Information systems or other capital solutions rarely are implemented to produce a specific return
Has your enterprise implemented management information systems or other major capital solutions? What was the rationale for implementing the solution? Was there a specific list of quantified benefits to produce from utilization of the solution that provided the return on the solution investment? Likely, there was not because it is very difficult to itemize the benefits of capital solution investments using today’s 20th century management.
The answer is Result-performance Management to implement the value added to results produced by new capital solutions
Result-performance Management (R-pM) eliminates the obstacles that prevent the enterprise from implementing new solutions to produce new results by measures that:
- Organize the business by results and capital solutions utilized in performance to scope the change and analyze the result value-added possible from specific new solutions
- Organize professional investment management to plan and manage development as a business to utilize assigned project capital solutions to implement new business solutions as project results and to produce investment results that plan and managed the return on imvestment
- Identify result manager responsibility for specific new or improved results with accepted goals to achieve value-added to substantiate the investment
- Organize capital solutions by category under professional capital management responsibility to develop, operate, and support solutions
- Establish performance management responsibility to work with users to define result requirements for new solutions, provide qualified solutions, and ensure proper utilization
- Involve user result managers and capital and performance managers in the proper roles in investment planning and capital development projects
These measures are not possible today, but are made possible by eliminating the waste and inefficiency of 20th century management, and focusing on the business in results produced and capital utilized in performance. All investments are planned and measured to produce the result value-added return.
The objective of most business change projects is solution implementation
The objective of most of today’s business change projects is solution implementation. This may be the right objective of the vendor or consultant, if that is what their contract says. But, it can never be the right objective of the enterprise. Solution implementation provides costs without benefit. Often the push for change is to modify the solution to agree with the business, so that the business does not have to change. This adds even more costs, prevents benefits, and escalates the cost of future change.
Utilization of implemented solutions for benefit is often “up to the users”
When you ask the vendor or consultant about utilization to produce benefits, the stock answer is “that’s up to the users”. However, if the users had the analytical aptitude to devise significantly better ways to utilize new solutions, they would be consultants or on the professional staff. Therefore, in most cases, new solutions are utilized to produce old problems, allowing the enterprise to incur the costs and forgo the benefits.
Implemented solutions must be utilized to add value to results in order to produce benefits
The only way new solutions can return their investment is to be utilized to add value to enterprise business results. The enterprise must know the new or improved results to be produced, know the value to be added, know the range of solutions needed, know the cost of solution development and operation, implement new solutions to produce new results, and manage the utilization of solutions to provide measured result value-added.
Result-performance Management (R-pM) manages utilization of new solutions to add value to results
The answer is Result-performance Management (R-pM) to utilize new solutions to add value to new or existing results. R-pM plans the results to be improved by new solutions and result managers accept new goals for added result value through the utilization of implemented capital solutions. R-pM specifies, acquires, and develops the range of specific solutions to provide business and system processing, capture and update business data, develop personnel and capabilities, create knowledge required, generate entries for financial and non-financial records, and provide management solutions to utilize implemented solutions and produce results. R-pM implements both the new solutions and the new results that must utilize solutions to reach result value-added goals.
R-pM organizes the actual business to provide the structure for planning, implementing, and utilizing new capital solutions to know solution investment costs, solution performance cost, result value-added from solution utilization, return on solution investments from the contribution to result value-added to date, and solution worth in the expected future contribution over the remaining solution life. R-pM implements professional solution support for organized business, human, facility, and management solutions.
R-pM learning and implementation is supported by the R-pM Toolkit, which is available to members of the R-pM Community. To learn more about R-pM and join the R-pM Community, visit result-performance-management.com.
