Transcript Diapositiva 1

Enhancing Planning &
Control Systems to Foster
Sustainable Growth
University of Palermo (Italy)
Carmine Bianchi
Full Professor in Business & Public Management
University of Palermo
Scientific Coordinator of CED4 System Dynamics Group
[email protected] - www.ced4.it
Agenda
 Organizational growth, Strategy and Performance
 Measuring organizational growth
 Strategic resources, Performance and Growth
 Fostering Growth Sustainability
 Managing Organizational Growth: a DBSC approach
 Conclusions
Organizational Growth, Strategy and
Performance
 Growth = Aptitude of an organization to attain a set of results
leading to its long-term success and continuity.
 Strategy = Constitution, development/improvement or change
of a set ‘structures’ (strategic resources) to affect the
relationships of an institution with its environment, i.e. to impact
on organizational performance.
 Performance = the result of decisions on the constitution and
deployment of strategic resources.
Measuring Organizational Growth
 Quantitative vs. Qualitative (Growth vs. Development)
 Structural vs. Operational
Organizational
strategic resources
Accumulation
rate
Depletion
rate
Strategic Resources, Performance,
and Growth (1 of 2)
Capacity
Depletion
rate
Accumulation
rate
Perceived Delivery
Delay
Liquidity
Change in perceived
delivery delay
Sales Orders
Backlog
Accumulation
rate
Depletion
rate
Cash flows
Strategic Resources, Performance,
and Growth (2 of 2)
Tipping point in managing strategic resources to
affect organizational performance  Capability
of policy makers to:
a)identify those strategic resources which most determine the
success in the environment where an organization or different
organizations operate;
b)insure that the endowment of such resources is satisfactory
over time;
c)keep a proper balance between the different relevant strategic
resources.
Framing Growth Sustainability (1 of 2)
External
Social
performance
Competitive
performance
Financial
performance
Short –term
performance
Long–term
performance
Time
Funcional Areas
performance
Internal
Strategic Business
Areas / Government
Functions Performance
Framing Growth Sustainability (2 of 2)
Multi-organization system:
territory or industry
performance
Shared strategic
resources
Accumulation
rate
Depletion
rate
Organizational
strategic resources
Accumulation
rate
Single organization system:
Financial, Competitive and
Social performance
Depletion
rate
Managing Organizational Growth: a
Dynamic BSC approach
 Are conventional P&C systems able to properly
support organizational policy and decision makers to
manage growth?
 Is it possible to outline a general conceptual framework
to assess growth sustainability and manage
performance in any kind of organization?
Supporting P&C systems to foster
performance improvement through a
Dynamic BSC approach
An objective view
An instrumental view
A subjective view
Supporting P&C systems to foster
performance improvement through a
Dynamic BSC approach - Objective View
ACTIVITIES
PROCESSES
“PRODUCTS”
To the external client
To the internal client
Supporting P&C systems to foster
performance improvement through a
Dynamic BSC approach - Instrumental View
Image
Capacity
STRATEGIC
RESURCES
Equity
Liquidity
PERFORMANCE
DRIVERS
Delivery delay
Change in
organizational
image
Sales revenues
Sales orders
Cash flows
Income
END
RESULTS
Supporting P&C systems to foster
performance improvement through a
Dynamic BSC approach – Subjective View
GOALS &
OBJECTIVES
ACTIVITIES &
PROCESSES
(ACTIONS)
PERFORMANCE
DRIVERS & ENDRESULTS
Supporting P&C systems to foster
performance improvement through a
Dynamic BSC approach – Synthesis
ACTIVITIES &
PROCESSES
(Actions)
Policy Levers
STRATEGIC
RESOURCES
OBJECTIVES
PERFORMANCE
DRIVERS & ENDRESULTS
“PRODUCTS”
Conclusions
 Organizational Growth management/measurement is not a
simple task: organizations today operate in dynamic complex
systems
 The design of proper P&C systems can greatly contribute to
support and empower decision makers in this role
 Traditional P&C systems are inadequate: they lack of focus on
strategic complex issues (e.g. intangibles, inertial phenomena,
non-linearities)
 Dynamic BSCs can greatly support decision makers in this task.
Thanks!
[email protected]
www.ced4.it