Model proposed by Arthur D. Little (consulting firm).
Four key success factors – Stakeholders
“Set strategies to satisfy key stakeholders by improving critical business and aligning resources & organizing”.
– Stock holders
- Business must strive to satisfy threshold expectation of each stakeholders group.
- Stakeholders group are inter related dynamically.
– A company can accomplish its satisfaction goals only by managing & linking work processes.
– Traditionally, company work carried out in departments. This may create problems. Hence, focus should be on core business processes, such as
- New product development.
- Sales generation.
- Order fulfillment.
Cross functional team created for each processes.
– To carry out processes, company needs resources.
Resources could be :
– Labour/ People.
Resources may be
– Earlier, companies would try to own most resources.
– Today, companies outsource less critical resources if this gives increased quality & cost reduction.
Organization consists of – Companies Structures
– Companies policies
– Companies culture.
In changing market situation, company should be able to change/ adapt organization.