Need For Result and Performance Management

Business Change that is Destined to Fail Because of a Rickety Foundation

Conventional business change is difficult. It is a departure from the norm. Proper resources are lacking. Management does not have time. People resist change. Objectives are not clear. Rarely, is there a solid foundation for business change.

Many business change projects are destined to failure or substantial problems before they start, because they are not building on a stable foundation. Invariably, enterprises have situations that resist or undermine change, such as:

  • Change is initiated or opposed by a manager for personal reasons
  • Delegation of responsibility for change from top management to change administration management
  • Objective to improve performance or implement a solution ignoring result improvement
  • Change, through ad-hoc projects, using management and staff re-assigned from other duties
  • Change is managed through contrived entities, rather than directly managing the entities involved in change
  • Implementation through performance conversion, which introduces costs and prevents benefits
  • Weak plans and provisions for project review, goals for users, and return on investment payback
  • Lack of identification and management of capital so that new solutions conflict with those in place
  • Lack of responsibility for performance of capital allowing change management problems
  • Lack of a change culture, so performance is by rote with no idea for change and change is resisted
  • Need for periodic disruption in order to change from one rigid situation to another rigid situation
  • Lack of a means to manage projects, prevent problems, assure change quality, and follow-up benefits
  • Lack of user planning and involvement producing haphazard cutovers, little improvement, and resistance
  • Failure to consider the value of results of projects, preventing accurate planning of benefits and goals
  • Failure to consider line users as stakeholders, who must return the investment through valuable results
Successful change in the 20th century enterprise depends on extraordinary efforts on the part of the enterprise and consultants. Change is not part of the business routine.

Ignoring results prevents benefit from change, and not managing performance solutions allows adverse impact of change

Enterprises are at a disadvantage when they see change as a necessary evil rather than as a natural evolution. The rickety change foundation prompts enterprises to turn change over to consultants or vendors, thus forfeiting intellectual capital and propagating the same problems for the next change. While consultants and vendors can solve some problems, they cannot provide the foundation for successful change.

A new consulting practice “Change Management” arose to manage the adverse impact of change. Enterprises add on more services, instead of establishing the foundation and approach for successful change that builds in “Change Management” and prevents adverse impact.

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20th Century Change Foundation and the Result-performance Change Foundation: Enterprises usually do not understand the foundation for change and find themselves unprepared for capital development projects. Change is to structures laid over the business, rather than actual business change. R-pM organizes and manages the business as results and performance solutions that change naturally, within an organized business structure. R-pM makes capital development everyone’s role. R-pM develops the value of eliminating result symptoms and bases the project on achieving that value. Investment results provide a continuing responsibility to plan and manage capital development.

Manage results to create value from change, and manage performance to ensure cost-effective human and other solutions

20th century business change is not change to the actual business, but is change to complex structures laid over the business. The change is from one rigid structure to another rigid structure, without solving any of the unsolvable 20th century problems.

In order to manage business change, the enterprise must manage the business! R-pM makes business change to the actual business. Only two entities can change in business change:

  • A result produced as an economic output from the business
  • A performance solution utilized to produce the result as the enterprise invested capital

The actual business can only be changed by changing the result produced and the performance solutions utilized!

R-pM organizes the business to manage directly the results and performance solutions involved in business change. Normal business change is routine updating of the business structure. R-pM also instills capital development for business change, to develop the new solutions needed for new results, as a normal part of the enterprise routine. Result improvements from change are planned with accepted goals for result managers. Development is managed through a professional investment management role. Change to solutions is managed by the performance management professionals familiar with their solutions. Successful business change is a common occurence built on the solid foundation of an organized and managed business.

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How many of these common situations have your enterprise encountered? All the situations described and other unsolvable 20th century problems can be eliminated simply by separating the management of results from the management of performance in order to organize and manage the actual business. R-pM provides the guidance and new 21st Century conventions to organize the business for 21st Century Management.