The Goal (making money now and in future)

By Tu Dinh Nguyen

Let look at CHANGES in a different perspective.

Changes can be done by starting from scratch for re-engineering. Improvement initiatives come from many shapes sizes, it depends on which company you are working for. Before changes can occur, enterprise must:

Step 1. Understand the change driver i.e. WHY CHANGE?

Step 2. Determine Customers needs i.e. WHAT TO CHANGE?

Step 3. Determine strategies, goals, objective i.e. WHAT TO CHANGE TO and HOW TO CAUSE THE CHANGE?

Step 4. Identify initial constraints.
- Time constraints
- Resource constraints
- Policy constraints
- Others' constraints

Step 5. Your call...

Step 1,2, 3, 4 can be done by using The Thinking Process (TP). This is one of the reason why I think TP is a powerful tool.

Customers, stockholder, CEOs, and employees... would be interested in step 4 to see WHAT IS THE COMPANY GOAL?

So what is strategy?

(from an paper I read)

Too many enterprises have multiple strategic initiatives underway without any form of unifying vision or driving strategy. One division of the enterprise might be marching toward the "Enterprise 2000" while another introduces customer-driven quality. The finance function of an enterprise might be reengineering while manufacturing moves toward lean manufacturing. Human resources may want to create a "Learning Organization" while MIS focus on data-centered applications. Many of these projects have overlapping agendas and compete for the SAME RESOURCES. If all of these initiatives were implemented, NO ONE in the enterprise would be avialable to SERVE CUSTOMERS

A strategy should not be confused with structure imperative. Reducing costs to catch up with industry requirements is not a strategy. Neither are management mantras -- although they can be methods of satisfying a strategically-driven goal. Strategies can be thought of as a set of coordinated actions taken by the enterprise which typically seek to differentiate it from the competition and which help achieve a goal. Goals should be set so that the realization of the goal creates some form of value for Customers, stockholder, CEOs, employees, survival...

So what is the common denomenator for value for Customers, stockholder, CEOs, employees, and survival...?

THE ANSWER IS "MAKE MORE MONEY NOW AND IN FUTURE. PERIOD."

In this sense, management concepts such as reengineering are not strategies, but they can be important tools in pursuit of strategies.

How does enterprise know about making profit?
Answer: making money

How does enterprise know about making money?
Answer: Increase T, simultaneously Reduce I, and OE.

How does enterprise know about Increase T, simultaneously Reduce I, and OE?
Answer: Increase T, simultaneously Reduce I, and OE helps customers business objectives.

How does enterprise know about helping customers business objectives?
Answer: Focus on enterprise constraints.

That is why setting a correct Goal (making money now and in future) is important.

Tu Dinh Nguyen
Jonah