The fundamental assertion of business engineering is that a
business entity (or any other organization, for that matter) can and must be
engineered as a production factory. However, a business entity is more akin to
an aircraft. More precisely, a fighter
aircraft (as the marketplace is essentially a war zone).
Indeed, there are astounding similarities between an
aircraft and a business entity. An aircraft is made of physical objects – engine, wings,
landing gear, radar, etc. Business is made of corporate
objects – products, brands, assets, etc. In order for an aircraft to
operate at its maximum performance, each component must do the same and all
components must fit together perfectly. For a business to operate at its
maximum performance, each corporate object must do the same and all objects
must fit together perfectly (in other words, exhibit a perfect synergy).
Aircraft components are involved in a number of physical processes.
Likewise, corporate objects are involved in a number of corporate processes. For an aircraft
to operate at its maximum performance, all of its physical processes must do
the same. For an organization to operate at its maximum performance, all of its
corporate processes must do the same.
Aircraft undertakes flights
(or sorties - for a military one). A business undertakes corporate projects. An
aircraft can not operate without satisfying the requirements of its stakeholders –
airport officials, government regulators, fuel suppliers, etc. Likewise,
business has to satisfy the needs and requirements of its stakeholders –
suppliers, partners, government entities, etc.
Military aircraft has adversaries
– enemy aircraft, AA guns, surface-to-air missiles, etc. Business has competitors that
can be equally deadly.
Aircraft is flown by pilots, navigators and other crew
members and serviced on the ground by technicians. Business is managed by
executives, middle managers and supervisors and ‘serviced’ by professionals
(specialists).
To maximize aircraft performance at all times, pilots and
technicians must measure performance of each key aircraft component and
process, of an aircraft as a whole and take corrective action – if necessary.
To maximize corporate performance at all times, corporate managers and
specialists must measure the performance of each key corporate object and
process, their synergy (‘quality-of-fit’) of an organization as a whole and
take corrective action – if necessary.
To measure the performance of aircraft components and
processes, pilots use the corresponding performance
indicators (PI). Likewise, to measure the performance of corporate
objects, processes and their synergy, corporate managers and specialists use
the corresponding key
performance indicators (KPI).
In the aircraft, values of PI are visualized on a computer
screen in a ‘glass
cockpit’. In a business entity, KPI values are visualized on a computer
screen (‘corporate
cockpit’) in front of the manager or specialist responsible for the
object or process in question.
Now, you can fly a cutting-edge, top-of-the line,
fifth-generation fighter – or a WW2 relic. You can fly fast and climb high – or
barely stay airborne. Your aircraft can be in perfect condition – or a total
mess.
You can have complete air superiority – or barely venture
outside your airfield for the fear of enemy fighters. You can be armed with
sophisticated air-to-air missiles and a high-performance Gatling gun – or with
a vintage cannon. You can be a stealthy predator – or a sitting duck.
The choice is yours. And yours only.
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