Archive for April, 2009
Get your Business ready for 21st Century Management
April 20th, 2009Business management eliminates the cause of the economic crisis
Business management is the new breakthrough to organize the enterprise business for 21st century management. Business management captures actual business data and provides actual business management information not available to management today. Business management eliminates the unsolvable problems that caused the economic crisis such as intangible assets, unknown costs and value creation, unknown capital worth and investment returns, financial management through structures and models instead as part of capital management, lack of business management information, inability to manage the corporation business as the sum of corporate businesses, and lack of a consistent structure for economic management.
Business management is real business transformation, not a structure laid over the business
Business management is not another business change or transformation methodology that lays structures over the business like business process management, business performance management or quality management. Business management is the final business transformation. Once the business is organized the business organization changes with each business change and the actual business is planned, directed, reported, and governed.
The knowledge is available today to learn, organize and manage the actual business
The recession provides the ideal time for the transition to business management, when business is slow and management time and resources are available. Forward-looking enterprises are now organizing the actual business for significant competitive advantage to flourish when the economy recovers. Many immediate benefits are gained by learning the business to be ready to organize the actual business. Business management is applied immediately to any business change or capital development project to prevent undesirable change or mismanaged investments. The knowledge needed to manage the actual business is provided by Result-performance Management (R-pM) through the Business Management Toolkit and the R-pM websites. [more...]
Manage capital worth to prevent business loss and improve stakeholder gains
April 16th, 2009The inability to manage capital worth is a large problem that contributes to the economic crisis
Many financial institutions and corporations cite the inability to know and manage "asset value", which is actually capital worth, as a contributor to the economic crisis. Usually, capital worth is not managed until it comes time to sell or liquidate the asset, when the actual worth turns out to be much less than worth in the books causing large and sudden write-downs. In other cases, corporations are forced to state the worth according to an arbitrary rule like "mark to market", which may not reflect the plan for utilization of the asset in the business.
The business must be managed to manage capital solution worth as part of the business
Corporations do not manage the business today, so capital worth cannot be managed as part of the business. Capital is not managed as specific solutions utilized to produce results of known value, with many solutions unknown or labeled as intangible assets. Results are not managed as a set to determine the costs absorbed and value-added in the utilization to produce the result and value-added in the disposal of the solution, which determines the worth of the solution.
Total capital worth and result value-added must be managed to manage total business worth
Since capital solutions and results are not defined and managed as data sets today, actual business data cannot be captured and actual business information cannot be reported to management. This includes the positive worth of asset and negative worth of liability solutions utilized by the business, which adds up to the total business worth. The total business worth is also assessed by the total result value-added to be produced by the business over the future business payback period at the cost of capital or other return desired. This again can only be estimated in an unmanaged business. [more...]
Build strong Business Structures to prevent future Crisis
April 2nd, 2009The economic crisis arises because there is no structure for business, corporate, industry, financial, and economic management
All corporations, financial institutions, governments, and other enterprises today have no structure for business, financial, and economic management. Instead of organizing and managing the actual business, enterprises lay organization, plan, account, process, performance, function, quality, and other structures over the business. The actual business cannot be managed and is hidden under the overlaid structures. The changing business conflicts with rigid structures causing unsolvable 20th century management problems and the fundamental problem underlying the economic crisis, the failure to manage the business.
Business Management provides a firm business structure that changes with business change and will never be obsolete
Business management is the only solution to the economic crisis, being experienced around the world today. Business management organizes the business to build a strong business structure for any enterprise or group of enterprises. The actual business is “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results”. The business structure is built from the capital investments in the business to define specific solutions available. The business structure is built from the economic output results that must be produced across the business for success. The business structure is built from performance domains that implement specific capital solutions to produce specific results. Capital solutions, results, and performance domains are the three components of the business, and must be managed as complete data sets.
The business structure generates actual business data and provides complete and accurate management reporting
The business structure generates actual business data each time a volume of results are produced and maintains totals by performance domain, result, and capital solution. The business structure reports one set of complete and accurate business management information not reported today. Corporations can organize all corporate businesses to build one organized corporation business structure. Governments can undertake Business Management Programs to organize businesses and build comprehensive structures for industry, financial institution, economic sector, and economy management. [more...]
