Understand how this system or process fits within the larger organization system? The systems perspective allows organizations to look beyond the immediate goal or desired outcome of a particular system and identify key leverage points in the overall system to achieve their objectives and purposes. Elegant designs are not only consistent and congruent with other organization systems but they also take advantage of the other systems and effectively use the leverage points to achieve the purposes of the system.

For example, I used to work for an organization that did not have any explicit financial goals. Instead, the organization focused on employee satisfaction and customer satisfaction goals. The notion was that if they focused on attracting, developing, and retaining a turned on, engaged, and empowered workforce—a workforce that is focused on creating happy customers—then the money would follow. As the president of the company used to say, “you don’t make many baskets while looking at the scoreboard.”  While money was critical to survival and was the “life blood” of the organization, it was not the only reason the organization existed. Like a basketball team, the organization focused on how the team worked together to move the ball and put the ball through the customer's “hoop” time after time. The more they put the ball through the hoop, the more satisfied the customers were, the more they requested their services (repeat business), and the more that they told their friends about the organization (referral business). 

Step one: Inputs - Identify key internal and external inputs to the system. For example, key inputs into a strategic management system might include: trends in society, the environment, etc.; assessment of the competitive environment; results (trends and comparisons) for the main aspects of the organization; sustainability issues; etc.    

Step two: Outputs - Identify key system or process outputs. For example, key outputs of a strategic management system might include: goals and objectives; performance measures and targets; time horizons; environmental scan results; action plans; etc. 

Step three: Alignment and Integration - Identify key interconnections and relationships with other processes and parts of the organization system. Then identify the potential leverage points. For example, the typical strategic management system connects with several major management systems including:

1. 1.Leadership System;
   

2. 2.Corporate Social Responsibility System;
   

3. 3.Customer and Market Knowledge System;
   

4. 4.Performance Measurement and Analysis System;
   

5. 5.Organization Performance Review Process;
   

6. 6.Workforce Development and Management System;
   

7. 7.Product and Service Design, Development, and Improvement System;
   

8. 8.Operations Design, Development, and Improvement System; and
   

9. 9.Comprehensive Enterprise Scorecard.
   

Note: Changes in the design of one system will often drive changes in the other systems.

Recommended Reading

Each area to address section in the BUG book includes a blueprint that identifies the key elements and relationships of the process as well as the linkages to other processes, key factors, and results. In addition, each section also includes integration notes to explain the linkages depicted in the blueprint.

Example Blueprint (PDF)

Example System Integration Notes (PDF)

john latham (c) 2000 - 2012  all rights reserved