Internal Governance establishes the most effective relationship between the key governing roles in the organization. Internal Governance is designed to support an effective business system design. It defines which roles are decision-makers and which roles are problem-solvers. It establishes Councils for each Strategic Area of Focus aligned to the Strategic Plan. It establishes the relationship between business units and Councils. It introduces the Council-Committee-Task Force problem-identification and problem-solving structure.
An effective Business System Design creates an organizational value chain verses an organizational chart. The business system is comprised of Key Work Systems that produce value in a stream that delivers value to the Customer -- rather than departments that own authority. An effective business system design dramatically accelerates throughput, reducing the cost to produce value and increasing margins. Mission Simple has created the Universal Business System Design or UBSD to make it easy for organizations to introduce an effective business system design in their organizations.
Mission Simple’s principle of Organizational Alignment describes the effective alignment of an organization’s individual perspectives into a single shared perspective (Mission) and shared vision (Vision) with its actual operation -- similar to the celestial phenomenon of syzygy. Syzygy (si-zuh-gee) describes the nearly straight-line configuration of three celestial bodies (such as the sun, moon, and earth during a solar or lunar eclipse) in a gravitational system. The “Organizational Alignment Diagram” illustrates a method for effectively managing organizational variation—the new battleground for sustainability. The “sy lines” on the diagram represent the upper and lower control limits defining acceptable organizational variation. The “measure” trajectory on the diagram represents the mean of the organizations variation. When organizational variation is controlled, this line is also the straightest line to achieving the vision.
The Mission Simple Strategic Plan creation responsibility belongs to the Executive Stakeholders and Leadership. The purpose of the Strategic Plan is to establish a set of “steel rails” that extend from the Mission/Vision/Values to the Tactical Plan. The steel rails keep the organization’s operation solidly aligned to its Mission,Vision, and Values, narrowing organizational variation, and eliminating waste and cost. The Strategic Plan’s key components are:
The Mission Simple Tactical Plan is created by Leadership and the Leadership Team. The purpose of the Tactical Plan is to transform the Strategic Plan into a specific set of tactics that instruct the Work System on the work that needs to be done in order to meet the Strategic Plan’s Key Performance Indicators. The Tactical Plan extends the “steel rails” to keep the resources and actions of the Work System solidly aligned to the organization’s Mission,Vision, and Values, narrowing organizational variation, and eliminating waste and cost.The Tactical Plan’s key components are:
A qualitative organization is subjective and personal, accepts ambiguity, exhibits wide organizational variation, struggles with high costs and low margins, avoids conflict and avoids disciplined decision-making.
A quantitative organization is objective and universal, promotes clarity, exhibits narrow organizational variation, enjoys low cost and high margins, embraces healthy conflict, and encourages disciplined decision-making.
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