It’s important to understand the coherent business logic of the entire enterprise, mostly not at the level of part of the organization.
Running a business is fundamentally about how to apply logic to solve problems, implement ideas, and guild teams to achieve high performance coherently.
The nonlinear business logic comes through different characteristics such as hybrid structures, hyper diversity, unpredictability, and increased flux, as the clue to interweave a hyper connected and interdependent digital organization.
It’s important to clarify the “business logic” that links the “enterprise genotype” (enterprise assets such as information ) and “enterprise phenotype” (business performance): Apart from people, information is one of the company’s biggest assets. Many companies turn their untapped data into a real asset to support better business decisions, streamline business logic, and produce premium outcomes. The various activities are needed to manage performance including making strategic and operational plans, setting metrics, making day-to-day information based decisions, running numbers in context, leveraging data to tell stories and getting related results to business goals, all of which requires information to improve organizational effectiveness and efficiency.
A well-designed performance management system is a necessary foundation for continuous improvement. All company’s performance is directly related to the decisions people make every day. Information weaves the logic for business performance management. Data may behave more like inventory, and it surely has a limited shelf life in many cases. In that case, to be an asset from an accounting point of view, information needs to have a “net realizable value.” When you can develop data into sense-making tools to assist and guide business operations, marketing, and planning, your data becomes strategic, information logic thresholds business management coherently.
It’s important to understand the interrelationships and interactions of the different parts of the whole, for clarifying the logic of “emergence”: Business environment is dynamic, it is important for the organization to identify emergent business properties, how information is associated with the valued tangibles of products, processes, and resources, make sure the system-of-interest is defined to establish the boundary, understanding the interactive logic of business parts and whole.
To create business synergy, start with a set of emergent properties and then, model the system that does or could produce them. So there is retrospective logic to light up the emerging properties (trends, opportunities) to create the business synergy. Take logical steps for implementing business goals from top-level executives to the front-line workers, across functional areas and geographical regions, and ensure the business as a whole is superior to the sum of the pieces.
It’s important to understand the logic of the value chain, value stream, and value proposition of the business: The very goal of running a good business is to create value for stakeholders. If there are no values “glue” to keep everyone motivated by the collective endeavor, then business is stifled. The whole value chain needs to be aligned, engaged, and contributing to enhance business logic. So a variety of stakeholders get their fair share, define the ideal business model, distribution, products & services, and business brand.
Business management needs to understand business value chain/stream from broader lenses. If everyone is thinking and behaving in the same way through their narrow lens, then that same stickiness will drain the organization’s energy. With a clear business value stream view and clarified value chain logic, all parties should agree on the common value proposition and take the alternative value creation approach to accelerate performance. The value streams break into multiple stages; each stage decomposes into routing maps to processes to deliver quality products/services and enable multifaceted value creation.
It’s important to understand the coherent business logic of the entire enterprise, mostly not at the level of part of the organization. Today, organizations are dynamic and ever-evolving, business logic is nonlinear, there is a shift from what an organization is to what it does to its context; also a shift from seeing a business system as a set of interconnected components to seeing a system as a set of interwoven threads for improving organizational coherence and performance.
