Archive for the 'Solution Implementation' 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...].

Information Technology is one of the top 10 problems of 20^th century management!

Information Technology incorporates a wide variety of unsolvable problems

Information Technology (IT) employed today has many inherent problems that many expensive solutions have never been able to solve:

• Information technology is managed as technology, rather than as capital preventing integration with the business
• Information technology employs large monolithic information systems that are laid over the business, instead of information processing solutions that are utilized by the business
• Information Technology defines different architectures to define and align the business, systems, hardware and networks, and data and information, rather than integrating each with the business
• Different categories of information capital are mixed in many systems using different entity names and definitions producing information complexity and preventing proper information capital management
• Since the business is not organized, information systems manage information related to structures laid over the business and do not capture, process, or report actual business data and management information
• Information Technology is difficult to manage because it mixes business, facility, and management capital that require diverse management and operating capabilities
• It is difficult to manage return on IT investments since the investments are lumped together and do not produce direct measured business improvements
• Information Technology has grown into a large expensive empire that involves much unnecessary processing, extensive overheads, and unsolvable problems

These problems can never be solved with 20^th century management that tries to improve the enterprise by laying new or improved structures over the business.

Information Technology problems disappear when using R-pM to organize the business for 21^st Century Management

The only way to eliminate the Information Technology problems is by organizing the business with Result-performance Management (R-pM) to enable 21^st Century Management. R-pM integrates information technology in the business as capital defined as specific performance solutions utilized to produce specific business results. R-pM provides the following measures to eliminate the unsolvable Information Technology problem:

• R-pM organizes the actual business as specific performance solutions, including IT solutions, to produce specific business results
• Information system solutions are defined and integrated with the business process as modules to produce a specific result or a chain of results
• Information systems focus on managing actual business data in result value and quality, performance cost and effectiveness, capital worth, and return on capital investments that is not processed today
• Information Technology is defined and organized as capital, with other capital of the same category, for proper capital management by those with the professional capability
• Information capital is defined and managed as business data, human knowledge, facility records, and management intelligence to produce information solutions needed by the business
• Enterprise information is integrated by performance solution utilized, result produced, supplier, customer, time period, business transaction, etc in an enterprise Business Information Base for one set of complete and accurate business information
• Information systems and processing devoted to managing arbitrary structures laid over the business and special systems to address problems in data reconciliation, information integration and extraction, and management reporting are discontinued, if not directly needed by the business
• New information system implementation integrates business and information processing with other performance solutions to produce specific output results needed by the business
• The business is organized for a new generation of 21^st Century Management systems and business-information process modules, to process the actual business result by result, and provide one set of consistently-defined management information

Using R-pM to manage information technology as capital utilized by the actual business eliminates the unsolvable IT problems in business alignment, information complexity, data reconciliation, unknown costs and value, unknown capital worth and returns, CIO and IT management capabilities, data integration and control, and on and on.

The Information Technology Problem

Enterprise information systems include a wide variety of systems that are laid over the business

Since the business is not organized, different management structures must by laid over the business to manage the enterprise. [more...]

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...]

Business change is a mystery today! We have no idea how to identify specific business problems, define the changes to make, determine the benefits of change, manage change projects, or follow-up to measure the return on the change investment.

Business change is a mystery because we do not manage the business. If we do not manage the business, we cannot manage change to the business. Learn “How to Manage Business Change” from the new download document available now at result-performance-management.com.

There is only one method for successful business change, define the business first and then change the defined business

The enterprise business is the utilization of capital in performance to produce value in results. In order to manage business change, we must define the business for that area of the enterprise that we want to change. The business is defined by using Result-performance Management (R-pM) to identify the results to be changed and the capital utilized as performance solutions to produce the results.

Symptoms of business problems appear in defective results, but the actual problems lie in ineffective or high-cost performance solutions. Change is specific new or improved performance solutions utilized. The benefit or change is in the value added to results by removing result symptoms. Change projects are managed by developing and implementing new solutions as project results. The return on investment is in the measured result value-added over the pay back period.

How to Manage Business Change is explained in a new download document

Learn the completely new and correct method to manage business change in the download document “How to Manage Business Change”, available now at result-performance-management.com. Once you understand how to manage business change, download “How to Manage Projects in the 21st Century” to manage your business change project. The R-PM Toolkit contains the detailed guidance and instructions needed for using R-pM for business change, organization, and management.

20^th century capital development is not integrated with the business

20^th century management provides no business framework for capital development, particularly for new solutions that must be integrated with the business. Most capital is not recorded as capital. Much capital is considered as “intangible assets” and is ignored. There is no direct management of capital developed to provide the return on capital development investments. Capital is developed as a fixed asset or simply as a project outcome.

Most development is performed as an ad-hoc project, and managed as an isolated undertaking to implement new structures and solutions over the business. This makes it difficult to manage the relationship between the project and the business, gain business user acceptance of new solutions implemented, and plan and measure return on the capital development investment. A previous post in this series discussed the Logic of Business Change, which provides some background.

Capital is developed and utilized to produce business results

The purpose of enterprise capital is to provide the performance solutions needed by the business to produce value in business results. [more...].

Business Change Project Managers have no foundation and little support

Have you ever managed or worked on a business change or business capital development project. If you have, and were successful, you deserve a big bonus. You deserve a big bonus, because your enterprise did not do its part to provide you with the foundation or environment for a successful project. Enterprises provide a “Rickety Foundation” for business change and capital development.

“Business change” projects do not change the business

“Business change” is a misnomer. “Business change” projects do not change the business. Business change projects change contrived organization and management structures laid over the business and capital development projects lay new systems, processes, facilities, or other structures over the business. Business change and capital development is not integrated with the business. Projects are ad-hoc endeavors that must be created out of nothing and somehow use reassigned personnel to improve the enterprise successfully.

Enterprises often turn business change projects over to consultants

Since there is no foundation for successful change, many enterprises turn the problem over to consultants. [more...].

Conventional business change methods do not plan and manage the individual costs and benefits of change. Costs may be captured against major capital items or the change project. Benefits are invariably stated expectations of performance improvements or estimated increases in sales or revenue results.

Result-performance Management (R-pM) manages the value created in specific new results for benefit and the costs incurred in specific performance solution investments.

Business change projects change overlaid structures to align with the actual business

The business changes continually with each new result produced, result completed, and performance solution redeployed. Conventional business change does not change the actual business, but periodically aligns overlaid organization and management structures, such as processes and accounts, closer to the business. The overlaid structures prevent the actual business from being organized and managed.

The costs and benefits of change do not build up from the business, but estimate the impact of change on the business

Since the actual business performance and results produced are hidden under overlaid structures, the costs and benefits of change cannot be managed. The impact of change on business performance, such as productivity and costs, and results, such as production and profits, must be estimated. The invested capital is lumped together producing unknown costs and intangible assets. The results produced are not defined as a set preventing value and benefit measurement.

R-pM organizes and manages the business to change naturally

Change to the business cannot be managed, if the business is not managed. R-pM organizes and manages performance and results so the business organization changes naturally, eliminating reorganizations and use of overlaid management structures.

With R-pM, business change is actual business change

Actual business change implements new or improved performance solutions to produce new or improved results. New or improved performance solutions and results are managed in the planned business structure to manage change to the business.

R-pM plans and manages the cost and benefits of change

Specific performance solution investments must be managed in development and operations to manage the real costs of change. Results that contain the value to be created must be planned to manage the benefits of change. R-pM organizes and manages the business as one integrated structure to plan and manage the costs and benefits of change to the business structure.

To learn more about R-pM visit result-performance-management.com and download “How to Manage Business Change” to take the mystery out of business change and “How to Manage Projects in the 21^st Century” to manage the business change project properly.

Enterprises must organize the business to develop properly

Result-performance Management (R-pM) organizes business outputs in results and the capital utilized in performance into one integrated business structure for 21st century management. The business itself provides one structure to organize and manage both operations and capital development. Enterprises develop capital in two dimensions through new or improved performance solutions used to produce new or improved results. R-pM plans and manages both the new solutions being developed and implemented and the improved results being produced. Investment costs are in the solution development; investment benefits are in the value added to results. All new and prior solutions are integrated and aligned with the results produced and managed as one business whole.

Conventional capital development overlays new organization and management structures on the business

Conventional 20th century enterprises do not organize and manage the results they produce or the performance solutions utilized to produce results. This makes it very difficult for the enterprise to plan and manage development. Enterprises go through many development projects to develop organization structures, strategic planning structures, business processes, information systems and application architectures, charts of accounts, performance management structures, etc. The objective of development is to implement the structure in one dimension to improve performance. [more...]>.

The articles pointed out two basic needs:

These needs are now satisfied by Result-performance Management (R-pM), as explained in the R-pM community downloads “R-pM Consulting Model” and “Selecting a Business Change Consultant”.

The need for a new professional management consultant model to move from business change services to significant client value added

Professional management consulting creates significant client value over the professional fees. Over the past 20 years, much business change management consulting has been packaged and standardized into business services provided by hired staff, rather than professional business problem solving and targeted and measured improvement,

We said in the articles that a management consulting model is needed that provides a method for the enterprise to lead and participate properly in business change, provides a clear framework to understand scope and means of participation for both parties, provides the business organization and management 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 enterprise achieves.

The R-pM 21^st Management Consulting Model helps the enterprise and consultant to organize and manage the enterprise business

The key to a new 21^st Century Management Consulting Model and properly defining business change scope is organizing the business to directly manage results and performance solutions. The enterprise must be willing to or already be managing the results produced across the enterprise. The first results the enterprise must be willing to manage or be managing are investment management results. By producing investment management results, the enterprise is able to take responsibility for change over time. The scope of the project must be defined in terms of results. The objective of all business change is to add value to results.< [more...]agement.com.

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...]