The never-ending quest for new management technologies has but one fundamental objective: to radically increase corporate performance. Ideally, by an order of magnitude. In other words, to make a quantum leap in corporate performance. To achieve this ambitious objective, one must start with the optimal paradigm (‘model’) for corporate management.
This model does not have to match the reality; it only has to let us explain, predict and control events related to the subject matter in question. In this case, the only requirement for an optimal paradigm is to let corporate managers and consultants maximize the performance of an organization in question in the most efficient way. In this white paper we will demonstrate – beyond the reasonable doubt that our paradigm is, indeed, the best model for maximizing the performance of any organization – business, government, NGO, academic, etc.
We spent 15 grueling years looking for such a paradigm. And finally discovered exactly the right one. The aircraft paradigm. The essence of this discovery is that any organization (business enterprise, government entity, NGO/NCO, academic institution, etc.) is conceptually identical to an aircraft. In case of a business entity – a fighter aircraft (competition in the marketplace is quite a war, isn’t it?). Hence the ‘corporate cockpit’ concept.
Indeed, there are crucial similarities between an aircraft and an organization. An aircraft is made of physical components – engine, wings, landing gear, radar, etc. An organization is made of corporate objects – products, brands, assets, etc. 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 (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.
Furthermore, 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).
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, government entities, etc. In addition, a military aircraft has adversaries – enemy aircraft, AA guns, etc.
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). 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.
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 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.
The only difference is that an aircraft has 1-3 computer screens inside the ‘glass cockpit’ while in an organization every manager and specialist has his or her own ‘corporate cockpit’ provided according to the all-important ‘need-to-know’ principle.
