New Business Management Paradigm

BDL essentially created a radically new business management paradigm which is expressed in the following statements:

1.       The fundamental objective of corporate management is to transform the company in question into a happy organization – and make it stay this way

2.       A ‘happy organization’ is the one that satisfies the aggregate needs (financial, functional and emotional) of its stakeholders (owners, clients, employees, partners, etc.) and thus maximizes its aggregate value for all of its key stakeholders 

3.       A happy organization is always in a state of a perfect harmony with its environment; therefore, it must maximize aggregate value created for the company by its stakeholders

4.       To maximize its aggregate value, every organization must operate at highest possible efficiency measured by optimal values of all of its corporate key performance indicators (KPI) 

5.       To maximize corporate efficiency and optimize corporate KPI values, every manager and employee must make and execute the best possible decisions in his/her responsibility areas

6.       To make and execute the best possible decisions, one must have rapid and convenient access to all necessary internal and external knowledge (information that has financial and functional value) 

7.       Therefore, to maximize corporate efficiency, it is vital to (a) build a comprehensive corporate knowledge base (CKB) and (b) to equip every manager and employee with an individual ‘corporate cockpit’ – a customized ‘window’ into the CKB, accessed on a ‘need-to-know’ basis 

8.       Our world is fundamentally object-oriented; therefore, CKB, ‘corporate cockpit’ and the whole corporate management system must be constructed around a comprehensive system of external and internal corporate objects – products; brands; SBU/departments; clients, employees, suppliers, partners, etc. 

9.       Performance of each corporate object must be measured, analyzed and maximized using a customized Aggregate Efficiency Scorecard (AES); Object KPI Scorecard (KPIS) and – in some cases – using the financial model of the object in question

10.   Each AES must include key information on object manager; list of object audit/analysis questions, ACRC section (Analysis/Conclusions/Recommendations/Comments) and analysis of KPI values (historic, benchmark, planned and actual), Aggregate Efficiency Index (AEI) for the object in question, financial and operational plans for AEI maximization (KPI value optimization) and internal and external links to all knowledge necessary for monitoring and managing the object 

11.   Each KPIS must include key information on object manager; analysis of KPI values (benchmark, planned and actual), ACRC section (Analysis/Conclusions/Recommendations/Comments), Aggregate Efficiency Index (AEI) for the object in question, financial and operational plans for KPI value optimization and internal and external links to all knowledge necessary for monitoring and managing the object

12.   Every employee and manager must maximize not only efficiency of every object in his/her responsibility area, but also its synergy with all other corporate objects (which requires effective and efficient teamwork and cooperation) 

13.   Every corporate manager and employee must be motivated and evaluated according to actual values of AEI and KPI of objects in his/her ‘responsibility areas’ 

14.   Practically every organization operates at a very low efficiency (10-15% of its true potential), wasting enormous amounts of time, money and other highly valuable resources 

15.   Therefore, practically every organization must undertake – and successfully complete! – comprehensive business analysis/audit (CBA) and strategic corporate reengineering (SCR) to maximize organizational efficiency and its aggregate value and thus to transform itself into a happy organization