The Change Management Problem and Solution
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. 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.
Result-performance Management (R-pM) organizes the business for direct management of business change
Business change is a change to either an output result produced by the business or a performance solution utilized by the business. When the business is organized and managed, business change automatically reorganizes the business and can be managed as the routine. R-pM organizes results and performance solutions to change the business as the daily routine. Business change projects involve result-performance development to increase the value of results or to enable new results, by implementing new or improved performance solutions. If the enterprise does not manage results and performance, it is difficult to manage change to results 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 performance 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 overlaid on 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. They were not able 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
R-pM 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, 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.
Result-performance Management bases business improvement and development 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 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 now their performance, improving business methods, increased human resource training and capability development, utilizing information systems, and measuring and managing goals and expectations can improve the result.
All business change implementation follows standard result-performance development
R-pM replaces 20th century capital development with 21st Century Result-performance Development to develop value-quality results and cost-effective performance. 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 performance solutions needed. The change is approved and incorporated in the strategic business structure to utilize the specific performance 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.
R-pM makes business improvement and development the responsibility of all human capital in the enterprise
With R-pM, business change is not an exercise with optional cooperation, but is an investment driven by managers responsible for improving and producing results to achieve result goals.
Visit result-performance-management.com for an introduction to R-pM. Then join the R-pM community to download “How to Manage Business Change with R-pM” to take the mystery out of business change.
21st Century Management eliminates 20th century problems
Result-performance Management (R-pM) eliminates the top ten problems and other costly 20th century problems. Slash costs, simplify business management, and boost competitive advantage through R-pM, the conventional method for 21st Century Management.
Your 21st Century Management Manual, The R-pM Toolkit, is available today and is under continual development to expand and refine 21st Century Management. Get your R-pM Toolkit, and future updates, at result-performance-management.com.
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