Archive for the 'Business Change Methodologies' topic

Result-performance Management (R-pM) is the conventional way to organize the business for 21^st century business management. Business management provides a common business structure for business organization, business operations and development, business collaboration, business learning and education, common business services that can be applied to any enterprise, and common business software and solutions that any enterprise can utilize.

An adjunct to the development of business management is the development of 21^st century management conventions and standards. 21^st century management is one consistent and clearly-defined set of business organization and management descriptions, conventions, standards, coding structures, and definitions that eliminate the contradictions, inconsistencies, and unsolvable problems of 20^th century management. R-pM and business management adhere to 21^st century management conventions and standards.

21^st century management is documented in the Business Management Toolkit

Business management is documented in the Business Management Toolkit, your 21^st Century Management Manual. 21^st century management descriptions, conventions, standards, and definitions are also documented in the Toolkit. The Business Management Toolkit is under continuing development. The Toolkit already contains the fundamental documentation needed to begin learning, implementing, and utilizing business mManagement. Those downloading the Toolkit today receive a subscription to all future Business Management and 21^st Century Management advances and documentation as updates to the Toolkit.< [more...]

Investment Analysis is one of the top 10 problems of 20^th century enterprise management

20^th century investment analysis cannot plan the actual return on investments

How does your company analyze strategic investments in capital development? Does your company perform a cost-benefit analysis? Are all the specific investments needed for business success planned? Are the costs of the investment analyzed, itemized, and scheduled? Are the benefits of the investment analyzed, itemized, and scheduled? Is the value to be added to the business planned and set up as goals to menage the return on investment?

For the most part, 20^th century investment management cannot itemize the costs or benefits of investment, particularly investments in management improvement and business change. Costs are project expenditures rather than investments in specifically-identified capital items. Benefits are usually estimates of increases in revenues or reductions in costs.

Identify and value results needed to justify investments and set result goals to manage the return on all investments

21^st century business management manages the economic outputs of the business as specific results and manages the invested capital utilized to produce results as specific capital solutions. [more...]

Capital Development Project Management is one of the top 10 problems of 20^th century enterprise management

20^th century enterprise management cannot plan, manage, or repay capital development projects

Capital development projects for internal management or business improvement today tend to be ad-hoc and conducted separate from the business. We have unsolvable problems in 20^th century capital development project planning, management, and return on the project investment, so we cannot:

• Plan and manage operations and development as an integrated continuum that is part of the business
• Itemize, plan, and achieve specific benefits from development projects
• Clearly and systemically understand what we must be implementing from projects as part of the business for ongoing management and return on investment
• Scope the project as part of the enterprise business to define specific results to add or improve and specific capital solutions to acquire, develop, or improve
• Plan the output results to be produced from the project in specific capital items to be implemented and utilized by the business
• Utilize users and administrative staff in proper roles in the project
• Utilize contractors and consultants as solutions in an enterprise-managed project
• Document and record the project so that all capital developed is fully documented and that knowledge required for use is created
• Manage the capital to be consumed and utilized in the project
• Manage the capital development project as a subsidiary business
• Record accurate development costs by capital item developed
• Implement project results as capital items for direct utilization by the business
• Measure the actual return of capital development investments overall and by capital solution utilized

The unsolvable 20^th century enterprise management problems hamper project management, particularly for enterprise internal capital development and management improvement.

Manage results to drive capital development and gain the return in result value created

Business management provides new breakthroughs for planning and managing enterprise capital development and planning and managing the capital development project.

Capital development develops two things:

• The capital to be utilized as solutions that incur costs
• The results to be produced by the developed capital to provide benefit and return

When we plan and manage a capital development project, we must plan and manage two things:

• The results to be produced by project performance
• The capital to be consumed and performance solutions to be utilized to perform the project

Business management utilizes Result-performance-Management knowledge and procedures to do both. [more...]

Business Complexity is one of the top ten problems of 20^th century enterprise management!

Business complexity is the opposite of business simplicity. The business is simplified by organizing and managing the business.

Business complexity is caused by structures laid over the business and different information in each structure

Instead of organizing and managing the actual business, today’s enterprises lay organization, planning, directing, control, and reporting structures over the business. These rigid structures conflict with each other and the actual changing business creating the business complexity problem. Each structure defines the enterprise differently using inconsistently-defined entities and various information systems, producing the information complexity problem. Different structures used by different enterprises prevent business collaboration and integration.

Result-performance Management (R-pM) provides the knowledge to organize and manage one business structure

Result-performance Management (R-pM) provides the concepts and procedures for 21^st century business management to organize one business structure for all planning, directing, control, and reporting. Existing capital is organized as part of the business and overlaid structures are left behind. The business structure produces one set of complete, accurate, and consistently-defined business management information, including actual business information on result value, capital worth, performance costs, and result investment returns that are unknown today.< [more...]

Many arbitrary management structures have been contrived over the years

Throughout the 20^th century, various management structures for operating and developing the company have been contrived and refined, becoming the conventional management structures that we use today. The structures organize and manage the company or other enterprise. Structures such as the organization, business processes, accounts, costed activities, system architectures, scorecards, and on and on are utilized to manage the enterprise.

We improve management and effect change by laying new contrived structures over the company or enterprise business. Even with all the enterprise organization and management structures, we continue to have fundamental problems with re-organizations, intangible assets, accounting limitations, cost control, information management, alignment, etc. We still have not found the one right method to organize and manage the company business.

Conventional management structures are the generally-accepted wrong ways

Over the past decades, we implemented breakthroughs like business process re-engineering, business transformation methods, business performance management, and enterprise resource planning. But, these turned out to be just new  conventional management structures laid over the business and other structures to manage the enterprise the same as before.

Why are there so many different management structures to do the same thing? Why isn’t there just one right management structure? [more...].

Change Management is one of the top 10 problems of 20^th century management!

Business change cannot be managed directly because the business is not managed

Business change is a mystery to the 20^th century enterprise because the business, the activity of providing goods and services, is not organized and managed. The enterprise is organized and managed through organization and management structures laid over the business. 20^th century “business change” is not change to the business, but is change to structures laid over the business. Most “business change” lays new organization, process, or system structures over the business with little positive change to the business itself. The rigid new and old structures are separately defined and conflict with each other and the actual changing business. Since the business is not managed, the value created by change cannot be planned or managed and the return on change investments cannot be measured.

The solution is to organize the business for direct management of business change

Business change is a change to either an output result produced by the business or a capital solution utilized in business performance. When the business is organized and managed, business change automatically reorganizes the business and can be managed as the routine. Business management organizes results and capital solutions to change the business as the daily routine. Business change projects involve capital development to increase the value of results or to enable new results, by implementing new or improved capital solutions. If the enterprise does not manage results and capital solutions utilized in performance, it is difficult to manage change to results, capital solutions, and performance.

The Change Management Problem

20^th century business change is change to overlaid organization and management structures

Even accepting 20^th century management change to overlaid organization, process, information system, account, performance management, and other structures, there are another set of problems. [more...]

The academic approach dictates incremental improvement and prevent breakthrough thinking and innovations

20^th century enterprise management methods, used today, are devised using the “academic approach” that accepts the solutions in place and the existing body of knowledge as the basis and seeks to make improvements. The academic approach may produce incremental improvements, but it also prevents new management thinking and breakthroughs. New management methods build on old methods. New management books and articles must be substantiated as accurate by footnoting previously published works and referencing existing methods in use.

There are many fundamental problems with traditional organization and management methods that cannot be changed by traditional change methods

What if the body of knowledge in the “published record” is inaccurate or if basic management methods in use are flawed? The academic approach then propagates inaccuracies and flaws. The Business Change Forum contains hundreds of examples where today’s 20^th century organization and management methods, principles, structures and definitions are flawed and inaccurate. So, new methods build on flawed old methods. New books repeat old inaccuracies.

The Business Change Forum discusses unsolvable 20^th century management problems that have never been solved despite thousands and books and methods based on the academic approach to management improvement. [more...]s

Business owners and investors lose the most due to the unmanaged business

Business enterprises today manage the enterprise as a company, corporation, or other form of organization. The business owner and shareholder profits are reduced due to the waste and inefficiencies involved in managing the enterprise using structures laid over the business. The enterprise invests in capital, but the capital investments are not defined or managed as part of the business. The enterprise must produce specific goods, services, and other output results to be successful, but these results are not defined and managed as part of the business. The capital investments must be utilized in business performance to produce specific results but business performance is not defined or managed. The rigid enterprise organization, corporate plan, financial account, cost account, business process, performance management, and other structures, used for enterprise management, conflict with the changing business causing unsolvable 20^th century enterprise management problems.

Business owners have the most to gain from directly managing the business

The business is “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results”. The business can be organized only by organizing specific capital investments in the business as specific human and other capital solutions of managed worth to be utilized in business performance, organizing specific output results of managed value that must be produced by business performance, and organizing business performance in the utilization of specific solutions to produce specific results to manage costs and result value-added across the business. Organizing the business for 21^st century management slashes costs and compounds competitive advantage.

Business owners, from small businesses to corporate investors, have the most to gain by organizing and managing the business. [more...].

20^th century enterprise management cannot plan and manage investments for a specific return

20^th century enterprise management used today concentrates on performance and the need for performance improvement. Development planning and execution concentrates on the capital needed for performance. Investments are directed primarily at tangible assets or achieving a project outcome. Return on investments cannot be calculated, since specific capital items and business improvements are not defined. So, potential increases in sales, revenues, etc are estimated to justify the investment. Project management manages the project separate from the business as an entity in itself.

20^th century enterprise management objective is capital development without managing the capital developed

20^th century enterprise management supposedly manages capital development. The managed capital developed is limited to capital that is managed, primarily in assets and employees. Most other capital is not managed or is classified as intangible assets. Development costs are not captured against the specific capital items to be utilized by the business to provide the return. [more...].

All capital development should develop capital, plus business results for return on investment

Every business enterprise must produce output results that lead to goods and service results to create value. An expanding enterprise must produce new results of increasing value. The enterprise needs additional capital in order to produce new results as part of the business. The capital must be acquired or developed, implemented as specific capital solutions, and then utilized to produce improved or new results of increased value. The value added to new business results must justify the capital expenditure to acquire or develop needed solutions and provide the return on investment.

All capital development is really result and capital development to develop capital as solutions to be utilized to create additional value in output results produced by the business. The additional value of output results provides the return on the capital development investment. If the capital solutions utilized and the results produced by business performance are not managed, result and capital development cannot be managed properly and the return on investment cannot be measured. Even physical capital development, like a new building, produces capital solutions to produce results, be it the enterprise office facility solution or a facility solution to produce lease or rental income results.

20^th century enterprise management does not organize or manage results or capital as sets

20^th century management used today does not manage the enterprise business, defined as “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results”. [more...].