The Management Change Problem

Top management takes an avid interest in the core of their business to deliver goods and services to customers. Financial, business, and capital development investments in the core area are considered strategic and management gets involved.

This usually does not happen with major business change, where top management does not have the same experience and confidence. Top management often delegates business change, such as solution implementation. They do not consider the change as strategic and do not perceive impact on the way they work. The cost is often perceived as a Departmental expense. They are usually called on to “support” the project, but rarely get deeply involved. The change team or consultants are given the responsibility to effect change, while the line management chain is free to accept or reject the change.

Management often does not see the need to change their own style or leadership qualities to use improved processes or systems. They do not perceive themselves as a system user. They prefer to retain their management style, their time perspective for decision making, and traditional controls on people. They will often resist change themselves, while calling for change in the rest of the enterprise. They may even resist executive information systems or strategic enterprise management systems, designed specifically for their use.

In addition, second and third level management tend to resist change. Perhaps, they were involved in establishing the current methods and gain advantage from the existing situation.

All business change creates a need for management improvement, but most change does not address management needs. Many contrived business changes increase management problems rather than introducing management solutions. A separate change such as KPI’s or scorecards may be introduced to compensate, but often creates a separate reporting structure. Each change is an overlay on the business that makes it more difficult to understand business reality. Reports are for centers, processes, objects, activities, departments, regions, etc. rather than what is actually happening in the business.

Top management perceives their responsibility to measure and evaluate other aspects of the business, but rarely do they evaluate their own performance and the impact of their management methods on the business. Since managers are in charge, it is difficult for subordinates to introduce real management change.

The Management Change Solution

Business change must be undertaken through an approach that management understands. R-pM organizes and manages the business directly, without contrived overlaid structures. R-pM develops a result-performance structure with result and performance measures, goals, and expectations. The result-performance structure is one integrated solution used to plan, organize, direct, and report the business.

Managers quickly understand the value of having enterprise results defined, measured, and improved. Managers can understand the results they are responsible for and their new goals. Result value is calculated and all costs are known, enabling management of result value-added. Managers understand operations and development in terms of value-quality results and cost-effective performance.

Management and business change is justified by the itemized return on the change investment from the added result value-added. Change is substantiated by new result goals at all management levels over the payback period that, when achieved, provide value-added greater than the return on investment.

R-pM provides one integrated method for organization, strategy, planning, reporting, and governance, so managers see their part in executing a strategy. R-pM integrates management information, knowledge, and intelligence for strategic decision support. R-pM introduces a Result-performance Management System within the reporting structure to provide details on result costs and value creation leading to approved strategic result value.

Business change is a change to specific results and performance solutions. Management is supported in change by professional performance managers who specialize in the performance solutions provided. Line managers do not change just because somebody says so, but because they understand how to improve results and meet goals. Management has the specific support services needed to manage the change process and to manage the new generation of the enterprise.

Learn how to manage Business and Management Change with R-pM

R-pM provides management the complete solution they need for effective change. Review the article to learn more.

21^st Century Management eliminates 20^th century problems

Result-performance Management (R-pM) eliminates the management change problem 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.

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This entry was posted on Saturday, September 2nd, 2006 at 01:59 and is filed under:
Forums: Corporate Investment and Governance, Organization and Management
Topics: Change Management, Conventional Management Methods, Management Responsibilities, Performance Management, Value Management
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