Why conventional business change approaches fail to deliver benefit
The conventional business change cannot manage the benefits of business change
Many business change approaches have failed to deliver real benefit. We often have a hard time realizing this because we can never effectively manage benefits. The fundamental problem is that conventional business change and capital development approaches can only manage the cost side of investment, development, and change. There is no approach to manage the benefit side.
Conventional business change management is through performance development and the cost of change
Current approaches concentrate on performance development through such steps as identify the problem, design and implement the solution, train users to operate, and operate the solution. These approaches allow costs to be incurred and the investment to be carried out, while failing to uncover the benefits and showing how to gain the return on investment.
Business change methodologies do not systematically manage benefits
We cannot manage the benefit of change with conventional methods. We have no systematic way of knowing where benefits occur and identifying the precise benefit for each improvement. We can itemize the costs but we cannot itemize the benefits. We can plan and schedule the costs but we cannot plan and schedule the benefits through to the complete return on investment. Improvements lead to some future estimate of revenues, product quality, or customer satisfaction. The current sophisticated cost/benefit and internal rate of return calculations that we use to justify change investments are scientific guesswork.
All businesses must change and must be able to benefit from business change
We need a new approach that allows us to structure the enterprise to calculate, plan, and manage the benefit of change from initiation through to gaining the return. The answer to business change is Result-performance Management (R-pM), to simply organize and manage the business. If the business is organized the organization changes with each business change. Business improvement, capital development, or business transformation are no longer ad-hoc endeavors but are part of the routine in an organized and managed business. To learn more about R-pM visit result-performance-management.com.
21st Century Management eliminates 20th century problems
Result-performance Management (R-pM) eliminates business change and change management problems and other costly 20th century problems. Slash overheads and costs, simplify business management, and boost competitive advantage through R-pM, the conventional method for 21st Century Management.
Download your 21st Century Management Manual today
Your 21st Century Management Manual, The R-pM Toolkit, is available today and is under continual development to expand and refine 21st 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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May 31st, 2006 at 00:06
[…] On 2 March 2006, we posted an article “Why current business change approaches fail to deliver benefit“, that noted that conventional methods do not specifically identify and manage benefits. […]