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DFTikum

The concept of defining an organisation

The model is a concept summarising the strategy, system and methods of an organisation, helping leaders and employees to understand how the organisation works, both as a whole and in detail.

The concept in brief

  1. Along two sets of criteria, the concept sets out as a grid the questions worth thinking through in the operation of an organisation.

    • One set of criteria comes from the threefold meaning of the word concept: strategy, system, method.
    • The other comes from the directions of the Compass model: value creation, process operation, organisational operation, employees, leaders.
  2. Reading the elements of the two sets of criteria together gives the specific questions, for example: What is the organisation’s strategy for running its processes? or What is the system for employees in the organisation?

  3. It is worth starting the definition of the organisation with the value-creation strategy, because this sets the direction of its operation.

Figure

StrategySystemMethods
Value creationValue-creation strategyThe value-creation systemThe methods of value creation
Organisational operationOrganisational strategyThe organisational systemThe methods of organisational operation
Process operationProcess-operation strategyThe process systemThe methods of process operation
EmployeesEmployee strategyThe system of employeesEmployee methods
LeadersLeadership strategyThe leadership systemLeadership methods
The concept of defining an organisation · Redrawn from page 27 of the Book of Concepts; labels translated.

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