Consolidate businesses in an industry, market, or economy structure

20^th century enterprise management does not provide a structure for managing businesses within industries, markets, or economies

The economic crisis shows that corporations, industry and professional associations, governments, and international organizations lack a unifying structure for best business management and market, financial, industry, and economic management. Auditors do not have the information to ensure that corporate businesses are being properly managed and that malpractices are prevented. Governments lack the information needed for effective financial, corporate, and economic regulation.

There is no structure today to address the problems of the economic crisis

The reality of the economic crisis is that poorly-managed corporations and governments have made layer upon layer of mistakes that created low value and quality products, unknown and unmanaged capital worth or asset value, over-leveraged investments with unmanageable returns, bubbles supported by deficits and debts, reliance on government intervention, and many other problems. Going down several layers it is still mistakes that are perceived as the problems. Commentators and experts point out mistakes made and other symptoms of poor management as the problems to solve. But, in all discussions of the economic crisis, it is obvious that no one knows what the real problems are or what new best business management practices and structures should be. So, Governments, as always in the past, try to correct mistakes and fail to comprehend and address the unsolvable 20^th century management problems that cause the crisis. Governments typically add new regulations on top of dead-end 20^th century management structures, and then claim the problem is solved.

The economic crisis has shown the need for a new structure for business, trade, and economic management

But this time, experts and governments around the world have cited the need for new best business management practices and new structures for business, financial, and economic management. It is clear that governments do not have the unifying structure to integrate all businesses, corporations, industries, financial systems, markets, and economies of a country that can be automatically updated with complete and accurate business data generated by all business and consumer activity as it happens in the country and around the world. Corporations, business and industry associations, professional associations, governments, and international bodies do not have complete and accurate business data or the tools to manage markets, trade, financial systems, and economies to anticipate and prevent future crises. There is recognition that the panaceas or quick fixes that have prevented real solution in the past will not solve the deep-seated problems, and that fundamental new long-term solutions are required.

The new structure needed requires a redefinition of businesses, and the consolidation of businesses by industry, market, and economy

In order to make real progress, those involved must go past mistakes and apparent symptoms to examine real business management. They must then set generally-accepted management structures aside, and take a completely new look at what comprises a business and how businesses relate to other businesses, the corporation, industries, markets, financial systems, and economies. Only then can they understand real best business management practices and the one structure that provides the only solution to the economic crisis.

21^st century business management organizes the business as the structure for industry, market, and economic management

The business itself is the only unifying structure to integrate businesses, markets, industries, and financial and economic management to prevent future crises. Business management maximizes the power of information technology. The business structure provides consistent definitions to consolidate business structures by corporation, industry, or economic area or sector to summarize actual business data. Data can be consolidated by market for business input and output results and capital solution utilization. Industries, such as the financial and automotive industries, can be managed for the value and quality of results and the utilization of financial and other capital solutions. Economies and markets can be viewed clearly 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 20^th century management today.

A new set of best business management practices are based on the organized and managed business

The business structure provides consistent codes, categories, and classes for all investments as specific capital solutions. The business structure provides common groups and coding for results produced by every business. Standard business descriptors are used for business locations, economic sectors, market segments, customer or consumer classifications, planning time periods, etc. Best 21^st century business management practices are followed to utilize the set of capital solutions implemented to produce the highest value and quality result.

Once the businesses are organized, best business management practices can be extended to manage collaboration among managed businesses to utilize consistently-defined solutions to produce results in a result chain, or to integrate the business with supplier and customer businesses for efficient extended result value-quality chains. Best business management practices can be extended to manage markets for demand by final customer result, and supply by input result and capital solution.

Industries, markets, financial products, and economic sectors are managed as consolidations of the businesses involved

Governments gain accurate and reliable business information to manage businesses for revenue generation, market management, industry management, import and export management, financial utilization management, economic sector management, and overall management of the economy. Economic cycles are forecasted and managed. Total business activity and value creation are reported and known. One common structure provides consistent information at all levels and allows integration of government statistics for consumer activity, prices, labor, trade, and external economies.

Goods and services are produced as output results acquired by the consumer or business customer. The result can be used by the customer as input to be transformed by the enterprise or personal business, or can be implemented as a capital solution investment to be utilized to produce other results. The economy and markets within the economy are essentially output result and capital solution result supply and input result and capital solution result demand. The complete economy can be viewed and managed as result demand and production, and input result and capital solution demand and availability. Governments and businesses can view and manage the business or collective businesses as part of an industry, national, regional, or world economy. One set of complete and accurate business data, not captured today, can be generated and captured by each business. Additional consumer, market, labor, import and export, stock exchange, monetary, and economic statistics can be compatibly structured for a complete picture.

Markets provide the input results and absorb the output results of businesses

Markets are managed by result produced and input result and capital solution result demand. Consistently-coded results and capital solutions provide a basis for complete market management. Individual markets are organized and analyzed by business customer result definitions and business capital solution definitions to understand business demand and business and consumer supply. Markets are related to business structures and can be updated directly by business data and supporting statistics. Markets can be analyzed from many perspectives to anticipate situations, such as potential surpluses and shortages.

Industries such as the financial industry can be managed through their consolidated business structures

The financial industry and sector business structures are used to regulate and oversee to prevent future financial problems and crises. The finance industry business structure can be managed for financial input results and financial product results. Financial investment asset solutions to produce income and growth results and liability solutions to finance the business can be managed across the industry. The worth of capital solutions can be regularly assessed and updated, according to new guidelines to prevent unknown “asset value”. Financial products can be regulated as output results of described income result and disposal result value to enable customers, who purchase them as investment solutions, to manage the solution worth.

General business finances are managed as financial facility and cash supply solutions required for an economy, industry, business, or result. Auditors can upgrade their services and compliance validation based on accurate business information. Governments receive the business information needed for effective financial and business regulation. Financial requirements and availability can be managed through financial management solutions across all businesses to assist money supply and interest rate policy.

21^st century business management provides the basis for government Business Management Programs

Governments can establish long-term Business Management Programs to address the real problem causing the economic crisis by requiring enterprise reporting based on actual business management, assisting business management and solution development initiatives, engaging professional and business associations to upgrade principles and practices, providing program promotion and assistance, implementing a business and economy management system, adapting related government programs, and upgrading practices and regulations based on business management. The Business Management Program will stimulate the near-term economy, establish business and investor confidence, build competitive advantage in local businesses to flourish in the recovery, establish economic growth, improve business and industry regulation, and manage economic and business cycles to prevent future crisis. A free download “A Government Business Management Program to Answer the Economic Crisis” outlines a program and is available at result-performance-management.com.

Governments build an economic structure to record and manage all businesses within a sector or the full economy

Businesses capture actual business data not captured today and consistently record and report complete, accurate, and timely business management information. Governments integrate businesses and industries in the economy business structure. Information technology provides automated reporting and feedback through common business structures and coding. Governments can have businesses report in real time to build up a complete picture of markets, industries, and the economy. Reporting could include plans by future time period. Economies with managed businesses become comparable and build up into a bigger picture. Consolidated business structures can be manipulated and presented in many subsets and viewpoints. The economy, industry, and market structures supports a new set of best practices for business, financial, market, and economic management based on consistently-managed and comparable businesses. Business management provides the structure to manage financial products and economic cycles and prevent economic crisis.

Result-performance Management (R-pM) provides the knowledge for actual business management

Result-performance Management (R-pM) is the only source of knowledge and expertise on how to manage the actual business. Forward-looking enterprises are now using R-pM guidance to organize and manage their business to gain breakthrough advantages over competitors burdened by unsolvable 20^th century management problems. Business management is explained and documented in the Business Management Toolkit. The Toolkit provides procedures for actual business management and maintains emerging 21^st century management conventions, definitions, and standards. Management consultants who base 21^st century business management services on R-pM knowledge are licensed to help enterprises learn, organize, and manage the actual business. R-pM and business management are supported at result-performance-management.com.

The Solution to the Economic Crisis is explained in free downloads

Three free white papers explain the dead-end 20^th century management problems, such as the failure to plan, account for, and manage the actual business, that caused the economic crisis, the way to eliminate the problems, and a government program to address the crisis by stimulating the economy, solving the problems, building a structure for financial and economic management, and organizing local businesses to flourish in the eventual recovery.

• How to Eliminate Problems that caused the Economic Crisis explains the major unsolvable 20^th century management problems and the solution to eliminate the problems
• Business management; the only Solution to the Economic Crisis explains how to plan and manage the business to capture business data and provide management the information needed for actual business, corporation, industry, and economic management
• A Government Business Management Program to Answer the Economic Crisis outlines a government program to encourage business management, stimulate the economy, restore confidence, organize businesses to flourish in the recovery, and manage economic cycles to prevent future crisis

These three white paper downloads are available to R-pM Community Members at result-performance-management.com. There is no cost or obligation to join the R-pM Community. Join by entering your email address and personal password. Your email address is protected and used only for download problems, product updates, and occasional R-pM Member news and white papers.