Business change and change management are major 20th century enterprise management problems
Business change presents major problems for most enterprises. The enterprise has never organized or managed the business, so it cannot manage change to the business. The business must produce new results and utilize new solutions continually, while structures laid over the business are rigid and fixed. Important new results that must be produced daily in the business are not formally managed and are produced by assigning someone and cobbling together capital solutions to use. Actual business changes conflict with the rigid overlaid structures causing unsolvable problems and building pressure for enterprise business change. Finally, there is sudden business change. Business change is not change to the business, but change to lay new or replacement structures over the business. The objective of change is to align structures closer to the actual business. Change is directed at entities like units, systems, processes, functions, account charts, etc and not the business. There is no perception of how to organize for change and how to manage results and capital solutions for change.
20th century management consultants propagate the problem of business change
Consultants are often hired to manage significant change, which propagates the same problem. Consultants do not organize the business, but implement various structures over the business. Consultants add on the costs of change management services to alleviate the symptoms, rather then solving the problem of change. Change attempts to improve performance for performance sake, compounding is the root cause of many change management problems. Results are not defined or improved to provide the benefit of change.
21st century management organizes the business, so business change is routine
The enterprise business is “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results”. Business management organizes the business results to be produced, capital investments in solutions to utilize, and performance in the utilization of an implemented solution in a performance domain to produce a result. The business is managed specifically for fast and professionally-managed change. All business decisions and change involve results to produce and capital solutions to utilize. Business decisions and change organize new or improved results or close old results. The only reason and justification for business change is to add value to results that covers the costs and investments in change. New results can be added quickly with goals and capital solutions can be quickly deployed and implemented with expectations for performance. Business change provides users with valuable ways to produce new or improved results. Result managers are responsible for the new results and new result goals. All new or ad-hoc results are planned and managed as part of the business.
Capital requiring specific skills is organized together to facilitate support and change. Performance managers provide the capital solutions needed, monitor utilization of solutions, and prevent problems due to change.
Business change is managed as part of the business routine
Change to produce new results with existing capital solutions is routine. The solutions needed to produce a set of results can be described as a capital module, which contains the minimum performance needed to produce the result. Modules can be developed, modified, replicated, and deleted as needed to change results produced. Capital modules normally include the readiness capital used by all results produced by a result unit. Capital modules are established for result sets implemented in multiple locations, branches, subsidiaries, etc. New solutions may be implemented to produce an existing result, an existing solution may be closed or deactivated, or solutions may be redeployed by being closed for one result and implemented in a performance domain for another result. The full set of capital solutions needed to produce a result are integrated and tested for result management acceptance.
Some result units continually produce new results and close completed results. A new result is produced by implementing a business result unit capital module or individual solutions to produce the result. In this case, change is managed by simply implementing the unit and the unit capital module to produce new results. Result goals and values are established. Capital performance costs can be charged directly to the result or be managed at a higher-level set-result for multiple results produced by the unit. All business changes are updated as business data to the business structure and recorded in facility records.
All business change is change to results to produce and capital solutions to utilize. Capital modules are defined to facilitate adding new results. All change updates the business structure to be managed immediately as part of the business. The business re-organizes with each change and change management problems are eliminated.
Business change involves the acquisition, development, or improvement of capital solutions to produce new or improved results
Change is managed period by period in the management dimension. Investments in change, to research new results or to acquire or develop new capital solutions to improve or enable new results, are professionally managed as investments. This ensures that change projects and consultants assisting are successful, and the change produces a return through planned and measured added result value-added. New result research and capital development is managed against the enterprise business structure through subsidiary project business structures. All business change projects are managed as a business to utilize capital assigned to the projects as solutions to implement new capital solutions as specific project results. Investment costs are captured for each solution implemented to be charged as performance costs against results that utilize the solution. The business structure is updated as new solutions are implemented and new results are produced.
The transition from 20th century enterprise management to 21st century business management is the major change
The major business change is the transition to business management. This change is managed in three phases: to learn, organize, and manage the business. The business is learned by identifying results and capital solutions and focusing on results and capital solution utilization in the current business. The business is organized by organizing the business structure in the general ledger or a relational data base management system and testing the business as another overlay on current operations. The business is managed, when confident, by directly managing the business and removing structures laid over the business. Once the business is managed, no structures are laid over the business. Business change is restricted to researching and producing new results and acquiring, developing, and implementing new capital solutions. Business change to manage the business may be undertaken application by application for new change projects or to change problem areas to learn the business, and build up to the full transition to business management.
Business change and change management problems are eliminated
The business changes naturally as part of the routine. Every result or capital solution change is updated in the business organization solution and the business structure to maintain the current business and to capture data related to the change, and operation of the changed business. All business reporting and queries immediately reflect the changed business. The business structure is the framework for managed change projects to produce new results or implement new capital solutions. Change is managed in the business structure and the project is managed as subsidiary business to produce an enterprise investment management result. Change is gradual as it occurs, rather than through disruptive change management projects. Every aspect of change is professionally managed. Costs and benefits of change are known and today’s change management problems are eliminated.
Result-performance Management (R-pM) provides the knowledge and procedures for actual business management and reporting
Result-performance Management (R-pM) is the only source of knowledge and expertise on how to manage the actual business. Forward-looking enterprises are now using R-pM guidance to organize and manage their business to gain breakthrough advantages over competitors burdened by unsolvable 20th century management problems. Business management is explained and documented in the Business Management Toolkit. The Toolkit provides procedures for actual business management and maintains emerging 21st century management conventions, definitions, and standards. Management consultants who base 21st century business management services on R-pM knowledge are licensed to help enterprises learn, organize, and manage the actual business. Business management knowledge and the Business Management Toolkit are available and supported today at result-performance-management.com.
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