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Is your Capital Worth Restricted by Conventional Thinking

Posted by: Harry Greene    Posted on: November 14, 2006


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By Harry Greene

I have spent 40 years as a business change consultant banging my head against the wall of conventional thinking, which I always found the biggest obstacle to business improvement. What is conventional thinking? I just looked it up in various on-line dictionaries and couldn't find a definition. Conventional wisdom is defined generally as the common accepted belief or perception about a particular matter. Conventional thinking can be thought of as employing conventional wisdom. One dictionary defined conventional as "usual or established: using well-established methods or styles" So conventional thinking is based on well-established methods or styles.

In business change, we talk about the need to think outside the box. Normally, I find that when people feel that they are thinking outside their box about a particular matter, they are still thinking inside the box of conventional thinking.

In business change, conventional thinking dictates the academic or conventional approach to change. This approach uses the published record or the way things have always be done as the foundation for change, and seeks to make an incremental improvement, through performance improvement books or methods.

When developing new methods or websites, I keep hearing how people are mentally-lazy and don't want to think. The modern problem is that people absorb what they know from television and the Internet, and are losing the interest and ability to think and discover new things themselves. This keeps people inside the box of conventional thinking

We also find that the enterprise must compete in the 21st century world of advanced technology, fast change, worldwide competition and collaboration, intellectual capital and intangible assets, supplier-enterprise-customer value chains, leveraged human capital and capabilities, the information environment, and all kinds of other things that our 20th century methods cannot cope with. But we cannot come up with the breakthroughs needed to produce the 21st century enterprise, because of conventional thinking.

Instead of going back to square one to define 21st century enterprise from the bottom up, we are forced to create new methods to add on to existing conventional methods we use today in the 20th century enterprise. All the methods we use are improvements in the way things have always been done that are overlaid on the existing methods in place. Even supposed breakthroughs like Business Process Re-engineering, Total Quality Management, or Business Transformations Methods, rearranged existing methods into a new overlay on the existing business and organization.

So, I also looked up unconventional thinking. Basically, I found it to be thinking not based on well as established methods or styles. Of course, uncoventional thinking can lead to nonsense, but it can also lead to the breakthroughs that are prevented by conventional thinking.

The bottom line for the 20th century enterprise is that conventional thinking inhibits change and prevents the breakthrough needed for the transition to the 21st century.

What is needed is unconventional breakthrough thinking to replace the existing foundation of conventional methods and to put in the one and only proper foundation based on business reality in the 21st century. 20th century methods must be restructured to build on the 21st century foundation.

There is a breakthrough method for organizing and managing the business for the 21st century enterprise, called Result-performance Management (R-pM). R-pM organizes the business of the 21st century enterprise using only

- Results: The economic outputs produced by the business

- Performance solutions: The capital employed to produce specific results

R-pM manages the 21st century enterprise in three dimensions:

- Result: To exceed goals and generate revenues

- Performance: To utilize capital to meet expectations and increase profit margins

- Management: To manage by time period to develop and create strategic value

This is it. Everything done in the 21st century enterprise is defined by results and performance managed over time. All organizational units and responsibilities are defined by specific results and performance solutions.

One important rule utilized by R-pM is that all capital, including human capital, must be a solution of worth that is qualified to be deployed to produce value in specific results.

Becoming human capital of high-worth means opening the mind to new methods or styles and developing and applying high-worth capabilities to produce high value-quality results. If you think you can get past conventional thinking and develop as high-worth human capital, study Result-performance Management and learn how your enterprise can become a 21st century enterprise, and leave 20th century problems behind.

About the Author

Harry is the President of Result-performance Management Ltd. and posts information on R-pM at result-performance-management.com (http://www.result-performance-management.com/) the home site for the R-pM community. E-mail:

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