Today’s corporations and other enterprises find business change hard to manage, because of obstacles imposed by conventional methods. The main obstacle is that to manage business change, the enterprise must first organize and manage the business. The business changes with every management decision to produce a new result, not to produce a finished result, or to utilize different performance solutions. If the business was organized, the business organization would change automatically to keep the business organized. Business change does not wait until every few years, when management decides it is time for business change.

The obstacles that hamper business change management are eliminated by Result-performance Management (R-pM). Result-performance Management organizes and manages business results and the performance solutions that produce results. R-pm plans and manages only the new and improved results from change and the capital developed as performance solutions to produce results. Review the worldwide R-pM community download “How to Manage Business Change” to manage your next capital development, performance or productivity improvement, reorganization, or solution implementation project.

Conventional business organization and management methods are obstacles to business change

We need to manage business change so that we do not have change problems. However, five main obstacles in conventional methods prevent us from properly managing business change:

1. We have not organized the business to directly manage business change
2. We don’t have an investment management capability to manage development
3. We don’t have a method to plan and manage the benefits of investment
4. We don’t manage our capital to ensure that it produces benefits
5. Business change is a periodic upheaval rather than gradual with the need for change

Conventional business change is not change to the business, but to methods overlaid on the business

Obstacle 1 arises because instead of organizing the business, conventional methods overlay contrived organization structures, strategy structures, account structures, system structures, performance reporting structures, etc. Business change is not a change to the business, but a change to the structures that are overlaid on the business. The business changes while the structures are fixed creating pressures to change the structures to more-closely reflect the actual business.

We eliminate this obstacle by organizing and managing the business and getting rid of overlays that introduce excessive costs and obscure business reality.

We do not set up investment management capabilities, because we have no way to manage investments

Obstacles 2 and 3 are interrelated in most enterprises. Since we have no way to understand the benefits of our investments, we are reluctant to set up the capability to manage these investments. The conventional wisdom is to hire consultants. But the consultants also have no way to understand the benefits of investments.

We eliminate these obstacles by managing results. The benefits of investments come from developing results; the costs come from developing performance. Once the enterprise understands results, the benefits of having an internal capability to manage investments, capital development, and business change are clear.

We do not manage capital and the performance of capital to manage change as the routine

Obstacle 4 is one that we have discussed from several points of view. We administer our capital rather than managing our capital. This goes back as well to the fundamental problem that we do not manage results. If we do not manage results, there is no objective for managing capital to produce results and ensure that we benefit from the utilization of capital. Capital is assigned to responsibility centers away from enterprise management, administered by administrative functions, or labelled as “intangible assets” and ignored.

We eliminate these obstacles by organizing capital by the professional human capital capability solutions needed to manage, develop, and support change and utilization of all capital to produce results.

We do not change naturally as the business changes, but change through periodic upheaval

Obstacle 5 is another one that we have discussed from several points of view. Our change is suppressed and accumulated until pressure builds and we have a major upheaval. Obstacles 4 and 5 introduce change management problems, where we have to hire consultants again. We need to get rid of change management problems by changing our organization and roles gradually each time we try to produce a new result, or are finished producing a result.

We do this by eliminating obstacle 1 to managing results, so that our business changes automatically every time we produce a new result, change an existing result, or deactivate an unneeded or finished result. In this way, our only change is through disciplined result-performance development to develop the performance solutions needed to produce new strategic results and to create measured strategic value.

Result-performance Management (R-pM) eliminates the obstacles and provides the capability to manage business change as the routine

So, all these problems boil down to one problem, we do not organize the business and manage results and performance solutions. When we set up the enterprise to manage results and performance in operations and development, we will also set up the capability to manage business change.

The answer is Result-performance Management (R-pM). To learn more about R-pM visit result-performance-management.com.

21^st Century Management eliminates 20^th century problems

Result-performance Management (R-pM) eliminates business change problems and other costly 20^th century problems. Slash overheads and costs, simplify business management, and boost competitive advantage through R-pM, the conventional method for 21^st 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 21^st Century Management. The R-pM Toolkit is offered at a nominal price to encourage wide use of R-pM. Get your R-pM Toolkit, and future updates, at result-performance-management.com.

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This entry was posted on Monday, May 15th, 2006 at 00:31 and is filed under:
Forums: Business Change Consultants, Capital Development Plans and Projects, Organization and Management, Business Change Methods
Topics: Business Change Consulting, Business Change Methodologies, Capital Management, Change Management, Benefiting from Business Change, Enterprise-consultant Relationship, Investment Management, Management Consulting Model, Result Management, Business Transformation
Result-performance Management (R-pM): The 21st Century Enterprise
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