REPLY Society Strategy Development (SD6978)

[SDMAIL Johann Heymann]

Posted by  "Johann Heymann" <johann.heymann at fdg.co.za>

Bill, Rick

As a business consultant with an engineering degree I agree that SD will 
only grow and prosper if we are able to convince the broader business 
community of its business value.  Like with most mathematical modelling 
techniques (including statistics and simulation), non-engineers and 
non-scientists have significant difficulty in understanding the 
complexities of SD.  Unless systems can be articulated in business 
terms, I suspect that there is a low probability that SD will be 
regarded as a useful technology by the business community at large.  It 
should be noted that the business community had a very positive response 
initially to Peter Senge’s book, "The Fifth Discipline", in particular, 
to "Systems Thinking".  Unfortunately, I believe that most of that 
interest has been lost.  Unless we can rejuvenate the acceptance of the 
basic "Systems Thinking" philosophy among business people, I suspect 
that we will have an uphill battle to convince Business to accept SD.

Regarding the road forward for SD, I believe that we need to consolidate 
past efforts in building Generic Business Process SD Models including:

1.       Inbound logistics models (Supply Chain)

2.       Process models (i.e. manufacturing, construction, commercial etc)

3.       Outbound logistics models (warehousing, distribution etc)

4.       Marketing

5.       Procurement

6.       Research and Development

7.       Human Resources

8.       Financial processes (Financial Statements, Workflow, etc)

9.       Governance processes (Responsibility, Accountability, Ethics, 
Reputation Management etc)

10.   Information processes (Information Technology, Information 
Management, Business intelligence/Decision Support etc.)

11.   Maintenance Management (Including Reliability modelling, Work 
Order processes, Repair Processes, Condition Monitoring etc)

12.   Risk Management

13.   Project Management

14.   Shared Services (including Outsourcing, Insourcing etc)

15.   Safety Health and Environmental Management (SHE)

Such models can be integrated and modified to suit specific business 
environments.  Once Business can be convinced that the models seem to be 
useful predictors of AS-IS processes, business improvements can be 
suggested and demonstrated using such models.  I believe that such 
business process models could be used as one of the most powerful 
tactical decision making instruments, because it allows for tactical 
scenario planning.

Another area where SD can make a very significant contribution is in 
Performance Management.  Using the Business Process Models suggested 
above, together with Business Intelligence, the most significant Key 
Performance Indicators can be established from such SD models.  An even 
more significant contribution that can be made is in the area of Target 
Setting as target setting methods in performance management frameworks 
are mostly arbitrary and often lead to dysfunctional behaviour or at 
best suboptimal performance.


 From the above three major contributions of SD can be to the areas of:

1.       Business Process Improvement;

2.       Tactical Scenario Planning; and

3.       Enterprise Performance Management.

Another obvious area of interest is that of Foresight and Strategy 
Modeling.  I believe, however, that the TO-BE scenarios should have less 
emphasis as it depends largely on the acceptance of Business of the 
value of SD.  Once significant traction of SD in Business Processes has 
been obtained, Strategy Modeling will be the logical next step with very 
significan pay-offs. 

In terms of Society Strategy Development, my suggestion is that the 
Society should promote the development of generic SD models as shown 
above, even  to the extent of supporting new business ventures that 
provide Business Process Solutions.  In terms of academic development, 
curricula should include:

1.       Business Management themes;

2.       Business Process Modelling;

3.       Scenario Planning; and

4.       Enterprise Performance Management.


In short: FOCUS ON BUSINESS VALUE.

I trust that the above comments will be of use.

Kind Regards

Johann Heymann
FIFTH DISCIPLINE CONSULTING (PTY) LTD
Posted by  "Johann Heymann" <johann.heymann at fdg.co.za>
posting date  Mon, 28 Apr 2008 17:55:33 +0200