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 equation language
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 equation language
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
(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)
The equation in normal equation language
The equation In normal language…continued
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
(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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10
Sorry…we’re F-ed On top of the food chain
The equation in normal equation language
The equation In normal language…continued
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
(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)
The equation in normal equation language
The equation In normal language…continued
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
(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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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
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