Value New Results needed to Eliminate the Investment Analysis Problem
Submitted by bcfc on October 20th, 2009
Investment Analysis is one of the top 10 problems of 20th century enterprise management
20th century investment analysis cannot plan the actual return on investments
How does your company analyze strategic investments in capital development? Does your company perform a cost-benefit analysis? Are all the specific investments needed for business success planned? Are the costs of the investment analyzed, itemized, and scheduled? Are the benefits of the investment analyzed, itemized, and scheduled? Is the value to be added to the business planned and set up as goals to menage the return on investment?
For the most part, 20th century investment management cannot itemize the costs or benefits of investment, particularly investments in management improvement and business change. Costs are project expenditures rather than investments in specifically-identified capital items. Benefits are usually estimates of increases in revenues or reductions in costs.
Identify and value results needed to justify investments and set result goals to manage the return on all investments
21st century business management manages the economic outputs of the business as specific results and manages the invested capital utilized to produce results as specific capital solutions. [more...]

