Posted by: Kim Warren
This claim in “Trouble” shows up in jobs for architects - victims of the construction industry. Boom-and-bust reached its spectacular peak in many industries in 2008/9. Causes are simple – see cyclicality model.
Thanks to Erin Hoffer, current exec participant on the WPI system dynamics course, for this example.
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I see strong 2nd quarter profits at Boeing, just after hearing their strategy VP explain their heavy use of strategy models. Their industry model led them not to cut production after a 2009 collapse in orders, in spite of screams from analysts that they should do so to cut costs. Reminds me Airbus used a similar model way back in 96 (also in link above) to spot that a massive jump in orders was fluff, and to ...
Continue Reading → SharePosted by: Kim Warren
For construction contractors like Fluor Corp running major projects well is of strategic importance. So good to hear they saved over $1.3 in less than 3 years with intensive use of system dynamics by their project managers. The leaders of this transforming effort, Greg Lee and Ken Cooper, have been justly awarded for their success.
It was not at all trivial to get these benefits - heavy input by their project mgmt experts, detailed modeling of how projects actually work and ...
Continue Reading → SharePosted by: Kim Warren
I see Booz Allen organised a Diabetes Thought Leader Roundtable Discussion, bringing together diverse groups to discuss this major healthcare challenge. Strategy for such societal issues is especially challenging vs. corporate cases precisely because of the multiple actors and agencies involved. An integrated model of how these all interact is essential if effective, coordinated policy is to be achieved …
… which is exactly what my friends Drew Jones and Jack Homer have done with Joyce Essien of ...
Continue Reading → SharePosted by: Kim Warren
Managers may not know or care, but this really matters. I’ve argued for professional strategic management before [search the archive], but if there’s a crisis in the discipline itself, there’s little chance of ever achieving that aim. Be clear – the academic topic of strategy is in real crisis. Students don’t like the courses, recruiters don’t value what they learn, executives don’t use its tools, and academics don’t want to be part of the field. A recent academic ...
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