How can we know how the corporations we invest in use our investments?

Investors understand financial and business investment management

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. When the enterprises we invest in, invest our money, how do they analyze the investment. How do they plan and manage the return on their investment?

The corporations we invest in cannot directly manage investments in their business

Many enterprises simply spend investment funds or invest in hopes of gaining an unsubstantiated return. They are not structured in a way that enables them to plan and manage internal capital development projects, particularly for business change and performance improvement investments.

Corporations can itemize tangible investment costs but cannot itemize the benefits

Conventional methods prevent enterprises from accurately defining the return from investments. They are forced to guess at sales and revenue increases and to input arbitrary assumptions into rate of return or cost-benefit calculations. Many corporations make financial investments in tangible and intangible assets, but only capitalize tangible assets providing an inaccurate basis for investment return and costing.

Corporations need a way to understand the full investment in tangible and intangible assets, to itemize the planned benefits, and to know all operating costs for the investment

Conventional investment analysis and management methods make it difficult for the corporation to know all costs of a business investment, the worth of capital developed, the benefits to provide the return on investment, and the full operating cost incurred in capital operations. Corporations need an open and transparent way to plan the detailed value-added through investment and substantiate the return on investment.

Corporations need a transparent method for investment analysis and management that managers, investors, and stakeholders understand.

Corporations need to effectively plan, track, and report investment costs and benefits, actual operational performance costs and value created, and value-added from investment from initiation through to completing the return on investment in a way that management and investors can understand. Then we, as investors and stakeholders, can know how the enterprises we invest in use our investment.

Result-performance Management provides comprehensive investment and capital development management from planning through to tracking the actual value-added return

The method for corporations to manage their investments is Result-performance Management (R-pM). R-pM enables business-based cost-benefit analysis to justify investments, result goals accepted by managers to gain the added value-added return, assessment of full developed capital worth, and systematic tracking of the added value added return over the payback period.

21^st Century Management eliminates 20^th century problems

Result-performance Management (R-pM) eliminates investment management problems and other costly 20^th century problems. Slash overheads and costs, simplify business management, and boost competitive advantage through R-pM, the conventional method for 21^st Century Management.

Download your 21^st Century Management Manual today

Your 21^st Century Management Manual, The R-pM Toolkit, is available today and is under continual development to expand and refine 21^st 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.

This entry was posted on Thursday, February 23rd, 2006 at 09:36 and is filed under:
Forums: Capital Development Plans and Projects, Corporate Investment and Governance
Topics: Investing in a Changing Enterprise, Investment Management
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