carmine bianchi full professor in business & public management university of palermo
DESCRIPTION
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 CED 4 System Dynamics Group [email protected] - www.ced4.it. Agenda. - PowerPoint PPT PresentationTRANSCRIPT
Carmine BianchiFull Professor in Business & Public Management
University of PalermoScientific Coordinator of CED4 System Dynamics Group
[email protected] - www.ced4.it
Enhancing Planning & Control Systems to Foster
Sustainable Growth
University of Palermo (Italy)
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
rateDepletion
rate
Strategic Resources, Performance, and Growth (1 of 2)
Liquidity
Sales Orders Backlog
Depletion rate
Perceived Delivery Delay
Accumulation rate
Cash flows
Capacity
Accumulation rate
Change in perceived delivery delay
Depletion rate
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.
External
Financial performance
Competitive performance
Social performance
InternalFuncional Areas performance
Strategic Business Areas / Government Functions Performance
Time
Short –term performance
Long–term performance
Framing Growth Sustainability (1 of 2)
INSTITUTIONAL
LEVEL
Single organization system: Financial, Competitive and Social performance
Multi-organization system: territory or industry performance
INTERINSTITUTIONAL
LEVEL
Organizational strategic
resources Accumulation
rateDepletion
rate
Shared strategic resources
Accumulation rate
Depletion rate
Framing Growth Sustainability (2 of 2)
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
ACTIVITIESACTIVITIES
PROCESSESPROCESSES
“PRODUCTS”“PRODUCTS”To the external client
To the internal client
Supporting P&C systems to foster performance improvement through a Dynamic BSC approach - Instrumental View
STRATEGIC RESURCES
STRATEGIC RESURCES
PERFORMANCE DRIVERS
PERFORMANCE DRIVERS
END RESULTS
END RESULTS
Delivery delay
Cash flows
Sales revenues
Income
Sales orders
Change in organizational
image
Capacity
Equity
Liquidity
Image
Supporting P&C systems to foster performance improvement through a Dynamic BSC approach – Subjective View
GOALS & OBJECTIVESGOALS &
OBJECTIVES
ACTIVITIES & PROCESSES
(ACTIONS)
ACTIVITIES & PROCESSES
(ACTIONS)
PERFORMANCE DRIVERS & END-
RESULTS
PERFORMANCE DRIVERS & END-
RESULTS
Supporting P&C systems to foster performance improvement through a Dynamic BSC approach – Synthesis
OBJECTIVESOBJECTIVES
PERFORMANCE DRIVERS & END-
RESULTS
PERFORMANCE DRIVERS & END-
RESULTS
STRATEGIC
RESOURCESSTRATEGIC
RESOURCES
Policy LeversACTIVITIES &
PROCESSES (Actions)
ACTIVITIES & PROCESSES
(Actions)
“PRODUCTS”“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.
