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Asserts that for many organizations the key to management survival is to maintain performance equilibrium. Notes that management systems have essentially remained unchanged for many decades. Companies organize into functional groups with a hierarchical chain of command, they set strategic direction with a planned revenue and profit margin targets, they embed the revenue and profit targets in a budget, and they measure financial and operational performance results of the organization. Notes that successful performance is often a mirage, where good results mask a myriad of problems. Posits that process management can help organizations address these challenges and a process understanding enables managers to recognize why results are as reported and, more importantly, what results are likely to be in the future. Such insight enables managers to take proactive action to improve the results. Provides some guidelines.

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