Holistic Management: Managing What Matters for Company by William F. Christopher

By William F. Christopher

This ebook offers lately constructed wisdom components which could considerably increase the administration and the functionality of commercial company: process technological know-how and Cybernetics and Key functionality parts. incorporated during this ebook are complicated (and evolving) equipment and applied sciences for making plans and budgeting, developing and retaining shoppers, caliber and productiveness, innovation, bettering association strength, sustainability within the company's social and ecological environments, and profitability-all built-in with this new attainable structures version and approach pondering.

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Additional info for Holistic Management: Managing What Matters for Company Success (Wiley Series in Systems Engineering and Management)

Example text

VSM and system thinking give us an order of magnitude simplification of the complexities of management. At a higher level of understanding, we manage more effectively. Performance improves. CYBERNETICS Norbert Wiener gave the name “cybernetics” to the science of communication and control in systems. His 1948 book, Cybernetics: Or Control and Communications in Animal and the Machine,” describes how information and communications control systems. ” Whatever the system, a deterministic system like a machine, or a complex system like an animal or a human being or a complex, probabilistic system like a corporation, information controls how the system works and what the system does.

5. The cybernetics concept of black boxes helps management improve organization performance through indirect management that increases requisite variety where decisions are made. In a corporation, the next level viable systems, its operating units, are black boxes to corporate management. Corporate management does know what goes into the black boxes—resources (people and capital), materials inputs, purpose, and information. Corporate management also knows what comes out of the black boxes—outputs defined by performance measures.

When it comes to managing affairs, we characteristically try to deal with the dismantled system—piece by piece—rather than to redesign the totality so that it actually works. The VSM with its system science and cybernetics gives us a way to understand the totality of our company and how it works, and gives us better ways to structure and manage the system that is our company. With the VSM and system science we see the company with new eyes, and manage in new ways. 1 illustrates a simplified system model of a company.

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