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Rethinking enterprise flexibility - Coggle Diagram
Rethinking enterprise flexibility
Enterprise system’s metacontrollability: engineering a proper use of
enterprise flexibility
Flexibility measures may be well prescribed for treating unexpected variations from outside factors which threaten the system.
Management Control Systems
The right managerial decisions
Actions to fend off perturbations effectively
Should recognize the factors that can affect the enterprise because of its system and organization.
Linking enterprise flexibility to MC actions and strategic performance measurements
MC must effectively plan, coordinate, and utilize limited resources in an effort to optimize the systems at any given time.
To increase the level flexibility in the enterprise is to increase entropy. Entropy is a measure of disorder in any system.
It's unclear how systems can maintain the balance between flexibility and stability while keeping the strategic coherence.
Metacontrollability
Is in the hands of upper management and defines the type, metrics, performance measures and benchmarks.
The process by which managers ensure that resources are obtained and used effectively and efficiently in the accomplishment of the organizations objetives.
metacontrollability
Flexibility
Toward change and adjust itself in different orders of magnitude upon requirements
Stability
In its responses so as to show its resiliency and maintaining regularity of operations even in extreme conditions
Conclusions and future work
MCS have been underutilized and underscored in therms of their true role and sttegic relevance
In securing a balance between:
Flexibility
Depend on what is termed the metacontrollability of the enterprise
Concrete actions can mirror strategic options
Stability
Their metrics should be designed in and be part of MCS
They are responsible for adequately supporting the organization's business and operations performance measurement
Responsable for providing the necessary flexibility & stability measures to the org.
Control when and how much of both are needed over a certain time frame
This dynamic behavior is tied to specific strategic options within the enterprise
Strategic role
Performance measurement
Internal company norms and regulations
Compliance/ quality assurance
To encompass all asspects that influence the relationship among
Flexibility
Performance measurements systems
Strategic options
Must provide feedback
Implications of this research on theory and practice: MCS
The enterprise is a complex, open system
A place where change and uncertainty are constant factors
One of the roles of management is to use organizational resoursces effectively at every lavel
To try and cope with ever changing conditions and circumstances
Imposed by operations requirements, constraints and its interaction with the enviroment
Establishing the right balance between flexibility and stability
Depending on the need or objective being presented upon the system, the enterprise alternates between flexibility and stability phases at all times
Some aspects of organizations must change in a controlled fashion when it is necessary to do
Therefore flexibility is not a goal in itself but a means to an end.
Strategy should influence flexibility requirements and hence the choice of operations technology
Specific needs and objectives must be linked to specific strategic options of the enterprise
Thus flexibility measurement must always be tied to performance measurement and not otherwise
Both flexibility and stability ought to be engineered in the organization and structure of the enterprise
MCS design were to allow the enterprise to transit from a stable and controlled to a more flexible mode
MCS are designed and engineered in a way that satisfies these requirements.