Government Business Management Program to prevent future Crises and boost Competitiveness

Governments are responsible for economic management and the regulation of local industries and enterprises

The current financial and business crisis prompts many governments around the world to promise new measures to prevent future crises. But no government is certain what those measures should be. All business, economic, and financial crises arise from poor management by governments of the economy and by enterprises of their businesses. The G20 meeting of top 20 countries this weekend did not decide on any specific actions. Before deciding on actions, it is important to understand the underlying causes of management problems in governments, corporations, and other enterprises.

From the beginning, fundamental enterprise management problems have been identified, but have defied all attempts at solution

All management today is dead-end 20^th century management to manage the enterprise using organization and management structures laid over the business. Throughout the 20^th century, we heard about fundamental enterprise management problems with reorganization, alignment, “business complexity”, “business change”, change management, unknown costs and value, unknown capital worth and returns, intangible assets, IT and business conflicts, investment returns, project benefits, accounting limitations, inaccurate information, corporate governance, quality, risk, collaboration, outsourcing, IT overheads, and on and on. We likely have read several books or implemented measures in our own business, offering a 20^th century solution. But, all the problems remain unsolved today.

The trillions of US dollars in known recent financial losses are but a portion of the continuous unknown enterprise losses incurred world-wide due to the unmanaged costs, risks, and failures of 20^th century management. 20^th century management is a dead-end, since enterprise management problems can never be solved by 20^th century management solutions. These problems are actually symptoms of one problem; the failure to manage the business. This problem allowed financial institution and corporate mismanagement that caused the financial crisis and subsequent economic recession. It is now time to recognize that improved 20^th century management methods or added regulations will never solve the fundamental problem.

The fundamental problem is that no government, corporation, or other enterprise understands and manages their business

The business is “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results”. The business itself is not organized today to manage investments in all tangible and “intangible” solutions available, the chain and value of economic output results required across the business for success, the return and expected gain on capital solution investments, the worth of capital solutions utilized, the disposal worth of solutions, the cost of utilizing capital solutions in performance, the value added to specific results over total performance costs, value-added across result chains, the effectiveness of solutions utilized, the quality of results produced, and other business descriptors and measures. All business management and corporate governance problems stem from the failure to understand, account for, manage, and regulate essential business measures.

The solution for governments is to encourage local enterprises to manage and report their actual business

Governments have a responsibility to regulate enterprises to the degree that they are responsible for taxes and other adherence to laws and are open to public ownership. Governments also have programs to increase the competitiveness, efficiency, and markets of local businesses. This article presents the only solution available to any government and applicable to any enterprise in the world. The article offers suggestions for a government “Business Management Program” to encourage enterprises within the country, or region of a larger country, to organize and manage their businesses, to gather business data not known today, to establish governmental and non-governmental support, to upgrade local professionalism, to improve the competitiveness of business and industry significantly, to establish an architecture and system for integrated business, financial, industry, market, and economic management, and eventually to regulate enterprises based on actual capital utilization, business performance, and results.

Result-performance Management (R-pM) is the the business management foundation for a program

Result-performance Management is a complete method to organize any business for 21^st Century Management, as explained in 21^st Century Management Magazine and supported at result-performance-management.com. R-pM manages the actual business to capture data on all value created, costs incurred, value-added, investments made, investment returns, worth of capital, and other measures not captured today; and to provide one consistent, complete, and accurate Business Information Base for clear management and government reporting. R-pM is documented and supported by the R-pM Toolkit, which is provided at a low cost to encourage wide use. So, the foundation and guidance for a government program is well-established already in the methods of business organization and management and the framework for 21^st Century Management conventions and standards.

A government “Business Management Program” should cover a range of complementary needs

Any government program to address the problems or economic stimulus package to revive the economy should include a “Business Management Program” to address the real problem. Several needs must be met in the components of a government “Business Management Program”:

• A publicized government objective to have local enterprises manage the business and base government reporting on the measured actual business in five to ten years, to awaken interest and provide impetus
• An organization of government, management consultant, professional body, and major industry representation to manage and oversee the program and propose new elements for government business, financial, industry, market, economy, and revenue generation policies and regulation
• Assistance to accounting and audit firms, professional bodies, universities and education institutions, business software firms, and business service and solution providers to base new services and solutions on actual business management and utilize their solutions and services in the program
• Adaptation of government investment promotion, productivity improvement, export promotion, economic management and other programs to the managed business and to leverage management improvements provided
• Development of an architecture and supporting system, for financial, industry, market, and economy management based on actual business management reporting
• Recommendations for updating government policies and regulation for business, financial, industry, and economic management based on accurate business management information provided in the economic management architecture
• Program management to produce advisory services, localized R-pM materials, program promotion and communications, Internet support, reporting and measurement, problem resolution, confirmation or certification, success reporting, and other required results

A Business Management Program meeting these needs will prevent future crises stemming from unmanaged businesses and increase the the efficiency and world-market competitiveness of the country’s businesses. The country will use the business structure for consistent 21^st century business education, communications, service provision, outsourcing support, collaboration, management information across businesses, coordinated promotions, and regulation. The program will provide positive near-term economic stimulus and long-term economic growth. The program will correspondingly increase government revenues in potentially smaller portions of increased business revenue results. The Business Management Program cost is negligible compared with bailouts and lost revenues from downturns.

An objective that all businesses improve and report the measured actual business in five to ten years will provide impetus

Even with the financial crisis and business downturns, typical business owners and corporate executives remain complacent with or unaware of their failure to manage the business. A method is needed to alert business to the problems they face and the improvement opportunities presented. The government should publicize the program of business management improvement to assist local businesses improve to increase their efficiency and competitiveness, and to enable them to meet emerging requirements to report against their actual business. The Business Management Program objective must be to provide the best methods to manage the actual business, not just to improve existing management methods.

A program organization manages the program and proposes new government business regulations

A Business Management Program organization is needed to manage program capital utilized and program results produced to the point that business management is being instituted in local enterprises, the economic management architecture and appropriate regulations are initiated, and continuing operation is established in appropriate government agencies, other government programs, supporting professional bodies, and business service and solution providers. The Business Management Program will have to overcome the obstacle of conventional thinking and vested interests in 20^th century management, so it must be managed and staffed by those who can open their mind to new business management with R-pM.

An exceptional government manager should lead the program with support from a management consulting firm that is qualified and licensed in R-pM and is committed to the program. Full or part-time participation should be sought from national professional societies and industry associations to coordinate their internal changes and impacts on their membership. A panel of organizations involved should provide input, progress review, and guidance.

Assistance to professional, education, and business service and solution enterprises develops improvements and support

The change to actual business organization and management requires external professional, education, service, and solution support. This Business Management Program opens up many opportunities for universities, education institutes, professional service firms, business software providers, business service firms, and business solution providers. The program must support these enterprises to provide education, services, and solutions based on and supporting actual business management. Some government funding may be required to provide the initial investment required by participants, who provide plans for viable business management services and solutions. The program will also create a demand for these new services and solutions that will be difficult to meet.

Investment, productivity, export, and other programs must support and leverage the managed business

The government has other programs related to business and market promotion that must support and be supported by the Business Management Program. Investment programs must provide incentives and update benefits for new investments to set up managed businesses within the emerging framework of business education, services, outsourcing, collaboration, and reporting based on 21^st Century Management. Productivity, quality, standard setting, and other such programs must establish business management consistency, improve capital investment management, and improve the quality of results and result chains. Export promotion must take advantage of improved value-added and quality of local business results and exploit the image of the Business Management Program. Economic management must be based on the new economic management architecture instituted.

The Program produces advisory, promotion, reporting, measurement, problem resolution, confirmation, and other results

The Business Management Program must be managed as a business to organize all capital and funding provided by the government, management consultants, and other participants to produce specific program results. It may be best to start with selected pilot enterprises to organize and prepare the complete program and supporting capabilities before supporting enterprises in general. Support from an Internet site for local enterprise members for answers, downloads, and support systems and services, is essential. Program results include promotion of the program, communications on the program, localized information on R-pM and 21^st Century Management conventions and standards, advisory services to business enterprises, coordination of all participants, new government regulations and policies, government economic management system to process data on industries, markets, and economic sectors, data collection and management, progress reporting, new service and solution promotion, problem resolution, confirmed or certified business management implementations, benefit analysis, and other results required.

A Business Management Program is outlined in articles and a report

The Business Management Program is discussed in several 21^st Century Management Magazine articles:

“Failure to Manage the Business” is the basic Cause of the Economic Recession

The new business, financial, market, and economic architecture the world needs

A Free Download “A Business Management Program to Answer the Financial Crisis”

Businesses, support, economies, and governments benefit from a Business Management Program

A fundamental business management solution to prevent business, financial, and economic crises

A free 36-page download “A Business Management Program to Answer the Financial Crisis” is available to R-pM Community Members at result-performance-management.com. It is free to join the R-pM Community, with an email address and password. The report outlines the need, content, and the advantages of the program. The R-pM Toolkit is available for subscription and download to explain the concepts and procedures for managing the business with R-pM and to provide new 21^st Century Management conventions, definitions, and standards.

The first country becomes the leader in world business management and gains unassailable competitive advantages

The leading country will provide impetus to its economy and become a leader in advanced business management. The Business Management Program will develop valuable fundamental understanding of inter-related business, industries, markets, and the economy. Professional bodies and enterprises in the country will develop solutions and skills that will be in demand worldwide. Local businesses will gain competitive advantages that make it difficult for businesses in following countries to catch. Followers apply what is learned by the leader, but rarely gain the fundamental knowledge and skills of the leader.