Balanced Business System:

Systems Thinking

Systems Approach to Management

Understanding and Managing the Interdependence of the Parts of Your Business System

By: Vadim Kotelnikov

Founder, Ten3 Business e-Coach Inspiration and Innovation Unlimited!

"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

 Smart Executive

 6Ws of Corporate Growth

Main Parts of the Management System

  • Organizational input (organizational resources and capabilities)

  • Organizational process (production process)

  • Organizational output (products/services)

Balanced Organization 5 Basic Elements The Power of Balance Leadership Motivating and Communicating Corporate Vision Leadership Attributes Corporate Culture Shared Values Team Culture Relentless Growth Attitude People Power Strategic Alignment Employee Empowerment Entrepreneurial Creativity Performance Management Motivation Coaching Organization Measurement Systems Corporate Capabilities Creativity Management Leveraging Diversity Leadership Development

Management Challenges for the 21st Century

By Peter Drucker12

  1. A systematic and organized method for obtaining information about the context of the business in the economy, its market and its pool of competitors.

  2. Integration of what was once several procedures value analysis, process analysis, quality management and costing into a single analysis.



Corporate Leader

Cross-functional Excellence

Business Architect

New Management Model

Balanced Approach to Business Systems

Business Model

6Ws of Corporate Growth

The Business Tree

Sustainable Competitive Advantage

Sustainable Growth Strategies

Systems Approach to Management

Systemic Innovation

Enterprise-wide Business Process Management (EBPM)

Cross-functional Management (CFM)

Total Quality Management (TQM)

Innovation Management

Systemic Innovation

Strategic Innovation

Systems Thinking

System Analysis



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


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.

Systems Thinking and Modern Management

Systems thinking characterizes many of the world's leading executives. It is a formal discipline of management science that deals with the whole Business System Download PowerPoint presentation, pdf e-book and in terms of the interconnections and interactions of its parts... More

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... More

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... More

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:

  • Quality is concerned with building a better system for quality assurance

  • Cost is concerned with building a system for identifying cost factors and with reducing costs

  • Delivery refers to a better system for both scheduling and quantity... More

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.... More


  1. Modern Management, Ninth Edition, Sameul C. Certo