Holistic Management Managing What Matters for Company Success
, by Christopher, William F.Note: Supplemental materials are not guaranteed with Rental or Used book purchases.
- ISBN: 9780471740636 | 0471740632
- Cover: Hardcover
- Copyright: 5/18/2007
This book presents two recently developed knowledge areas that can significantly improve the management and the performance of business enterprise: System Science and Cybernetics and Key Performance Areas. Included in this book are advanced (and evolving) methods and technologies for planning and budgeting, creating and keeping customers, quality and productivity, innovation, improving organization capability, sustainability in the company's social and ecological environments, and profitability-all integrated with this new viable systems model and system thinking.
After a management career in industry, William F. Christopher, MS, is now President of The Management Innovations Group and its literary agency. He has worked with more than 100 businesses in sixteen countries to improve their results in such areas as marketing and sales, new technology development, planning and budgeting, management reporting, and profitability. Mr. Christopher is the author of ten management books as well as numerous articles published in leading business and professional publications. He is a Fellow of the World Academy of Productivity Science.
Foreword | p. xvii |
Preface | p. xxi |
Contributors for Chapter 3 | p. xxix |
From System Science-A New Way to Structure and Manage the Company | p. 1 |
A Time for Change | p. 1 |
System Science and the Viable System Model (VSM) | p. 2 |
Benefits for Management | p. 5 |
Origins of System Science | p. 6 |
What is a System? | p. 7 |
Cybernetics | p. 11 |
Variety | p. 12 |
Requisite Variety | p. 14 |
Black Boxes | p. 17 |
Homeostats and Heterostats | p. 19 |
Recursion | p. 20 |
Information | p. 24 |
Transduction | p. 25 |
Self-Organization | p. 26 |
Self-Control | p. 27 |
Overview: The Essence of Chapter 1 | p. 29 |
The Viable System Model (VSM) | p. 33 |
Changing How We Look at the Company | p. 33 |
Characteristics of a Viable System | p. 35 |
Conditions Needed for Viability | p. 37 |
Comprises Operations and the Management of Operations | p. 37 |
Relates to an External Environment | p. 38 |
Has a Purpose and a Structure to Achieve Its Purpose | p. 39 |
Is Largely Self-Organizing and Self-Controlling | p. 39 |
Is Controlled Through Information Flow Relating to Purpose | p. 40 |
Provides Control Information Through Feedback Measures | p. 40 |
Makes Decisions at the Level of Requisite Variety | p. 42 |
The Viable System Model (VSM) | p. 43 |
Operations | p. 46 |
Coordination | p. 48 |
Functions | p. 48 |
Corporate Parameters | p. 50 |
Operations Direction | p. 51 |
System 3 Responsibilities | p. 52 |
How System 3 Deals with Problems in Operations | p. 54 |
Developing Each System 1's Resource Bargain | p. 55 |
Reviewing Purpose and Determining Short-Term Objectives and Performance Measures | p. 61 |
Providing Overall Direction of System 1 Operations | p. 64 |
Effecting Coordination and Stability | p. 64 |
Making Changes in a System 1 Resource Bargain | p. 65 |
Providing Overall Direction of Key Management Functions | p. 65 |
Strategic Direction | p. 68 |
Research and Development | p. 70 |
Strategic Planning | p. 71 |
Innovation | p. 71 |
Finance | p. 72 |
Market Research | p. 72 |
Projects | p. 72 |
Environmental Affairs | p. 73 |
System 4 Overview | p. 74 |
Executive Direction | p. 75 |
Responsibilities of System 5 | p. 78 |
A System 5 Example | p. 82 |
System 5 Essential Responsibilities | p. 83 |
A Chemical Company Example | p. 85 |
The Pursuit of Purpose | p. 87 |
Defining the System Is | p. 87 |
Structuring the Company to Achieve Its Purpose and Goals | p. 88 |
Maintaining Stability within the Company | p. 89 |
Creating the Company's Future | p. 90 |
Viable System Top Management | p. 90 |
Communication Channels | p. 91 |
Routine Communication Channel | p. 92 |
Management Channel | p. 93 |
System 1s Communication Channel | p. 93 |
Special Communication Channel | p. 94 |
Transducers, Amplifiers, and Attenuators | p. 94 |
Overview: The Essence of Chapter 2 | p. 96 |
How the Viable System Model Improves Performance - Reports on Five Applications | p. 100 |
The Five Reports | p. 100 |
Developing a Viable Organization: The Crucial Role of the Meta-system | p. 102 |
Initial Situation | p. 102 |
Organizational Diagnosis | p. 103 |
The Corporate Development Project | p. 103 |
Follow-Up | p. 104 |
Conclusions | p. 105 |
How the VSM Helped Transform a Manufacturing Company in Crisis | p. 107 |
The Company Situation | p. 107 |
Analysis and Intervention Using VSM | p. 109 |
The Alternative Structure | p. 111 |
Outcomes and Conclusions | p. 113 |
The MX Corporation | p. 113 |
Company Situation | p. 113 |
Introducing the Viable System Model (VSM) | p. 114 |
Company E | p. 120 |
Company E, Business 2 | p. 122 |
Applying VSM in the Strategic Management of a Coruna University in Galicia, Spain | p. 124 |
Galicia and A Coruna University | p. 125 |
The Viable System Model and the UDC | p. 125 |
Results | p. 133 |
Conclusion | p. 133 |
Using the VSM to Design a Non-Viable System: The Case of the Social Security System for Teachers in Colombia | p. 134 |
On the Use of the VSM | p. 135 |
Defining the System in Focus | p. 136 |
Designing the SSST | p. 138 |
Project Results | p. 141 |
Acknowledgments | p. 142 |
Key Performance Areas That Determine Company Success | p. 143 |
Profitability | p. 143 |
Management Economics | p. 145 |
Key Performance Areas that Determine Company Success | p. 145 |
Creating and Keeping Customers | p. 150 |
Quality and Productivity | p. 150 |
Innovation | p. 151 |
Organization Capability | p. 152 |
Physical and Financial Resources | p. 152 |
Public and Environmental Responsibility | p. 153 |
Profitability | p. 154 |
Overview: The Essence of Chapter 4 | p. 154 |
The Viable System Model and Planning and Budgeting | p. 156 |
A Brief History of Planning | p. 156 |
The VSM Framework for Planning | p. 159 |
The Corporate Plan | p. 161 |
Measures | p. 163 |
Key Performance Areas | p. 164 |
Projects | p. 172 |
Goals and Measures | p. 174 |
Prioritizing | p. 178 |
Continuous Planning | p. 178 |
Budgets and Budgetary Control | p. 183 |
Continuously? | p. 186 |
Measures of Success | p. 187 |
Predictive Control | p. 195 |
Developing the Measures | p. 196 |
Communication | p. 198 |
Overview: The Essence of Chapter 5 | p. 202 |
The Viable System Model and Creating and Keeping Customers | p. 205 |
How the VSM and System Thinking Helps | p. 206 |
Marketing | p. 207 |
Three Key Questions | p. 207 |
Competitive Position | p. 210 |
Market Position | p. 212 |
Diagnosing Sales Revenue | p. 215 |
Pricing | p. 221 |
Distribution | p. 222 |
Advertising, Sales Promotion, and Publicity | p. 223 |
Customer Service | p. 224 |
Sales | p. 225 |
Focus on the Sales Assignment, or Territory | p. 226 |
Manage the Sales Assignment as a Business | p. 227 |
Concentrate on Target Customers and Target Prospects | p. 227 |
Develop Action Plans for Target Customers and Target Prospects | p. 227 |
Schedule Calls | p. 228 |
Maximize Selling Time with Customers and Prospects | p. 229 |
Prepare Each Sales Call | p. 229 |
See the Right People | p. 230 |
"Counsel with" More Than "Sell To" | p. 231 |
Communicate-Ask Questions, and Listen | p. 235 |
Establish Relationships | p. 236 |
For Each Customer and Prospect Develop Proposals Good for Them and Good for the Company | p. 236 |
Get the Order | p. 237 |
Follow-up and Assure Customer Satisfaction and Delight | p. 237 |
Sales Planning | p. 238 |
Analysis of Sales Territory or Sales Assignment | p. 238 |
Selection of Target Customers and Target Prospects | p. 239 |
Preparing Customer Sales Plans for Target Customers and Target Prospects | p. 243 |
Implementation of Customer Sales Plans | p. 243 |
Measurement | p. 245 |
Sales Organization Structure | p. 246 |
Continuous Learning | p. 248 |
Sales Compensation | p. 249 |
Innovation | p. 251 |
Goals and Measures | p. 252 |
Overview: The Essence of Chapter 6 | p. 254 |
The Viable System Model and Quality and Productivity | p. 257 |
The New Quality Technologies | p. 257 |
The Quality/Productivity Connection | p. 258 |
Quality | p. 259 |
The Idea of Systems | p. 260 |
Recursion | p. 261 |
Self-Organization and Self-Control | p. 263 |
Productivity | p. 265 |
Total Productivity | p. 267 |
Output | p. 269 |
Labor Inputs | p. 270 |
Capital Inputs | p. 271 |
Materials Inputs | p. 272 |
Energy Inputs | p. 273 |
Programmed Fixed Costs Inputs | p. 273 |
Monitoring Total Productivity | p. 273 |
Total Factor Productivity | p. 274 |
Economic Productivity | p. 276 |
Developing the Economic Productivity Measures | p. 277 |
Partial Economic Productivity Measures | p. 279 |
How to Improve Economic Productivity | p. 280 |
One Company's Experience with Economic Productivity | p. 283 |
Examining the Data | p. 284 |
Actions Taken, and Results | p. 285 |
Outcomes | p. 286 |
Outcomes Add to or Subtract from Company Success | p. 287 |
A Productivity Measure for Outcomes | p. 289 |
Overview: The Essence of Chapter 7 | p. 291 |
The Viable System Model and Innovation | p. 297 |
p. 297 | |
Understanding Innovation | p. 298 |
Continuous Improvement | p. 301 |
Quick and Easy Kaizen | p. 302 |
Value Analysis Tear-Down | p. 304 |
The VSM Structure for Innovation | p. 306 |
Some Innovation Stories | p. 310 |
General Electric | p. 310 |
3M | p. 311 |
Studebaker | p. 312 |
Amgen | p. 313 |
General Electric's Lexan Business | p. 314 |
Innovation Opportunities | p. 316 |
Technology Forecasting | p. 319 |
Parameters | p. 320 |
Substitution Theory | p. 320 |
Innovation Methods | p. 323 |
TRIZ | p. 325 |
FAST | p. 327 |
Creativity | p. 327 |
Methods for Creative Thinking | p. 327 |
Brainstorming | p. 328 |
Paradoxical Thinking | p. 330 |
Divergent Thinking | p. 331 |
Bioheuristics | p. 332 |
Concept Displacement | p. 332 |
Random Word Play | p. 333 |
Deliberate Dreaming | p. 333 |
Creating a Climate for Innovation | p. 334 |
Continuous Improvement + Innovation | p. 335 |
Overview: The Essence of Chapter 8 | p. 340 |
The Viable System Model and Organization Capability | p. 342 |
The Company's Greatest Resource-Its People | p. 343 |
Motivations | p. 345 |
Achievement Motivation | p. 346 |
Power Motivation | p. 347 |
Other Motivations | p. 348 |
Motivations and the VSM | p. 349 |
Black Boxes | p. 350 |
Designing Jobs | p. 351 |
The VSM and Company Performance | p. 352 |
An Example: General Electric | p. 353 |
Another Example: Google | p. 356 |
Performance Appraisal | p. 357 |
Viability | p. 360 |
VSM, Theory Y, and the HR Motivator Department | p. 361 |
The VSM and Theory Y | p. 364 |
The VSM and the Motivator Department | p. 366 |
Collective IQ | p. 367 |
Overview: The Essence of Chapter 9 | p. 369 |
The Viable System Model and Public and Environmental Responsibility | p. 373 |
Viability in Fast-Changing Environments | p. 373 |
Six Culture-Made Environments | p. 376 |
The Commercial Environment | p. 376 |
The Technical Environment | p. 378 |
The Economic Environment | p. 382 |
The Political Environment | p. 383 |
The Social Environment | p. 385 |
The Educational Environment | p. 386 |
Ecological Environment | p. 392 |
The Situation Today | p. 392 |
Crash and Chaos | p. 396 |
Parable of the Twenty-ninth Day | p. 398 |
Stabilize and Maintain | p. 399 |
Where We Are | p. 401 |
Threatening Trends | p. 403 |
Energy | p. 404 |
Buckminster Fuller's Analysis | p. 405 |
Nuclear | p. 405 |
Oil | p. 408 |
All Fossil Fuels Are Finite | p. 409 |
Crash and Chaos? | p. 410 |
Alternatives to Crash and Chaos | p. 411 |
What Companies are Doing | p. 415 |
"Development" | p. 417 |
The Twenty Years from 2005 to 2025 | p. 419 |
Overview: The Essence of Chapter 10 | p. 421 |
The Viable System Model and Profitability | p. 427 |
Is Profit and Shareholder Value the Company Purpose? | p. 427 |
Two Metrics: Accounting and Economics | p. 428 |
Where does Profitability Come From? | p. 433 |
Management Economics | p. 434 |
Management Economics Principles | p. 436 |
Costs | p. 440 |
A Management Economics Statement of Operating Income | p. 445 |
An Income Model | p. 452 |
Another Version of the Income Model | p. 459 |
Optimizing Concepts | p. 462 |
Understanding the Income Model | p. 463 |
Leverage | p. 465 |
Adjusting for Inflation/Deflation | p. 468 |
Using the Income Model | p. 470 |
Some Thoughts on Income Statements | p. 472 |
Operating Income by Management Economics Accounts | p. 472 |
A Useful Addition? | p. 474 |
Management Economics Income Statement | p. 475 |
Some Management Economics Examples | p. 478 |
Overview: The Essence of Chapter 11 | p. 480 |
Index | p. 483 |
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