Ipi’s formula of corporate natural selection

An introduction to IPI’s formula

Corporate natural selection Arthur Kelderman

© 2014 Arthur Kelderman/@IPI

An introduction to IPI’s formula

Corporate natural selection Arthur Kelderman

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Content

Page 4 IPI what?

Page 5 Introduction

Page 6 IPI beliefs

Page 8 IPI’s law of corporate natural selection

Page 13 Workshops @IPI

Page 14 Train.Consult.Support

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The Initiative for Process Improvement (.IPI) is an initiative based on passion…we have a passion for improvement, a passion for systems theory, a passion for practical no-nonsense application of systems theory, and a passion for sharing our take on personal and business improvement.

Passion helped us to create the following tools and events:

+IPI Workshops

+IPI (Ab)usage book©

+IPI Sparks©

+IPI Hungry for Knowledge events

+IPI Speak Up events

What?

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Natural selection Which general factors put a company in danger of losing the battle in the arena of natural selection? And which factors enable a company to slide comfortably through time and change; evolving over time, and becoming a better version of itself with a tailor made fit to its operational landscape? Out of a systemic view of the world the IPI beliefs were born (page 6 and 7), and out of the IPI beliefs the IPI formulae evolved. The formula for corporate natural de-selection shows factors which contribute, as the name reveals, to extinction. The formula for corporate survival shows factors which contribute to evolution and strengthening of the position of the corporation in its environment. The idea of the formula is not to provide a basis for doing math calculations, but rather a intuitive basis for reasoning on the foundation of practical systems theory.

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Introduction

1. “In order to design, improve, operate, maintain and manage a system one must understand “what” a system is 2. “In order to design, improve, operate, maintain and manage a optimal running system one must understand the physics that govern the behavior of systems” 3. “In order for a system to perform to its peak ability, variability must be actively and deliberately managed” 4 “In order for a system to reach intended and long term results a system must have a purpose which leads to focus of action” 5 “In order for a system to function in an optimal way system goals must be prioritized, and system parts must be in line with each other and the overall systems goal”

Beliefs…first 5

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6. “In order for a system to be under active and deliberate control a system must be equipped with a systems control function” 7. “In order for a system to maintain a stable mode of operation a system must be equipped with a maintenance function” 8. “In order for a system to evolve a system must be equipped with functions which allows for pro-active and responsive (self-) reflection-, analysis-, and controlled systems change” 9. “In order for a system to be sustained the system must be equipped with a circulation and conservation function”

Beliefs …continued

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formula of corporate natural selection

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Sorry…we’re F-ed

Which factors make a company vulnerable for the laws of natural selection, and puts it on the list of endangered species? IPI has worked out a formula which helps you to look at it in a systemic and systematic way…

The equation in normal equation language

The equation In normal language

(Factor of anti-systemicness) * (Factor of flow illiteracy) * (Factor of focus and alignment absenteeism) * (Factor of system control failure) * (Factor of system circulation and conservation malfunction/vicious cycle) * (Factor of non-adaptation)

The equation explained

Factor of anti-systemicness (So * Slo * Ase)

So: level of self(ish)-optimization of parts/departments that make up the process

Slo: sum of local optimum

Ase: Level of asymmetrical evolution

(so x sid) x (il x ii x v) x (guc x gu x gua x gi x mua) x (pmi x scf) x (cs x ci x li x cd) x (pr x Δ x ar x rc)

Which factors put a company in a favorable position in the arena of natural selection, and reserves a comfortable seat at the top of the food chain? IPI has worked out a formula which helps you to look at it in a systemic and systematic way…


The equation In normal language

(Factor of systemicness) * (Factor of flow) * (Factor of focus and alignment) * (Factor of system control) * (Factor of system circulation and conservation/virtuous cycle) * (Factor of adaptation)

The equation explained

Factor of systemicness (La * Sgo * Se)

La: Level of alignment of parts/departments that make up the process

Sgo: sum of global optimum

Se: Level of symmetrical evolution

On top of the food chain

(La * Sgo * Se) * (Qo * Rg * Vc) * (Gcl * Gaw * Ga * Gco * Ma) * (Pmc * Scee) * (Cse * Cl * Ic * Co) * (Pra * Δ

r * R * Cc)

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The equation In normal language…continued

Factor of flow illiteracy (Qso * Ug * V)

Qso: Factor of queuing sub-optimization

Ug: Factor of unresponsive gating to the process/system

V: Factor of variability

Factor of focus and alignment absenteeism (Guc * Guw * Gua * Gi * Mua)

Guc: Factor of goal unclearness

Guw: Factor of goal unawareness

Gua: Factor of un-alignment to system goal

Gi: Factor of goal inconsistency

Mua: Factor of market un-alignment

Factor of system control failure (Pmi * Scf)

Pmi: Factor of process model inconsistency

Scf: Factor of system control failure




Factor of flow (Qo * Rg * Vc)

Qo: Factor of queuing optimization

Rg: Factor of responsive gating to the process/system

Vc: Factor of variability control

Factor of focus and alignment (Gcl * Gaw * Ga * Gco * Ma)

Gcl: Factor of goal clarity

Gaw: Factor of goal awareness

Ga: Factor of system alignment to system goal

Gco: Factor of goal consistency

Ma: Factor of market alignment

Factor of system control (Pmc * Scee)

Pmc: Factor of process model consistency

Scee: Factor of system control efficiency and effectiveness


r * R * Cc)

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Sorry…we’re F-ed On top of the food chain



Factor of system circulation and conservation malfunction/vicious cycle (Cs * Ci * Li * Cd)

Cf: Factor of circulation failure

Ci: Factor of conservation and growth of inventory

Li: Factor of loss of inventory

Cd: Cycle deficit

Factor of non-adaptation (Pr * Δ * Ar * Rc)

Pr: Factor of un-pro-activeness (general inactiveness related to planning “for” and “acting” on probable future events

Δ: Factor of unresponsiveness to urgent threats (let’s see what happens)

Ar: Factor of responsibility avoidance (it’s not my responsibility to (re)act)

Rc: Factor of resisting chance to adapt to a changing environment




Factor of system circulation and conservation/virtuous cycle (Cse * Cl * Ic * Co)

Cse: Factor of circulation speed and efficiency

Cl: Factor of conservation and growth of liquidity

Ic: Factor of inventory control

Co: Cycle overflow

Factor of adaptation (Pra * Δr * R * Cc)

Pra: Factor of pro-activeness (general activeness related to planning “for” and “acting” on probable future events

Δr: Factor of responsiveness to urgent threats

R: Factor of responsibility (it’s my responsibility to (re)act)

Cc: Factor of controlled chance to adapt to a changing environment


r * R * Cc)

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Sorry…we’re F-ed On top of the food chain

IPI’s formula of corporate natural de-selection

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Details and training on the formula?

Read on…

.Workshops

+System & Process Basics

+Flow

+Variability & Variability reduction

+Control

+Evolution & Culture to learn

+System design

+System circulation & conservation

+IPI’s formula

System &

Pro

cess

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Face to face .IPI is active in: Vietnam Ho Chi Minh City, Vietnam Thailand Bangkok, Thailand Cambodia Phnom Penh, Cambodia Online .IPI is active on: World.Wide.Web Website: www.vnprojects.com/ipi (under construction) Email: [email protected] Skype: ipi.contact

Train.Consult.Support

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End Start

Text & design: Arthur Kelderman/IPI 2014

Ipi’s formula of corporate natural selection

Leadership & Management

Transcript of Ipi’s formula of corporate natural selection