How Management Consultants and Clients work in Partnership for measured Benefit
Management consultants and their clients are unable to work together to improve actual business management
Many capital development, business change, and management improvement projects involve management consultants. Since the business is not defined, organized, or managed, management consultants cannot work with client enterprises to improve the actual business. Each management consulting firm has their own approaches and methodologies that are not related to the business and are not familiar to the enterprise client. Misunderstandings often arise over the scope of the project and the responsibilities of the consultant and the enterprise.
Management Consulting today faces many unsolvable problems that prevent scoped and measured business change
20th century management improvement consulting projects have many fundamental and unsolvable problems, such as:
- The enterprise business is not organized, so there is no framework to scope and plan change projects and services
- The business results to improve are not known or managed for added-value
- The capital solutions to acquire, develop, and utilize are not known and managed
- Performance in the utilization of capital solutions to produce results is not defined or managed
- The specific changes needed for success can not be identified and managed
- Consultant services do not change the business, but change structures laid over the business
- The enterprise must learn new organization, plan, process, system, or performance structures with added terminology and definitions
- Changed structures are implemented to adds costs, but not to create value
- The value-added by consulting services is not measured to know success
- The enterprise lacks the capability to manage the investment in development and change
- The enterprise does not lead and participate properly to best take over changes
- Human and other capital is not managed for utilization allowing change problems
These are some common problems with organization and management structures and management consulting approaches utilized today for capital development, business change, and management improvements. Today, the enterprise client and consultant must work in good faith in an unmanaged business environment to produce ad-hoc changes that may or may not improve business results. Business organization and management consulting services tend to be led by the consultant and the client enterprise awaits a deliverable and then decides whether the deliverable is acceptable.
Enterprise clients and management consultants need to work together in partnership to improve the actual business
The enterprise and consultant need a way to define the development and improvements that will provide clear and measurable benefits to the enterprise. The only way is to base business management improvements and management consulting services on the actual business. A new management consulting model is needed that:
- Provides services to help the enterprise organize, manage, improve and develop the business for measured value-added benefit
- Provides a method for enterprises to lead and participate properly in business change
- Provides a clear framework to understand scope and means of participation for both parties
- Provides a way to plan and measure the value added by business change to know the return on specific capital investments
- Provides a method to plan, acquire, develop, improve, and utilize specific capital solutions required
- Provides the organization and approach that eliminates the fundamental problems in current business change
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Provides a methods and tools that both the enterprise and consultant understand and use
- Provides a means to plan and measure the value the consultant provides and the value-added success the enterprise achieves.
We cannot meet these needs with 20th century structures, since the structures hide the business and we have no framework to scope change and measure the value produced from the specific scope of change.
We must define results, capital solutions, and performance to provide a structure for planning and managing change
We can only meet these needs when we define and organize the enterprise business in terms of results that define very specific business outputs to improve and allow us to measure the value-added by development. We must also define the capital that produces the results as specific solution investments. We must define performance that must be implemented to utilize solutions to improve the value and quality of results. We then have result, capital, and performance structures that organize the business as one business structure that provides the framework for the consultant and the enterprise to work together.
Development must include result development, capital development, and performance development
The approach to business change and the management consulting model employed must develop the full business and include result development, capital solution development, and performance development. Capital development provides the organization, processes, human capital, and other solutions that must be specified, acquired, developed, improved, and maintained. Performance development provides the knowledge, learning, and approaches needed to implement, utilize and support solutions to produce results. Result development adds the user role, solution requirements, solution integration, result improvement, value-added to results, and benefits of development. This provides the means to plan and measure the value the consultant provides and the success the client enterprise achieves.
Enterprises must develop the capability to manage all investments in development and change
Consultants and their enterprise clients will continue to have their scope and responsibility problems until they establish a framework for their relationship through separate management and development of results, capital solutions, and performance. Results must be defined to support capital solutions instead of today’s administration, to produce enterprise revenues and meet other business objectives, and to manage investments in development and improvement of the business for strategic value creation over time.
The enterprise must manage investment results, both enterprise level results added or improved by development and also results produced within a result-performance development project. The result-performance development project is organized and managed as a business in order to produce the “completed and closed project’ as an investment result in the enterprise business structure. The needed enterprise results, performance, and capital solutions are developed and implemented as project results. The capital solutions provided by the enterprise, consultant, and other project participants are organized as project solutions and deployed to produce specific project results. The enterprise must manage its capital solutions, both to take responsibility for support and utilization of developed capital, and also to provide solutions utilized within the project.
The consultant must not do what the enterprise can and should do. The consultant leverages enterprise resources and provides and develops capabilities lacking. It is not the consultant’s enterprise, so all result-performance development projects are enterprise led with consultants working in partnership to produce one deliverable; enterprise result value-added success. Consultant participation is planned and managed as specific human and other capital solutions provided to the project and managed by the enterprise to be deployed and utilized to produce project results.
The Result-performance Management Consulting Model guides a client-consultant partnership to add value to the business
20th century management consulting tends to be ad-hoc and performed with no business framework. Projects add or improve structures laid over the business and are driven by what the consultant proposes to deliver rather than the improvements the client needs to receive.
Result-performance Management (R-pM) provides the knowledge and methods to organize and manage the enterprise business and also to organize and manage all capital development projects as a business. R-pM provides a new 21st Century Management Consulting Model to enable consultants to participate in an enterprise-led partnership to provide capital solutions to a project to develop specific enterprise capital solution investments that are implemented and utilized in cost-effective performance to produce planned and measured value-quality in enterprise business results.
21st century business management consulting using Result-performance Management is based on organizing the actual enterprise business to define specific results to add or improve, specific capital solutions required for business, human, facility, and management capital in order to produce each result to develop or improve as needed, and the performance to implement so that all solutions are cost-effective and utilized properly to produce value and quality in results. The objective of all 21st century business management consulting is to add planned and measured actual value-added over performance costs for all results included in the project.
R-pM consulting is delivered through a client-led result-performance development project that utilizes resources provided by the enterprise, consultant, and other participants as capital solutions to be utilized in project performance to produce project results. Project results are the full set of developed solutions implemented for cost-effective utilization in performance to produce the planned added value-added and quality in results. All capital development and other investment costs are captured by solution to be charged as performance costs against the value produced in results over the life of the solution.
Result-performance Management is the answer for both clients and consultants
Result-performance Management (R-pM), is the only way to organize and manage the enterprise business. The R-pM 21st Century Management Consulting Model guides the enterprise-consultant partnership to plan and achieve added value-added to specific results through the development of the range of solutions needed and the implementation of cost-effective solution utilization in performance to add to specific result value-added. To learn more about R-pM, becoming an R-pM management consultant, and using R-pM consultants for your enterprise development visit result-performance-management.com. The R-pM Management Consulting Model is explained in the R-pM Business Management Toolkit, which is available for subscription and download.
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