World of Requirements – part III
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STABILITY
EFFECTIVITY
USEFULNESS
DYNAMICS
USEFULNESS
Lecture Introduction
theory of vitality
CSVPKP KA
KR
CR
CH
C$ R$
business model canvas
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  Achieving equilibrium
  Linear Management
  Building up stability
  Building up dynamics
  Learning Organization
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  Building up Usefulness and Effectivity leads
from Crisis to Equilibrium
  Linear/Crisis management
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Resources Processes
Services
Products
Crisis
Equilibrium
Stability
W > C
W = C
W < C
WANTCAN DO
4Achieving equilibrium
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needs defineproducts
products defineprocesses
processes defineresources
Resources Processes
Services/
Products
Subjects
Needs
inputs procedures outputs demands
Design
Realization
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Subjects
Needs
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Processes
Services
Products
Clients
Customers
Money
Resources
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needs satisfaction
evaluation
renewal
consumption delivery
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Stability is ability to safely find new equilibrium
anytime circumstances change!
It is about sustaining company at worst in
equilibrium (regarding semaphore) state under
any circumstances
Be stable is to be able to adapt and react to
changes
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  To learn from own results (both successes
and failures) – a hard requirement
  To make people accept what is going on – a
soft requirement
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stability = feedback + acceptance
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Goals
Ways
Results
Feedback
leadership
management
monitoring
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• measures outcomes of activities
• may be automated or semi-
automated
• reports deviations from expected
values
Monitoring
system
• deduce implications
• key role of leaders and management
• positive deviation leads to
confirmation
• negative deviation leads to change
Correction
system
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Goals
Ways
Results
Feedback
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Cyclic management works if the whole System of
Goals, Ways and Feedbacks (SGWF) is understood
and supported by people
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Goals
Ways
Results
Feedback
system of goals, ways and feedbacks
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The more people understood it the better it
works!
• no SGWF exists at all
• better avoid this style!
Intuitive or
chaotic led
company
• SGWF is understood only by leaders and key
managers
• useful and often only possible style in crisis
management, i.e. building usefulness and effectivity
Company
driven by
people
• SGWF is understood by majority of people in
company
• advantageous when building stability and dynamics
Company
driven by ideas
(or vision)
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Dynamics is about initiative takeover!
Be dynamic means to proactively predict
and influence what is going to happen in
both inner and outer environment
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  To systematically predict and influence
◦  Enrich cyclic management by proactive features
◦  Hard requirement
  To make people spontaneously active
◦  Soft requirement
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dynamics = initiative + feedforward
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Goals
Ways
Results
Feedback
Prognosis
Influence
Feedforward
stability
reactivecyclicmanagement
dynamics
proactivecyclicmanagement
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Well established feedbacks and feedforwards (feeds)
involves themselves to their scope
• i.e. they have to treat themselves as a subject to be changed and
adapted in the same way as standard business goals and ways are
These “second generation feeds” constitute basics for
what is called learning organization
• i.e. organization which is able to teach itself
Therefore development of feeds is important to be
• aligned with company culture management and
• accompanied by spontaneous activity of people
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People are crucial to dynamics
• especially their creative work and ideas
Rapidity and flexibility are other crucial aspects
• what is highly novel and innovative today, may be a standard feature month later
The more people think about their work the bigger is the chance
that company will have right ideas at right place and time at the
disposal!
Get people involved in decision making!
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Delegative
Participative
Consultative
Argumentative
Authoritative
manager role worker role
performersubmitter
seller buyer
consulting consultant
colleaguecolleague
customer supplier
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“Delegation (or deputation) is the assignment of authority
and responsibility to another person to carry out specific
activities...
...however the person who delegated the work remain
accountable for the outcome of the delegated work.”
Accountable vs. Responsible
• to be held accountable
• to take responsibility
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http://en.wikipedia.org/wiki/Delegation
http://www.slideshare.net/jurgenappelo/agile-management-authority-delegation/
http://www.noop.nl/2009/04/accountable-or-responsible.html
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• stabilizationCultivation
• needs invocationInducement
• needs forecasting and
prognosisAssessing
• demand analysisAdapting
• supply analysisImitation
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Company that facilitates the learning of its
employees and continuously transform itself...
...to remain competitive in the turbulent and
rapidly changing business environment!
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by Peter Senge
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system thinking
personal mastery
mental models
shared vision
team learning
Organizations are a system of interrelated parts
(departments, processes, personnel, ...)
The only partial changes in the organization may
result into undesirable outcomes in other parts
To succeed with any change or development the
organization has to be contemplated as such a
system!
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in the context of Learning Organization
http://en.wikipedia.org/wiki/Learning_organization
An individual holds great importance in Learning
Organization
The commitment to personal development of each
worker is of the same relevancy as the commitment to
work for the organization
Employees need to grow and work on their goals!
• employers has to set up the system to enable it
• employees has to voluntarily commit to it
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http://en.wikipedia.org/wiki/Learning_organization
Mental models are the assumptions held by
individuals and organizations
Comprise norms, values and other memories
that may preserve status quo within organization
Mental Model ~ Company Culture
Company culture has to be carefully managed
and developed!
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http://en.wikipedia.org/wiki/Learning_organization
Clear and shared vision provides staff with focus and
energy for learning
• i.e. it is important source of orientation and motivation for
people
Corporate visions build on individuals goals at every
organizational level tend to be most successful
Continuous alignment of individual goals with
corporate goals is essential to learning organization!
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http://en.wikipedia.org/wiki/Learning_organization
The accumulation of individual learning constitutes team
learning
Team learning requires individuals to engage in dialogue and
discussion, based on
• open communication
• shared meaning
• shared understanding
Learning organizations have structures that facilitate team
learning with features such as boundary crossing and
openness
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The Fifth Discipline
http://en.wikipedia.org/wiki/Learning_organization
Personal mastery are counterproductive
without shared vision
• compare with chaotic or intuitive led company
Rigid hierarchical organizational structure
may hinder achieving of shared vision
• learning organizations tend to have flat and
decentralized or network organizational structure
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http://en.wikipedia.org/wiki/Learning_organization
System thinking is essential also for all MbC
Personal Mastery is key attitude of employees to build
stability and dynamics of organization
Mental Models and Shared Vision is about acceptance
essential for stability
Both individual and team learning contributes to initiative
that is essential for dynamics
Learning Organization is to be on the agenda once the
equilibrium was reached
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  Achieving Equilibrium
◦  linear management
  Stability
◦  feedback mechanisms & acceptance by people
◦  reactive cyclic management
  Dynamics
◦  feedforward mechanisms & initiative of people
◦  proactive cyclic management
  Learning organization
PV215 - 5 29Lecture Summary