R-pM Management Consulting Model to Organize the Business for 21^st Century Management

Professional management consultants need a model to move from business change services to significant enterprise 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 problems that caused the recent financial crisis. Confidence must be restored by enabling professional management consultants to leverage the client enterprise to gain measured business result value-added.

A 21^st Century Management Consulting Model is needed to eliminate both the problems in current business change management consulting and the way the enterprise is organized and managed. This need is met by the Result-performance Management (R-pM) Management Consulting Model, which 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
• The R-pM 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 must build enterprise capabilities to manage the business and business change, and focus consultants on 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 re-engineering, change management, information system implementation, performance and productivity improvement, financial and 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 capital measures, performance indicators, and result metrics provide the management information needed to avoid the problems that caused the financial crisis.

Consultants need to increase professionalism to provide client value

Consultants need 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 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 Management

The consultant must help the enterprise organize and manage the business. 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, and other 21^st Century Management specialties.

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

R-pM takes the mystery out of business change

R-pM defines consulting services 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 R-pM 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 program must be defined in terms of results. The objective of all business change is to add value to results.

R-pM provides the framework to manage the scope and participation of the enterprise and consultant

R-pM 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 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 reducing result symptoms, 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 cost of performance improvement, including consulting services, must be more than offset by the value added to the result. Enterprise managers must be responsible for results and accept future goals to achieve the value-added. Result managers and staff participate in 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 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.

R-pM provides the means to plan and measure the value of the consultant and the success of the enterprise

R-pM 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 change investment prior to program authorization. This establishes user responsibility for ensuring that new solutions meet requirements and utilization of all improvements over future years to reach result goals.

R-pM provides tools that both the enterprise and consultant understand and use

A wealth of information and guidance is available in R-pM Toolkit, so that both the consultant and enterprise understand the R-pM approach. The R-pM Toolkit explains the R-pM Management Consulting Model and is developed continually to assist both the enterprise and the R-pM consultant to employ R-pM in unison. The R-pM Toolkit enables the enterprise to take the lead, remain abreast of all work being performed and program results being produced, and take responsibility for all new capital solutions and new and improved results. The R-pM Toolkit subscription for download and future email updates is available to members of the R-pM Community at result-performance-management.com.

R-pM restores professionalism to business management consulting for the benefit of the enterprise and the management consultant

R-pM provides the means to solve consultant and enterprise problems preventing successful business change. All R-pM consultants follow ethical guidelines and commit to employing R-pM in their services. Visit result-performance-management.com to download documents on R-pM concepts and application, and the R-pM Toolkit, including the 21^st Century R-pM Management Consulting Model.