There are four major areas in business management,
organizational development, stakeholder value management , profit management,
and operations management, and each of these major areas of business management
affects the other in an integrated
manner.
Organizational development affects how stakeholder value
management, profit management, and operations management incrementally and
radically improve to adapt to constant internal and external change.
Stakeholder value management affects how value is engineered
for different internal and external stakeholders, before, during, and after
every step, which affects profit management, operations management, and
organizational development management.
Profit management affects operations, organizational
development, and stakeholder value management, and is constantly seeking to
decrease costs and increase revenues to increase profits, guided by
quantitative and qualitative measurement and analysis.
Operations management affects how organizational resources
are utilized to produce and deliver products and services to external and
internal stakeholders.
Organizational development begins with organizational
learning, which frames, researches, and analyzes the internal and external
changes the organization needs to adapt to in order to survive and grow.
Organizational learning is accomplished at an individual
level, a group level, at the organizational level, and at the
interorganizational level, which leverages the knowledge, skills, experiences
and ideas of these different levels to brainstorm new ideas to adapt to
internal and external changes to survive and grow.
Because organizations have limited resources, the creative
ideas generated from the creativity management process of organizational
learning must be weighed using structured idea management to fund the idea that
will create the greatest value for internal and external stakeholders, which
results in incremental and radical innovations.
These innovations are designed, developed, evaluated,
innovated, and integrated into the business and technology models, and into the
organizational design, effectively creating incremental and radical organizational
changes, inside and outside the organization, rolled out using change
management principles.
The incremental and radical changes to the organization and
its products and services requires the internal stakeholders of the
organization to be trained or developed, so that they can keep up with the new
changes, so that these internal stakeholders can relate these changes to
external stakeholders.
Employing the organizational development techniques of
learning, creativity, structured idea management, and innovation, the human
resources, marketing, sales, customer service, public relations, investor
relations, and regulatory affairs departments identify and communicate the best
logical features and emotional benefits of the organization to internal and external
stakeholders, while minimizing any weaknesses and threats, to engineer value
for stakeholders before, during, and after every step.
Consequently, the organization is perceived as more valuable
than risky to stakeholders who then invest in the organization and its products
and services. The resulting revenues, expenses, profits, assets, liabilities,
and equity are tracked by the accounting and taxation departments, and reported
to stakeholders, including the finance department, who helps the organization
value and model future revenues, expenses, profits, assets, liabilities, and
equity under different scenarios, weighing cost and benefits.
Based on this financial cost-benefit analysis, and using the
organizational development techniques of learning, creativity, structured idea
management, and innovation, the
organizational activities and people that help the organization adapt to change
better, faster, and cheaper are kept and continue to be funded.
The organizational activities and people that do not help
the organization adapt to change better, faster, and cheaper are modified and
funded, or discarded and not funded, respectively.
In addition, organizational activities and people that are
likely to help the organization adapt to change better, faster, and cheaper in
the future are developed or acquired, using the funds that previously funded
the newly discarded organizational activities and people.
Employing the organizational development techniques of
learning, creativity, structured idea management, and innovation, the
organization then resumes production and delivery of its improved line of
products and services for internal and external shareholders, and the
organizational development process starts a new cycle.
Heraclitus the Greek is one of the first people credited
with observing the constant nature of change, later measured and proven by Sir
Isaac Newton and Albert Einstein. Organizational development helps the other three major areas of business
management adapt to perpetual change, in a manner that allows individuals,
groups, organizations, and interorganizations to survive and grow.
