|
A system is set of components interconnected for
a purpose. In a system it is
the
interplay between the parts that produce the outcome, therefore the
performance of the whole results from the interactions of the parts
and cannot be predicted by analysing each part separately.
When we take a systems approach to management it means that we
view the organization as if it were a system and recognize that the
performance of any part of the organization has some effect on the
performance of the organization as a whole.
It also follows that:
-
The organization has to be managed for it to fulfil its
purpose
-
The purpose of an organization is to achieve its goals
-
The organization’s outputs serve to achieve its goals
and are the products of its processes
We can therefore not only view the organization as if
it were a system but that this system is a set of interconnected
processes by which the organization defines and achieves its goals
as illustrated below.
(Pass your mouse over the graphic
and follow the links)
If we regard the figure as a realistic portrayal of the
business cycle and we view the organization as a collection of
interconnected processes we can derive a clear context for business
processes and can conclude that
-
The mission arises out of an analysis of stakeholder
needs (there would certainly be little point in having a mission that
conflicted with these needs)
-
The mission is accomplished by the organization which
as we have stated is a system of interconnected processes therefore
the business processes exist to fulfil that mission
-
The results the stakeholders are looking for to satisfy
their needs must equate to the business outputs
-
Business outputs are generated by business processes
therefore the objectives for these processes are the business
objectives (deliverable results)
-
The business processes should therefore be designed to
produce outputs that satisfy stakeholder needs
-
Within business processes we will find all the lower
level processes because there should be no process or activity which
exists outside this envelope
-
There is therefore only one system – a system of
interconnected processes.
-
Over time stakeholder needs and expectations change
which in turn will modify the demands upon the business and its
mission, and consequently the business processes and so the cycle
continues.
|
