Manage Results to Eliminate the Development Project Management Problem

Capital Development Project Management is one of the top 10 problems of 20^th century enterprise management

20^th century enterprise management cannot plan, manage, or repay capital development projects

Capital development projects for internal management or business improvement today tend to be ad-hoc and conducted separate from the business. We have unsolvable problems in 20^th century capital development project planning, management, and return on the project investment, so we cannot:

• Plan and manage operations and development as an integrated continuum that is part of the business
• Itemize, plan, and achieve specific benefits from development projects
• Clearly and systemically understand what we must be implementing from projects as part of the business for ongoing management and return on investment
• Scope the project as part of the enterprise business to define specific results to add or improve and specific capital solutions to acquire, develop, or improve
• Plan the output results to be produced from the project in specific capital items to be implemented and utilized by the business
• Utilize users and administrative staff in proper roles in the project
• Utilize contractors and consultants as solutions in an enterprise-managed project
• Document and record the project so that all capital developed is fully documented and that knowledge required for use is created
• Manage the capital to be consumed and utilized in the project
• Manage the capital development project as a subsidiary business
• Record accurate development costs by capital item developed
• Implement project results as capital items for direct utilization by the business
• Measure the actual return of capital development investments overall and by capital solution utilized

The unsolvable 20^th century enterprise management problems hamper project management, particularly for enterprise internal capital development and management improvement.

Manage results to drive capital development and gain the return in result value created

Business management provides new breakthroughs for planning and managing enterprise capital development and planning and managing the capital development project.

Capital development develops two things:

• The capital to be utilized as solutions that incur costs
• The results to be produced by the developed capital to provide benefit and return

When we plan and manage a capital development project, we must plan and manage two things:

• The results to be produced by project performance
• The capital to be consumed and performance solutions to be utilized to perform the project

Business management utilizes Result-performance-Management knowledge and procedures to do both. Review the business management downloads “How to manage Business Change” and “How to Manage Projects in the 21^st Century” from Result-performance-Management.com to save significant time and wasted effort on your next capital development project.

The Project Management Problem

20^th century projects are planned and managed to implement capital, not to provide business benefits

Most capital development projects under 20^th century management are separated from the business, often executed in isolation by contractors or consultants. Internally managed projects have management problems as well. Most of our projects seek to achieve an objective and there is some estimate of the benefit of achieving the objective. We itemize the known costs we expect to incur in the project, but we have no way to itemize costs against specific capital items or to itemize the benefits.

Projects are managed to produce performance, rather than results

Projects are planned and managed through such entities as activities, tasks, events, milestones, objective, etc. Project costs normally come from a schedule of known costs for time and material. Projects often utilize and develop “intangible assets”, which are not planned and managed.

We have no systematic method to manage what we are producing throughout the project, the full cost we are incurring in a project, the costs of specific tangible and intangible capital items being developed, and the benefits that we are developing through the project. Capital developed in the project is implemented in new structures that are laid over the business, rather than as capital to be utilized as part of the business. Utilization of implemented capital is often resisted by users, who have not been involved in the project properly.

The Project Management Solution

The prerequisite to managing capital development projects is the manage the business. When the business is managed, capital development can be conducted as part of the business. The capital development project is a subsidiary business to the main enterprise business. The objective of capital development is to enable new business results and to improve existing business results. Capital development must actually be results-driven capital development.

Business management is the only method to effectively plan or manage business change or capital development projects. The business is managed in three dimensions results, performance, and management of change over time. All three dimensions must be managed for successful projects. All capital development projects are part of the business and are under enterprise result and performance and management responsibility. In a managed business the objective of all projects is to add value-added to enterprise results. All projects follow the results-driven capital development methods and organization as one operation-development-operation continuum.

Project value and benefits are created in new and improved results

The objective of the project is laid out in specific new or improved results, where value is to be created to itemize the benefits of the project, and all the new or improved tangible or intangible capital solutions to be developed are itemized to show the costs of development. All projects follow results-driven capital development to analyze result symptoms to determine the value, benefits, and requirements of development and performance problems to determine the cost and specifications for solutions to be developed. Result value-added without the project and with the project are calculated and compared to provide a manageable added value-added return on investment for the project.

Projects are organized to develop results and capital solutions

All projects are organized with a project business structure that produce enterprise investment management results such as planned project, closed project, and repaid project. Economic output results to be produced by the project are defined to develop and implement specific capital solutions to produce specific business results.

The project business structure organizes the results from the project and the external and internal capital solutions deployed to produce specific project results. Contractors and consultants are organized to provide specific solutions to produce specific results in an enterprise-managed project. Human capital solutions are organized though result teams and responsibilities to involve users properly and to gain acceptance of new result goals and through performance teams to develop and implement solutions and accept new performance expectations. All participants in the project have specific results to produce and capital solutions to provide. The primary results from the project are new and improved capital solutions to be utilized in the enterprise business to produce new result value.

Projects are managed to produce investment results

The project itself is managed as part of enterprise operations to produce specific investment management results period by period over the duration of the project. The project has its own business structure to utilize project solutions to produce project results. The project is managed the same as a small business enterprise. All performance costs in the project are captured by period against the capital solutions implemented as project results. Full development costs, documentation, and utilization knowledge is produced for each solution developed. The bottom up results-driven capital development process is followed to produce specific results in result development and performance development. Capital development is managed in the result, performance, and management dimension to manage results produced, capital solutions utilized, and change over time.

Before the project is closed, project final results are implemented as capital solutions with specific development costs to be utilized to produce specific result value. The project results continue to be managed after the project to measure the return on investment in added result value-added to produce the repaid project result.

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 20^th 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 21^st century management conventions, definitions, and standards. The Business Management Toolkit guide “How to Build Result Value-quality Chains” describes value chains in detail. Management consultants who base 21^st 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.

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This entry was posted on Tuesday, October 13th, 2009 at 00:10 and is filed under:
Forums: Capital Development Plans and Projects, Business Change Methods, Top Ten 20th Century Problems
Topics: Business Change Methodologies, Change Management, Benefiting from Business Change, Solution Implementation, Business Transformation, Financial Management, Project Management
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