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...]

Unsolvable problems have persisted throughout 20^th century management leading to the current crisis and recession

Throughout the 20^th century, we have had continual problems with re-organizations, business complexity, intangible assets, alignment, change management, unknown costs and value, unknown capital worth and returns, ill-informed corporate governance, and so on. These unsolvable problems are the underlying cause of the financial crisis and recession. Thousands of new methods have been contrived and books have been written to solve 20^th century problems once and for all. So, why do we still have the problems?

The top ten problems of 20^th century management arise from failure to organize and manage the business

We have only one fundamental problem in 20^th century management. The business has never been organized and managed. We organize people into an organization structure that is laid over the business. We then lay more management structures for strategy and planning, accounts, business processes, performance management, administration, etc over the business. The 20^th century change management approach is to improve the overlaid structures or to lay more structures over the business. The government response to business, financial, and economic problems is to impose more regulations and reporting on the business. No one addresses the well-known 20^th century management problems.

The unsolvable problems must be eliminated by organizing the business with R-pM for 21^st Century Management

The only solution is to eliminate unsolvable 20^th century management problems by organizing the actual business as one business structure through Result-performance Management (R-pM) for 21^st Century Management. R-pM organizes, plans, directs, controls, reports, and governs the business through the current business structure and result goals by time period leading to the approved strategic business structure. The business structure provides the architecture for organizing all businesses in an industry and all businesses in an area or sector of the economy; so the government can manage businesses in an industry, such as the financial industry, and businesses in an economy. [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...]

20^th century management used today does not organize or manage the business

Corporations, banks, and other enterprises do not organize the business, but lay a contrived enterprise organization structure over the business producing unsolvable reorganization and other problems, preventing business management, requiring other rigid structures for enterprise management, and causing enormous unknown financial losses.

Result-performance Management provides the means to organize and manage the actual business

The business organization must be professionally-managed capital that structures the actual business. When the business is organized the business can be managed. Result-performance Management (R-pM) organizes the actual business so management can plan and manage the actual current and strategic business and utilize actual business management information to foresee and avoid problems and improve business profitability significantly. R-pM enables owners and shareholders to know actual capital development, capital utilization in performance, and results produced leading to shareholder value results.

R-pM provides the transparent business structure for accounting, auditing, and government regulation

R-pM enables accountants to record actual result value, performance costs, capital worth, and investment returns; enables auditors to evaluate result value creation, examine capital utilization, and assess capital and overall business worth; and enables governments to regulate transparent business management. The only way to provide proper business management, professional assessment, and government reporting to prevent financial and business management crises is to organize and manage the business with R-pM. [more...]

Many methods and books have addressed the alignment problem, but the problem remains unsolvable

The 20^th century enterprise has contrived many methods and spent enormous sums to solve the alignment problem inherent in aligning performance with performance. Even after all this, the unsolvable alignment problem remains. In an early Article, we identified alignment as one of The Top Ten Problems with 20^th Century Management.

The alignment problem can be solved only by organizing the business to align capital utilized in performance with the result produced

The solution to the alignment problem is very simple. Follow the first rule of 21^st Century Management; organize and manage the business. Result-performance Management (R-pM) organizes the business in economic output results produced, investments in capital solutions to produce results, and the deployment, alignment, integration, and utilization of specific solutions to produce specific results. Capital solutions utilized to produce the same result are aligned. [more...]

Today's enterprise cannot manage the business in capital, performance, or results

Today’s enterprise cannot manage the business, since organization, process, account, activity, human resource, and other rigid management structures are laid over the actual business. The business consists of capital invested as solutions in the business, business performance in the utilization of capital solutions, and output results produced by business performance. Structures laid over the business conflict with the real changing business causing unsolvable 20^th century management problems.

Capital, performance, and results must be organized to organize the business

Result-performance Management (R-pM) organizes the business for 21^st century management. R-pM organizes capital as business, human, facility, and management solutions. R-pM organizes results to produce revenues, manage and support capital, and manage and develop the current to strategic business. R-pM organizes performance to utilize specific solutions to incur costs to produce value in a result.

R-pM manages the business in three dimensions: result, performance, and management

R-pM manages results produced across the business to provide value and quality to customers and reach revenue result goals. R-pM optimizes performance for each capital solution utilized to produce results to provide high-worth solutions that produce result value and quality at a controlled cost to reach profit margin result goals. R-pM provides management over time to manage and collaborate in value-quality chains, to plan and manage capital development and result value-added benefits, and to govern the business to reach strategic value result goal [more...]

R-pM organizes business results, capital, and performance in one business structure

Result-performance Management (R-pM) organizes and manages one integrated enterprise business structure. The business structure is comprised of the result structure to organize and relate results to be produced, the capital structure to organize the capital that is available to produce specific results, and the performance structure that shows specific performance solutions deployed with rules and exceptions to produce specific results.

The capital structure organizes capital available as performance solutions

A key component of the business structure is the capital structure that organizes enterprise capital as specific performance solutions that are available to produce specific results. Capital is categorized to be managed properly by the specific human capabilities needed. Capital is classified by the way it must be integrated and utilized to produce results effectively. Organized capital is defined as modules for easy deployment to a new result and replication to define capital needed for a similar result set.

Performance Management manages the deployment of qualified solutions to produce results

R-pM replaces administration, undefined capital, and intangible assets with Capital Management get the most out of all capital and know and manage the return on all capital investments. Performance Management manages the deployment of capital from the capital structure to the performance structure to provide qualified solutions needed to produce specific results effectively, to know all costs against result value, to manage the capacity producing a volume of results, and to manage the effectiveness needed for high-quality results.

A well-managed enterprise must manage the cost, capacity, and effectiveness of all capital in order to produce value-quality results. The enterprise can use R-pM to reduce costs significantly, know and improve capital worth, and ensure beneficial capital development investments [more...]

Information systems gather corporate data that is irrelevant to the business

20^th century information systems do not capture business data or provide the information needed to manage the actual business. 20^th century information systems manage organization and management structures laid over the business. Management structures are arbitrary and define inconsistent data entities. Data on hundreds entities must be recorded throughout the corporation, and then processed and managed creating information complexity and providing mountains of confusing information.

R-pM organizes the business to capture actual business data

The objective of 21^st century management is to organize and manage the business of the corporation. Result-performance Management (R-pM) directly organizes and manages the business to record actual business data and report business management information that is not available today. Timely integrated information solutions are delivered to produce specific business and management results. The business is defined by three information entities and managed through six information sets.

Business management information is used to manage the business directly

R-pM provides actual business management information on the worth and return of capital investments, utilization of capital in performance to incur costs and produce results, and results of value produced by the business. Once actual business information is provided, corporate information provided by overlaid 20^th century structures becomes irrelevant and can be abolished. 21^st century management can then concentrate on managing the business [more...]

R-pM defines actual business organization and management

R-pM provides the concepts, procedures, and learning so that any enterprise can organize and manage the actual business. Part of R-pM is 21^st Century Management to provide the framework for business operations, education, services, and solutions that can be utilized effectively by any business.

21^st Century Management provides the framework for collaboration and common solutions

R-pM is designed to simplify the business and to provide the foundation for business collaboration and common education, services, and performance solutions that any business can use. This requires a minimum set of fundamentally-correct and consistent 21^st Century Management conventions, definitions, and standards that are followed by R-pM users, educators, business management software and solutions, and service providers to reduce business costs and enable effective communications and collaboration.

21^st Century Management is documented in The R-pM Toolkit.

21^st Century Management descriptions are included in all R-pM Toolkit documentation. The 21^st Century Management conventions, and definitions are included in the current R-pM Toolkit. Additional 21^st Century Management conventions will be refined and included in future R-pM Toolkit updates. 21^st Century Management standards will evolve as R-pM is employed in practice.

The R-pM Community can provide inputs into 21^st Century Management

The intention is to make 21^st Century Management a product of the R-pM community so that anyone can contribute their ideas and requirements to be reviewed for inclusion in the continuing development and refinement of 21^st Century Management [more...]

20^th century management produces waste and inefficiency

20^th century management requires enormous overheads and waste by laying many organization and management structures over the business rather than organizing and managing the business directly. Business, human, and management capital is not developed and managed to be utilized effectively by the business. Management does not have the information or methods for socially-responsible business management.

R-pM organizes the business for socially-responsible 21^st Century Management

Result-performance Management (R-pM) is the future of socially-responsible business management. R-pM organizes and manages the business directly to eliminate wasteful overheads, utilize energy and supplies efficiently, maximize human capabilities, and apply responsible management policies and practices [more...]