Even though this looks like a typical blog, it is actually an experiment in using the features of simple blog software to develop, over time, a single unified piece of work. This is really an alternative to the book. It is not constrained to the chapter format and a single sequence of text. I think of this as a fabric of writing, so I am test-driving the term "fabwrit". In this introduction I'll describe this after outlining the key topic areas.
Your Healthy Business
Your business dreams
Starting
and running a business is always an adventure. Even for seasoned entrepreneurs, every new venture requires a
step into the unknown, because each business is unique, and every situation is unique. And it always starts with a business dream.
It's Alive!
If
you remember nothing else about this reading through this site, I hope you will take away this key
point. The starting point for
building and growing a healthy business is the recognition that your business
is actually alive. A living
thing. A form of life that has an
existence apart from you, and yet is dependent on you for sustenance.
Key factors for your healthy business
How
would you define a healthy business? Do you even think in those
terms? I mean, do you think about a business as something that can
be healthy or unhealthy?
Many owners and managers of businesses, all the way up to huge multi-nationals, do think in terms of the health of their businesses. They think in terms of life and death of the business. During my years in IBM I became used to hearing one top-level vice president talk about the “near-death experience” IBM faced, when challenged by the PC revolution, and all that came with it.
Many owners and managers of businesses, all the way up to huge multi-nationals, do think in terms of the health of their businesses. They think in terms of life and death of the business. During my years in IBM I became used to hearing one top-level vice president talk about the “near-death experience” IBM faced, when challenged by the PC revolution, and all that came with it.
All services, all the time
Do you think you can manage to suspend
disbelief for the next few minutes, to consider an idea that may seem ridiculous
at first? Can you at least
momentarily entertain the notion that every business may usefully be seen as a
service business, and even what we normally think of as products can be viewed
according to the services they provide?
This is the essence of the “all-services, all-the-time” perspective. This perspective stems directly
from the observation that people, with their talent, knowledge, skills, and
experience constitute the ultimate source of value. No matter what business you’re in, this perspective can serve you well.
Why leading a business is so hard (and what you can do about it)
The
nature of business is to make order out of chaos. "Really?", you ask. "What do you mean by that?"
I mean, the world is a pretty chaotic place. People, people, people, as far as the eye can see, each with
their unique desires, talents, idiosyncrasies. Resources, suppliers, other companies and products. Forces of nature, social forces,
politics, rules and regulations, technologies. Etc. Etc.
Life sustainment
Picking up from the outline of parallel patterns of biological and social life, let's focus on the sustainment phase of the lifecycle.
Sustainment of the living system, any living system, requires
the following abilities:
- The
ability of the system to self-regulate. We see this in the
internal forces that cause an organism to breathe on a regular basis, to
respond to hunger and thirst in the pursuit of nourishment, the ability to
slough off excess heat, or seek heat sources to stave off excessive cold.
- The
ability of the system to manage variety. The problem with variety is unexpected threats.
An animal needs to be prepared to fend off attackers, whether
predators or rivals. But an unexpected toxin may be a form of
variety that the animal is totally unprepared to address. This
becomes extremely complicated in the case of business, where threats can
come from unexpected sources, and sources that actually have intentions to
dislodge the business from valuable revenue sources.
- The
ability of the system to self-regenerate. Can the system heal itself? Can it
recover from injury (or disaster)?
- The
ability of the system to maintain relationships among elements. In the
case of the biological system, this is fairly obvious. Trees and
persons have inherited the longstanding ability to keep their limbs from
randomly falling off. Limbs that fall off clearly indicate unhealthy
conditions. For businesses this presents special problems, when the
needed relationships are with autonomous individuals and organizations.
We will address this as a key health maintenance concern.
- The
ability of the system to grow. Maybe we should say "grow within
limits". In the case of animals and plants, nature has supplied
the ability to grow to a certain size, and then imposes limits to growth
(no 300 pound mouse). In the case of organizations, we can see that
there are major changes as they grow up to and beyond certain thresholds.
But as a business leader, one of the main desires and
responsibilities is, specifically, to attain specific growth objectives. It's
enough to note for the moment that there are abilities, barriers, and
methods to the achievement of various levels of growth.
- The
ability of the system to metabolize. Here we're talking about whole input,
processing, and output systems, which we'll get into in greater detail as
we think about supply chains and supply webs, as well as operational
processes in the business world
- The
ability of the system to adapt. Again, as with growth, there are limits to
adaptivity in the plant and animal kingdoms. Genetic adaptation
occurs on a generational basis, so is fairly slow at a species level, and
limited at the individual level to what is programmed into the individual
by genetics. Except for humans, who have an almost infinite ability
to adapt to situations, both psychologically, and through technology.
For organizations, adaptability is even more unlimited, potentially.
But the actions of leaders of organizations can go a long way to
limiting or enabling the organization to adapt to changing circumstances.
For much more on this topic, take a look at Stephan Haeckel's work
on the adaptive enterprise.
- The
ability of the system to respond to stimuli. The ability to respond to external
events depends on many factors. The ability to perceive situations,
both opportunities and threats, the ability to process the implications of
such perceptions, and the ability to form intent and take actions are all
important to the responsiveness of the organization as well as the organism.
- The
ability of the system to learn. This ability is quite variable among organisms,
and even more so among the organizations human beings. This is one
of the greatest sources of excellent health, or lousy health (quite
frankly).
- The
ability of the system to form a purpose. Both biological and social life have the
ability to pursue goals. In Russell Ackoff's formulation the difference is that
biological life forms purposes within the individual, whereas social
organizations have individual purpose, as well as group purpose. We
will see that the lack of common purpose among individuals and the group
can be one of the greatest sources of ill-health in business.
- The
ability of the system to decide. Based on information from the environment,
individuals and groups both decide on courses of action. In the
business world, the concept of "buy-in" to the decisions that
affect the business as a whole can effect the organization's health for
better and for worse.
- The
ability of the system to communicate. The communication capability is one of the most
interesting points of difference between the individual and the
organization. Communication, especially among humans, provides much
of the power to shape their situations. Likewise communication
within a business, and outwardly from a business provides many critical
success factors. For this reason, our considerations of business
health will revolve around this ability, which is ever more important in a
networked, global, business environment.
- The
ability of the system to produce. The ability to produce is most important for
businesses. Yes, individual organisms, including people, do produce
according to their abilities, but the power of the organizations
(including businesses) is the collective ability to produce results that
far exceed the ability of individual persons.
- The
ability of the system to reproduce. Do individuals reproduce? Yes, and in
nature, the reproductive methods have a great deal of interesting variety,
from bacteria that reproduce by simply dividing, to various forms of
sexual reproduction. For the organization, there are even more mechanisms,
including various forms of division and combination.
Problems with
any of these sustainment mechanisms will inevitably lead to ill-health for the
organization. So feel free to link over to the discussion of healthy factors for businesses.
Or pick up on a deeper discussion of the characteristics of businesses (and other organizations) as living systems. (To be written)
Or return to the introduction.
Or return to the introduction.
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