Tag Archives: work flow

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.

Continue reading

LINKAGES FOR COORDINATION ADEQUACY (WORK FLOW, PART 2)

JP-pic 2Dr. John Psarouthakis, Executive Editor of www.BusinessThinker.com, Distinguished Visiting Fellow at the Institute of Advanced Studies in the Humanities, University of Edinburgh, Scotland, publisher of www.GavdosPress.com. Founder and former CEO, JP Industries, Inc., a Fortune 500 industrial corporation

The linkages listed in this segment and following segments on this topic to be posted in separate categories are based on my experience as senior executive as well as an entrepreneur on managing growth businesses. Because statistical techniques test for probabilities but not certainties, the wordings are stated in terms of likelihoods. Discussions of these linkages are to be presented in future articles. Other executives and entrepreneurs could come to different conclusions compared to those listed in the segments posted. Therefore, those that read my views should take them as the experience of one person and use their judgment as to whether these linkages are to be taken as stated in their case.

 

 

LINKAGES FOR COORDINATION ADEQUACY (WORK FLOW, PART 2)  

Linkage-1:  The more able the firm is to obtain needed managers, capital, and information from OUTSIDE the firm, then the more effective coordination strategy is likely to be, the less likely are things to slip through cracks, and the less often are unnecessary work delays likely to occur.

Linkage-2:  The more closely employee goals integrate with company goals, the better are employee morale and commitment likely to be,  And the more effective is the CEO’s value-sharing strategy, the more effective is coordination strategy likely to be.

Linkage-3:  The more closely employee goals integrate with company goals, the better employee commitment and morale are, and the more effective the CEO’s value-sharing strategy is, the less are unnecessary work delays likely to occur.

Linkage-4:  The more closely employee goals integrate with company goals, and the more consistent managers’ perceptions of values are with the CEO’s, less likely are things to slip through the cracks.

Linkage-5:  The better a firm is able to allocate equipment, supplies, and people, the more effective coordination strategy is likely to be.

Linkage-6:  The better a firm is able to allocate equipment, supplies and people, the less likely are things to slip through the cracks.

Linkage-7:  The better able the firm is to allocate people, the less are unnecessary work delays likely to occur.

Linkage-8:  The fewer the unnecessary work delays, the less the CEO must wait to receive financial reports.

Linkage-9:  The fewer the unnecessary work delays and the less likely things are to slip through cracks, the better the firm’s reputation.

Linkage-10:  The more effective the coordination strategy is, the better product (or service) quality, technical skills, and productivity are likely to be.

Linkage-11:  The more that things slip through the cracks, the worse technical performance is likely to be.

Linkage-12:  The reliance of business-service firms on monitoring systems is significantly greater than that of construction, manufacturing, and wholesale.

Linkage-13:  Construction firms and manufacturers rely significantly more on daily plans to coordinate efforts than do wholesalers or business-service firms.

Linkage-14:  Construction firms rely significantly more on work standards than do business services and manufacturers or wholesalers.

Linkage-15:  The larger the employment size, the less directly involved is the CEO likely to be, the more he or she is likely to rely on chain of command, and the more managers he or she is likely to delegate to.

Linkage-16:  The larger the employment size, then the more likely it is that written guidelines, job descriptions, and meetings will be used to coordinate efforts.

Linkage-17:  The larger the employment size, then the less often informal conversation likely to be used to coordinate efforts.

Linkage-18:  The larger the employment size, then the greater the number of monitoring systems a firm is likely to have.

Linkage-19:  The more a CEO relies on work standards to coordinate efforts, the better are profitability and cash flow likely to be.

Linkage-20:  The more monitoring systems a firm sets up, the greater the reliance on employee judgments, the greater the use of meetings, and the fewer managers delegated to, the more effective is coordination likely to be.

Linkage-21:  The larger or older a company is, the better the cash flow (same year and previous year) is likely to be.

Linkage-22:  The more predictable the firm’s environment is and the less diversified the firm is, the more effective coordination is likely to be.

Linkage-23:  In firms with fewer than 20 employees, the greater the reliance on chain of command, the greater the reliance on employee judgments, the fewer managers a CEO delegates to, and the greater reliance on work standards to coordinate efforts, then the more effective coordination is likely to be.

Linkage-24:  In firms with fewer than 20 employees, the fewer managers a CEO delegates to, the higher profits are likely to be.

Linkage-25:  In firms of 80 to 500 employees,  the fewer the written job descriptions and the greater the use of meetings, the more effective coordination is likely to be.

Linkage-26:  In firms of 80 to 500 employees,  the less reliance there is on written job descriptions, and the more on informal conversation to coordinate efforts, the better cash flow is likely to be.

Linkage-27:  In industries with low predictability,  the more reliance there is on work standards to coordinate efforts, the more effective coordination is likely to be.

Linkage-28:  In industries with low predictability, the less directly involved the CEO is in work flow and the greater the  reliance on work standards to coordinate efforts, the  higher profits are likely to be.

Linkage-29:  In industries with high predictability, the more directly involved the CEO is in work flow, the higher profits are likely to be.

Linkage-30:   In industries with high predictability, the more daily planning that takes place, the worse cash flow is likely to be.

Linkage-31:  In single product or services outfits,  the fewer CEO “total delegations” and the more monitoring systems there are in place, the more effective coordination is likely to be.

Linkage-32:  In single product or services firms, the more directly involved the CEO is with work flow, the higher profits are likely to be.

Linkage-33:  In firms with several related products or services,  the more informal conversation is used to coordinate efforts, the better cash flow is likely to be.

Linkage-34:  In firms 5 to 10 years of age, the more the CEO relies on employee judgments, work standards, and monitoring systems to coordinate efforts, the more effective coordination is likely to be.

Linkage-35:  In firms 5 to 10 years of age, the fewer the written guidelines to coordinate efforts, the better cash flow is likely to be.

Linkage-36:  In firms 11 to 20 years of age, the more work standards are used to coordinate efforts, the more effective coordination is likely to be.

Linkage-37:  In firms older than 39 years, the more the CEO relies on chain of command to coordinate efforts, the higher profits are likely to be.

Linkage-38:  In slower growing firms,  the fewer the managers the CEO delegates to and the more work standards are used to coordinate efforts, the more effective coordination is likely to be.

Linkage-39:  In slower growing firms, the less often written job descriptions are used and the more work standards are used to coordinate efforts, the better cash flow is likely to be.

Linkage-40:  In manufacturing firms, the more monitoring systems are used, the more effective coordination strategy is likely to be.

Linkage-41:  In manufacturing firms, the less involved the CEO is with work flow and the more informal conversation is used to coordinate efforts, the better cash flow is likely to be.

Linkage-42:  In wholesale firms, the less often meetings and the more often work standards are used to coordinate efforts, the higher profits are likely to be.

Linkage-43:  In construction firms, the more often meetings are used, then the higher profits and the better cash flow are likely to be.

“MANAGING THE GROWING FIRM” : LINKAGES FOR DIVISION OF WORK

JP-pic 2Dr. John Psarouthakis, Executive Editor of www.BusinessThinker.com, Distinguished Visiting Fellow at the Institute of Advanced Studies in the Humanities, University of Edinburgh, Scotland, publisher of www.GavdosPress.com. Founder and former CEO, Industries, Inc., a Fortune 500 industrial corporation

The linkages listed in this segment and following segments on this topic to be posted in separate categories are based on my experience as senior executive as well as an entrepreneur on managing growth businesses. Because statistical techniques test for probabilities but not certainties, the wordings are stated in terms of likelihoods. Discussions of these linkages are to be presented in future articles. Other executives and entrepreneurs could come to different conclusions compared to those listed in the segments posted. Therefore, those that read my views should take them as the experience of one person and use their judgment as to whether these linkages are to be taken as stated in their case.

Linkage 7-1:  The more adequate the information that a CEO obtains from inside the firm, the more adequately authority is distributed, and the more effectively roles are assigned, then the more profitable the firm is likely to be.

Linkage 7-2:  The more widely information is shared among employees, and the more effectively roles are assigned, the more rapid sales growth is likely to be.

Linkage 7-3:  The more adequate is the information obtained by the CEO inside the firm and the more effectively roles are assigned, then the more effective direction-setting strategy is likely to be.

Linkage 7-4:  The more widely information is shared inside the firm, the more able the firm is likely to be to obtain needed outside information, recruits, suppliers, subcontractors and capital and the more effective the CEO’s recruitment strategy is likely to be.

Linkage 7-5:  The more adequate is the information obtained by the CEO and the more effectively roles are assigned, the more effective the management recruitment strategy and the more adequate outside information are likely to be.

Linkage 7-6:  The more widely information is shared and the more effectively roles are assigned, the better the morale and commitment is likely to be and the more integrated individual and organizational goals are likely to be.

Linkage 7-7:  The more widely information is shared, the more likely the CEO and managers are to share the same sense of mission.

Linkage 7-8:  The more the CEO delegates responsibility to managers, the less consistent the CEO’s values are likely to be with managers.

Linkage 7-9:  The more managers perceive they are given authority, the better integrated are employee and organizational goals.

Linkage 7-10:  The more widely information is shared, the better people and supplies are allocated across departments.

Linkage 7-11:  CEOs getting adequate inside information and whose work roles are effectively assigned are likely to have (a) more effective resource allocation and (b) better people and supply allocations across departments.

Linkage 7-12:  The more effectively roles are assigned, the better technical performance, technical skill, quality, and productivity are likely to be.

Linkage 7-13:  The more widely information is shared, the higher technical performance is likely to be.

Linkage 7-14:  The more authority managers have to do their work, then the higher the firm’s productivity level is likely to be.

Linkage 7-15:  The more able the CEO is to get adequate information from within the firm, the higher the levels of technical skills and performance of employees are likely to be.