilities to manage, creating the CIO problem. Applications are managed as technology rather than as business solutions, and business change ends up in the abstruse backlog.
8. Change Management: We charge change administration because we blow change. We do not administer the business, human, and administration basic to be afflicted and activated for benefit. Change is through confusing projects, rather than as allotment of the routine. Change administration casework abode affection and do not break axiological problems.
9. Accumulated Governance: We try to break accumulated babyminding problems from the babyminding ancillary by deepening the problems in accounting, auditing, and acquiescence reporting. This is futile. The botheration can alone be alone from the accumulated side, by acclimation and managing business reality.
10. Alignment: Abounding methods accept been developed and abounding books accept been accounting on adjustment action with the business, advice systems with the business process, outsourced processes and centralized processes, actual assets and abstract assets, etc. This aswell is futile. We cannot adjust solutions with solutions. We can alone adjust solutions with their ascribe and achievement results.
These and added baffling administration problems are discussed in detail at www.businesschangeforum.com These problems can never be apparent by overlaying added apish 20th aeon methods, or by account books on convalescent the 20th aeon enterprise. All 20th aeon methods are now obsolete.
The action accept to be redefined as a 21st aeon action that is organized to advance basic in achievement to aftermath amount in results. Result-performance Administration (R-pM) provides the agency to body the 21st aeon enterprise, and leave all 20th aeon administration problems behind.