Archive for May, 2006

Earlier in the article Business Value — What is the value of all this value, we pointed out the problems defining value. We talk of collaboration in value chains, but we cannot even define a value chain within the enterprise much less across enterprises. We cannot define value chains because we have never defined what it is that contains value in our enterprises and the linkages between things of value that produces a value chain.

The answer is simple; we must organize the business to utilize our capital in performance to produce value in our results. Results are the inputs to and the outputs from our business performance. This answer is the foundation of Result-performance Management (R-pM). Learn about value creation in results in the R-pM community download “How to Build Result Value-quality Chains”.

Results contain the value created by the corporation

Results define business economic production or output, for any corporation or industry. Each time we produce a result, no matter how big or small, we consume capital in performance that incur costs. These costs have to be offset by what we produce as the output from our performance. In order to offset the cost, the result must have value. Each result must have a customer willing to pay more than the cost. If the result has no value or customer willing to pay, why are we wasting our time and money to produce it? [more...]

Why do we have intangible assets? Why do we have unknown costs? Is this acceptable financial management or capital management? We invest money to develop “intangible assets”. We should know the cost of development. So, there should be no such thing as intangible assets or unknown costs. What we have are unmanaged assets in our unmanaged capital and undefined performance solutions that prevent knowing costs.

Now, we have Result-performance Management (R-pM) to define all enterprise capital utilized to produce results as performance solutions. Business capital includes the specific organization, processes, and data solutions. Human capital includes intellectual capital as capabilities or knowledge solutions. Management capital includes strategy, tactics, and intelligence solutions. Once solutions are define data can be collected for costing and the development investment in all new solutions can be known. Review the R-pM community download “Organizing and Managing Performance” to see how to organize and manage capital to eliminate “intangible assets”.

We need to solve the problem of unmanaged capital

The real problem is the failure to manage enterprise capital to support, develop, and improve specific performance solutions and to manage the deployment and utilization of solutions to create value. [more...].

Today’s corporations and other enterprises find business change hard to manage, because of obstacles imposed by conventional methods. The main obstacle is that to manage business change, the enterprise must first organize and manage the business. The business changes with every management decision to produce a new result, not to produce a finished result, or to utilize different performance solutions. If the business was organized, the business organization would change automatically to keep the business organized. Business change does not wait until every few years, when management decides it is time for business change.

The obstacles that hamper business change management are eliminated by Result-performance Management (R-pM). Result-performance Management organizes and manages business results and the performance solutions that produce results. R-pm plans and manages only the new and improved results from change and the capital developed as performance solutions to produce results. Review the worldwide R-pM community download “How to Manage Business Change” to manage your next capital development, performance or productivity improvement, reorganization, or solution implementation project.

Conventional business organization and management methods are obstacles to business change

We need to manage business change so that we do not have change problems. However, five main obstacles in conventional methods prevent us from properly managing business change: [more...]

On 1 February 2006, we posted an article Solution Implementation the Objective of Our Development Projects. This article pointed our how most of our business change projects concentrate on solution implementation. When business problems arise, the enterprise takes the easy way out by implementing a proscribed solution that they hope will solve the problem.

The enterprise is not organized to manage business change

The problem is that we have never organized and managed the business, so we are unable to manage change to the business. A business change is a change to the performance solutions utilized by the business to produce results. We must manage results and performance solutions in order to manage business change.

The solution is R-pM to organize the business and manage change

Result-performance Management organizes the business to manage business change as described in the R-pM community download “How to Manage Business Change“.

The 20th century enterprise manages overlays on the business, so most business change is through additional overlays

The enterprise has problems identifying and solving business problems, so the approach is to implement a proscribed solution, like an information system or industry best practices as a proscribed overlay. Immediately the original problem has been replaced by a much bigger problem to implement the proscribed solution. [more...]

In an article on 29 January we discussed the Rapid change in technology and slow change in IT. We are finally starting to wake up to the long-standing problems in the way we manage and deliver IT services.

IT has been operating as an exception since its introduction because the technology was so specialized. But now the technology is becoming more common. We have identified the CIO problem where one person does not have the natural aptitude to manage strategy, systems development, and technology operation. We need to split up IT to be managed effectively as capital, within the whole of enterprise capital.

R-pM separates information technology as capital to be supported and utilized

There are two important aspects to managing capital:

1. Managing capital creation, development, and support
2. Managing capital integration and utilization to produce results

Result-performance Management organizes information technology as capital to be developed and utilized. Learn more by clicking the banner to go to result-performance-management.com.

Information Technology is categorized to be developed and supported as capital

IT strategy must be blended in with the enterprise management strategy, not a separate solution, so strategic information system planning is management capital. Systems development must be integrated with the business development and systems processing must be integrated with business processing. Data describes the business, so system development, information processing, and data are business capital. Technology operation is part of our equipment and network solutions the same as our telephone network. So the enterprise service architecture, network, and equipment and operations are facility capital. [more...]

Why have we never solved the alignment problem?

We keep hearing about problems aligning strategy with operations, information systems with the business, the organization with operations, customer needs with product and service development, outsourced services with internal operations, tangible assets and intangible assets, etc. How many books have written and methods proposed for solving the alignment problem? Despite all these books and methods, the alignment problem remains.

Alignment solutions are contrived rules or guidelines to alleviate the symptoms of misalignment rather than something to align against that is fixed and related to solutions.

Result-performance Management (R-pM) eliminates the alignment problem

Result-performance Management eliminates the alignment problem by organizing and managing the business. R-pM manages the results produced by performance solutions, so that all solutions are aligned with results. Solutions utilized to produce the same results are automatically aligned.

Conventional methods align performance solutions with performance solutions

The alignment problem will never be solved as long as we keep trying to align performance with performance and solutions with solutions. We need something that is fixed in place to align strategies, solutions, operations, outsourced services, tangible and tangible assets, information systems, etc. against. Once all of these solutions are aligned against something fixed in place then they are aligned with each other. [more...]r.

Most everybody acknowledges the need to think outside the box and not to be limited to what he already accepts as valid. But, in fact, the whole realm of conventional thinking is inside the box. An individual thinking outside of his individual box usually is still inside the box of conventional thinking. Thinking outside the box requires disregarding things we have seen and been taught and evaluating new things on their own merits. How can we get people to consider a new basis for enterprise organization and management? Should new enterprises in developing countries adopt conventional thinking of developed countries? Should business management students be taught to be conventional thinkers?

Conventional thinking is the barrier to organizing the business

Conventional methods do not organize and manage the business. The only way to organize the business is to separately organize the economic output results produced and the capital utilized as performance solutions. But the conventional definition of performance, used in all 20^th century methods, says performance and the results produced are both performance and cannot be separated. This definition is mindlessly accepted by conventional thinkers, and indicates just one of the problems with 20^th century methods that can never be solved through conventional thinking.

Result-performance Management breaks through the barriers of conventional thinking

Result-performance Management (R-pM) goes back to the basics to define the business as an endeavor that utilizes capital in performance to produce value in results. R-pM organizes, plans, develops, measures, operates, records, and governs the enterprise through results, performance solutions, time periods, suppliers and solution providers, and customers. All other entities just obscure the business. R-pM clears away 20th century organization, business process, performance management, and other structures overlaid on the business for transparent 21st century management.

Why do we have change management services from consultants? It is because we do not have the capability to manage change within our enterprises. Why don’t we have the capability to manage change? It is because we do not manage our capital investments properly and because we do not manage the performance of our capital, including human capital. It is also because we do not manage the business and the business entities that change. What do we need to do to manage the actual business and build the management of change into routine enterprise operations?

Result-performance Management eliminates change management problems

Result-performance Management (R-pM) eliminates change management problems thorough three principles;

1. Organize and manage the business results and performance solutions, so that all business change automatically reorganizes the enterprise
2. Deploy human capital with the capability to support and manage specific capital, as performance solutions, in operation and development
3. Manage the performance of capital to provide qualified solutions to produce managed results

R-pm organizes the business capital utilized and results produced as one integrated business structure for continual development, improvement, and change. Change is the routine and all human capital has a role in change, as explained in the R-pM website article “Implement the Benefit of Business Change with R-pM“.

Conventional change management does not manage change, but addresses the problems of unmanaged change

Change management and consultant change management services cannot manage business change. In order to manage business change, we must manage the business first. Conventional business change is change to the organization, account, business process, strategic planning, performance management, and other structures overlaid on the business. Conventional change management cannot manage change, so we manage the problems created by unmanaged change. [more...]