Why is business change such a mystery? Your company likely has had problems with re-organizations, system implementations, process and performance improvements, and other business changes. Your company may have hired change management consulting services, but still have business change problems. The problem is found in conventional change methods that plan and manage business change, without planning or managing the things that change.
The company cannot manage business change, if it does not manage the business
The company is not structured and managed to change as a part of the routine of everybody in the company. Change is the exceptional ad-hoc endeavor.
The company organizes and manages only contrived entities that are impacted by change, such as organization units, jobs, functions, business processes, objects, activities, accounts, positions, etc. So, the company tries to manage business change by managing various entities that are impacted by change. For example; we try to understand the costs of change without knowing the capital we are implementing through the change. Much of the capital is classified as “intangible assets”. We then charge those known costs of utilizing tangible assets to such entities as centers, responsible managers, or activities, which are things that were not created or improved by the costs.
Only two entities change in business change
It is important to understand that only two entities change through business charge:
– Performance Solutions: The capital investments in change that must be utilized as performance solutions in order to change the business. The capital cannot lumped together as “intangible assets”
– Results: The economic outputs in results produced by the capital investments that must provide the return on the change investment. We must identify how value is created from the costs of the capital consumed.