Successful and beneficial business transformation

The Business Transformation Problem

Over the past 10 years or so, business enterprises spent large sums on business transformation in such areas as business process reengineering, enterprise resource planning, supply chain management, and customer relationship management in expectation of enormous benefits and competitive advantage. We discussed this in the article of 22 May 2006, Going for true business transformation.

In the article, we explained how business transformation is just a big word for rearranging and upgrading conventional business processes, information systems, and other structures overlaid on the business to perform the same operations, administration. and development. Instead of transforming the enterprise to organize and manage business reality and solve problems, we kept creating bigger problems, requiring additional solutions. Now, business transformation conjures up “out of the frying pan into the fire”.

But, business transformation does convey the objective if we want to properly organize and manage our business.

The Business Transformation Solution

We define business transformation as redefining and restructuring the enterprise to organize and manage the business, to provide the one fundamentally-sound right way for business success. Once the business has been transformed, it will change naturally with the times and never need further transformation.

There is one fundamentally right way to organize the business for true and beneficial business transformation. We need to eliminate the contrived structures that we use to manage our enterprises. We need to redefine the enterprise to organize and manage the business and to use the business itself as one integrated management method.

We need to organize and manage the enterprise based on only two entities to provide true business transformation:

1. The results that the business produces through performance
2. The performance solutions that are utilized in performance to produce results

These entities are the only two that define enterprise business reality. But these two entities are not defined and managed in conventional enterprises.

Results define the economic outputs that manage capital, provide customer service and satisfaction, and manage investments and capital development. Performance solutions include all tangible and intangible assets, human resources, business processes, strategic and tactical management solutions, and information system processing and information solutions.

By transforming the enterprise to manage results and performance, we eliminate unsolvable performance problems inherent in conventional methods and provide many benefits not available to conventional enterprises.

• Manage the enterprise effectively through two dimensions of responsibility
• Optimize all capital and eliminate intangible assets and capital
• Replace administration with capital management to increase enterprise worth
• Manage all results and all performance solutions for fast and flexible change
• Change gradually with reality eliminating re-organizations and change management
• Re-engineer business processes to be result value-quality chains
• Manage result value-quality across the enterprise
• Manage performance costs against result value for optimized value-added
• Manage quality of all results and effectiveness of all solutions producing the result
• Replace monolithic business processes with result value chains
• Standardize performance costs for control, benchmarking, and collaboration
• Manage result value chains across the enterprise and business collaborators
• Plan strategies and investments from known current value to create future value
• Manage itemized benefits of development to ensure return on all investments
• Manage one consistent set of result and performance information linking strategy, plans, and actual operations
• Manage and govern business reality, rather than corporate governance in compliance with policies, rules, and reporting

Successful business transformation transforms the corporation business to be managed with R-pM

The only true method of business transformation is to redefine the enterprise to utilize capital in performance to produce value in results through R-pM, to become a 21st century enterprise and leave unsolvable 20th century problems behind.

21^st Century Management eliminates 20^th century problems

Result-performance Management (R-pM) eliminates business transformation problems and other costly 20^th century problems. Slash 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.

This entry was posted on Tuesday, August 15th, 2006 at 02:36 and is filed under:
Forums: Capital Development Plans and Projects, Business Change Methods, Strategy and Performance Management
Topics: Business Change Methodologies, Change Management, Collaboration Methods, Conventional Management Methods, Cost Management, Benefiting from Business Change, Organization Methods, Performance Management, Quality Management, Result Management, Value Management, Business Transformation
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