Archive for October, 2008

The Business Management Program is explained in a free download for R-pM Community Members

The Business Change Forum and 21^st Century Management Magazine at R-pM.net have run articles the past month on the financial crisis and the only real long-term solution to manage the actual enterprise businesses. The articles point out a comprehensive long-term solution in a Business Management Program that a government can undertake to restore confidence in business, financial, and economic management and prevent recurrence of past problems. The Program is outlined in a free 36-page download “A Business Management Program to Answer the Financial Crisis”, which is available to R-pM Community Members at Result-performance-Management.com.

A Business Management Program benefits all participants

R-pM is a breakthrough to new competitive advantages. R-pM is implemented best as part of a coordinated Business Management Program to assist enterprises within a nation or region to organize and manage their businesses. The Business Management Program also promotes support from local management consultants, business service providers, professional associations, software and solution providers, accounting and audit firms, education institutions, and government business promotion and regulatory bodies. The Business Management Program instills confidence that beneficial longer-term measures will solve problems and prevent repeats. All participants gain in improved business management and new competitive advantages of R-pM and 21^st Century Management.

R-pM opens new opportunities for professional services and business software and solutions

R-pM implementation to date is piecemeal in certain forward-looking enterprises in various countries. The financial crisis has created a surge of interest in R-pM from enterprises, consultants, and solution providers. [more...].

The financial crisis shows the confusion in business, finance, and economic management

The financial crisis causes serious concerns about the methods for business, financial, and economic management. All of a sudden, banks, financial institutions, and other enterprises realize that they do not manage their actual business and finances. We see the impact in the worldwide economic downturn. The financial crisis has shown one thing conclusively. We do not understand fundamental business, financial, and economic management problems. Efforts to date are guesswork at ways to ease the situation.

We need new solutions to business, financial, and economic management

Continual business, financial, and corporate governance problems are caused by deficient 20^th century management used today to manage the enterprise rather than the business. Economic crises occur because businesses are not managed in concert with markets, demand, supply, and coherent government policy. But, no one knows real business management. Corrective actions address conventional enterprise management, and impose more government regulation and compliance reporting on enterprises.

For several years, Business Change Forum has been discussing the unsolvable problems of 20^th century management. Now is the time for all to wake up to the unsolvable problems inherent in 20^th century management that lays easily-distorted contrived structures over the business, preventing actual business management. [more...]t.

The current financial crisis is caused by failure to manage capital worth as part of the business

Governments encouraged creation of mortgage securities to enable banks to loan more money and poorly-secured mortgages to enable low-income earners to own homes. Investment banks bundled mortgages to sell as capital investment security solutions, with unsubstantiated “asset value” or, in business terms, capital worth. A dangerous situation grew as housing prices spiraled up, while the actual worth of capital investment solutions decreased, but could not be managed by 20^th century management or detected by 20^th century accounting. The unaccounted for and unmanaged decline came to light as borrowers defaulted and suddenly we have a world financial crisis.

The financial crisis shows the very serious unsolvable problems and significant financial losses incurred because actual businesses are not managed today. The problems with 20^th century management and accounting that cause financial and business crises are explained in every article in the Business Change Forum.

Now is the time to replace 20^th century management with R-pM to manage businesses and prevent future crises

All financial and other business crises are caused by poor business management. The good business management needed is prevented by 20^th century management used by all government, financial, and other enterprises today. The only solution available is to enable good business management with Result-performance Management (R-pM) by clearing away 20^th century management structures laid over the business and managing actual business data and utilizing actual business management information.

Specific capital solutions invested in the business and capital solution investments by the business must be managed for value-creation, costs of utilization, return on investments, and changing capital worth that is not managed today. Now is the time for governments, financial institutions, corporations, and other enterprises to wake up to fundamental management problems and institute the only solution to organize and manage the actual business. The details are explained in the article “All Financial and Governance Crises arise from failure to manage the Business” posted in 21^st Century Management Magazine. .

Governments around the world are promising programs to prevent future business management problems

After every economic, financial, or corporate governance crisis, governments promise action to prevent problems from happening again. The actions invariably impose more regulations on enterprises, which increase business costs and complexity, and do not address or solve the actual problems.

There is only one problem to solve, the problem of obsolete 20^th century enterprise management

The fundamental problem underlying every economic, financial, and corporate governance crisis is the failure to understand and manage the business properly on the part of managers, accountants and auditors, and government regulators. The problems are inherent in 20^th century management structures laid over businesses worldwide that prevent actual business management.

There is only one solution, organize the actual business with R-pM and apply 21^st Century Management Standards

The solution to the problem is available today with Result-performance Management (R-pM) to assist businesses, professional bodies, educational institutions, business service and solution providers, and government programs to institute and support proper business management. R-pM replaces 20^th century management structures laid over the business, with one business structure for 21^st Century Management.

A government “Business Management Program” will prevent future problems and provide significant economic benefits

The financial crisis proves that serious enterprise management problems exist. Now is the time to open our minds to new actual business management and to avoid repeating past mistakes. Most governments likely will continue the past cosmetic approach to pass new regulations and announce that they have solved the problem. A forward-looking government must take the lead to institute a “Business Management Program” as discussed in the referenced article. Once one government establishes its country as the leader and begins the program, other countries will be forced to follow. But, the lead country will always have the advantages developed by the leader.

A proposed government Business Management Program is outlined in an article in 21^st Century Management Magazine

The essential components of a Business Management Program are described in the article “Government Business Management Program to prevent future Crises and boost Competitiveness” in 21^st Century Management Magazine at R-pM.net. .