Symtoms of Global Crash

The economic crisis problems revealed are symptoms, and the remedies proposed address symptoms

Many experts are discussing and writing about the problems causing the financial and economic crisis and recession. They discuss problems in managing “asset value”, in managing complex financial securities, in preventing large sudden financial losses, in confusing interrelationships between institutions, in understanding the real financial situation or credit worthiness of a bank or other enterprise, in the need for some sort of regulation, and on and on. None of the problems discussed are the real problem. They are symptoms of one real problem. Remedies discussed are not directed at solving any real problem. Remedies address the symptoms to prevent failures and to keep the business and financial system functioning, in spite of the fundamental unsolved problem.

The symptoms are complex and confusing and do not indicate any solution

The symptoms of the problem are difficult to understand. Since they are symptoms, it is difficult to find real solutions. Symptoms cannot be solved; symptoms can only be alleviated. Money spent to bail-out companies, to provide capital or loans for continued operations, or to provide insurance or guarantees only enable continuance of unsolved problems. Mergers and takeovers do not solve problems, but either damage a healthy enterprise or make a strong enterprise stronger. In analyzing all the symptoms there is no obvious course of action for government intervention, enterprise reorganizations, new best business management practices, new financial structures, or other possible measures.

The common answer is more regulation to reduce the impact of problems

Over the years, there have been recessions, financial crises, business failures, and corporate governance scandals that indicate business, financial, and economic management problems. The underlying problem has never been identified or solved. Governments respond with the tools they have in monetary and interest rate policy, spending to alleviate symptoms and stimulate the economy, and more regulation and compliance reporting, which only adds to overheads and at best identifies recurring symptoms. Symptoms continue to recur because no effort is ever made to identify and solve the fundamental underlying problem.

The business symptoms of the fundamental problem are well-known and affect every enterprise

The business symptoms of the fundamental problem are well-known. Thousands of business management books have been written and thousands of “solutions” have been implemented. The books and “solutions” address the symptoms and not the real problem. Since the fundamental problem has never been solved, the symptoms remain today in reorganizations, unknown costs, unknown “asset value”, intangible assets, unknown investment returns, unknown capital solution worth, unknown business net worth, unmanaged value and quality chains, unmanaged performance effectiveness, unmanaged human capital worth, incomplete and inaccurate accounts and financial reporting, accounting complications added by each crisis, faulty financial and risk models, unknown business data and unreported business management information, business and information complexity, business alignment, business collaboration and integration, data reconciliation and information management, excessive waste and costs, and on and on. These symptoms are the unsolvable problems of 20^th century management addressed in four hundred articles at the Business Change Forum.

The one fundamental problem causing the symptoms is straight forward; the failure to manage the business

All the symptoms of the economic crisis and all the symptoms encountered by every bank, financial institution, corporation, association, government agency, or other enterprise are caused by only one fundamental problem. The business is not organized and managed.

The business is “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results”. The failure to organize and manage the business is the one fundamental problem addressed at the Business Change Forum. Every symptom of the economic crisis and recession and every symptom of problems within an enterprise are caused by this one fundamental problem.

The fundamental problem must be solved first to provide the structure for new practices, solutions, and regulations

The response to the economic crisis is straight forward once we understand the fundamental unsolved problem, which must be solved first. The objective must be to organize and manage the business of every enterprise to eliminate structures laid over every business that distort information, prevent actual business data capture, mislead management and regulators, and prevent direct business management.

The organized and managed business has one current and strategic business structure that is used for all business organization, planning, directing, control, reporting, and governance. Actual business data is captured against the structure and actual business management information is reported by the structure. The one business structure is the foundation for a new set of best business management practices; new professional principles and standards, compatible structures for markets, industries, and economies; new services and solutions that can be used by any business; new structures for business consolidation, collaboration, and integration, and new government policies and regulations to oversee managed businesses.

The knowledge to organize and manage the actual business is available today as Result-performance Management (R-pM). The guidance and procedures needed are provided today in the Business Management Toolkit. Business management is explained and the Business Management Toolkit is available today at result-performance-management.com.

A Government Business Management Program can solve the problem, eliminate symptoms, and provide future stability

Once the fundamental problem is understood, the solution is manageable. A solution should take the form of a government-led Business Management Program within a nation or across cooperating nations. The program must produce results in business management support for local enterprises; new business services and solutions required for business management; new professional principles and standards; coordinated government programs; a new structure for business, financial, industry, market, and economic management; and appropriate government business assistance, policies, regulations, and reporting requirements.

The program eliminates the business, financial, and economic symptoms, provides significant competitive advantages to local businesses, spurs economic growth, enables management of industries like the financial or automotive industry, enables management of market supply and demand, and enables management of business and economic cycles to provide on-going stability. The cost of the program is insignificant compared to the potential costs of bailouts and lost government revenues due to the downturn.

The Solution to the Economic Crisis is explained in free downloads

Three free white papers explain the dead-end 20^th century management problems that caused the economic crisis, the way to eliminate the problems, and a government program to address the crisis by stimulating the economy, solving the problems, building an structure for financial and economic management, and organizing local businesses to flourish in the eventual recovery.

• How to Eliminate Problems that caused the Economic Crisis explains the major unsolvable 20^th century management problems and the 21^st century business management solution
• The Only Solution to the Economic Crisis; Manage the Business explains how to manage the business to capture actual business data and provide management the information needed for actual business, corporation, industry, and economic management
• A Government Business Management Program to Answer the Economic Crisis outlines a government program to encourage business management and manage economic cycles to prevent future crisis

These three white paper downloads are available free to R-pM Community Members atResult-performance Management.com. There is no cost or obligation to join the R-pM Community. Join by entering your email address and password. Your email address is protected and used only for download problems and occasional R-pM Member news and white papers.