Governments need a Business Management Program to answer the Economic Crisis
The Economic Recession provides opportunity for corporations and governments
All nations and economies are suffering from the economic recession. But, every economic downturn or financial crisis is an opportunity for those with the proper viewpoint. Will corporations use people and resources made available to organize and manage their real business? Will governments take advantage of the downturn through a program to eliminate the fundamental business management problems that cause the crisis; to restore and build confidence, stimulate the economy, and prepare local businesses to flourish in the upcoming recovery? Or will governments throw money at the obvious symptoms and fail to understand the fundamental problems, as always in the past?
We cannot continue to use dead-end 20th century management
This financial, corporate governance, and economic crisis and all past crises are caused by one fundamental problem; failure to manage the corporate business. Since the beginning, all business, financial, corporate governance, and economic crises and problems have arisen because businesses are not managed, finances are not managed as capital solutions utilized by businesses; and corporations, industries, and economies are not managed as one interrelated whole, comprised of the businesses involved. The problems are fundamental to 20th century management still used today to manage enterprises, finances and financial institutions, and economies.
Dead-end 20th century management lays organization and management structures over the business that conflict with the actual business and cause many well-known, but unsolvable, management problems. The problems can never be solved by added or improved 20th century management structures. Finances are managed as overlaid structures and models instead of as one part of all properly-managed capital utilized by the business. Corporations account against an arbitrary and limited accounting structure, instead of capturing actual business data and accounting for the business. Corporations, multi-business collaboration, markets, industries, segments, economies and other business groupings are managed through a variety of contrived 20th century structures, instead of being built up from managed businesses involved.
Government “solutions” address obvious symptoms, and allow problems to continue unsolved
Governments around the world are now proposing “solutions” to the economic crisis. The “solutions” comprise measures to reduce the negative consequences of the problems causing the crisis, to stimulate economies slowed by the problems causing the crisis, to restore confidence in the continuation of problems causing the crisis, and to bail out the financial institutions and other corporations that fail to manage their business to spark the crisis. No government shows any recognition whatsoever of the fundamental cause of the crisis or is taking any action whatsoever to prevent future economic crisis. Governments continue to throw money at the obvious symptoms and fail to understand or address the fundamental problems, as always in the past.
The only solution possible is for corporations to focus on and manage their businesses
The Business Change Forum describes all aspects of 20th century management problems and the need and benefits of actual business management in over four hundred articles. Businesses must be managed as “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results”. This eliminates the management distractions, excessive costs and IT resources, and confusing and missing information produced by structures laid over the business. Corporations focus on the business for all organization, planning, direction, control, reporting, and governance. Corporations manage all financial facility, human, and other capital invested in and utilized by the business as one set of capital solutions. Corporations manage all economic outputs produced by the business as one set of results. They organize the business by implementing specific capital solutions to be utilized to produce specific results.
Corporations plan the strategic business through strategic results and new capital investments required, supported by operational and capital development result goals by period. They direct the business by managing the results produced across the business to meet goals. They control the business by capturing complete and accurate business data and for one set of consistent, complete, and accurate business management information that is not provided to management today. Corporations govern the convergence of the current business structure against goals by period to reach the approved strategic business structure.
Corporations organize each enterprise in the corporation as an enterprise business. One business structure is used to manage the complete business or any part of the business. Enterprises within the corporation manage projects, programs, and campaigns as businesses that produce a result in the enterprise structure. Corporations build up the corporate business from all the individual enterprise businesses within the corporation for effective corporate management.
The only economic management solution possible is to manage markets, industries, and economies as the total of businesses
Many experts cite the need for a new architecture for corporate, financial, and economic management, but cannot describe what the actual architecture should be. Business management provides the foundation and unifying architecture for governments to execute their responsibility for economic management. Every corporation, market, industry, economic sector or area, and the worldwide economy is built up of enterprise and personal businesses that acquire capital solutions and input results for use by the business and produce output results for other personal and enterprise businesses. This basic and simple concept has never been understood or managed because to this day corporations and governments do not understand the business or make any effort to manage the business. All business schools, management books, and management experience propagate dead-end 20th century management to manage the enterprise by laying contrived and arbitrary structures over the business. Prior learning and experience must be set aside, in order to organize and manage the actual business and organize corporations, industries, and economies based on the actual businesses.
Business management provides the basis for a Business Management Program and the architecture for economic management
Business management provides the breakthrough needed to manage the actual business, so that markets, industries, and economies can be managed as the total of businesses and business activity included.
The business structure is used to manage industries as a total of competing businesses, and to manage economies for an area or sector as the total of businesses involved. Market information is collected and organized by standardized capital solutions and results for consistent understanding across businesses. Industries, such as the financial or automotive, are managed as the sum of corporate businesses to understand capital acquired or developed, capital utilization in performance, the economic output results produced, and accurate business net worth. Financial capital in investment facilities and cash supply are managed to know current and future worth to prevent sudden disclosures and write-offs, and to support monetary and interest rate policy. Business management provides the foundation for 21st Century Management conventions and standards for future business, market, industry, and economic management.
A Business Management Program provides the answer for a government, nation, and economy
Governments have the opportunity to do it right; to actually eliminate the cause of the financial and economic crisis and build the architecture for economic management to manage cycles and prevent crisis. A free 36-page .pdf download “A Government Business Management Program to Answer the Economic Crisis” is available to R-pM Community Members at result-performance-management.com.
The Business Management Program is led by a government or government group to sponsor the transformation of businesses from dead-end 20th century management to future 21st Century Management. The Program is a key-result that includes several set-results, which are sub-defined by end-results from performance. Set-results provide business management materials and promotions, set up an Internet site to support local enterprises implementing business management, assist local businesses to develop 21 st century services and solutions, certify implemented business management, and recommend a new set of business and economic policies and regulations in the final program report.
The diagram shows an simplified example of the use of actual business management to manage a sample program. The program is organized, planned, and managed through to provide experience in business management. The program should be government-led with support from professional management consultants, experienced with actual business management. The program should involve local professional and industry associations, business service and solution providers, and related government programs.
The Business Management Program requires very little government investment for a large return.
The Business Management Program is available to any government to build confidence in government actions, stimulate the short-term economy, and build long-term growth. The government must be willing to take fresh look at what constitutes a business and overcome the conventional thinking and vested-interests that want to continue current practices. Current enterprise management practices are the cause of the problems. Completely new best business management practices are needed to eliminate the problems. The government investment is minimal compared to the vast increase government revenues from the program, and the amounts being spent to address the symptoms of the crisis.
A Business Management Program takes advantage of the slowdown to put available resources and management time to work to improve local business management. The program also develops local capabilities and products to provide 21st Century Management services and solutions that will be required world-wide. Business management provides significant competitive advantages over corporations still burdened with unsolvable 20th century management problems. Local businesses will increase and substantiate capital worth for investor confidence, drive a strong economic recovery, and compete with other businesses around the world that are now implementing business management.
Result-performance Management (R-pM) provides the knowledge and instructions for actual business management
Result-performance Management (R-pM) is the only method available to manage the actual business. R-pM is explained and documented in the R-pM Toolkit that provides the guidance for actual business management and maintains emerging 21st Century Management conventions, definitions, and standards. Management consultants are licensed to help enterprises manage the actual business and to assist governments with Business Management Programs. R-pM is 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 20th century management problems, such as the failure to plan and manage actual business results, 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 an architecture 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 20th century management problems and the solution to eliminate the problems
- 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.
