Generic architecture = rock-solid theory

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Strategy Dynamics gives confidence because its standard architectures (systems of resources and performance) are utterly reliable. It is no surprise that we find the same factors linked in the same way in any sector … every retailer serves consumers with products through stores operated by staff. But rename or replace these items and you have an airline, a school or hospital. Same applies across service companies of many types, manufacturing firms, banking …

Of course important details must be got right and adapted ...

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Preparing for one-off shocks

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Following my Weather hits utilities post, I just reviewed the EU-funded CRISADMIN project assessing one-off impacts on city infrastructure. This goes beyond a single utility to look at inter-sector effects, including the consequences of citizens’ behavioural responses … a flood or bomb takes out some metro lines, so people flood the cell-phone network and take to the roads, for example.

This is a really neat example of just how valuable simple, aggregated models can be. Most other such efforts ...

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Business process and dynamics

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BP deals with processes for doing activities, which are done *to* things [people, equipment, orders, products, cash]. SD deals with the things themselves, which flow into, out of, and between states [the stocks]. Almost all of BP therefore describes the processes that are undertaken to influence those flows – hiring people, developing products,processing orders, collecting cash – and efficient processes make that happen fast [or slow if it’s a rate we want to limit]. Some simple examples of resource structures to which BP ...

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Strategy Dynamics Briefing 87: The end – or the beginning?

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We hope you have enjoyed this series of briefings on Strategy Dynamics and found the ideas useful. The story we have told matches the structure of the textbook Strategic Management Dynamics (Wiley, 2008), and the shorter e-book Strategy Dynamics Essentials.

  1. We should be concerned with how performance improves over time, not in static ratio comparisons (Chapter 1 and Briefings 1-6).
  2. Resources drive performance, so we need to understand and specify these items (Chapter 2 and Briefings 7-10).
  3. Resources accumulate and deplete over ...
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Strategy Dynamics Briefing 86: Multiple capabilities and organizational learning

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We have shown throughout this briefing series how performance arises from the complementary development of resources, leading to outcomes that reflect the power of the entire system, rather than the sum of individual elements (first outlined in Briefings 16-22). Adding capabilities to this understanding offers a still more powerful structure.

Any organization will possess capabilities linked to each of its main resources. It is therefore to be expected that learning on several of these would add still further to performance. ...

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