Revolution in Corporate Management Paradigm

1.      Entrepreneurs, corporate managers, consultants and educators will view any organization (business, government, NGO, etc.) as conceptually similar to an aircraft

2.      An aircraft is made of physical components – engine, wings, landing gear, radar, etc. An organization is made of corporate objects – products, brands, assets, business units, etc.

3.      In order for an aircraft to operate at its maximum performance, it has to be lean and agile (contain only those components necessary and sufficient for maximum performance); in order for an organization to operate at maximum performance, it also must be lean and agile

4.      In order for an aircraft to operate at its maximum performance, (1) each component must do the same and (2) all components must fit together perfectly. For an organization to operate at its maximum performance, (1) each corporate object must do the same and (2) all objects must fit together perfectly

5.      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 processes must do the same. For an organization to operate at its maximum performance, all of its corporate processes must do the same

6.      An aircraft undertakes flights (or sorties - for a military one). An organization undertakes corporate projects. Civilian aircraft hauls passengers – or cargo for its owners. An organization works for its clients (customers)

7.      An aircraft can not operate without satisfying the requirements of its stakeholders – airport officials, government regulators, fuel suppliers, etc. Likewise, an organization has to satisfy the needs and requirements of its stakeholders – suppliers, partners, etc.

8.      Military aircraft has adversaries – enemy aircraft, AA guns, surface-to-air missiles, etc. And every organization has competitors – businesses compete for their clients’ money; government entities – for budget funds; non-profits – for donations

9.      An aircraft is flown by pilots, navigators and other crew members and serviced on the ground by technicians. An organization is managed by executives, middle managers and supervisors and ‘serviced’ by professionals (specialists)

10.  To maximize aircraft performance at all times, pilots and technicians must measure the 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

11.  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)

12.  Aircraft performance is measured using performance checklists, scorecards and dashboards; the corporate performance is measured using corporate performance questionnaire,  scorecards and dashboards

13.  In an aircraft, values of PI are visualized on a computer screen in a ‘glass cockpit’. In an organization, 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

14.  A ‘glass cockpit’ of an aircraft gives the pilot access to all knowledge and tools he/she needs to pilot the aircraft in the most efficient way; a corporate cockpit gives the corporate manager and specialist pilot access to all knowledge and tools he/she needs to manage objects in his/her responsibility areas in the most efficient way

15.  An aircraft is engineered using the most advanced aerospace engineering methodology; an organization will be engineered using the most advanced corporate engineering methodology (Organization Description Language - ODL)

16.  An aircraft is engineered using the blueprints developed by CAD/CAM software systems; an organization will be engineered using the corporate engineering software

17.  An aircraft is assembled from components, many of which are standard and based on the best technological achievements; an organization will be assembled from standard components based on the best corporate management practices

18.  An aircraft is piloted using a comprehensive aircraft knowledge management and process automation system; an organization will be run using a comprehensive corporate knowledge management and corporate processes automation system (Enterprise Objects Management System - EOMS)

19.  To operate at maximum performance at all times, an aircraft must undergo continuous minor and periodic major upgrades. To operate at maximum performance at all times, an organization must undergo continuous improvement and periodic reengineering

20.  This ‘aircraft paradigm’ – implemented in specific methodology, tools, technologies and software products – will solve all the problems that make the ‘corporate cockpit revolution’ inevitable and thus will make this revolution very, very successful