Replying to LO27139 --
I enjoyed Doug Merchant's compilation including such paras as those I've
extracted below the line. Together with other authors I am working on a
book which proposes that most large companies haven't got the right
measurement code to maintain a healthy system capable of market growth.
Our book will aim to open source the code which we feel is missing. It's
based on marketeers' views of a method which some people call "Value
Exchange", ie the study of the dynamices of win-wins and win-loses between
different stakeholders regarding their relationship wants from the
company.
Now "open source" may sound like a hype word. But our idea is that if we
confine the scope of our code to what we believe is pure logic of how the
dynamic of human relatiosnhips should work at the core of any model of a
business uniquely developing value, then others who are expert in more
sectional meaurement interests -eg shareholder value - can work on the
interface between our natural human code and eg their desire to measure
numbers. There are many huge questions out there - eg the Eurpean Union
currently has a tender on how to measure intangibles - where we feel our
code humanly interfaces with -is part of the core of - whatever the
solution will be...
Currently, we authors are at the stage of compiling 3 folders of slides:
1) the big idea surrounding the piece of organisational measurement code
that needs to be open sourced and operated around if companies are to grow
sustainable relationships with their markets
2) nitty gritty on the method
3) strategic scenarios linked to the view that comes out of our
measurement code that every company should expect to have to innovate its
business model, arguably quite frequently in these times where I
personally (though not all the joint authors) believe the new economy is
only just about to flourish
If anyone would like a smaple of slides showing the current state of
development of our measurement ideology please email me at
wcbn007@easynet.co.uk
chris macrae
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Extracts from Doug Merchant omnibus
How could we define "life" for the commercial organization? Long lived
organizations must be able to generate a level of supra normal profits.
The ability of an organization to generate supra normal profits is called
Market Power. The commercial environment (competitors, customers,
employees, capital, technology, etc) continually work to erode an
organization's market power.
A long lived company has the ability to continually renew its sources of
Market Power in the various markets in which it must compete (customer,
financial, labor). This renewal capacity enables the organization to
change its future behavior based on the environmental response that is fed
back to the organization as a result of previous behavior.
Imagine an organization with a performance management system that only
acknowledged and rewarded measurable, individual accomplishments that
happened within the last 12 months. Would it surprise us to discover the
organization's employee population eventually had a dearth of team players
willing to take a long term focus?
--"chris macrae" <wcbn007@easynet.co.uk>
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