Archive for the 'Business Change Methodologies' topic

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 performance 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 performance 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 performance solutions utilized and the results produced by the business 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 performance 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 management does not organize or manage results or performance

20^th century management does not manage the enterprise business, defined as “the utilization of capital of worth in performance to incur costs and produce value in results”. The business has three components: 1. capital available as performance solutions, 2. results required, and 3. performance in the utilization of a specific solution to incur costs and produce value in a specific result.

20^th century management does not define specific results produced and performance solutions utilized to be managed as sets. Added result value cannot be managed to provide benefits and specific performance solutions developed cannot be managed to know costs. Capital development is a difficult exercise separate from the business context to develop performance or tangible assets to produce some estimated return on investment. Much capital development and performance solution implementations fail to create the added result value needed for the return on investment.

R-pM manages result and capital development as part of the business for measured and managed return

The answer for all future result-capital development is Result-performance Management (R-pM) to organize the business for 21^st Century Management. R-pM manages performance solutions utilized and the business results produced to plan and manage the value added to results. R-pM provides 21^st century Result-performance Development to manage new performance solution development to produce new or improved results. R-pM manages each result-capital development project as part of the business with its own project business structure. R-pM manages implemented solution development and operating costs and the additional value-added to results to measure the actual return on investments. R-pM is the essential approach for any new result-capital development. It is all described in The R-pM Toolkit, your 21^st Century Management Manual

Result-capital development arises from the business requirements to improve results or produce new results

Result-performance Development is initiated by result symptoms in missing or deficient results. [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. 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.

Result-performance Management (R-pM) organizes the business for direct management of business change

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

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

Business complexity is the opposite of business simplicity. The simplest way to organize and manage the business is to organize and manage the business.

Business complexity includes complexity in 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) organizes and manages one business structure

Result-performance Management (R-pM) organizes 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...]

Processes and systems are monolithic entities laid over the business

Over the past 15 years, corporations and other enterprises have implemented business process and packaged information systems, like ERP, SCM, MRP, and CRM. These processes and systems are laid over the actual business and provided general improvement, but usually still include extra costs and inefficiencies. Often old performance problems remain after new process and system implementation. Many enterprises want to improve their process and system utilization, but lack a fundamentally-sound method. This subject is explained further in the article “How to maximize Benefits from existing Processes and Systems” published in 21^st Century Management Magazine.

R-pM can make significant improvements to existing processes and systems

R-pM provides the method by identifying and managing the actual business that lies hidden under the processes and systems. Performance problems are inherent in specific performance solutions. R-pM redefines processes and systems as value-quality chains, so the enterprise knows the specific results produced and performance solutions utilized along the chain. R-pm integrates the business and system processing as the business process solution and separates other solutions utilized. The enterprise can then solve performance problems with specific solutions, and minimize the performance and maximize the result produced at each link in the chain. This enables the enterprise to solve problems, reduce performance costs, and manage result value and quality across existing processes and systems.

Analyze existing processes and systems as a value-quality chain

The only method available to redefine existing processes and systems is explained in the download “How to Build Value-quality Chains“. The only method to manage business change effectively is explained in the download “How to Manage Business Change“. The only method to manage a business change or capital development project properly is explained in the download “How to Manage Projects in the 21^st Century“. The full details to improve existing processes and systems are provided in The R-pM Toolkit, your 21^st Century Management Manual. These downloads are available now at Result-performance-Management.com. .

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

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

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
• Planning the output results to be produced from the project in specific capital items to be implemented and utilized by the business
• Utilizing users and administrative staff in proper roles in the project
• Utilizing contractors and consultants as solutions in an enterprise-managed project
• Documenting and recording the project so that all capital developed is fully documented and that knowledge required for use is created
• Managing the capital to be consumed in the project
• Managing the capital development project as part of the business
• Recording accurate development costs by capital item developed
• Implementing project results as capital items for direct utilization by the business
• Measuring the actual return of capital development investments

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

R-pM plans, manages, and repays projects by separate management of results and performance

Result-performance Management (R-pM) 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 performance 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

R-pM provides the methods to do both. [more...]

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

R-pM plans and manages the return on all investments through Result-performance Development

Result-performance Management (R-pM) manages the economic outputs of the business as specific results and manages the invested capital utilized to produce results as specific performance solutions. The benefits of development investments come from adding value to specific existing or new results. The cost of investments come from developing the capital needed as specific performance solutions to produce each result. The return on investments come from [more...]

Business transformation was big ten to fifteen years ago. But, did it actually transform the business? Did it solve fundamental problems with a sound structure for on-going business success, or did it simply rearrange the management structures that cause business problems?

“Business transformation” could not transform the business, because the business was never organized

The enterprise business is defined as “the activity of providing goods and services“. Organize and manage the business means organize and manage “the activity of providing goods and services”.

20^th century business organization structures never organized the business. If the business was organized, business change would change the organization automatically, instead of having separate reorganization and business change projects. The business changes with every business decision to change business activity or goods and services provided, not every few years when management decides it is time for business change. Since the business is not organized, “business change” and “business transformation” cannot actually change or transform the business.

20^th century management manages the enterprise by laying structures over the business

20^th century management manages the enterprise by laying organization and management structures over the business. Once an organization structure is laid over the business, the business can never be managed. Additional management structures for strategy, business processes, information systems, accounting, performance management, administration, etc must be laid over the business. Management information is reported against various contrived structures, producing inaccuracies, discrepancies, and complexity, without reporting the actual business.

Business transformation changed the organization, business process, information system, and other overlaid structures, rather than organizing the business. The benefits proved elusive and business transformation got a bad name. Some popular “business transformation” methods of the time are generally discredited today.

21^st century management manages the enterprise business as one integrated structure .

In order to organize and manage the business, we must organize and manage “the activity of providing goods and services”. [more...]

Result-performance Management (R-pM) is the conventional way to organize the business for 21^st Century Management. An adjunct to the development of R-pM is the development of 21^st Century Management to provide a common business framework for 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.

21^st Century Management is one consistent and clearly-defined set of business organization and management descriptions, conventions, standards, and definitions that eliminate the contradictions, inconsistencies, and unsolvable problems of 20^th century management. R-pM adheres to 21^st Century Management conventions and standards.

21^st Century Management is documented in the R-pM Toolkit

R-pM is documented in the R-pM Toolkit, your 21^st Century Management Manual. 21^st Century Management descriptions, conventions, standards, and definitions are also documented in the R-pM Toolkit. The R-pM Toolkit is under continuing development. The R-pM Toolkit already contains the fundamental documentation needed to begin learning, implementing, and utilizing R-pM. Those downloading the R-pM Toolkit today receive a subscription to all R-pM Toolkit and 21^st Century Management documentation updates through 2009.

21^st Century Management documentation includes:

• 21^st Century Management Descriptions: The specific concepts and approaches that constitute 21^st Century Management
• 21^st Century Management Conventions: Specific business operation and development methods that are followed by all 21^st century businesses
• 21^st Century Management Standards: Specific rules, goals. [more...]

Business change today is not change to the business, but change to structures laid over the business

When people talk about business organization, business management, or business change they think they are talking about organizing, managing, or changing the actual business. But, the fact is that they are not talking about the actual business. The enterprise business, defined as ‘the activity of providing goods and services“, has never been organized or managed.

They are talking about enterprise structures laid over the business. The organization structure does not organize the business. A structure is laid over the business to organize the enterprise. The business changes while the organization structure remains rigid. Reorganization and related change management is not business change. It is change to the overlaid organization to align a new structure closer to the actual business. The organization structure is the fatal error of 20^th century management that prevents the business from being managed.< [more...].

Arbitrary organization structures do not organize the business

Current business organization methods are wrong. Arbitrary organization structures are contrived and laid over the business, preventing the business from being managed. The business changes while the organization structure is fixed, causing unsolvable reorganization and change management problems. The organization structure is the fatal error of 20^th century management. Once an organization structure is laid over the business, rather than organizing the business, the business can never be managed.

R-pM organizes the business in one integrated business structure

The only effective way to organize the business enterprise is to organize the enterprise business. The generally-accepted definition of enterprise business is “the activity of providing goods and services“. R-pM organizes business activity in the utilization of capital as specific performance solutions. R-pM organizes goods and services and other economic outputs as business results. The deployment of performance solutions to produce specific results organizes the business in one integrated business structure.< [more...]>