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Systems Approach to Management Understanding and Managing the Interdependence of the Parts of Your Business System |
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By: Vadim Kotelnikov
Inventor, Author, and Founder of:Ten3 Business e-Coach – Inspiration and Innovation Unlimited!
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"You can't do carpentry, you know, if you only have a saw, or only a hammer, or you never heard of a pair of pliers. It's when you put all those tools into one kit that you invent." – Peter Drucker |
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Balanced Approach to Business Systems
A business is more than finance.
Performance measures need to be
aligned with the
organization's strategy.
The
Business Systems
approach
considers business as system of interrelated factors of
strategy,
owners, investors, management,
workers,
finance,
processes,
products,
suppliers,
customers, and
competitors. 9 Signs of a Losing Organization
Systems Approach to Management Defined The systems approach to management is based on general system theory – the theory that says that to understand fully the operation of an entity, the entity must be viewed as a system. This requires understanding the interdependence of its parts.1
Subsystems Subsystem is a system created as part of the process of the overall management system. A planning subsystem increases the effectiveness of the overall management system. Management System The management system is composed of a number of parts that function interdependently to achieve a purpose. The management system is an open systems. It interacts with its business environment. Environmental factors with which the management system interacts include customers, suppliers, competitors, and government. Each of these factors can significantly change the future of the management system. 7-S Model The 7-S model is a framework for analyzing organizations and their effectiveness. It looks at the seven key elements that make the organizations successful, or not: strategy; structure; systems; style; skills; staff; and shared values. To be effective, your organization must have a high degree of fit, or internal alignment among all the seven Ss. All Ss are interrelated, so a change in one has a ripple effect on all the others. Thus, to improve your organization, you have to pay attention to all of the seven elements at the same time.
The Growing Role of the Business Architect In today's knowledge- and innovation-driven complex economy, business architects are in growing demand. They are cross-functionally excellent people who can tie several silos of business development expertise together, create synergies, design winning business model and a balanced business system and then lead people who will put their plans into action... More
Harnessing the Power of Diversity Diversity is a specialized term describing a workplace that includes:
You can find a strategic competitive advantage in an organizational and cultural context by seeking to leverage, rather than diminish, opposite forces.
Cross-functional Management (CFM) Cross-functional management (CFM) manages business processes across the traditional boundaries of the functional areas. CFM relates to coordinating and synergizing the activities of different units for realizing the superordinate cross-functional goals and policy deployment. It is concerned with building a better system for achieving such cross-functional goals as innovation, quality, cost, and delivery... More Enterprise-wide Business Process Management (EBPM) EBPM, representing the third-wave of Business Process Management, is "a deliberate and collaborative approach to systematically – and systemically – managing all of a company's business processes."1 EBPM addresses the pressing need of the new knowledge-driven economy to integrate business process thinking with strategy, organizational structure and people issues. It requires that your executive team lead and manage differently and think more systemically about your business. Case in Point Canon: Eliminating 9 Wastes The objectives of Canon Production System (CPS) are to manufacture better quality products at lower cost and deliver them faster. Canon invited all their employees to suggest ideas for improvement and developed 6 Guidelines for the Suggestion System to make it most effective. The company developed also a list of 9 wastes to help their employees become problem-conscious, move from operational improvement to systems improvement, and recognize the need for self-development... More
Systems Thinking Systems thinking is your ability to things as a whole (or holistically) including the many different types of relationships between the many elements in a complex system. Systemic Approach to Innovation Until recently innovation has been seen principally as the means to turn research results into commercially successful products, but not all research leads to innovation and not all innovation is research-based. Innovation is systemic. It arises from complex interactions between many individuals, organizations and their operating environment. Firms which are successful in realizing the full returns from their technologies and innovations are able to match their technological developments with complementary expertise in other areas of their business, such as manufacturing, distribution, human resources, marketing, and customer service... More
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