Tuesday, September 9, 2014

Corporate Cockpit Impact on Corporate Management

In this section, we will argue that the impact of CCTT on corporate management will dwarf the one from personal computing, the Internet, mobile computing and social networks combined. Why? Because with all of the above organizations were structured and operated essentially the same way – only faster. CCTT will radically transform both organizations and the way they do things – from setting strategic objectives to performing day-to-day activities.

1.        Total corporate transparency. CCTT will make all corporate objects and processes visible and measurable to managers and professionals responsible for the corresponding objects. Combined with other control tools such as video cameras, e-mail and phone monitoring CCTT will ensure that everything and everyone in the organization is watched and measured at all times. Which radically improves discipline, no less radically improves productivity (employees are far more productive when they know they are being watched and measured). What is watched and measured is managed; what is managed, gets done.

2.        Radical reduction of waste & fraud. When employees know that they are constantly watched and measured, they are far less likely to waste valuable resources (time, money, effort, etc.), let alone commit fraud. Besides, CCTT make it possible to design and implement the optimal corporate structure that goes a long way towards radically reducing waste and fraud (e.g. via an optimal risk management and loss prevention system).

3.        Truly lean organization. CBA and SCR will ensure not only the quantum leap in corporate performance, but also that the organization in question possesses only the objects (brands, products, employees, assets, functional units, documents, etc.) absolutely necessary and sufficient for maximization of its corporate performance and none of the unneeded ones. Which is exactly the definition of a truly lean organization.

4.        Corporate Engineering. We showed above that a quantum leap in corporate performance critically depends on corporate re-engineering (for an established company) or engineering (for a startup). Therefore, corporate engineering becomes one of the primary (if not the primary) corporate management function and activity. And director for corporate engineering and his team – key corporate managers and specialists.

5.        Radically improved employee evaluation and motivation system. CCTT allow to both collect, structure and make available a comprehensive information of employee ‘buttons’ and on the objects (and their KPI) in responsibility areas of an employee in question. This knowledge allows to develop and implement a highly personalized evaluation, compensation and motivation system for every corporate employee. Such a system will go a long way towards maximizing the performance of every manager and specialist in the organization.

6.        Optimal match between abilities and responsibilities. CCTT allow to get a comprehensive picture of both employee abilities (education, training, experience, etc.) and specific functions that need to be implemented in an organization to maximize its aggregate performance thus creating the optimal match between the two.


7.         ‘Happy organization’. CCTT will make it possible to identify the aggregate needs – financial, functional and emotional – of all corporate stakeholders (owners/investors, clients/customers, suppliers, partners, etc.) and build a corporate structure (objects and processes) that will satisfy these needs to the fullest. Which is the practical definition of happiness. Therefore, the organization in question will make all of its stakeholders happy and thus will have the right to be called a ‘happy organization’. 

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