Result-performance Management is the Final Business Transformation

The Business Transformation Problem

Over the past 15 years or so, business enterprises spent large sums on business transformation in such areas as total quality management, business process reengineering, enterprise resource planning, etc. in expectation of enormous benefits and competitive advantage.

I worked as a management consultant on many projects and encountered to problems first hand. I could see that the existing organization and management structures did not organize or manage the business. I could also see that the new structures would not organize or manage the business, much less transform the business. Business transformation turned out to be just a big word for rearranging and upgrading 20^th century business processes, information systems, and other structures laid over the business to perform the same operations, administration, and development. Instead of transforming the enterprise business to organize and manage the business and eliminate problems, we kept creating bigger problems, requiring “change management” and additional solutions. Now, business transformation conjures up “out of the frying pan into the fire”.

The Business Transformation Solution

True business transformation must transform the business itself, and eliminate the contrived structures that we use to organize and manage the enterprise. Business transformation must organize and manage the enterprise business, and use the business itself as one integrated enterprise organization and management structure. Once the business is organized and managed, it changes naturally with the times and never needs further transformation.

The enterprise business generally is defined as the activity of providing goods and services. The definition shows that the business has two parts, the business activity or performance, and the business goods and services or economic output results. But, performance includes a third part, the capital utilized to provide goods and services. Therefore, I prefer a more precise definition of the business; “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results”

The definitions show that the enterprise business must be organized and managed based on only three components to provide true business transformation:

1. Results, including goods and services final results, that the business produces through performance or business activity
2. Capital in the investments in the business in specific human and other solutions that are utilized in performance, or business activity, to produce results
3. Performance in the utilization of capital to incur costs and provide effectiveness to produce value and quality in a specific result

These components are the only three that define the enterprise business. But these three components are not organized and managed in 20^th century management or “business transformation”.

Results define and organize the economic outputs that manage capital, provide customer goods, services, and satisfaction, and manage investments and capital development. Capital solutions define and organize all investments in tangible and intangible assets, human resources, business processes, strategic and tactical management solutions, and information system processing and information solutions. Performance defines and organizes the deployment of a specific capital solution with cost and effectiveness rules to produce a specific result.

Result-performance Management provides the transformation needed to organize and manage the actual business

I have spent the past six years designing and documenting the only possible means to organize and manage the actual business, which I call Result-performance Management (R-pM). Today we manage the enterprise by managing the organization and management structures laid over the business. Business transformation actually transforms management from enterprise management to business management.

By transforming enterprise management to actual business management of organized results, capital, and performance, you eliminate unsolvable performance problems inherent in conflicts between the actual business and overlaid organization and management structures. You employ 21st Century Management to provide many benefits not available with 20^th century management.

• Manage the complete business through separate result and performance responsibility to optimize performance for planned results
• Manage development, worth, and utilization of all capital and eliminate intangible assets
• Replace administration with capital management to increase capital and enterprise worth
• Manage all results and all capital solutions for fast and flexible change
• Change gradually with each new or changed result or solution, eliminating re-organizations and change management
• Replace monolithic business processes with result value-quality chains
• Manage performance costs against each result value to optimize value-added
• Manage the effectiveness of each solution to produce quality in each result
• Manage result value-quality across the enterprise to instill best business practices
• Standardize performance costs for control, benchmarking, and collaboration
• Manage result chains from within suppliers, across the enterprise and collaborators, and into the customer for shared value
• Plan strategies and investments from known current value to create future value
• Itemize and manage result value-added benefits of development to ensure return on all investments
• Use one consistent set of result, capital, and performance information linking strategy, operations, and evaluations for informed decisions
• Manage and govern the business to create planned strategic value to protect all stakeholders

The only true method of business transformation is to define and organize the enterprise business to utilize capital as solutions of worth in performance to produce value in results through Result-performance Management (R-pM). R-pM organizes the business for 21^st Century Management to leave unsolvable 20^th century problems behind.

Business transformation, with R-pM, transforms the business to be the only enterprise organization and management structure.

The business transformation to R-pM is the last transformation needed, since, with R-pM, the business finally is organized to change naturally with every new or changed result produced and every new or changed performance solution utilized. The business itself is the one integrated enterprise organization and management structure, replacing all the structures laid over the business.

Result-performance Management provides the procedures and conventions to organize business results, capital, and performance for 21^st Century Management. Join the R-pM community at result-performance-managment.com to download free documents to learn R-pm and then obtain the R-pM Toolkit for the valuable insights and guidance to transform your enterprise management to actual business management.