Governments around the world are promising programs to prevent future business management problems

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.

There is only one problem to solve, the problem of obsolete 20^th century enterprise management

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

There is only one solution, organize the actual business with R-pM and apply 21^st Century Management Conventions and Standards

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 government programs 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.

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

Most governments likely will continue the past cosmetic approach to pass new regulations and announce that they have solved the problem. A courageous government must step forward and take the lead to institute a “Business Management Program” as discussed in this article. 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...]

The current financial crisis shows the need for actual best business management practices

After every corporate financial, management, or governance crisis or scandal the call arises for best business management practices. However, nobody knows what real best business management practices are, since no one has any experience in actually organizing and managing a business. The practices installed are never actual best business management practices, but are a collections of rules and regulations or methods to better manage structures that hide the business and prevent actual business management.

20^th century best practices are the best of bad business practices

20^th century best business practices are a collection of organization, process, system, and administration structures laid over the business for a particular purpose, which have proven effective elsewhere. All 20^th century best business practices are bad business practices, because they add to enterprise overheads and costs, and do not help the enterprise to operate or manage the actual business.

R-pM provides the business definitions and structure for good best practices

Result-performance Management (R-pM) instills best practices across the business for 21^st Century Management. R-pM manages the business by managing the capacity, investment, qualifications, reliability, return, and worth of capital solutions; utilization, cost, effectiveness, uncertainty, and value-added of each capital solution in guided performance; and the volume, total cost, quality, risk, value, and value-added of each result produced. The set of solutions deployed and utilized to produce a result is defined as a capital module. The capital module that produces the best value-quality result can be defined as a best practice. All best practices are then built into the business structure to operate and manage the actual business.

The only way to prevent future corporate financial, management, and governance problems is to use R-pM to organize and manage the businesses. Governments that want to improve local business competitiveness significantly and prevent future crises, must investigate R-pM. [more...]

Your actual business is hidden under overlaid 20^th century management structures

Managers today think that they are managing their business. However, no manager today manages his actual business. Managers manage the enterprise through structures laid over the business. These overlaid structures hide the business and prevent actual business management.

You must learn your actual business and the entities that comprise your business

The enterprise business is defined as "the activity of providing goods and services". The enterprise must directly manage the business to manage providing high-value and high-quality goods and services for its customers. The business is managed by organizing and managing business activity in the utilization of capital in performance and business economic outputs in the results that provide customer goods and services. 20^th century management utilized today does not organize and manage the enterprise business, but rather organizes and manages the business enterprise through structures laid over the business. This causes many unsolvable problems with reorganizations, unknown investments and returns, unknown capital worth, unknown result value and quality, IT overheads, misleading management information, change management, corporate governance, business collaboration, and on and on.

R-pM allows you to gain control of your business and abolish structures laid over your business

R-pM organizes and manages business activity in the utilization of capital that is organized as specific capital solutions. R-pM organizes and manages goods and services as specific economic output results that are produced by the business. R-pM organizes the business as one integrated structure for all management needs by utilizing specific capital solutions in performance to produce specific results. R-pM captures actual business data on result volumes, value, and quality produced by the capacity, cost, and effectiveness of solutions utilized in performance. R-pM provides one set of clearly-defined management information on the current business and progress to the strategic business defined by a strategic business structure. R-pM manages cost-effective performance to produce high-value and high-quality goods and services as input results to the customer business. [more...]

Government executives must manage a business the same as corporate executives

R-pM defines the business as “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results”. This includes governments at all levels and all agencies, departments, commissions, enterprises, and other forms of business. The president or vice president are executives not legislators. Most recent presidents have had governor experience before becoming president. When evaluating a candidates experience the criterion should not be years of government experience, but particular executive experience or credentials that indicate actual capability to carry out presidential responsibilities and accomplish campaign promises.

Both political parties promise change and state that they have the experience to carry out change

Experience in initiating and managing beneficial change in a business is rare. For the vast majority, experience is an obstacle to change, since they base future methods and decisions on past experience. A manager advocating change should have experience in initiating and managing change.

Governor Sarah Palin is the first candidate in memory to run on the capability to initiate and manage change

It is easy to talk change, but very difficult to effect change. Governor Palin’s nomination is being criticized for a lack of experience. But, among the candidates, she has the most experience in actually managing business change. Governor Palin is not running on years of “experience”, but on specific accomplishments as an executive in effecting change. [more...]

Value has no value in 20^th century management used today

Value is an impressive word. People talk of value propositions, strategic value, value chains, value creation, and value management as if they were actually measuring and utilizing value as a day-to-day business metric. But looking further, we find that value is calculated from a contrived business overlay or formula.

20^th century enterprise organization and management prevents the utilization of value as a day-to-day business metric.

R-pM organizes the business to make value a manageable and valuable result metric

We must organize the business through Result-performance Management (R-pM) for day-to-day 21^st Century Management. Value is an attribute of output results produced by the utilization of capital in performance across the business. The value of input results from suppliers, plus each result in the business result chain, equals the value imparted to customer results in customer willingness to pay. [more...]

Capital development and support and capital utilization in performance is not managed today

Capital, utilized to produce results, cannot be managed if it resides in a responsibility center, is administered by a function, or is labeled as an "intangible asset". Some capital may be defined as an asset for depreciation, but capital is not managed as the solutions needed by the business. Enterprises make large investments in capital and then fail to manage the utilization of the capital to create known value in results and provide the known return on the capital investment.

21^st Century Management requires Capital Management and Performance Management

One key element of 21^st century management is proper capital management to define all capital as specific solutions. Capital Management manages solutions for planning, development, support, and operation.

Within Capital Management is Performance Management, so that a performance manager manages the utilization of each solution in performance to deploy and maintain a qualified solution that meets expectations, to be utilized by a result manager to produce results.

R-pM manages capital and performance as components of the business to produce results

Result-performance Management (R-pM) organizes and manages the actual business as “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results”. Capital is managed to be of high-worth, by being developed to add specific result value and then being utilized in performance for a managed performance cost and effectiveness to create greater value and quality in the results produced. The return on the capital investment and the capital solution worth can be known only by measuring the value-added to results attributable to the solution over its useful life. [more...]

Value chain methods used today lay an additional contrived structure over the business

Methods used today lay contrived value-chains over the business. The chain is not integrated within the business to control actual costs against value-created or to produce value within total managed business value. These value chains have never been successful in actual business management.

R-pM is the first method to manage value chains as part of the managed business

There has never been a method to organize the business to provide natural value chains until Result-performance Management (R-pM).

R-pM employs information technology to manage all the results of value produced by the business and all capital solutions that incur costs in performance to produce each result. R-pM builds result value chains with end-results of value as a link in the chain, within a higher-level set-result that is the final result from the chain. Result relationships chain the end-result links together and each end-result to the final set-result. Each end-result has a managed value that adds to the total final set-result value.

The costs and value-added is managed at each link in the chain to manage total chain value-added

Supplier input results are transformed by performance through internal business results to customer final results. Each solution utilized incurs a performance cost. The total of solutions utilized is the cost of creating result value at each link. R-pM manages the end-result value-added at each link and the set-result value-added for the complete chain. Result value chains manage the value, quality, volume, risk, and goals for each result and the final result. Result value chains enable supplier-customer integration and business collaboration. [more...]

Enterprises today combine many different forms, theories, and structures to produce many different ways of "doing business"

Enterprises today are defined and organized in many different ways, making it difficult to collaborate and employ common solutions. Enterprises think that they have their own distinctive way of "doing business". But, no enterprise actually understands the real business or the commonalities that must defined, organized, and managed to manage the business.

The commonalities of all businesses must be understood in order to define the actual business and organize and manage the business

All enterprises businesses have commonalities that must be understood and used as the foundation to build strong businesses that can collaborate easily and differentiate specifically where beneficial. Result-performance Management is based on the commonalities of all businesses that must be defined, organized, and managed. From analysis of business commonalities, R-pM defines the actual business as “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results”.

R-pM provides the only way to organize the actual business and the only way to do business

Result-performance Management (R-pM) organizes the business into a common business structure to utilize investments in standard categories of capital solutions in performance to produce specifically defined results. The common business structure enables collaboration and utilization of common solutions and services for all businesses. R-pM differentiates in the value-quality of result design and the cost-effectiveness of capital solutions utilized in performance to produce value-quality results. [more...]

Today we have many generally-accepted accounting problems

Accounting is a major problem in the 20^th century enterprise. Management is faced with generally-accepted accounting problems. Financial records are missing for much of the business cycle. Management financial information is inconsistent, inaccurate, and incomplete. Many well-known problems like intangible assets, unknown costs, unknown capital worth, unknown investment returns, unknown value creation continue unsolved. Accounting is often equated to records management. Most enterprise non-financial records are scattered, missing, and mismanaged.

R-pM builds professional records management to manage all financial and non-financial facility records capital

Result-performance Management (R-pM) builds professional records management to provide complete financial and non-financial facility record capital solutions for 21^st Century Management. R-pM manages the full business cycle to keep accurate records on all performance costs, performance effectiveness, result volumes, result quality, result values, result value-added, tangible and intangible assets of positive capital worth, liabilities as specific solutions of negative capital worth, and accurate enterprise business net worth. R-pM provides one set of accurate management information on the strategic, planned, actual, and historic business. [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...]