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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.
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...
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Balanced Organization: 5 Basic
Elements
Wood (Corporate
Capabilities):
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...
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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.
Cross-functional Management
(CFM)
Cross-functional management (CFM)
manages business processes across the traditional boundaries of the
functional areas. In Total Quality Management
(TQM)
and
Kaizen,
the cross-functional goals of QCD (Quality,
Cost, Delivery) are clearly defined as superior to such line functions as
planning, design, production and
sales. The positioning of cross-functional
goal as superordinate ones necessitates a new systems approach to management
and
decision making.
The concept and practices of cross-functional
management were developed to meet the need for systems approach to achieving
the cross-functional goals of quality, cost and delivery. Within this
concept:
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Quality is concerned with building a
better system for quality assurance
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Cost is concerned with building a
system for identifying cost factors and with reducing costs
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Delivery refers to a better system
for both scheduling and quantity...
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New Systemic Approach to
Innovation
Systemic
Innovation: 7 Areas
The evolution of the
innovation concept – from the linear model having R&D as the starting
point to the systemic model in which innovation arises from complex
interactions between individuals, organizations and their operating
environments – demonstrates that your innovation policies and practices must
extend their focus beyond the link with research....
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Smart Executive
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Smart Business Architect
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6Ws of Corporate Growth
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Synergistic Organization
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Synergizing Value Chain
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Systemic Innovation
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