Lecture 1 – Business analysis for responsible organizations
You need to understand that responsible organizing is about creating multiple types
of value simultaneously. A multiple value creation is complex. The system
approaches help to understand and manage complexity.
Responsible organizations
There are multiple definitions available for a responsible organization. We use:
Responsible organizations = an organization that considers multiple value creation
for stakeholders. We do not focus on a single objective function like profit
maximization or shareholder value creation. There are also social and environmental
conscience.
The founding of the responsible organizations is based on the stakeholder theory.
Stakeholder theory = a view of capitalism that stresses the interconnected
relationships between a business and its customers, suppliers, employees,
communities, and others who have a stake in the organization. The theory argues
that a firm should create value for all stakeholders, not just shareholders.
Stakeholder = those who are affected by an organization, not only those who profit,
but those who are negative and positive effected. The stakeholder can also influence
the organization in difference ways.
An organization can create value for its stakeholders, but at the same time it can also
destroy values.
Integrated reporting framework = framework of how organization creates value,
evaluating strategy, governance and performance in context of environment
The system lens
System lens = a system is an interconnected set of elements that is coherently
organized in a way that it achieves something.
A system is an interconnected set of elements that is coherently organized in a way
that achieves something.
System approach:
Trying to see the greater whole.
Interrelations.
Feedback: closed chains of casual connections.
Non-linearities, delays
Basic building blocks:
Inflow stock outflow
Two loops in basic building blocks:
Positive feedback loop: an initial increase in A leads to a further increase of A,
or negative.
Negative feedback loop: an initial increase in A, leads to a further decrease of
B. Or an initial decrease in B, leads to a further decrease in A.w
, Responsible organizing is about creating multiple types of value simultaneously.
Multiple value creation is complex. System approaches help to understand and
manage complexity.
Lecture 2 – Basics of System Dynamics
System = an interconnected set of elements that is coherently organized in a way
that it achieves something.
System thinking = perspective, language and set of tools to understand this complex
behavior in an organization. The set of words that we use to explain system behavior:
causality, unintended consequence, non-linearity, self-organization, emergence etc.
Examples of tools are causal loop diagram, stock and flow diagram, system
dynamics modelling etc.
There is a difference:
Conventional thinking System thinking
Connection The connection between The relationship between
problems and their problems and their
causes is obvious and causes is indirect and not
easy to trace obvious
Source of problem Others, either within or We create our own
outside or organization, problems and have
are to blame for problems significance control or
and must be the ones to influence in solving them
change through changing our own
behavior
Reaction to change A policy designed to Most quick fixes have
achieve short term unintended
success will also assure consequences: they make
long term success no difference or make
matters worse in the long
run
Optimization In order to optimize the In order to optimize the
whole, we must optimize whole, we must improve
the parts relationships among the
parts
Solving Aggressively tackle many Only a few key
independent initiatives coordinated changes
simultaneously sustained over time will
produce large system
change
System thinking is most suitable when:
The problem is connected, there is a large sphere of influences.
Contested and diverse opinion on the matter among stakeholders.
Chronic and persistence problems.
Short-term effort can undermine long-term solution.
Optimizing parts may come at cost of system performance.
Responsible organizing is about creating multiple types of values simultaneously.
Multiple value creation is complex. System approaches help to understand and
manage complexity. System dynamics as a tool.
You need to understand that responsible organizing is about creating multiple types
of value simultaneously. A multiple value creation is complex. The system
approaches help to understand and manage complexity.
Responsible organizations
There are multiple definitions available for a responsible organization. We use:
Responsible organizations = an organization that considers multiple value creation
for stakeholders. We do not focus on a single objective function like profit
maximization or shareholder value creation. There are also social and environmental
conscience.
The founding of the responsible organizations is based on the stakeholder theory.
Stakeholder theory = a view of capitalism that stresses the interconnected
relationships between a business and its customers, suppliers, employees,
communities, and others who have a stake in the organization. The theory argues
that a firm should create value for all stakeholders, not just shareholders.
Stakeholder = those who are affected by an organization, not only those who profit,
but those who are negative and positive effected. The stakeholder can also influence
the organization in difference ways.
An organization can create value for its stakeholders, but at the same time it can also
destroy values.
Integrated reporting framework = framework of how organization creates value,
evaluating strategy, governance and performance in context of environment
The system lens
System lens = a system is an interconnected set of elements that is coherently
organized in a way that it achieves something.
A system is an interconnected set of elements that is coherently organized in a way
that achieves something.
System approach:
Trying to see the greater whole.
Interrelations.
Feedback: closed chains of casual connections.
Non-linearities, delays
Basic building blocks:
Inflow stock outflow
Two loops in basic building blocks:
Positive feedback loop: an initial increase in A leads to a further increase of A,
or negative.
Negative feedback loop: an initial increase in A, leads to a further decrease of
B. Or an initial decrease in B, leads to a further decrease in A.w
, Responsible organizing is about creating multiple types of value simultaneously.
Multiple value creation is complex. System approaches help to understand and
manage complexity.
Lecture 2 – Basics of System Dynamics
System = an interconnected set of elements that is coherently organized in a way
that it achieves something.
System thinking = perspective, language and set of tools to understand this complex
behavior in an organization. The set of words that we use to explain system behavior:
causality, unintended consequence, non-linearity, self-organization, emergence etc.
Examples of tools are causal loop diagram, stock and flow diagram, system
dynamics modelling etc.
There is a difference:
Conventional thinking System thinking
Connection The connection between The relationship between
problems and their problems and their
causes is obvious and causes is indirect and not
easy to trace obvious
Source of problem Others, either within or We create our own
outside or organization, problems and have
are to blame for problems significance control or
and must be the ones to influence in solving them
change through changing our own
behavior
Reaction to change A policy designed to Most quick fixes have
achieve short term unintended
success will also assure consequences: they make
long term success no difference or make
matters worse in the long
run
Optimization In order to optimize the In order to optimize the
whole, we must optimize whole, we must improve
the parts relationships among the
parts
Solving Aggressively tackle many Only a few key
independent initiatives coordinated changes
simultaneously sustained over time will
produce large system
change
System thinking is most suitable when:
The problem is connected, there is a large sphere of influences.
Contested and diverse opinion on the matter among stakeholders.
Chronic and persistence problems.
Short-term effort can undermine long-term solution.
Optimizing parts may come at cost of system performance.
Responsible organizing is about creating multiple types of values simultaneously.
Multiple value creation is complex. System approaches help to understand and
manage complexity. System dynamics as a tool.
