THE BUSINESS ORGANIZATION IS A DYNAMIC SYSTEM

Dr. John Psarouthakis, Executive Editor, www.BusinessThinker.com and former founder and CEO of JPIndustries, Inc., a Fortune 500 industrial group.

For CV details go to:
https://www.linkedin.com/in/johnpsarouthakis/

Each word in the term, Dynamic Business Planning Model has a special meaning. I use the term dynamic to signify the ever-changing conditions that organizations face outside the firm–and changing management strategies required to keep up with these changes on the inside. Global competition, court rulings, and the changing caliber of job applicants are all examples of these external dynamics.    Because of these dynamics, effective strategy requires frequent review and assessment.

When we speak of a dynamic, I allude to qualities of organizations defined by open systems theory. According to that view, frequent response and adaptation to environmental changes is critical to survival. Though the eight issues remain the same, to grow profitability, the approach you must take to manage each issue changes over time. The open systems view also sees the organization as a collection of interdependent parts. Change one, and it affects the others. You cannot treat any one aspect–be it accounting, marketing, or technical–in isolation.

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THE DYNAMIC BUSINESS PLANNING MODEL


Dr. John Psarouthakis, Executive Editor, www.BusinessThinker.com and former founder and CEO of JPIndustries, Inc., a Fortune 500 industrial group.

 

For CV details go to:
https://www.linkedin.com/in/johnpsarouthakis/

A Dynamic Business Planning Model is a model of organization effectiveness based on both the classical goal approach and open systems theory ideas pioneered by researchers at the University of Michigan’s Institute for Social Research, including Robert Katz, Robert Kahn, and Basil Georgopoulos. See reference book at the end of this article.

Borrowing from the classical goal approach, for-profit firms depend upon financial viability to survive.

A financially viable company can pay its bills when they are due and operates at a profit.

Simple enough. But achieving financial viability is much more complicated than merely determining objectives for profit and production of goods and then setting out to achieve those goals. This Model defines the issues you must manage to assure financial viability, including market strategy, work flow, resource acquisition, human relations, resource allocation, public relations, and technical mastery. Successful corporate strategy must tackle each of these issues.

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THE SOCIETY OF THE TWENTY-FIRST CENTURY (Re-posted)

Dr. John Psarouthakis, Executive Editor www.BusinessThinker.com;  Distinguished Visiting Fellow, Institute for Advanced Studies in the Humanities, University of Edinburgh, Scotland (2011-2013).
CV details: click on  http://bit.ly/2sXvygl

Unfortunately, we have entered a century in which many of the old cultures and societies that have been successful under the old technologies and cultural norms have fallen by the wayside.   We witness already  dramatic shifts in economic wealth, both within and across nation states.

There is still some debate about how the new changes in technology will affect some of the more prevalent twentieth century ideologies.   For example, will the new technologies and associated cultural changes support or retard the growth of the liberal democracies? Or, will the vision of George Orwell be realized, with a technology-induced return to a world-wide authoritarian state? Obviously, all the data are not in, and will not be in for another seventy-five years or so. The early returns, however, suggest that many of the new technologies seem to enforce democratic values and practices.   For example, one of the critical features of using information technologies and computerized systems is the rapid and transparent exchange of information across settings, cities, and nations.   This is highly compatible with democratic systems and values. However, we have also witnessed that China has been able to have an effective state control over these advanced technologies so that has been little if any democratization and is some cases it could be argued that we have seen a decrease in democratization! The Economist in a recent article has concluded that the democratization effects on China by technology could have been overestimated.

On the other hand, some of the new technologies will reinforce distinctions between individuals and classes of people, thus perhaps leading to a more hierarchical and elitist structure of society.   Moreover, the ability of the new technologies to successfully manage and facilitate diversity of tastes and markets, may lead to a fragmentation of societies such that it will be difficult to sustain larger goals and visions.   For example, it is unclear whether a television society can really sustain a long-term mission, or goal, or struggle.

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