21^st Century Management Consulting Model to Organize and Manage the Business

Professional management consultants need a model to move from enterprise change services to significant business value added

Several books and media publicity have shown that client enterprises are no longer receiving the professional services expected from management consultants. 20^th century management consultants are not able to help clients avoid the unsolvable problems that cause economic crisis and continue to hamper recovery. Confidence must be restored by enabling professional management consultants to leverage the client enterprise to gain measured business result value-added.

A new consulting model is needed to eliminate both the problems in current enterprise change management consulting and the way the enterprise is organized and managed. This need is met by the 21^st Century Business Management Consulting Model, which is based on Result-performance Management (R-pM) knowledge and the Business Management Toolkit. The management consulting model provides:

• The one approach possible to organize and manage the actual enterprise business
• Services based on organizing the business for 21^st century management
• A method for the enterprise to lead and participate properly in business change
• A clear framework to manage the scope and participation for both parties
• Management of consulting projects as a business to utilize assigned capital to produce project results
• The Business Management Toolkit that both the enterprise and consultant understand and use
• A means to plan and measure the value of the consultant and the success of the enterprise

The model builds enterprise capabilities to manage the business and business change, and employs consultants to produce high-value professional results the client enterprise cannot achieve on its own.

Consultants today minimize risk in management consulting projects

Today, enterprises and consultants are caught in a vicious circle. Management consultants want to avoid risk, so they have removed uncertainty in producing deliverables by employing methodologies. But often what is really removed is enterprise value and the deliverable is a contract-satisfying objective. Enterprises are concerned about man-time costs, which are easy to understand, without thinking about consultant value, which is much more difficult to understand. We need to reduce and manage the risks undertaken by consultants, while improving the value delivered and understood by the client enterprise.

Management consultants improve structures laid over the business

Enterprise reorganization, business process, change management, information system implementation, performance and productivity improvement, finance and accounting, marketing, and other consultant services lay structures over the business, rather than organizing and managing the business. The overlaid structures prevent the business from being managed and prevent capture of capital solution investments and return, capital solution worth, result value, actual performance costs, result value-added, capital solution qualifications, performance effectiveness, result quality, and other essential business data. These unknown capital measures, performance indicators, and result metrics provide the management information needed to avoid the problems that caused the economic crisis.

Consultants need to increase professionalism to provide client value

Consultants need to restore professionalism and produce measurable client value. Enterprises need to change to appreciate the value of capable consultants, rather than managing man-time rates. Enterprises need to manage the project and provide the project staff. Enterprises need a way to properly manage and employ high-value consultants to do what the enterprise cannot do. Consultants need a way to work with enterprises in partnership to achieve common enterprise value objectives.

The problem is that conventional methods make it very difficult for the enterprise and consultant to work in partnership to identify and solve complex business problems. Professional management consultants need a new management consulting model to guide the participation of the enterprise and the consultant in programs based on planned, managed, and measured value-added to the client enterprise business.

Consultant services must be based on 21^st century business management

The consultant must help the enterprise organize and manage the business in “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results”. Consultants gain valuable expertise in identifying and describing business results, capital solutions, and performance domains, defining result relationships, defining the capital module of the specific solutions needed to produce a specific result, determining result values and capital worth, use of the business structure for complete business recording and accounting, and other 21^st century management specialties.

The 21^st Century Business Management Consulting Model enables business management consultants to provide professional services in partnership with the enterprise for result value-added success. Specialist consultants can employ business management for human capital management, financial and asset facility management, result risk management, business mergers and acquisitions, strategic business result planning, and other services.

Business management takes the mystery out of business change

Business management consulting services are defined and scoped in terms of actual results, capital solutions, and performance, so that all business change is change to a managed business. Enterprises understand where strategic value is created, to manage capital and utilization of capital to create value, and to manage their own investments in change over time. Consultants can work as professionals to leverage the enterprise capabilities to create new value-added that is measured and shared. With the 21^st Century Business Management Consulting Model, it is possible to assure success for both the enterprise and the consultant.

The enterprise must organize and manage the business

The enterprise must be willing to organize and manage the business and take in-house responsibility for management improvement and business change. The first results the enterprise must manage are investment management results. By producing investment management results, the enterprise is able to take responsibility for change over time. The scope of the consulting project must be defined in terms of results. The objective of all business change is to add value to results.

The business structure manages the scope and participation of the enterprise and consultant

Business management organizes the enterprise business into a business structure, organizing results to be produced by the business, capital investments available as solutions, and specific solutions implemented to performance domains to produce specific results.

The need for management consulting services is apparent in result symptoms; revenues are down, markets are lost, customers are dissatisfied, output results are late, etc. Result value-added is achieved by eliminating or reducing result symptoms. The only way to eliminate or reduce result symptoms is by solving performance problems through improved capital solutions. All management consulting services are related to the need to remove result symptoms and add value to results. The investment cost in the business management consulting project, including consulting services, must be more than offset by the value added to the results.

Enterprise managers must be responsible for results and accept future goals to achieve the value-added. Result managers and staff participate in project result teams to gain the value added. Other managers must be responsible for capital solutions and accept new expectations for improved solutions. Performance managers and capital management staff participate in project performance teams to implement improved solutions.

This enables all business change and management improvement services to be defined by specific result improvements to be achieved and the planned result value-added by the improvements. Both the enterprise and the consultant work in partnership to gain the value-added benefits.

Business management consulting projects are planned and managed as a business

Any business management consulting project must produce investment management results in the enterprise business structure. These results could be “completed management consulting project” or define more detail in the results that the project must produce. Every business management consulting project is organized as a business to produce the enterprise investment management results. Project planning defines result requirements in the specific business results to be improved and the result value-added that justifies the investment in the project. Results are improved by using result requirements to develop and implement specific capital solutions under the project.

The project business structure defines project results in the project objectives and the specific capital solutions to be improved or implemented under the project. The project business defines capital solutions available in the funds and resources to be provided by the enterprise and consultant and other participant, such as a vendor. The available capital solutions, such as enterprise result and performance teams, are deployed in the project business structure to produce specific project results. Result goals and performance expectations are set by time period over the project duration to assist project management.

Business management plans and measures the value of the consultant and the success of the enterprise

Business management provides the means to solve consultant and enterprise problems preventing successful business change. All business management consultants follow ethical guidelines and commit to employing business management in their services. Business management plans the result value-added expected from the start for all business change and management improvement. Result goals to gain the future value added from the utilization of improved solutions are accepted by result managers to substantiate the return on the business change investment prior to project authorization. This establishes user responsibility to ensure that new solutions meet their result requirements, and to utilize all improvements over future years to reach their result goals.

Both the enterprise and consultant understand and use the Business Management Toolkit

A wealth of information and guidance is available in the Business Management Toolkit, so that both the consultant and enterprise understand the approach. The Toolkit explains the 21^st Century Business Management Consulting Model and is developed continually to assist both the enterprise and the consultant to employ business management in unison. The Toolkit enables the enterprise to take the lead, remain abreast of all work being performed and project results being produced, and take responsibility for all new capital solutions and new and improved results.

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 20^th 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 21^st century management conventions, definitions, and standards. Management consultants who base 21^st 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.

The Solution to the Economic Crisis is explained in free downloads

Three free white papers explain the dead-end 20^th century management problems, such as the failure to plan, account for, and manage the actual business, that caused the economic crisis, the way to eliminate the problems, and a government program to address the crisis by stimulating the economy, solving the problems, building a structure for financial and economic management, and organizing local businesses to flourish in the eventual recovery.

• How to Eliminate Problems that caused the Economic Crisis explains the major unsolvable 20^th century management problems and the solution to eliminate the problems
• Business management; the only Solution to the Economic Crisis explains how to plan and manage the business to capture business data and provide management the information needed for actual business, corporation, industry, and economic management
• A Government Business Management Program to Answer the Economic Crisis outlines a government program to encourage business management, stimulate the economy, restore confidence, organize businesses to flourish in the recovery, and manage economic cycles to prevent future crisis

These three white paper downloads are available to R-pM Community Members at result-performance-management.com. There is no cost or obligation to join the R-pM Community. Join by entering your email address and personal password. Your email address is protected and used only for download problems, product updates, and occasional R-pM Member news and white papers.