Archive for November, 2008

Governments are looking for a unifying architecture for best business management and market, financial, and economic management

Governments will be meeting to construct an international response to the financial crisis. They will discuss new best business management practices to solve problems that caused the crisis, and new architectures for the financial system and economic management to prevent future crises. Again, as always in the past, they likely will fail to comprehend and address the unsolvable 20^th century management problems that cause the crisis and will add new practices and architectures on top of existing dead-end 20^th century management structures, and claim to have solved the problem. In order to make real progress, those involved must set current structures aside and take a completely new look at what comprises a business and how businesses relate to industries, markets, financial systems, and economies.

R-pM is the only solution available to eliminate unsolvable problems that caused the crisis

Result-performance Management (R-pM) organizes the actual business as “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results”. 20^th century management structures are replaced by one business structure to eliminate unsolvable problems in unknown capital solution investments in the business, unknown economic output results produced in chains across the business, unknown value of results from the business, unknown costs to produce results, unknown value-added to manage value and quality, unknown returns on capital investments from the added value to results, unknown capital worth in future output and disposal result value-added, and on and on. R-pM captures actual business data to manage all corporations, financial institutions, and other enterprises properly and report on the actual business to regulators.

R-pM is the only unifying architecture to integrate businesses, markets, industries, and financial and economic management to prevent future crises

R-pM builds up from the business structure to provide actual business architectures by industry or economic area or sector to consolidate actual business data. Data can be consolidated by market for business input and output results and capital solution utilization. Industries, such as the financial industry, can be managed for the value and quality of results and the utilization of financial and other capital solutions. [more...].

Many Governments want new Best Business Practices that provide transparent business management and reporting

The current financial crisis and economic recession is also a crisis in the management of the corporations involved. Many governments seek new best business practices to prevent future problems from arising within corporations and financial institutions. They want proper business management and control, so that management is aware of what is happening in the business and government is aware of what is happening in the economy to prevent problems from arising. They want transparent reporting of the actual business, so that regulators gain an accurate picture.

The barrier faced by governments is the unknown problems and solutions

The obvious barrier to these efforts is that no one knows what specific best business management practices will actually solve the problems and prevent future crises. Measures taken in past crises strengthened government regulations and compliance reporting, but did nothing to solve the fundamental business management problems. We can see that the measures taken so far to address the current crisis are guesswork, in hopes of improving the situation. The fundamental problem is that 20^th century management used by all enterprises today prevents organization and management of the actual business.

Fortunately the real answer is available today in Result-performance Management (R-pM) to organize and manage the actual business to provide a firm foundation for business, financial, and economic management and stability. R-pM has set out a Business Management Program that can be led by a government, with business and industry cooperation, to encourage and support local enterprises to organize the business for breakthrough competitive advantage to prosper in the eventual recovery.  These governments are supported by a free 36-page download “A Government Business Management Program to Answer the Economic Crisis”. The download, which is available at result-performance-management.com, is explained further in the recent article of October 28, 2008.

Many arbitrary practices have been contrived over the years, but none are best business practices

Throughout the 20^th century, various practices and structures for organizing, developing, operating, and managing the enterprise have been contrived and refined, becoming the conventional practices and structures used today. The problem is that the structures do not organize and manage the business, so none are best business practices. [more...].