Manage the Business to Eliminate Change Management Problems
Change Management is one of the top 10 problems of 20th century management!
Business change cannot be managed directly because the business is not managed
Business change is a mystery to the 20th century enterprise because the business, the activity of providing goods and services, is not organized and managed. The enterprise is organized and managed through organization and management structures laid over the business. 20th century “business change” is not change to the business, but is change to structures laid over the business. Most “business change” lays new organization, process, or system structures over the business with little positive change to the business itself. The rigid new and old structures are separately defined and conflict with each other and the actual changing business. Since the business is not managed, the value created by change cannot be planned or managed and the return on change investments cannot be measured.
The solution is to organize the business for direct management of business change
Business change is a change to either an output result produced by the business or a capital solution utilized in business performance. When the business is organized and managed, business change automatically reorganizes the business and can be managed as the routine. Business management organizes results and capital solutions to change the business as the daily routine. Business change projects involve capital development to increase the value of results or to enable new results, by implementing new or improved capital solutions. If the enterprise does not manage results and capital solutions utilized in performance, it is difficult to manage change to results, capital solutions, and performance.
The Change Management Problem
20th century business change is change to overlaid organization and management structures
Even accepting 20th century management change to overlaid organization, process, information system, account, performance management, and other structures, there are another set of problems. Successful business change is difficult since the money, know-how, time, and willingness to change is required from all involved, and most do not understand the reason or extent of the change. It is easier to perform restricted business change, where money and agreement exist.
Enterprises having performance problems that produce result symptoms, such as customer service dissatisfaction, result quality defects, or late or costly result value-chain completion, do not try to define the results to improve to provide the value-added benefit. 20th century management concentrates on the capital solutions needed to solve performance problems. The enterprise will often call in management or business service consultants or business solution or application software vendors. It is difficult to directly identify specific performance problems, without analyzing the result symptoms, so the problem is redefined to lay a new or improved structure over the business.
Business change is often redefined to implement proscribed performance solutions
The enterprise often is sold a proscribed “business change”, such as enterprise resource planning (ERP) systems or business process or performance management (BPM), as the solution. This redefines their problem to be “implement the business change”. Consultants hired to implement the change introduce their methodology. This redefines the problem again to “follow the consultant’s methodology”. The consultant business change methodology is proprietary and does not involve the client. Business change is scoped to the consultant’s contract and consultants are expected to achieve the change. Consultants focus on laying a new structure over the business and changing the way the business operates, rather than solving performance problems.
Change is restricted to the contracted processes, systems, jobs or measures; creating conflicts with interrelated ignored solutions and producing restricted benefits. Business processes are changed without considering enterprise system needs. Enterprise information systems are implemented through conversions without appreciable performance improvement. Best practices are copied from other companies, often out of context and are laid over the business. Change management addresses people needs without the change in management to get the best from people. Enterprises are extended and processes outsourced without alignment between the partners. People are asked to use new methods and technologies without the knowledge and support to cope with change.
Enterprises have problems itemizing the benefits of business change and managing change to achieve the return on change investments
Enterprise and consultants find that 20th century “business change” methods do not improve results, like revenues or profits, significantly. Enterprises remain unable to capture actual business data and to provide important business information to management. They remain unable to plan or manage the improvement or value added to the results in the result chains that produce revenue and profit results. Many enterprises realize that they made large investments in business change with little in return. Enterprises are not sure how to gain from these investments. They are looking for a way to control and be responsible for their own business change.
The Change Management Solution
Take the mystery out of business change
The actual business is defined more precisely as “investments in capital as solutions of worth utilized for cost and effectiveness of performance to produce value and quality in results”. Business management takes the mystery out of business change. Typical business change focuses on processes, systems, jobs, or strategies. The fact is that there is only one thing to focus on; results produced from performance. In order to improve results, capital solutions utilized to produce the results must be improved. The enterprise competitive differentiator has never been processes or systems; it is how well the enterprise utilizes capital in performance to produce value and quality in results.
Business improvement and development is based on alleviating result symptoms
The enterprise must define result improvements, and never redefine performance problems. Results analysis (What must we do to improve this result?) is an approach that people understand. They can structure the knowledge they have on the result. They have difficulty defining performance problems but they understand the result symptoms producing poor output results and can estimate a value for alleviating the symptoms. They can understand the relationships between their results and other results that can form a value-quality chain. When they analyze a result, most can see how improving their performance, improving business methods, increased human resource training and capability development, utilizing information systems, and measuring and managing against result goals and performance expectations can improve the result.
All business change implementation follows standard result-performance development
20th century capital development to improve performance must be replaced with 21st century capital development to develop qualified solution investments to provide cost-effective performance to produce value-quality results. First, key result symptoms to remove and major performance problems to solve are defined precisely to drive change and pay for the program. Result requirements are defined and analyzed to specify the interrelated capital solutions needed. The change is approved and incorporated in the strategic business structure to utilize the specific capital solutions to produce specific strategic results. All business change is substantiated by result goals accepted by result managers responsible for utilizing new solution to increase the value of results.
Result-performance Management (R-pM) provides the knowledge for actual business management
Result-performance Management (R-pM) is the only source of knowledge and expertise on how to manage the actual business. Forward-looking enterprises are now using R-pM guidance to organize and manage their business to gain breakthrough advantages over competitors burdened by unsolvable 20th century management problems. Business management is explained and documented in the Business Management Toolkit. The Toolkit provides procedures for actual business management and maintains emerging 21st century management conventions, definitions, and standards. Management consultants who base 21st century business management services on R-pM knowledge are licensed to help enterprises learn, organize, and manage the actual business. Business management knowledge and the Business Management Toolkit are available and supported today at result-performance-management.com.
The Solution to the Economic Crisis is explained in free downloads
Three free white papers explain the dead-end 20th century management problems, such as the failure to plan, account for, and manage the actual business, 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 a 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 20th century management problems and the solution to eliminate the problems
- Business management; the only Solution to the Economic Crisis explains how to plan and manage the business to capture 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, stimulate the economy, restore confidence, organize businesses to flourish in the recovery, and manage economic cycles to prevent future crisis
These three white paper downloads are available to R-pM Community Members at result-performance-management.com. There is no cost or obligation to join the R-pM Community. Join by entering your email address and personal password. Your email address is protected and used only for download problems, product updates, and occasional R-pM Member news and white papers.
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