Invest in corporations that can manage investment funds to produce benefit
On 23 February 2006, we posted an article How can we know how the enterprises that we invest in, utilize our investments, to describe the problem of investing in enterprises that do not have the capability to manage the benefits from their investments.
Conventional structures overlaid on the business force corporations to estimate the benefits or the return on capital development or business change investments. The corporation business is not organized to identify and itemize and manage benefits as a part of the routine the same as itemizing the costs of the investment.
The answer is provided by Result-performance Management (R-pM). Conventional methods address performance development, but the value, benefits, and return on investment come from result development. Visit result-performance-management.com to learn about corporate investment analysis and management using R-pM.
Corporations do not manage investments the same investors manage investments
Virtually all of us are investors and stakeholders. When we invest, we analyze the investment and know what we expect to see from the investment. But, when the enterprises we invest in, invest our money, they are not able to define accurate benefits or return from investments. They are forced to guess at sales and revenue increases and to input assumptions into rate of return or cost-benefit calculations.
Conventional investment management methods invest in costs, and not in benefits
Enterprises do not have an open and transparent way to plan the detailed value-added through investment and substantiate the return on investment. The conventional enterprise invests in costs through capital development, performance improvement, and solution implementation. Costs of these investments can be itemized and managed. Benefits cannot be itemized and managed.
The corporation must invest in and manage results for value-added benefit
In order to invest in benefits the enterprise must organize the business to define and manage results. The benefits of investments come from adding value to results. The enterprise must manage results to itemize the benefits of improving specific results, establish result goals for utilizing investments, and to justify the investment through substantiated result value increases over a pay back period that exceed the investment cost.
Result-performance Management is the answer, to develop results as well as performance
The means to invest in and manage result development is provided by Result-performance Management (R-pM). Using R-pM, the enterprise can effectively plan and report value-added from initiation through to completing the return on investment in a way that management and stakeholders can understand. Then we, as investors and stakeholders, can see how the enterprises we invest in use our investment.
21st Century Management eliminates 20th century problems
Result-performance Management (R-pM) eliminates investment analysis and management problems and other costly 20th century problems. Slash costs, simplify business management, and boost competitive advantage through R-pM, the conventional method for 21st Century Management.
Download your 21st Century Management Manual today
Your 21st Century Management Manual, The R-pM Toolkit, is available today and is under continual development to expand and refine 21st Century Management. The R-pM Toolkit is offered at a nominal price to encourage wide use of R-pM. Get your R-pM Toolkit, and future updates, at result-performance-management.com.
