An article at result-performance-management.com, “Business Change that does not change or benefit the Business” discusses how many of our business change projects are destined to fail before they start. The odds are stacked against successful business change in the 20th century enterprise.

Business change problems start when an organization structure is laid over the business

We start problems when we lay organization structures over the business and do not organize the business. Since the business is not organized, we are unable to manage the business, so we lay strategy and planning, business processes, charts of accounts, performance management, and other structures over the business. Since the business is not managed, we are not able to manage change to the business.

As the article shows, the enterprise business is defined by only two entities:

• Results: The economic outputs that create the value from the business
• Performance Solutions: The capital consumed in performance to generate the costs incurred by the business to produce result value

Business results and performance solutions change continually. In order to manage business change, we must manage business results and performance solutions continually.

If the business changes day by day, why is Business Change a separate periodic undertaking? It is because “Business Change” is not change to the business, but periodic change to rigid structures overlaid on the business to align them closer to actual business results and performance.

R-pM manages business change as the routine when the business changes

Result-performance Management (R-pM) organizes and manages the business through results and performance to change automatically with business change. Business change projects are replaced by result-performance development to develop the new and improved capital needed to produce future value-quality results. The approach is described in the R-pM Community download “How to Manage Business Change“. The download also is included in the R-pM Toolkit.

The 20^th century enterprise has situations that resist or undermine change

The odds of successful business change are stacked against 20^th century enterprises. Invariably, enterprises have situations that resist or undermine change, such as:

• Change is initiated or opposed by a manager for personal reasons
• Delegation of responsibility for change from top management to change support management
• Objective to improve performance or implement a solution with little attention paid to result improvement
• Change, through ad-hoc projects, using management and staff re-assigned from other duties
• Weak plans and provisions for project review, goals for users, and return on investment payback
• Lack of identification and management of capital so that new solutions conflict with those already in place
• Lack of a change culture; performance is by rote with no thought of improvement, so change is resisted
• Need for periodic disruption in order to change from one rigid situation to another rigid situation
• Lack of responsibility for performance of capital allowing change management problems
• Lack of a mechanism to manage projects, prevent problems, assure change quality, and follow-up benefits
• Lack of result user planning and involvement producing haphazard cutovers, little improvement, and resistance
• Lack of consideration of the value of results of projects, preventing accurate planning of benefits and goals
• Failure to consider line users as stakeholders, who must produce the return on investment through more valuable results

Enterprises are at a disadvantage when they see change as a necessary evil rather than as a natural evolution. The lack of ability to manage change prompts enterprises to turn change over to consultants or vendors, thus forfeiting the intellectual capital to be gained and propagating the same problems for the next change. While consultants and vendors can solve some problems, they also do not manage actual business change.

Conventional Business Change focuses on the cost of performance change

We magnify these problems, because our changes are changes to performance. Conventional change methodologies are directed to performance or productivity improvement, business process re-engineering, system or solution implementation, organizing human capital into an organization structure, copying “best practices” from others, etc. The change is to performance in general, rather than to specifically managed performance solutions. All of these business changes implement costs of development and operation, without necessarily implementing benefits.

Management Consultants set up “Change Management Practices” to address the problem of business change

Business process management consultants set up a new consulting practice “Change Management” to manage the adverse impact of change. These services addressed symptoms of mismanaged change, but did not solve the change management problem. Enterprises add on more services, instead of establishing the foundation and approach for successful change that builds in “Change Management” and prevents adverse impact.

Conventional methods neglect result change, the value and benefit side of business change

We must concentrate change on performance, because we do not manage results. Result change is the most important part of business change. Result change lets us get rid of symptoms and provide the value and benefit of change. Result change involves users and lets them improve and achieve new result goals through the change. Result change improves quality and reduces risk. Result change allows us to itemize benefits and manage the return on the change investment.

The enterprise cannot manage result change if it does not manage results

Of course, we can never manage result change, if we do not manage the results we produce. And we cannot manage performance change properly, if we do not manage our capital and the performance solutions, we utilize to produce results. Until we do all this, we will continue to encounter the situations that resist or undermine business change.

Organize the business for 21^st Century Management with R-pM so that the organization changes with business change

The answer is Result-performance Management (R-pM), the conventional method for 21^st Century Management. Once we use R-pM to organize and manage business results and performance, we have a business organization solution that changes with every business change, eliminating separate business change undertakings. Download “How to Manage Business Change” to take the mystery out of business change and “How to Manage Projects in the 21^st Century” to manage the business change project properly, at result-performance-management.com.

Eliminate costly 20^th century problems by organizing your business for 21^st Century Management. Slash costs, simplify business management, and boost your competitive advantage through Result-performance Management (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. Learn more about the R-pM breakthrough for 21^st century management and subscribe to your 21^st Century Management Manual, including free updates through 2009, at result-performance-management.com.

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This entry was posted on Wednesday, May 30th, 2007 at 00:10 and is filed under:
Forums: Business Change Consultants, Capital Development Plans and Projects, Processes and Information Systems, Business Change Methods
Topics: Business Change Consulting, Business Change Methodologies, Change Management, Benefiting from Business Change, Performance Management, Best Practice Management, How to Implement Change
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