Wednesday, September 23, 2015

Aircraft Paradigm for Business Engineering

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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