The conventional 20th century enterprise faces many unsolvable performance problems, because invested capital solutions utilized, performance in the utilization of solutions, and results produced are mixed together as performance and are not specifically defined and managed. Performance problems arise because performance is defined to include the utilization of capital in actions executed and the output result accomplished. The definition of performance is the main cause of performance problems. Result-performance Management separates results from performance for 21st century management

The problems can only be eliminated by separately organizing and managing capital utilized in performance, performance in the utilization of capital to produce results, and output results produced from performance through Result-performance Management (R-pM). R-pM organizes, plans, operates, develops, and reports results, capital, and performance as separate components of the business. Result-performance Management provides one integrated business structure to organize and manage the business for the 21st century and leave unsolvable 20th century performance problems behind. The 20th century enterprise has always faced unsolvable problems

Since capital utilized, actions executed, and results accomplished are mixed together as performance, all problems in capital utilized, actions executed, and results accomplished are called performance problems. We all have experience with unsolvable performance problems that the 20th enterprise has to work around today: - Periodic reorganization and upheavals, because the business is not organized - Faulty investment analysis because benefits cannot be itemized - Unbeneficial capital development, because unknown benefits are not managed to gain the return - Unmanaged capital, intangible assets, unknown costs, unknown value, distorted capital worth - Performance management methods that do not manage performance, because performance is not properly defined - Contrived value management because the creation of value is not understood and managed - Misleading cost management because many performance costs are not known and costs are charged to the wrong entities - Inaccurate and incomplete financial recording because recording is dictated by principles and does not record the actual business - Corporate governance based on distorted financial reports and arbitrary compliance rather than accurate management of strategic value - Alignment problems aligning strategies, processes, systems, outsourcing, technology, etc with the business because the business is not defined - Quality focused on final products because of hard-to-define performance quality along a process - Barriers to collaboration due to lack of means to determine shared costs and values - Re-engineered business processes that hamper capital, quality, and cost management and prevent creation of value chains - Business complexity due to various overlaid structures that do not fit together as one whole and obscure the view of the business - Auditing to ensure that rules are followed, and no one looking at how capital is utilized to produce results and reach objectives - Insufficient information because information abounds, but does not directly describe the business and is not managed as capital to provide benefit - Unmanaged capital because high-worth information, intellectual, and management capital is labeled as intangible rather than being managed to understand its worth as part of enterprise worth and its performance costs as part of enterprise costs These are just some common performance problems arising from combining capital and results in with performance. 20th century problems, caused by conflicts between structures and the business, can never be solved by more overlaid structures

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