“Failure to Manage the Business” is the basic Cause of the Economic Recession
The economic recession is caused by one problem: the failure to manage the business
20th century management employed by all enterprises today lays organization and management structures over the business to manage the enterprise arbitrarily, rather than managing the business. 20th century management produces mountains of “management information” on arbitrary structures, but does not provide the one set of complete, consistent, and accurate business management information needed. This causes the fundamental problem in all business management that has caused all previous crises and is the basic cause underlying the current economic crisis and recession. The problem is the failure to manage the business.
The current business, financial, and economic symptoms of the problem are numerous and complex. But, the problem is basic and simple. Today, all governments, enterprises, and experts are trying to understand the symptoms and to alleviate the symptoms. No one is trying to get beneath the layers of symptoms to solve the one fundamental problem. The only real solution is to organize and manage the business with Result-performance Management (R-pM).
20th century management does not provide basic information for business, financial, and economic management
20th century management used today does not capture actual business data on the three components of the business: all results to be produced across the business for success, all capital solution investments, and utilization of capital solutions in all performance to produce specific results.
Because of this, enterprises cannot manage result chains and important result metrics like result value, result volume, result quality, total result performance costs, result value-added, and result risk against result goals; important performance indicators like performance costs, capital utilization, performance effectiveness, value contribution, and performance uncertainty against performance expectations; or important capital measures like investment costs, total solution performance costs, un-amortized balance, solution capacity, qualifications, investment return, solution worth, and solution reliability against solution potential.
All “problems” that cause the economic recession identified to date, such as problem financial products, the credit freeze, sudden need for large write-offs and losses, sudden losses appearing in various corporate units, etc are symptoms of the failure to manage the business. Financial institution and corporate problems invariably point to the lack of information on return on capital investments, planned and current capital solution worth (called asset value) from utilization and disposal, capital amortization in performance costs as solution worth declines, performance uncertainty increasing result risk, new product result value, planned future value-added from product results, and other information needs that are blocked by 20th century management used by all enterprises today.
The only solution available is Result-performance Management (R-pM)
Result-performance Management, the only solution available to organize and manage the actual business in all results of known value and quality to be produced across the business for success; all business, human, facility, and management capital solution investments of known qualifications, return, and worth; and utilization of capital solutions in all performance to produce specific results with known costs, effectiveness, and value-added. Each corporate business is managed to consolidate into the one corporation business. The download “The Only Solution to the Economic Crisis” explains the problems and the R-pM solution in detail.
20th century management used today is a time bomb for all enterprises in the world. All enterprises either will experience continued losses due to the problems of 20th century management or will lose out to competitors who are now organizing their business with R-pM for 21st Century Management.
Government Economic Stimulus Measures should include a “Business Management Program”
R-pM manages the current and strategic business structure for complete, consistent, and accurate 21st Century Management information. The business structure organizes business information, not available today, needed to manage markets, industries, and economies. R-pM provides the architecture to summarize managed businesses into manageable markets, industries, and economies for global financial, economic, and business management and future stability.
R-pM provides the information to manage a particular industry, such as the financial or automotive industry, to understand business worth in all capital tangible and intangible asset solutions of positive worth plus all capital liability solutions of negative capital worth, the reliability of internal and external solutions affecting performance uncertainty to increase or decrease result risk, the real value of product results to provide customer solutions of realistic and known worth, the value-added to businesses to provide return on investments and establish current solution worth, and other valuable measures not available today to provide future industry stability.
The government action needed is outlined in a free download, “A Business Management Program to Answer the Financial Crisis”. Many governments are preparing an “economic stimulus package” to put money into the economy. Just pumping money into an economy addresses symptoms, but does solve any problems. The economic stimulus package should include the “Business Management Program” to demonstrate concrete action being taken to solve the basic cause of the economic recession and to provide significant competitive advantages to local businesses, in order to build confidence in the future.
The instructions and procedures needed to manage the business are provided in the R-pM Toolkit
R-pM is documented in the R-pM Toolkit, which also provides 21st Century Management conventions and standards. Join the R-pM Community for free at Result-performance-Management.com. R-pM Community members can subscribe to the R-pM Toolkit to download the current version, and receive all new versions by email.
The R-pM 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 the actual business, that caused the economic crisis, the way R-pM eliminates 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 R-pM solution to eliminate the problems
- The Only Solution to the Economic Crisis explains how R-pM manages 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 and password. Your email address is protected and used only for download problems and occasional R-pM Member news and white papers.
