How can we handle refusal to change that blocks the path to a successful future?
Managers may prevent beneficial business change that is against their vested interest
We all know stories about managers who resist change to protect their own power and authority. How do we prevent damage from vested interests in the enterprise? Is it just up to the Board and CEO to know what is going on? How does the Board or CEO find out? Whom does the CEO listen to? Is there a way to support those with change ideas that are widely considered as good and to counteract those widely considered as bad? Whose head is on the line if profits suffer because beneficial change is delayed? Is it the lower-level manager responsible or the CEO?
Good corporate management and governance requires more than one reporting line
20th century management methods provide only one reporting line. Responsibility for performance includes responsibility for capital invested, responsibility for utilization of capital as solutions, and responsibility for output results produced. As a consequence, capital investments, capital utilization in performance, and results produced are not precisely managed. Nobody is responsible for managing capital as capital to achieve the return on investment in each solution. Nobody is responsible for the performance of the solution in actual utilization. Nobody is responsible for the production of most results to reach result goals.
We need to manage each of these areas separately and support management with multiple perspectives for understanding how the enterprise operates and the needs for business change. This counteracts those vested interests that block enterprise progress, and provides a professional look at proposed change.
The last major change decision is to organize the business with R-pM for 21st Century Management
Result-performance Management (R-pM) is the last major change for the enterprise. Once R-pm is utilized the business changes continually with each change to capital invested in solutions of worth, utilization of a solution to produce a result, or the result produced.
Many managers will resist the change to R-pM because it requires a change in thinking and discontinuance of familiar, but wasteful and obsolete, practices they use today. Board-level management must represent their shareholders by utilizing the best business management methods available. There is no better business management method than actually managing the business. The easy way out for managers at all levels is to ignore R-pM, until the enterprise is ambushed by competitors who use R-pM for significant competitive advantage.
Shareholders and board-level management must ensure that the enterprise investigates and tests R-pM at a minimum. It is a very low-cost insurance policy. A business structure is developed and laid over part of the business to test and prove that R-pM can replace all structures laid over the business and capture and report actual business data. Then the enterprise can decide to use R-pM to gain advantage on competitors still burdened with 20th century management problems, or to fend off competitors who use R-pM.
Those who read this article must initiate investigation into R-pM in their enterprise. They can be the hero that puts the enterprise on the path to success in the 21st century.
Result-performance Management separately manages results and performance across the corporation
Result-performance Management (R-pM) organizes the business to manage separately results, capital investments available as solutions, and performance in the utilization of solutions to produce results.
R-pM replaces imprecise organizational unit functional management with precise management responsibility for the results produced by the unit, both at the unit management level for set-results produced, and at the subordinate management level for specific end-results. This is result management. A result manager is responsible for every result produced across the business.
R-pM converts conventional administration to capital management. Administrative units are replaced by capital result units that must produce capital management results to operate, support, and develop their capital. One sub-set of capital management results is performance management results. Performance management results are produced by performance managers, who provide the capital in specific solutions that meet result requirements to be utilized by result managers. Result managers are responsible for properly utilizing capital to produce results. Performance managers are responsible for creation, development, improvement, and deployment of each item of capital as a solution.
In this way each performance domain, where a solution is utilized to produce a result is managed in two dimensions.
- Result dimension to utilize all solutions deployed to create value in results
- Performance dimension to monitor utilization of the solution for all results, and provide the specific solutions needed
So, every part of the enterprise is managed in the performance dimension to ensure that cost-effective performance is provided and is also managed in the result dimension to produce value-quality results.
Result-performance Management reduces problems with refusal to change
The two dimensions of day-to-day management provide two reporting lines for information to top management. In order to initiate change both result managers at each level and performance managers for each solution utilized must agree. This prevents change for personal benefit of a particular manager. If one manager blocks beneficial change the other managers can pursue the issue. Change acceptance has wider management involvement making it very difficult for one manager to block beneficial change. With R-pM, all change agreed to must be justified by the increase in result value-added and substantiated by management goals to achieve the added value-added over the payback period.
Result-performance management enables you to organize and manage your business properly and make continual management improvements. Learn the Basics of R-pM from articles under that category or go to Result-performance-Management.com to download information on R-pM.
