Company Organization in Practice
Trying to find the "elementary structuring blocks" in the businesses we conclude that Activities are the smallest elements witch when assembled together form what we consider as a company (a big or small cooperating group of people-a team). In every "Activity" data are consumed in order to produce new data to be transferred elsewhere to be consumed again. In the case of a manufacturing company along with the data matterials are also consumed, produced (modified) and transfered elsewhere. The quantitative and qualitative representation of the matterials is data again.
Rephrasing the above we could say that "In companies the elementary effort is Activity during which data are consumed in order to produce new data to be transferred to another Activity or to be stored". Business Organizers have to provide the necessary organizing infrastructure (tools and advices) so that the Business Directors can coordinate and manage this effort, within the given resource limits, in order to achieve specific "strategic objectives" in a certain timeframe. So it would appear that the business organization requires an initial setup and then works with the daily management and coordination.
Using the above scheme, a poorly implemented "Organizational Theory" would attempt, after naming the roles and the departments of the company, to give content to the named entities, This "property assignment" of the roles and positions of the company is used to define "duties" for the various employees into the organogram. In a way or another we try to give content to "elementary structuring blocks" by the macroscopic observation of what should be the company organization look like. But the "distant observation" of a "living creature," like a living company, is not the same as an anatomic attempt to the "internal operations" that take place into the company's desks or manufacturing and storage places. We cannot conclude on (y) without examining the functional relations to (x). We could express these relations as:
y = f(x)...or by writting differently
"balanced scorecard values" = f ( "activities" )
"strategic objectives" = f ( "activities" )
Here the "strategic objectives" and the "balanced scorecard values" are intangible values. The only tangible values in a company are its "activities". (we can directly work on them and change them). Naturally we need to achieve optimal values for the "balanced scorecard values" but we cannot do nothing on them (we cannot change them directly to the preferred ones!). Our only way is to "discover" one by one all the functional relations from the bottom level existing "activities" to the top level "strategic objectives".
kosmos/BOS has been built having in mind a company that is organized, coordinated and managed continuously, thriving to achieve strategic objectives by optimal restructuring and usage of its resources. In this case the Directing Board (the company itself!) becomes an "internal continuously re-organizing" driving force by applying specific Activity Based Management practices when and where it is necessary. The scheme below shows this continuous process:
The above, continuous process scheme, reveals that no one other than the Directing Board knows better how to organize a company. No one can optimize company's processes without having a real living view of what is happening in front of company's computer workstations, production and storing places. The only real contribution of an external organizing authority-without the above process knowledge-is to give generic advice on best practices and imperative business rules. The drawback of that is that the company has to spend a lot of money and time just to be informed on the elementary MBA textbook content.
kosmos/BOS is here to offer companies an infrastructure tool that enables them to build and document all their "data production lines". Combining the data with the available resources, targeted metrics and activity based costing in an overall Balanced Scorecard, would result in a sound implementation of Activity Based Management rules and the realization of the strategic objectives of the company.