Governments and corporations are looking for a unifying structure for best business market, financial, and economic management

Over the past year, governments have been meeting to construct an international response to the economic crisis. They discussed new best business management practices to solve problems that caused the crisis, and new structures for the financial system and economic management to prevent future crises. Again, as always in the past, they failed to comprehend and address the unsolvable 20^th century enterprise management problems that cause the crisis. Governments add new practices and regulations on top of existing dead-end 20^th century enterprise structures, and claim to have solved the problem.

In order to make real progress, those involved must set current structures aside and take a completely new look at what comprises a business and how businesses relate to industries, markets, financial systems, and economies.

Business management is the only solution available to eliminate unsolvable problems that caused the crisis

The actual business is “investments in capital as solutions of worth utilized for cost and effectiveness of performance to produce value and quality in results”. 20^th century enterprise management structures are replaced by one business structure to eliminate unsolvable problems in unknown capital solution investments in the business, unknown economic output results produced in chains across the business, unknown value of results from the business, unknown costs of performance to produce results, unknown value-added to manage the complete business, unknown performance effectiveness to manage result quality, unknown returns on capital investments from the added value to results, unknown capital worth in future output and disposal result value, and on and on. Business management captures actual business data to manage all corporations, financial institutions, and other enterprises properly and to report on the actual business to regulators.

The business is the only unifying structure to integrate corporation, market, industry, financial, and economic management to prevent future crises

Business management builds up from the business structure to consolidate actual business in structures by corporation, industry, or economic area or sector to consolidate actual business data. Data can be consolidated by market for business input and output results and capital solution utilization. Industries, such as the financial industry, can be managed for the value and quality of results and the utilization of financial and other capital solutions. Economies and markets can be clearly viewed and managed to identify and plan for cycles, to anticipate and plan for surpluses and shortages, to manage interest rates and monetary supply, to plan and manage trade, and take other actions that are prevented by obsolete 20^th century enterprise management today. [more...]

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 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...]