Governments are lost in devising measures to address the economic crisis

Governments are trying many measures to address the economic crisis. But, we can see that governments are unsure of measures to take, and that measures taken have no positive effect. One measure that no government has tried is to eliminate the actual problem that caused the crisis. That problem is the failure of all financial institutions, corporations, government agencies, and other enterprises to manage the actual business.

It is time to wake up to the failures of corporate management methods used today

The economic crisis shows the problems inherent in dead-end 20^th century management still propagated today by all business schools, business management books, and on-the-job experience. 20^th century management does not manage the business, but lays organization and management structures over the business. Actual business data in value and quality created, costs and effectiveness of performance, value-added across the business, capital worth (asset value), return on investments, and many other measures are unknown. Problems fester in the business hidden by structures laid over the business until they finally burst as sudden losses and failures.

Business management is the one solution to the economic crisis

The new structure needed for financial, corporate, and economic management has always existed. That structure is the business. Business management to organize and manage the actual business is the only solution available in the world to prevent problems within businesses, understand and manage financial solutions, report accurate accounting and business management information, consolidate businesses of a corporation, ensure good corporate governance, report actual business information to regulatory agencies, and provide government information for proper economic management. [more...]

The economic crisis shows the confusion in business, finance, and economic management

The economic crisis causes serious concerns about the methods for business, financial, and economic management. All of a sudden, banks, financial institutions, and other enterprises realize that they do not manage their actual business and finances. We see the impact in the worldwide economic downturn. The crisis has shown one thing conclusively. We do not understand fundamental business, financial, and economic management problems. Efforts to date are guesswork at ways to ease the situation.

We need a new solution to business, corporation, financial, and economic management

Continual business, financial, and corporate governance problems are caused by deficient 20^th century management used today to manage the enterprise rather than the business. Economic crises occur because businesses are not managed in concert with markets, demand, supply, and coherent government policy. But, no one knows real business management. Corrective actions address conventional enterprise management, and impose more government regulation and compliance reporting on enterprises.

Now is the time to wake up to the unsolvable problems inherent in 20^th century management that lays easily-distorted contrived structures over the business, preventing actual business management.

Business management is the fundamental solution to business, financial, and economic management problems

Business management is the only way to manage the actual business as the foundation for 21^st century corporate, financial, and economic management. Business management replaces overlaid 20^th century structures with one business structure. Information technology focuses on detailed business data on capital invested, economic output results produced, performance utilizing capital solutions to produce results, business descriptors, enterprises, and time periods for strategic planning for one accurate set of management information. Corporations are managed as consolidations of corporate businesses. Finances are managed as part of capital invested in the business. The actual business is manage and consolidated as part of the economy, in concert with markets, demand, supply, and government policy.

We must open our minds to the new business management solution needed

Business management often is rejected, as not the way things are done. But, we cannot continue to manage the enterprise as has always been done. We must open our minds to unsolvable 20^th century management problems and expose the actual business hidden under overlaid structures. The current recession is the ideal time to address the problem, while business is slow, capital solutions are under-utilized, the problems are fresh, and new solutions are being sought. [more...]

The fundamental cause of the economic crisis is the failure to organize the business in banks, corporations, and other enterprises

20^th century management used by banks,corporations, and other enterprises today lays a contrived enterprise organization structure over the business, instead of organizing the business. This is the fatal error of 20^th century management. If the business is not organized, the business cannot be managed. The enterprise must be managed by laying additional structures over the business. The overlaid structures prevent capture of actual business data and reporting actual business management information.

A rigid organization structure is contrived and goes out of alignment with every business change leading to the reorganization problem

The contrived organization structure follows one of many 20^th century organization theories to organize the enterprise. If the business is organized the business organization changes with each business change, and the unsolvable reorganization problem is eliminated. But, the rigid organization structure goes out of “alignment” with every new or closed result or change to a capital solution utilized. Eventually there is need for reorganization and change management to contrive a new organization structure that is closer aligned to the actual business, and the cycle is repeated. Reorganization does not organize the business, but produces a new rigid enterprise organization structure that is laid over the actual business.

The solution is to organize the actual business so that the business can be planned and managed

Real business management organizes the actual business in “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results”. The actual business does not consist of departments, positions, functions, reporting relationship and other contrived organization entities. The actual business consists of capital investments in the business to provide the solutions needed to produce economic output results from the business. The business structure is organized by implementing specific capital solutions to produce specific results. Business organization solutions are implemented to be responsible for sets of results. Human personnel solutions are implemented to manage each result produced. All structures laid over the business today are replaced by the one organized business structure. [more...]