Archive for the 'Intelligence Management' topic

The fundamental cause of the economic crisis is failure to manage the business

One major problem causing the economic crisis was the lack of accurate management information on the actual business of investment institutions, banks, corporations, and other enterprises. Financial institutions cannot manage “asset value” in the worth of capital, companies do not know full costs or customer value provided, and corporations can not consolidate actual business information from the various units in the corporation.The fundamental problem is the lack of one complete and accurate set of information on the actual business, due failure to manage and measure the business.

20^th century management reports against structures laid over the business

The generally-accepted definition of enterprise business is “the activity of providing goods and services”. In order to organize and manage the business, we must organize and manage the activity of providing in the utilization of capital in the performance required to provide. We must also organize and manage goods and services as output results provided to customers.

20^th century management used today does not provide a structure to do this. Instead of organizing the business, an organization structure is laid over the business to define organization units, functions, and positions. Since the business is not organized, management structures must be laid over the business. A business strategy defines visions, objectives, maps, owners, and other entities. The chart of accounts defines centers, objects, and codes. Business processes, activity costing, performance management and the many other structures laid over the business produce information complexity and hide the actual business.

Overlaid structures capture vast amounts of data and report mountains of information, but not on the actual business

None of these structures captures actual business data or reports actual business information. [more...].

Structures laid over the business produce enormous information complexity

20^th century management does not manage the actual business, but manages the enterprise using a multitude of organization, process, account, performance, system, administration, etc structures laid over the business. The structures are rigid and do not change with actual business change. No structure captures consistent, complete, and accurate business data. The various structures use different names for the same entity and different definitions for the same part of the enterprise. Information systems computerize the various structures producing enormous amounts of incomplete, inconsistent, and inaccurate information. This causes the exploding information complexity and information management problems enterprises are experiencing today.

Information generally is not organized and managed as capital

Information capital management is not well organized. Accounting is responsible for financial records, information technology may perform data management and record retention, there may be a function for knowledge management, record management, or business or management intelligence. Even with this, there is little management of information for application to improve the business. There is no structure to relate information directly to the business and no data is collected on the actual business as a related set.

The explosion in enterprise information problems and investments demands a basic rethink

These problems are aggravated by the proliferation of IT use for email, Internet information storage and downloads, information exchanges, imaged documents, etc. New corporate governance requirements demand a solution to these problems. [more...]s.

“Information Complexity” increases with each structure laid over the business

Information complexity is a common outgrowth of contrived organization and management structures laid over the business. The organization structure creates entities for unit, postiton, job, function, manager, etc. Management structures create entities for objective, process, center, account, group, activity, responsibility, object, station, and on and on. Each overlaid structure uses different entities and different names for the same entity, preventing information integration and reconciliation.

R-pM organizes and manages any business through five information sets

R-pM is designed to utilize modern information technology to organize the business for 21^st century management. R-pM eliminates information complexity by organizing and managing the business through five information sets to define business results, performance solutions, capital, enterprise interactions, and change over time periods.

Learn more through the article in 21^st Century Management Magazine “Eliminate Information Complexity”.

21^st Century Management eliminates 20^th century problems

Eliminate the information complexity problem and other costly 20^th century problems by organizing your business for 21st Century Management. Slash costs, simplify business management, and boost your competitive advantage through Result-performance Management (R-pM), the conventional method for 21st 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 21st Century Management Learn more about the R-pM breakthrough for 21^st century management and subscribe to your 21st Century Management Manual, including free updates through 2009, at result-performance-management.com.< [more...]>

Intangible Assets are unmanaged tangible assets

Why do we have “intangible assets”? Intangible assets are an admission that there are assets we are not measuring or managing. Instead of calling them unmanaged or mismanaged assets, we call them intangible assets. Intangible is something that cannot be seen or measured. Calling them intangible enables us to ignore them. If we called them unmanaged assets, we would have to figure out some way to manage them.

It costs money to develop, improve, and operate intangible assets

Intangible assets include human capability and knowledge or “intellectual capital” and our other information capital. Much of our other capital in business organization and processes and management strategy and tactics is also labeled intangible. But this capital is not really “intangible”. The capital is not free. [more...]t>

What is management capital in the modern enterprise?

Management capital is of real worth to an enterprise and is essential to success. But, what is management capital? Is it the capability of our managers? Is it the capital provide by management to plan and direct the enterprise? What things in our enterprise do we consider as management capital? How should management capital be managed? How can any enterprise develop strong management capital?

Management capital enables the enterprise to develop and execute a successful strategy

Management capital is not the capability of our managers. That is part of our human capital. [more...].

Can financial accounting be converted to management accounting?

I have implemented many general ledger systems, which invariably reduced the number of accountants needed. When addressing the issue of what to do with excess accountants, the package vendor and management would say they should perform analysis or become “management accountants”.

I was never successful in getting accountants to perform real analysis. The best I could get was rule-based “analysis” like if the ratio of account a to b is greater than c to d it means … But, everyone always seemed happy that excess accountants could stay and go through the motions of producing “management accounting” reports.

Does management accounting maintain records capital?

I always looked at accounting as maintaining corporation financial and statistical records as the records sub-set of information capital. Real management accounting requires the capability to derive meaningful management intelligence from financial and statistical data against an understanding of the business, plans, and budgets. What do you think management accounting means? Is management accounting an accounting function? Should “management accountants” have analytical aptitude?

Management accounting should be intelligence capital

Management accounting is similar to data analysis that produces management intelligence. Management accounting is records analysis to gain management intelligence from enterprise records. We need to understand this so that we can stop expecting accountants to be intelligence researchers and analysts and so that we can finally set up the management intelligence capital and capabilities needed by the enterprise.

Result-performance Management (R-pM) shows how to manage accounting and information capital

Now there is Result-performance Management (R-pM). Learn the Basics of R-pM from articles under that category, or join the R-pM community to download information on R-pM. .