Gain real benefits and success from your next business change investment
Business change today is not change to the business, but change to structures laid over the business
When people talk about business organization, business management, or business change they think they are talking about organizing, managing, or changing the actual business. But, the fact is that they are not talking about the actual business. The enterprise business, defined as ‘the activity of providing goods and services“, has never been organized or managed.
They are talking about enterprise structures laid over the business. The organization structure does not organize the business. A structure is laid over the business to organize the enterprise. The business changes while the organization structure remains rigid. Reorganization and related change management is not business change. It is change to the overlaid organization to align a new structure closer to the actual business. The organization structure is the fatal error of 20th century management that prevents the business from being managed.
Since the actual business cannot be managed, structures are laid over the business to manage the enterprise, such as strategic plans, business processes, information systems. chart of accounts, administration structures, activity-based costing, scorecards, etc. Each structure defines the enterprise differently for its own needs. The overlaid structures restrict business flexibility and conflict with the actual business creating problems that can never be solved by improving overlaid structures. Data is collected on the various overlaid structures, rather than the actual business, producing incomplete, conflicting, and inaccurate management information. Business change investments lay new or changed structures over the business and do not directly change or improve the business.
Result-performance Management organizes, manages, and changes the actual business
Result-performance Management (R-pM) organizes the actual business for 21st Century Management. Business activity is organized in the human and other capital utilized as performance solutions by the business to provide goods and services. The goods and services provided are organized as economic output results produced by the business. As is the case today, the business changes with each change to a performance solution utilized or change to a result produced. But, with R-pM, the business organization changes with each business change, eliminating the unsolvable reorganization problem.
One business structure organizes and manages the utilization of capital in performance solutions to produce value in results. Structures laid over the business are incorporated in the business as needed, and the remaining structures are eradicated. One business structure is used for all business organization and management.
Data on result value, quality, volumes, etc and related data on performance costs, effectiveness, capacity, etc, are captured to provide real management information. Result value less total performance costs is the result value-added, the most important metric in 21st Century Management,. All business change must either reduce performance costs or increase result value to increase result value-added and provide the measured return on investment.
Business change projects add or change performance solutions to produce specific new or improved results as valuable economic outputs from the business. Change management problems are eliminated.
Organize and change your actual business for your next business change
R-pm is a change in thinking and approach to business organization and management and business change. The business is viewed as specific economic output results to produce and the organization of capital as performance solutions required to produce results. All business change is directed at new or improved results such as material, products, orders, channels, invoices, revenues, etc. Results normally form a result chain, such as order booked, order filled, invoice produced, etc to produce a final result such as a fulfilled order. All business change must increase specific result value-added over performance costs to justify the change and the provide the return on investment. The cost of business change investment is in the specific new and improved performance solutions, such as a process, system, equipment, developed human capabilities, management strategy and tactics, information, etc implemented to produce the specific results.
Any business change to any enterprise business can be defined as specific performance solutions to be developed to increase the value of specific results. Business change projects are managed by R-pM, as a project business structure, to develop specific new solutions to produce specific business results as project results to capture development costs and document business results and solutions.The human, financial, and other capital assigned to the project are organized as project performance solutions to produce managed and costed project results.
Business change implementation establishes the value of the business results and the costs of existing and new solutions utilized, to manage result value added across the result chain. This result value added is managed to manage the business and to provide the benefit of change. All capital utilized is defined as a performance solution and integrated to produce specific results. Unneeded and low-value results and under-utilized and low-worth capital are eliminated.
Result-performance Management.com provides information and support for beneficial business change
Learn more from the downloads “How to Manage Business Change” and “How to Manage Projects in the 21st Century”. Actual business change projects utilize The R-pM Toolkit for continually-updated guidance and procedures. The downloads and The R-pM Toolkit are available at Result-performance-Management.com. Use R-pM to gain real benefits and savings from your next business change investment.
