After revisiting the research results on over 200 small and medium size companies I thought it useful to provide a presentation of the central focus of the research.—the Dynamic System Model (DSM)—and how the model and the research results relate to other work in strategic management and entrepreneurship.
This presentation, due to its length, will be published in 4 Parts in two week intervals each.
This is the 2nd part of a 4 part article on Dynamic Management of Growing Firms.
The Seven DSM Issues are a Direct Result of the Previously Stated Open Systems Theory Assumptions
Let us recap our presentation to this point. View your company as a powerful tool, to realize your vision and objectives. But realize that it is also bound by certain natural laws. To overcome entropy, you must develop a reliable and effective input-transformation-output (I-T-O) cycle for your company. Also, you must recognize that your company is part of a dynamic network, affected by multiple layers of people, groups, organizations, societies and global forces, all interacting dynamically, and at times, unpredictably with one another.
These three assumptions help us to define the core challenges you face as the leader of a dynamic enterprise. First, you must have a vision for your company. Just as every tool has a purpose, you must always keep clearly in mind why your organization exists. You may have personal objectives, such as making money or gaining a sense of accomplishment. But to grow, the organization needs its own reason for being. Sometimes the vision in a new enterprise is inseparable from the products or services offered (e.g. to develop a profitable web site). But growing companies often benefit from a broader vision. For example, from the start, the mission at Apple Computer was not just to make and sell computers—it was also to produce an affordable, user-friendly computer. Steven Wozniak’s personal dream, carried into the fledging company, was to make personal computer ownership affordable at a time when most computers cost as much as a new car, or even a house. Steven Jobs’ added inspiration, guided by visits to Xerox Research Park in Palo Alto, California, was to make a computer simple enough for a child to use. In addition to their own contributions, Wozniak and Jobs adopted and modified existing technologies from other Silicon Valley inventors to realize that vision. Continue reading Dynamic Management of Growing Firms–Part 2