The economic crisis is caused by the failure to manage the business and results as part of the business

The business is “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results”. In order to manage the business, three components of the business must be managed; the capital investments in the business as capital solutions of worth, performance of the business in utilization of specific capital solutions to incur costs and produce specific results, and output results of managed value and quality produced across the business.

20^th century management utilized by all corporations, financial institutions, and other enterprises today do not identify or manage specific capital solution investments as a complete data set and do not identify or manage specific output results produced as another data set. Financial institutions are not able to manage "asset value" in the worth of solutions in their investment portfolios. Corporations are not able to manage diverse businesses within the corporation as part of an integrated and managed corporate business. These are examples of causes cited for business failures and downturns that caused the economic crisis.

Result-performance Management organizes and manages the actual business and results as part of the business

R-pM organizes and manages one integrated enterprise business structure. The business structure is comprised of the result structure to organize and relate results required for business success, the capital structure to organize capital solutions available, and the performance structure to implement the capital that is utilized to produce specific results.

The key component of the business structure is the result structure that organizes economic outputs to be managed for the volume, value, and quality that lead to revenue, profit, and stakeholder value results. All enterprise management responsibilities are to produce specific results. Strategies are organized by the strategic results to produce in the strategic result structure. A well-managed enterprise business must manage the value and quality of all results produced by the utilization of specifically-qualified and cost-effective capital solutions. [more...]

The economic crisis shows the failure to manage capital investments and utilization

The economic crisis shows the importance of managing capital properly. But, businesses today use 20^th century management and cannot manage capital in the set of solutions utilized by the business in performance to produce output results. Capital is lumped together as a fixed asset, developed but never identified as capital, or is labeled as intangible assets. The business does not know the amount invested in solutions, costs of utilization of capital, the worth of capital available, the specific utilization of capital by the business, and the actual return on the capital investment.

Managed capital shows investments and return, performance costs, and worth by solution

All tangible and intangible capital must be identified and organized as the specific solutions available to the business to produce specific results and to record all investments in the solution. Capital solutions are implemented when deployed to a result to set up a performance domain to record business transactions. Capital solution utilization generates business data on solution performance costs, performance effectiveness, result value-added, and other data not captured today. Result value-added by solution provides return on investment and establishes the worth of the solution.

Capital must be managed as part of the managed business

The economic crisis is caused by failure to manage the business. Financial institution cannot manage asset-value, which is actually capital solution worth. Corporations cannot manage costs or margins, because capital solutions are not identified and result value-added is unknown. Corporate financial statements record partial capital in balance sheets and report erroneous business net worth. The only solution is Result-performance Management (R-pM) to organize the business, and capital as part of the business, for 21^st Century Management, and leave 20^th century management problems behind. [more...]

The economic crisis shows the problems with 20^th century Business Process Management

Financial institutions and other corporations state that they have problems due the the failure to manage asset value, full operating costs, and the margins in outputs produced. This is part of the basic problem causing the economic crisis, failure to manage the business. One of the major features of 20^th century management, Business Process Management, prevents management of the business. Corporations must manage processes and cannot manage specific capital investments, output results produced, and the performance of capital solutions utilized to produce a result.

Business processes must be replaced by result chains to manage costs, value, and quality

Rule 2 for 21^st Century Management is to: Generate revenues from a chain of known value. The rule says to define the results produced and manage each result in the result value-quality chain; starting from input results from the supplier, proceeding through result value added along the corporate chain, and ending at the final result to the customer. Business processes used today do not allow this. The corporation must redefine business processes by identifying the results produced and the capital solutions utilized within the process to isolate the most cost-effective performance to produce the highest value-quality result. Results must be managed result by result within a set to produce the input result to the customer value-quality chain.

R-pM manages result value-quality chains as part of the managed business

Result-performance Management is the only method to manage the corporate business and result value-quality chains to know full costs to produce a result, the value of the result, the value-added by performance as well as capital solution qualifications, performance effectiveness, and the quality result by result in the chain. R-pM ensures that customers receive managed value and quality in goods and services from the corporation. [more...]

The coming prolonged recession provides the opportunity to replace dead-end 20^th century management

21^st Century Management Magazine explains the unsolvable problems with 20^th century management used today that caused all past crises as well as the current crisis. The crisis is also the opportunity to replace 20^th century management with breakthrough 21^st Century Management to organize and manage the actual business, businesses within a corporation business, and businesses within an industry, market, or economy. Result-performance Management (R-pM) provides the foundation for a Business Management Program to manage businesses, financial capital, and economic cycles properly to prevent future crises.

R-pM is the only solution for business, financial, and economic stability

R-pM organizes the actual business for 21^st Century Business Management. Finances are no longer managed by separate structures, but are managed as part of all corporate or financial institution capital. Corporations are no longer diverse entities, but are businesses that are part of the corporate business. Industries, areas, sectors, and economies are businesses that are built up from component businesses. Economic management is based on business and consumer result demand and supply and capital solution demand and supply and builds up from organized businesses in an industry, area, or sector.

Governments can stimulate and recover their economy through a Business Management Program

A free download available to R-pM Community Members at result-performance-management.com “A Government Business Management Program to Answer the Economic Crisis” outlines the need, content, and advantages of the program. A forward-looking government has to opportunity to lead the world to solve the economic crisis and prevent future crises. The Business Management Program is the only concrete solution to build confidence that action is underway, to provide the near-term economic stimulus, and to implement competitive advantages for breakthrough long-term growth. [more...]