All companies today are burdened by the same 20^th century enterprise management problems

20^th century enterprise management used by all companies today contains significant competitive disadvantages. But, 20^th century enterprise management continues today, because all companies are burdened with the same costs and problems. The competitive playing field remains level, because no company organizes and manages the actual business. All companies lay organization, accounting, business process, administration, and other management structures over the business to manage the enterprise.

21^st century business management is vastly superior to 20^th century enterprise management

But what happens when one company organizes the actual business as one structure for 21^st century management, clears away all the unwieldy structures laid over the business, and eliminates unsolvable 20^th century management problems. That company jettisons excess costs, increases result quality and value-added, quickly develops and implements new capital, quickly introduce new and improved products and services, and reduce prices while increasing revenues. That company enjoys significant competitive advantage over companies still burdened with unsolvable 20^th century management problems.

The future competitive playing field will no longer be level. Where will your company be? Among the leaders managing the business for competitive advantage or among the followers, still struggling with unsolvable 20^th century management problems and falling further behind? [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 economic crisis and growing recession is caused by one problem: the failure to manage the business

20^th century management of all enterprises today lays organization and management structures over the business to manage the enterprise, rather than managing the business. This causes the fundamental problem in all enterprise management that has caused all previous crises and is the underlying cause of the current financial and economic crisis. The problem is the failure to manage the business.

The symptoms of current problems are numerous and complex. But, the problem is basic and simple. Today, all governments, enterprises, and experts are trying to understand the symptoms and to alleviate the symptoms. No one is trying to get beneath the layers of symptoms to solve the basic problem. The only real solution is to organize and manage the business to eliminate overlaid structures, capture actual business data, and produce one accurate set of transparent information needed to account for and manage the business.

20^th century management used today does not provide the information needed for business, financial, and economic management

20^th century management does not manage important result metrics like result value, result volume, result quality, result value-added, and result risk; important performance indicators like performance costs, capital utilization, performance effectiveness, and performance uncertainty; or important capital measures like investment costs, capacity, qualifications, reliability, investment return, and solution worth.

Financial institution and corporate problems invariably point to the lack of information on return on capital investments, planned and current capital solution worth, capital amortization in performance costs as solution worth declines, new product result value, planned future value-added from product results, and other information needs that are blocked by 20^th century management used by all enterprises today.

The only solution is to learn, organize, and manage the business for breakthrough advantage

To solve today's problems and prevent future losses, each enterprise must take advantage of advanced information technology (IT) to learn, organize, and manage actual business. 20^th century management used today evolved before IT and is a time bomb for all enterprises in the world. All enterprises either will experience continued losses due to the problems of 20^th century management or will lose out to competitors who are now organizing their business for 21^st Century Management.

The current and strategic business structures are managed for complete, consistent, and accurate 21^st Century Management information. The business provides a consistent and standardized architecture to summarize managed businesses into manageable corporations, industries, and economies for global financial, economic, and business management and future stability. [more...]

Information systems today report massive amounts of information, but no information on the actual business

Information complexity is a common outgrowth of contrived organization and management structures laid over the business. The organization structure creates entities for unit, position, job, function, manager, etc. Management structures create entities for objective, process, center, account, group, activity, responsibility, object, station, and on and on. Each generally-accepted structure uses different entities and different names and definitions for the same entity, preventing information integration and reconciliation. Although much work and many information systems are involved, no actual business data is captured and no actual business management information is reported for management use.

R-pM manages one set of consistent, complete, and accurate business management information

Result-performance Management (R-pM) utilizes modern information technology to organize the business for 21^st century management. R-pM stresses information quality to report one consistent set of information to manage the actual business. R-pM eliminates information complexity by organizing and managing the business through six information sets to define precise capital solutions utilized by the business, business performance, business results, business interactions, and business change over time. [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 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...]

Governments responses to economic crisis do not solve the problem

After every economic, financial, or corporate governance crisis, governments promise action to prevent problems from happening again. The actions invariably impose more regulations on enterprises, which increase management costs and complexity, and do not address or solve the actual problems. This weekend the Chief Executives of the top 20 developed and developing countries met to discuss the economic recession. They discussed actions to revamp international financial regulatory institutions, improve financial institution regulation, and to stimulate world economies. These actions do not address the fundamental problem or prevent recurrence of the same problems in the future.

There is only one problem to solve, the failure to manage the business

The fundamental problem underlying every economic, financial, and corporate governance crisis is the failure to understand and manage the business on the part of managers, accountants and auditors, and government regulators. The problems are inherent in 20^th century management structures laid over financial institutions, corporations, and other businesses that prevent actual business management.

There is only one solution, manage the actual business with R-pM

The solution to the problem is available today with Result-performance Management (R-pM) to assist businesses, professional bodies, educational institutions, business service and solution providers, and governments to institute and support proper business management. R-pM replaces 20^th century management structures laid over the business, with one business structure for 21^st Century Management. R-pM captures actual business data, not captured today, and provides the architecture to manage industries, such as the financial industry, markets, and economies as summaries of the businesses involved.

A government “Business Management Program” will prevent future problems and provide significant economic benefits

Any government response to the financial crisis or to provide economic stimulus should include a Business Management Program to solve the underlying problem. A group of governments or a forward-looking government must take the lead to institute a “Business Management Program” as discussed. Once one government establishes its country as the leader and begins the program, other countries will be forced to follow. But, the lead country will always have the advantages developed by the leader. [more...]

A Business Management Program benefits all participants

R-pM is a breakthrough to new competitive advantages. R-pM is implemented best as part of a coordinated Business Management Program to assist enterprises within a nation or region to organize and manage their businesses. The Business Management Program also promotes support from local management consultants, business service providers, professional associations, software and solution providers, accounting and audit firms, education institutions, and government business promotion and regulatory bodies. The Business Management Program instills confidence that beneficial longer-term measures will solve problems and prevent repeats. All participants gain in improved business management and new competitive advantages of R-pM and 21^st Century Management.

R-pM opens new opportunities for professional services and business software and solutions

R-pM implementation to date is piecemeal in certain forward-looking enterprises in various countries. The financial crisis has created a surge of interest in R-pM from enterprises, consultants, and solution providers. The interest in R-pM and Business Management Programs creates opportunities for service and solution providers to use R-pM as a basis for 21^st Century Management consulting, services, and solutions. R-pM users will be seeking services and solutions and R-pM will provide a directory of licensed R-pM consultants and solution providers. More enterprises will adopt R-pM to compete with managed businesses. This provides open-ended opportunities for 21^st Century management consultants, solutions, and services.

Governments, industries, and businesses improve economic management

20^th century management prevents Governments from understanding and managing economies, industries, markets, and businesses as part of one consistent and manageable structure. R-pM provides one uniform business structure to manage all economies, industries with an economy, businesses with an industry, and result sets within a business in terms of results produced and capital solutions utilized. Economies are viewed as result and capital solution supply and demand and individual result and capital solution markets. Business management reporting supports economic and financial management. Economic result and capital solution surpluses and shortfalls can be forecasted and resolved. Future business, financial, and economic crises are prevented and business and economic cycles are managed. [more...]

The current financial crisis is caused by failure to manage capital worth as part of the business

Governments encouraged creation of mortgage securities to enable banks to loan more money and poorly-secured mortgages to enable low-income earners to own homes. Investment banks bundled mortgages to sell as capital investment security solutions, with unsubstantiated "asset value" or, in business terms, capital worth. A dangerous situation grew as housing prices spiraled up, while the actual worth of capital investment solutions decreased, but could not be managed by 20^th century management or detected by 20^th century accounting. The unaccounted for and unmanaged decline came to light as borrowers defaulted and suddenly we have a world financial crisis. The financial crisis shows the very serious unsolvable problems and significant financial losses incurred in the way all business are managed today that are explained in every article in 21^st Century Management Magazine.

Now is the time to replace 20^th century management with R-pM to ensure proper business management and prevent future crises

All financial and other business crises are caused by poor business management. The good business management needed is prevented by 20^th century management used by all government, financial, and other enterprises today. The only solution available is to enable good business management with Result-performance Management (R-pM) by clearing away 20^th century management structures laid over the business and managing actual business data and utilizing actual business management information. Specific capital solutions invested in the business and capital solution investments by the business must be managed for value-creation, costs of utilization, return on investments, and changing capital worth that is not managed today. Now is the time for governments, financial institutions, corporations, and other enterprises to wake up to fundamental management problems and institute the only solution to organize and manage the actual business. [more...]

Past and current financial crises have been caused by failure to manage the actual business

All financial crises, corporate governance problems, and other problems due to inadequate corporate or financial institution management have roots in one fundamental problem, the failure to organize and manage the actual business. 20^th century management lays many structures for organization, strategies, account charts, processes, scorecards, etc over the business to manage the enterprise. The actual business in the cash expenditures for specific capital investments, performance costs from capital utilization, value created in results, and value added providing profits, capital returns, and capital worth is hidden under overlaid structures and never reported to management.

Enormous sums of money are used to cover up actual problems and restore confidence

No attention is being paid to eliminating the pervasive financial institution and corporate management problems that led to the crisis. The funds are used to pay a higher worth for the currently worthless and unsellable assets of those who mismanaged corporate and personal funds, and transfer the potential further losses and gains to taxpayers. In effect, we keep covering up the unsolvable problems of 20^th century management that have never been solved and can never be solved by more 20^th century management.

Governments should help enterprises manage their actual businesses to eliminate 20^th century management problems

The big change is the change in thinking required to put aside the lifetimes of misleading teachings and experience and visualize and understand the business as “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results”. Managing the business is common sense used by all to manage their personal businesses. The investment in managing the actual business is very small and recovered quickly in the added value-added of a managed business.

The cost of a government investment program to assist local enterprises to organize their businesses for 21^st Century Management is insignificant compared with the cost of bailing out companies and covering up the failures of 20^th century management. The program will provide transparent reporting of the business for management, shareholders, and regulatory authorities. The program will provide real economic boost in the new value created by organized and managed businesses. [more...]