According to Stafford Beer cybernetics represents the science of an effective organization.
A one page reference on the business strategy outcomes
5. Hierarchy Principle: Complex natural phenomena are organized in hierarchies with each level made up of several integral systems.
Management Cybernetics
People centered design
We begin the process with a core set of variables that a user must have supplied from different IT service providers, yet the dependencies when sequenced appropriately enables strong access management.
Resilience test scenarios and issues caused by change will be far less disruptive with a uniform set of services bundled and sequenced to ensure the least opportunity for threats. The recovery time objective test performed as a task in any SDLC release must follow the same sequence and test a super user and user from each function.
In the above graphic we can note the two rows following the first which acquire the fact records from the ERP Master for party, financial account and offers. The outcome of the two rows is part of the first process.
We implement the business strategy to enable execution of the operational strategy using two transaction sub-systems which intersect with the business process system.
Organizational Hierarchy and Profit and Loss Hierarchy must begin with the CEO at Level 2
Each officer reporting into the CEO Level 3-each officer has an associated business process and functional users within the process who's performance defines the officers Profit and Loss and Management performance.
Levels 4 and 5 are shared and granted visibility across each business process and visibility and approvals typically on all financial transactions performed during execution of the operational strategy.
The Human Resources and Corporate Finance users at Level 4
All supporting resources reporting directly into any Officer Level 5
To help in creating a mental model think of a highway, every highway goes in two directions. Most have 3 lanes with motor vehicle and trucks or motorcycles.
The great thing about this concept is we are not going to dictate the type of transportation nor define the make and model.
Every company will have different suppliers who provide the make and model as an expense which you will sell to a customer based on the customer's preference.
Bottom line; your expenses are the results of working in a mutually rewarding supplier relationship. The work you do with the customer is based on a deduction made with the customers order offset by fully loaded cost.
The profit and loss hierarchy has the same structure with different values associated rather than the people in an organization hierarchy. Each officer has a group of department codes which will correspond with a company, an a location. These are fixed values in the P&L hierarchy the changes may be to a persons relationship with a given set of codes.
The transaction sub-systems will be pushed to the P&L hierarchy as either an income or an expense.
The planned resource or headcount budget enables the process or acquiring talent and managing resource expenses, while the records produce the performance measure allowing HR a higher position in the hierarchy systematically ensures visibility for all people request.
The same is true for corporate finance, who must ensure the planned expense and income are consistent with the forecast.
1. Design strategy and vision
Corporate Strategy, will be planned and the outcomes result in a business strategyWe implement the business strategy to enable execution of the operational strategy using two transaction sub-systems which intersect with the business process system.
Organizational Hierarchy and Profit and Loss Hierarchy must begin with the CEO at Level 2
Each officer reporting into the CEO Level 3-each officer has an associated business process and functional users within the process who's performance defines the officers Profit and Loss and Management performance.
Levels 4 and 5 are shared and granted visibility across each business process and visibility and approvals typically on all financial transactions performed during execution of the operational strategy.
The Human Resources and Corporate Finance users at Level 4
All supporting resources reporting directly into any Officer Level 5
To help in creating a mental model think of a highway, every highway goes in two directions. Most have 3 lanes with motor vehicle and trucks or motorcycles.
The great thing about this concept is we are not going to dictate the type of transportation nor define the make and model.
Every company will have different suppliers who provide the make and model as an expense which you will sell to a customer based on the customer's preference.
Bottom line; your expenses are the results of working in a mutually rewarding supplier relationship. The work you do with the customer is based on a deduction made with the customers order offset by fully loaded cost.
The profit and loss hierarchy has the same structure with different values associated rather than the people in an organization hierarchy. Each officer has a group of department codes which will correspond with a company, an a location. These are fixed values in the P&L hierarchy the changes may be to a persons relationship with a given set of codes.
The transaction sub-systems will be pushed to the P&L hierarchy as either an income or an expense.
The planned resource or headcount budget enables the process or acquiring talent and managing resource expenses, while the records produce the performance measure allowing HR a higher position in the hierarchy systematically ensures visibility for all people request.
The same is true for corporate finance, who must ensure the planned expense and income are consistent with the forecast.
Create, update, and archive of Master Records
A user group accountable for the setup or create of a new employee, supplier and customer record in the master records must be monitored for both procedural and system events. Quarterly Sox 404 assurance must coincide and validate the accuracy for the accountable executive providing their personal assurance for the companies reported performance.End Business Management System and Business Strategy implementation
Wicked Mess Type - Subjective Performance Reporting
People generally avoid using strong normal hierarchies in doing so most object to and have completely abandoned using such core practices in every way. Summary views and consistency suggest a lack of governance on financial transactions fact based records. Example; if you are not using canned reports from ERP it might imply you are not using the designed features and have introduced an opportunity for in-efficiencies and lower effectiveness.
Looking at the graphic above we can look either horizontal or vertical and systems or sub-systems are represented in different chevron's or green or blue chevron's across the top and the bottom of the function cheveron's.
If we conclude that the top row in the graphic above represents the business management system components which must be controlled by corporate policy and procedures followed without offline or backend batch processing, we have enabled strategy by well defined structures to aggregate users within the organization across various technology domains.
The following graphic allows the infrastructure or IaaS view into the design. Again keep the mental model of the chevron's in this case the storage containers are represented as spheres with corresponding triangles. The primary or shown graphic transfers the before graphic by grouping of the process inputs with user relevance by process and functional accounting for cost and support becomes less of a mystery and more aligned to the natural order of the operational lifecycle and user information transitioning across the boundaries of the organization.
The outcomes of the implemented business strategy must summarize into the five capabilities to ensure all regulatory and corporate liabilities are managed and contained with the highest confidentiality and zero data loss.
The benefit and business value acquired by carving out the legal and financial threats allows an organization to quickly ensure sustainability has been met with governance by design. Effective design of key controls.
Enabling systems with the appropriate dependencies and integration points ensures a limited scope for core business management which aligns to the objective outside in or Real World requirement without disruption to the Fit for Purpose dynamic organizations each company has made part of their DNA or defines the culture within each company.
The primary structure of the data at rest in ERP master records must be of the highest quality. Nulls are not acceptable in most cases, the field must be de-activited rather than open to non-authorized process variances.
Financial transactions are critical to the companies sustainability and the records capturing the point in time events must be retained for as few as 7 and beyond in some cases.
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