Archive for February, 2006

Business change is usually performance or productivity improvement, system implementation, re-organization, or management improvement

The basis and objective of conventional business change is performance improvement, management improvement, or solution implementation. The conventional approaches to business change emphasize spending money on the cost side of the investment, but completely hide the benefit side of the investment. The conventional methodology is to identify the problem, design the solution, develop or acquire the solution, test the solution, implement the solution, and operate the solution. All of these steps incur costs but do not provide benefit.

Conventional business change methods change performance and provide no benefit per se

Business change methods that emphasize performance and solution implemtntation implement costs not benefits. Achieving benefit from capital development and business change investments usually is a happy coincidence rather than a planned and managed objective. We need a method that allows us to approach development from both the cost and benefit side, with the emphasis on benefits.

Result-performance Management (R-pM) plans and manages business change for benefit and the return on the change investment

Result-performance Management defines the economic outputs or results to be added or improve from change. R-pM manages both the improvement in results to increase result value and manages the improvement in performance to control costs and optimize result value-added. It is the added result value-added from investment that provides the benefits and return on any capital development investment. Learn the basics of R-pM from the Forum or join the R-pM community to download documents that describe how to take the mystery out of capital development and business change with R-pM. .

Conventional record-keeping is usually confused with financial accounting

If our conventional record-keeping, reporting, and auditing is so good how come we have problems with corporate governance? Any experienced manager understands how financial statements and management reports can be properly and legally structured to deceive. Accurate and meaningful reporting is very difficult to construct and convey. We equate record-keeping with accounting, but does accounting keep the complete record information capital needed by the corporation.

Most of our Corporate Governance problems come from poor record-keeping

Today, every enterprise keeps records on entities or account categories that they decide that are important to them. There are accounting rules and some other generally-accepted entities that are reported by most enterprises. But, even there, measures and definitions can vary. We expect top management and the Board of Directors to provice good corporate gevernance by using bad records.

Financial Accounting does not maintain complete and accurate financial records

So with all the money we spend on conventional accounting and financial management do we ever keep complete and accurate records on the actual business of the corporation? What about just financial records on intangible assets, comprehensive costs of performance in the consumption of all capital, the strategic value being created, the changing worth of all capital and the corporation as a whole? [more...]>

Clients and management consultants often suffer losses because they are not working together properly

There have been many stories about enterprise clients who have suffered at the hands of consultants. There have been many cases where consultants suffer losses at the hands of enterprise clients. Can we develop a standard model where enterprise clients and management consultants can work for successful business change on the part of the client and reasonable business risk on the part of the consultants? Is there a way for clients and consultants to work together and share success?

Conventional management consulting models make it difficult for both the consultant and the client

Professional management consultants want to work together with clients on business change for measured and understood client success. Clients want to employ consultants to achieve clear bottom line benefit. But this capability is not provided directly by existing consulting models.

A new management consulting model must enable the consultant and client to work together for measured client success

A consulting model is needed that provides a method for clients to lead and participate properly in business change, provides a clear framework to understand scope and means of participation for both parties, provides the organization and approach that eliminates the fundamental problems in current business change, provides methods and tools that both the client and consultant understand and use, and provides a means to plan and measure the value the consultant provides and the success the client achieves.

Result-performance Management (R-pM) enables the enterprise and consultants to work in partnerships to create result value-added

Now, there is Result-performance Management (R-pM). R-pM employs one integrated method to organize and manage the business. The R-pM consulting model enables R-pM consultants to provide professional services in partnership with the enterprise for result value-added success. The enterprise and consultant scope a program to improve specific results and performance solutions to produce a planned added result value-added over a payback period with management goals for utilization of improved performance solutions.

Learn the Basics of R-pM from articles under that category, or join the R-pM community to download information on R-pM. .

Many corporations invest heavily in knowledge management systems and processes

Many of us have knowledge management systems, communities of practice, and other measures to create, manage, and deliver knowledge. Does anyone do this well? What is the purpose of knowledge? How can we define what is knowledge of benefit? What should be the main key to access knowledge? Who should manage knowledge? Where does our knowledge reside?

All corporations have problems relating knowledge to the business and delivering knowledge solutions where and when needed

Much knowledge still may be intellactual capital known by someone, but not documented as knowledge for use. Formal knowledge may be stored in documents or in a knowledge management system a topic or subject matter. What happens when we need to access knowledge in the business? [more...].

The conventional corporation does not have a strong foundation for business change

Much business change is destined to fail before it starts because it builds on a weak foundation. What constitutes a strong foundation for business change? We say lack of top management support. But, what it is it top management must do? We say lack of user involvement. But, now should users be involved? We say lack of objectives and understanding of benefits. But, what should be the objective and how do we define benefit?

The corporation should build in business change as a routine part of business operations and development

If the business is not organized, the business cannot be managed. If the business is not managed, change to the business cannot be managed. [more...].

Corporations are not structured to encourage innovation

Many enterprises talk about being innovative and encouraging innovation, yet their structure and culture discourages innovation. How can we structure enterprises to encourage innovation? How can we change a culture of compliance into a culture of innovation? How can we protect against bad innovations?

Conventional thinking and methods discourage innovation

Conventional thinking says keep doing things the way that they have alys been done or the way others do it. Conventional wisdom is built on past experience. Conventional methods make it difficult to innovate. We can’t innovate because we do not plan and manage what we are producing. We only plan and manage separate entities like products and sales. Today we set up “skunk works” and R&D to keep innovation away from the routine.< [more...]>

Management consultants and corporations cannot define the precise scope of business change and management improvement projects

Many business change projects involve consultants. Disputes often arise over to scope of the project. The consultant wants a precise scope to control costs. Client enterprise personnel often want to do the minimum themselves and get the maximum from consultants. Often legitimate needs arise that are outside the contracted scope. How can we define a precise scope for business change projects? What is the proper role of the client and the consultant? What should be the project objective?

Business change consultants and their clients need to define the part of the business involved in change and the precise benefits of the change

Consultants and the enterprise they serve need a common frame of reference and approach that they both understand so that they can work in partnership in clearly-defined roles, under enterprise management. The enterprise and consultant need a way to define the development and improvements that will provide clear and measurable benefits to the enterprise. The enterprise and consultant can then work together to produce and manage progress to shared enterprise success goals.

The professional management consultant must work together with the client for one deliverable; client success

Consultants no-longer work apart to produce their own deliverables for enterprise review and acceptance. There is only one consultant deliverable — enterprise success. The enterprise does not wait for the consultant to deliver to decide if that delivered was good or bad. The enterprise manages consultant participation in the partnership to achieve joint success.

Result-performance Management (R-pM) defines the precise scope of business change for benefit and the return on the change investment

Result-performance Management defines the precise results to be added or improved from change. This defines a precise scope for the business change program. R-pM manages both the improvement in results to increase result value and manages the improvement in performance to control costs and optimize result value-added. It is the added result value-added from investment that provides the benefits and return on any capital development investment. Learn the basics of R-pM from the Forum or join the R-pM community to download documents that describe how to define the precise scope of capital development and business change with R-pM. .

What is conventional fixed or tangible asset capital management

Why do we manage assets? Is it to make sure that we utilize our assets? Utilize assets for what? For time used and time not used? What does that tell us? For the return on assets? Return from what? Is there a better way to view our assets and determine their worth?

Conventional capital management is restricted to recording tangible assets

Conventional financial management and accounting thinking says that tangible assets decrease in worth, as they get older. Do they decrease in worth, if they are used to do ever more valuable things? [more...]>

How do we develop and leverage human capital to create value and increase in worth?

There is much talk about human capital. What should be included in human capital? How do we manage human capital as capital? How should human capital be applied to the business? How can we develop and leverage to increase the value of human capital and absorb increase costs. What are the options in cases of excess human capital?

Personnel and human resource administration is often human capital mismanagement

For many years, I have thought of personnel administration, and then the new guise of human resource management, as human resource mismanagement. Even companies that proclaim that people are their most valuable asset, fail to manage people as real assets. An asset is something of worth that provides a return on the investment made. [more...]>

Conventional wisdom and thinking is a barrier to change and innovation

I have always gotten irritated when asking “what is the reason for doing it this way” and being told “because that is the way it’s always been done”, or when some one gives the reason for new way “because that is what everyone else is doing”. But, I find that the most convincing argument for change for those who do things because that’s the way it’s always been done is to change because that is what everyone else is doing. Is it possible to use this method to make significant breakthroughs?

There are few people with the courage to adopt new breakthroughs

The difficulty with new breakthroughs is to find someone with the capability and courage to be the first to try. The easy way out is to wait for someone else to be first and wait for it to no longer be the breakthrough, but the conventional method. But the courageous leaders get the benefit, advantage, and detailed knowledge of innovation management in the breakthrough, and the followers normally just copy without understanding the innovations.

Once a breakthrough is established, conventional thinking propels others to follow

The beauty of a new breakthrough is that once someone has shown the benefit others are willing to follow. Then all those who do things because that is the way it has always been done can change because that is what everyone else is doing.

Result-performance Management (R-pM) enables the enterprise and consultants to work together on a breakthrough method for 21st century organization and management

Now, there is Result-performance Management (R-pM). R-pM is a new breakthrough to be introduced in 2007. R-pM employs one integrated method to organize and manage the business. The R-pM consulting model enables R-pM consultants to provide professional services in partnership with the enterprise for result value-added success. The enterprise and consultant improve specific results and performance solutions to produce a planned added result value-added over a payback period with management goals for utilization of improved performance solutions.
R-pM offers opportunities for the leaders to gain and maintain the advantage over the followers.

Learn the Basics of R-pM from articles under that category, or join the R-pM community to download information on R-pM concepts and application. .