Tag Archives: Business Planning

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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