Small Firms Cured and Reborn in Ways Both Refreshing and Agonising.

 Peter L. Bond

Learning Futures ConsultingWirral, UK.

The paper is about redefining or confirming an enterprise’s core purpose using CATWOE, part of soft system methodology and the benefits it can bring over methods like Strategic Intent (or Mission Statements).

To introduce CATWOE and illustrate its use

OTHERS IDEAS FOUND IN THE PAPER

Enterprises as solution concept generators, solution makers, solution supporters

The idea of Foundational Knowledgeand its relation to core-competence

Aims of the presentation

Part of the soft systems method of organisational analysis and improvementused to generate a concise statement of system/organisational purpose called the root definition.

C is for CUSTOMER—principal beneficiary and why the system exists

A is for ACTORS—those with knowledge and skill underpinning service to C

T is for TRANSFORMATION —the effect/benefit felt by the customer

Places emphasis on the functionality of the system from the customer POV

W is for WORLDVIEW or values of the actors involved (manager dominant)

O is for OWNERSHIP—the person or entity able to stop the system

E is for ENVIRONMENT—the context (e.g. physical, regulatory) of operation

About CATWOE

enterpriseCustomer/problem

owner

Mechanism for creating/

conserving relationships isCONVERSATION

about a solution—

an improvement

Receiving/gaining/acceptinga problem

Transferring a solution

Collaborative Problem Solving is the Essence of Business

time

Evolving enterprise

Drifting out of ‘synch’ with the marketcommon and well recognised problem

Breakdown in conversations?

Solution often begins with reminding the business of what it is supposed to do.

Scenario 1 Scenario 2

Evolving market

Application of CATWOE

NEW STARTS

Illustration of CATWOE in action…1

ABC Ltd is a company based in Merseyside (E) owned by Mr Y and provides an excellent service (W), at a profit (W), to manufacturers (C) requiring the application of performance enhancing surface coatings (T) to metallic substrates (components) used in high value added machinery and systems (for example aircraft parts). The core purpose is, therefore, not to make or manufacture, but to increase the performance of components through the application of a surface coating.

ABC described itself as a manufacturer, involved in metal coating.

Illustration of CATWOE in action…2

This company considered itself a hat manufacturer, but they also imported hats and supplied to retailers through a wholesaling activity. They mostly made hats to order, but they also make hats for stock. Hats fell into three categories: uniform hats, leisure hats, technical hats (H&S) related. They also designed hats.

A company owned by its MD (O) and embedded in Merseyside (E) that makes a profit (W) and created employment (W) by designing, making, and otherwise supplying head wear as a functional element of a uniform set of clothes so satisfying a user’s desire or need for dress uniformity (C) as an integral part of establishing or building an identity (T). This definition excludes hats designed for specific ‘technical’ functions because they require different actors to design and make them, and may be marketed to customers with special needs. CATWOE analysis suggests this aspect of the business should be pursued as a distinct but complementary business.

Business core purpose should be expressed captured in a single sentence,