Part 1 – How to link organization and strategy?
We have process management to improve existing processes. Some problems that can arise
in processes/projects:
- Unclear requirements
- Unclear customer needs
- No feedback
- Poor communication
Complicated systems: systems that are 100% predictable, 100% under control →
deterministic. These are also called technical systems.
Complex systems: systems that are not 100% predictable and not 100% under control →
dynamic. These are also called Sociotechnical systems, e.g. humans or nature. Complex
systems cannot be modelled ‘normally’.
Principles are practical, proven and explainable, and strategic plans are always based on
principles.
Principles for complex systems (can never be used in complicated systems):
- Pareto’s principle: also called the 80 : 20 rule, and basically says: “with 20% of
effort/time/etc. you receive 80% of the results”.
- What-before-how: you define all your what/why’s before you define the how
(means to an end). This is the principle of organization development.
What (why) How (means to end)
Vision – normative management Organisation:
↓ - Structure
Strategy – strategic management - Processes
↓
Target/goal – operational management
Customer needs Product / service / technology
Market requirements
Core-competence Infrastructure
Context → environment IT, tools, methods, instruments, etc.
Everyone who had a leadership role has normative, strategic and operational management.
Vision
Vision is a dream with a deadline, it’s realistic.
You define a vision because of:
- Purpose
- Motivation
- Direction
, - Sense
- HR → Humans Vision
→ Resources
Physiological property/ownership: when something feels like it’s yours but it’s not, e.g.
football supporters and ‘their’ club.
Strategy
Strategic thinking focuses on 5 parts:
- Future orientation: usually 3-5 years → depends on the product life cycle
- Competitors:
o Differentiation
o Positioning
- Customer segments → needs (and original needs). There are different products or
processes for different needs, based on age, region, etc.
- Potential <-> risk
- Focus of value creation <-> outsourcing. Open innovation → outsourcing of R&D.
Operational thinking: ‘go where the ball is’ versus strategic thinking: ‘go where the ball will
be’.
Targets
Targets must be SMART:
S – specific
M – measurable
A – action (-oriented)
R – realistic
T – timed
These lead to actions and priorities.
Context: text with relation (it makes sense).
“Structure follows process follows strategy”
Part 2 – How to link organization and processes?
Source of sustainable success, Pile of sand model:
Cost/
benefit
Biathlon effect
Speed (bottom to top)
Buffer:
Reliability
- Time
- Budget
- HR Process Quality
--------------------------------------------- Alternative /
- Stock
Relationship quality shadow processes
Micro-management
We have process management to improve existing processes. Some problems that can arise
in processes/projects:
- Unclear requirements
- Unclear customer needs
- No feedback
- Poor communication
Complicated systems: systems that are 100% predictable, 100% under control →
deterministic. These are also called technical systems.
Complex systems: systems that are not 100% predictable and not 100% under control →
dynamic. These are also called Sociotechnical systems, e.g. humans or nature. Complex
systems cannot be modelled ‘normally’.
Principles are practical, proven and explainable, and strategic plans are always based on
principles.
Principles for complex systems (can never be used in complicated systems):
- Pareto’s principle: also called the 80 : 20 rule, and basically says: “with 20% of
effort/time/etc. you receive 80% of the results”.
- What-before-how: you define all your what/why’s before you define the how
(means to an end). This is the principle of organization development.
What (why) How (means to end)
Vision – normative management Organisation:
↓ - Structure
Strategy – strategic management - Processes
↓
Target/goal – operational management
Customer needs Product / service / technology
Market requirements
Core-competence Infrastructure
Context → environment IT, tools, methods, instruments, etc.
Everyone who had a leadership role has normative, strategic and operational management.
Vision
Vision is a dream with a deadline, it’s realistic.
You define a vision because of:
- Purpose
- Motivation
- Direction
, - Sense
- HR → Humans Vision
→ Resources
Physiological property/ownership: when something feels like it’s yours but it’s not, e.g.
football supporters and ‘their’ club.
Strategy
Strategic thinking focuses on 5 parts:
- Future orientation: usually 3-5 years → depends on the product life cycle
- Competitors:
o Differentiation
o Positioning
- Customer segments → needs (and original needs). There are different products or
processes for different needs, based on age, region, etc.
- Potential <-> risk
- Focus of value creation <-> outsourcing. Open innovation → outsourcing of R&D.
Operational thinking: ‘go where the ball is’ versus strategic thinking: ‘go where the ball will
be’.
Targets
Targets must be SMART:
S – specific
M – measurable
A – action (-oriented)
R – realistic
T – timed
These lead to actions and priorities.
Context: text with relation (it makes sense).
“Structure follows process follows strategy”
Part 2 – How to link organization and processes?
Source of sustainable success, Pile of sand model:
Cost/
benefit
Biathlon effect
Speed (bottom to top)
Buffer:
Reliability
- Time
- Budget
- HR Process Quality
--------------------------------------------- Alternative /
- Stock
Relationship quality shadow processes
Micro-management
