The Business Complexity Problem

Business Complexity is one of the top ten business problems of the 20th century enterprise

Business complexity is the opposite of business simplicity. Business complexity arises when the business is forced to adjust to overlaid management methods. Instead of simplifying the business and organizing and managing the business in its simplest form, the 20th century enterprise overlays a rigid organization structure on the business and then overlays more methods for strategy, planning, operating, reporting, accounting, etc.

Business complexity also arises from excess results, diverse capital mixed together, and unmanaged capital.

The Business Complexity Solution

Business complexity arises from two sources.

• Excess results that do not meet an objective or that have a performance cost greater than their value.
• Unmanaged and ineffectively utilized capital

Business complexity is reduced by simplifying the business. In order to simplify the business, the enterprise needs to understand and manage the business. In order to understand and manage the business, the enterprise must employ Result-performance Management to manage specifically the only two entities that describe business reality.

• Result: The economic outputs actually produced directly from the business
• Performance Solutions: The capital defined as specific solutions to be utilized to produce specific results

Result Performance Management eliminates business complexity as a problem by structuring only the high value results needed to generate revenues, to reach other objectives, to manage enterprise capital effectively, and to manage change, improvement, and development.

All other results are deactivated.

Performance solutions are defined and the minimum performance needed to produce a value-quality result is deployed to produce results. Unneeded or unusable performance solutions are outplaced or liquidated.

Thereafter, business simplicity is maintained by continually managing results to optimize the highest value results and by continually managing performance to improve and upgrade solutions, to redeploy solutions from deactivated or reduced volume results, and to outplace or liquidate solutions that cannot be redeployed.

Result Performance Management enables the 20^th enterprise to define, organize, and manage business reality to become a 21st century enterprise to leave business complexity and other 20th century business problems behind.

The Change Management Problem

Change Management is one of the top 10 business problems in the 20th century enterprise!

The conventional enterprise finds business change a mystery. They do not have a firm foundation for change since:

• Change is suppressed until the need for change is acute. Then change involves a major upheaval
• There is no systematic method to identify the benefits of change and properly plan charge
• Change is through ad-hoc projects with reassigned staff
• There is no defined responsibility to manage charge
• The entities that actually change are not managed, so the change to the individual entity is not managed
• Change is executed through contrived methods to change contrived entities like systems, processes, jobs, and functions
• Each contrived method is another overlay that increases the impact of change, since each method must be changed separately for any change
• There is no framework for people to understand their role and impact in charge, so change is often resisted

Since the enterprise finds business charge a mystery, most do not maintain a capability to manage change or development projects and turn by change over to vendors or consultants. This does not solve the problem, but it may increase the chance of success.

Since the conventional enterprise does not manage the utilization of capital, it is difficult to manage the change to the capital, particularly human capital. This produces adverse impact from change. Consultants are called in again to provide “Change Management Services”. These services address the impact of change, but do not install the enterprise capability to manage change. So the same problems arise at the next change.

Successful business change occurs because of the extra-ordinary efforts of those involved in change, to win the up-hill battle that all enterprises face with conventional methods.

The Change Management Solution

Only two entities actually change in business change: 1) results the enterprise produces and 2) performance solutions that define the capital employed to produce results. These two entities are not directly managed by the conventional enterprise. By managing results and performance, Result Performance Management takes the mystery out of business change. Every change is a change to a specific result or to a specific performance solution. Result Performance Management enables the enterprise to manage successful change by providing:

• A framework to plan and manage change through the result-performance strategy, result-performance structures, and investment analysis and planning methods
• Investment management result responsibility to manage all change over time
• Change within the requirements of the result-performance strategy
• Change as a natural evolution as each result or performance solution is changed
• Change to one integrated method, so that any charge automatically changes the organization, plans, reporting, etc.
• Professional change management as the routine for every solution changed
• Change to results to utilize new solutions to increase result value, as guided by the result-performance development method
• On-going roles and organization for result-performance development to eliminate ad-hoc assignments and properly involve users and developers
• A new management consulting model to employ consultants in partnership to assist result value-added success

Result Performance Management is fully supported method for business change that is designed to make every change project a success. Change management is built into the enterprise routine and eliminated as a problem or as a need for extra services.