Business Owners and Shareholders must lead the way out of the Financial Crisis

Business owners and shareholders are the big losers from the financial crisis

Corporate management may have lost out on some big bonuses and property owners may have to wait for the worth of their properties to recover. But, the business owners and shareholders have lost trillions of US Dollars on their investments due to the continuing failures of obsolete 20th century management. They have invested in corporations and institutions that are unable to manage their business in the costs and planned worth of investments, the cost and effectiveness of specific capital solutions utilized in performance, the value and quality of results produced from performance, and the historic return and future solution worth from the value added to results. These failures cause the continuing cycle of corporate management problems.

Business owners, shareholders, and their board representatives must drive actual business management

The only solution is to organize and manage the actual business with R-pM, and to clear away the myriad of enterprise management structure laid over every business. Corporate executives are burdened by lifetimes of 20th century management teachings and experience and have no real incentive or authority to undertake breakthrough change.

Any major business change must be sponsored and driven from the top, from the business owners, shareholders, and board members, who must demand change to 21st Century Management with R-pM. The risk of no change is twofold:

1. Continued poor corporate management and financial losses leading to another cycle of problems 2. Significant disadvantages to competitors now organizing their businesses with R-pM

Business owner and investors gain the most by being among the first to use R-pM to prevent future mismanagement. The business owners and shareholders also face the threat of competitors employing R-pM. They must ensure that their enterprise is not burdened by unsolvable problems and high cost overlaid structures, while competitors use R-pM to take away markets and profits. When you understand the advantages of R-pM, inform your enterprise ownership and top management, so that they can be aware of the opportunity provided by R-pM.

The acceptance of Result-performance Management is growing

The current financial crisis and obvious business management problems add impetus to acceptance and use of Result-performance Management (R-pM). Enterprises around the world are now evaluating and implementing R-pM to organize the business for 21st Century Management. Enterprises will begin using R-pM in 2009.

R-pM is mainly a change in thinking, which requires time to take hold. The existing business is gradually redefined into result value-quality chains and one integrated business structure. Obsolete structures laid over the business and unsolvable 20th century management problems are gradually abolished. As the enterprise learns R-pM, implementation accelerates and the competitive advantage of R-pM increases until the complete business is organized for 21st Century Management.

Once R-pM is in use, businesses using R-pM will have breakthrough competitive advantages over enterprises still burdened with unsolvable 20th century management problems. The leading businesses will continue to improve using their knowledge of their business and R-pM, while other enterprises will tend to follow by copying what others have done.

Business owners and investors have the most to gain from R-pM

Business owners and investors gain significantly from the competitive advantages, business operation efficiency, financial savings, and capital development returns provided by R-pM.

R-pM is implemented gradually over time and does not require significant new capital investment. R-pM prevents many unnecessary business change investments in new processes, structure support systems, reorganizations, performance management, and other changes to structures laid over the business. Any new investment must organize and manage the actual business.

R-pM is primarily a change in thinking to focus on investing in capital to capture investment costs and increase result value, utilizing the capital in solutions to produce specific results, and using one set of business data and information to manage the actual business. Existing processes and systems are redefined and managed as result value-quality chains. Changes initially are gradual to isolate and improve the performance producing each specific result. Once management and staff understand the business results produced and capital solutions utilized, change accelerates until the business is organized as one integrated structure and management uses one set of actual business information for 21st Century Management. Existing structures laid over the business, unsolvable problems due to conflicts with the business, and costs above those that directly produce required business results are eliminated.

Business owners and investors have the most to lose from competitors using R-pM

When competitors move to R-pM, the enterprise is at a significant competitive disadvantage.

- Competitors have organized the business for simple and direct business management, while the enterprise is burdened with the costs and problems of the many structures laid over the business - Competitors organize capital for professional management of investments to increase invested amounts and solution worth and of utilization to amortize reductions in worth in performance costs, capture result value-added returns, and assess future result value-added solution worth; while the enterprise cannot manage solution investments and develops more intangible assets - Competitors manage actual business data on unamortized investment balances, result value, complete performance costs, result value-added, result quality and performance effectiveness, actual against result goals, generated capital returns, and future asset and liability worth; while the enterprise fights problems with incomplete data, data reconciliation, and information integration - Competitors cut costs, increase flexibility, and improve the value and quality of products and services, while the enterprise still has difficulty identifying problems that remain unsolvable - Competitors simplify IT as capital solutions in application systems to produce specific results and actual business information, while the enormous enterprise IT infrastructure processes and reports overlaid structures creating information complexity, while failing to report the business - Competitors focus on providing high value and high quality customer results, while the enterprise is still trying to get obsolete business processes and performance quality to work properly - Competitors integrate the business with suppliers, partners, and customers for shared value-added, while the enterprise cannot sort out its own business and information complexity - Competitors attract the most-qualified human capital by developing high-worth capabilities and increasing human worth and reward, while the enterprise administers human resources - Competitors quickly change results produced and leverage and optimize solutions utilized, while enterprise results still are undefined and capital solutions are intangible assets - Competitors manage investments to develop precise solutions to produce measured higher-value results, to gain the return on investment and manage on-going capital worth, while enterprise capital development is ad-hoc, unstructured, and difficult to plan, implement, and measure - Competitors have goals and information to govern the creation of strategic result value, while the enterprise has corporate plans unrelated to the business and inaccurate information on progress - Competitors manage the value of shareholder results, by increasing result value, controlling performance costs, managing actual against result goals and performance expectations, and managing business worth; while the enterprise guesses its business worth and shareholder value

The competitive disadvantages are significant. The enterprise will find that it has fallen behind and will have to implement R-pM to try to catch up. But, R-pM is not implemented quickly. Implementation is gradual to learn and organize the business first, but accelerates as R-pM is understood and experience is gained. So the enterprise will continue to fall behind until it is able to move up the implementation curve.

Owners and shareholders must ensure that their business is a leader

The trillions of dollars of recent known enterprise losses are just a portion on the enormous unknown losses day in and day out due to inefficient and inaccurate 20th century management. R-pM is only way to eliminate the 20th century management problems that produce these losses and avoid certain recurrence of management problems. The only way to avoid the disadvantages of competitors using R-pM, is to introduce R-pM now in three phases to learn, organize, and manage the business. The advantages and up-side potential are enormous, while the risk and investment involved is minimal.

The main requirement is a willingness to open the mind to new thinking, to embrace actual business organization and management, and to abolish all the 20th century management structures and the inherent unsolvable problems. The business managed with R-pM gains breakthrough advantages over competitors, increases managed business worth, and increases and manages the value of shares in the business.

All the information and guidance needed is provided in The R-PM Toolkit, your 21st Century Management Manual, which is continually updated with new advances. Learn more about R-pM and subscribe to your R-pm Toolkit and future updates at http://www.result-performance-management.com.

Harry Greene spent over 30 years addressing unsolvable management problems as an IT application and business management consultant with Booz Allen and Hamilton, AT Kearney, and Arthur D. Little. In 2002, Harry established Result-performance Management Limited to eliminate unsolvable problems by organizing and managing the business directly with Result-performance Management (R-pM), as supported at http://www.result-performance-management.com.