When companies are in the process of being set up or restructured, their resources and possibilities allow them to create numerous combinations. But how do they know the right combination? On many occasions they combine in the “wrong” way. A holistic approach is the right vehicle for intelligence and awareness. Where money provides the corporate building blocks, a holistic approach provides the corporate architecture. As fractals provide a bridge and language for linking internal and external environment, we can say that fractals provide the information bridge between the inside of the corporation, and its environment. A holistic approach in management is therefor not only restricted to agricultural operations!
It is much better and rewarding to perceive a company as being a complex social system of different dimensions and components (employees, customers, suppliers, production processes, R&D activities, sales organizations, competitors and so on) instead of: “A company is a juristic person” or “in many ways a company is similar to a sole trader or partnership” or even worse “as legal entity, a company can have assets and liabilities.”
In the mid seventies, when I graduated from University, vertical integration was the business “Leitmotiv”, in other words the strategic business was concentrating on creating one-dimensional companies.
Today, almost 40 years later, this is no longer the case. The (linear) Porter value chains have moved into very complex, multidimensional business systems having sometimes extremely short lifecycles and most ending in a state of entropy (as do all systems in the universe).
In this blog we will add posts discussing the issues leading to a innovative and creative holistic management. So stay tuned!
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