Business Administration Insight

A very Practical Approach to Terminology, Literature, and Business Equations

A symphony of harmony and "Art of Balancing"

Introduction,

 Throughout my career in the Middle East, I always found myself working around the edge of events and difficulties known only as calamities subject to my nationality. A breathtaking limitation and restrictions imposed by geopolitical sanctions and embargo on Iranian Nations. So, to stay alive you have to be a proactive gladiator, multi-function, multi-discipline and resilient, had to develop my skills to be a “Strategic Thinker”. So, I became to be the one you might call an unconventional multi-functional, and the multi-dimensional individual who values integrity, credibility (in terms of validity and reliability), and honesty (either in business or personal relationships). Over the course and throughout my career, I have worked in sales, business development, project management, Legal and Contractual, and most recently, Digital Transformation (DX) which hopefully recently succeed to achieve positions in C- Level and CXO Levels. Relying on “well-developed technical analytical and problem-solving skills”, as well as full commitment to project management and business development management positions, significant success in providing professional advisory and consultancy services and performing duties in C-level and CXO positions have been achieved. I am articulate and possess marked communication skills such that I can explain complex technical information effectively and concisely, let’s say treated well in VUCA Environment. Possessing significant acumen, business intelligence, and results-oriented nature, I can well assess the impact of a particular policy and strategic management on the effectiveness and improvement of the company's performance (with respect to sustainability and resiliency). In terms of IQ, EQ, and DQ (Decency Quotient), there are enough quotes to mention. Adequate skills in behavioral and technical Competencies (such as Knowledge, abilities, and skills) along with the crystallization of intrinsic value, are significantly in line with my ENTJ / ESTJ type and personality. Having a stepwise growth in position and hierarchy organization levels during my 20+ years of experience at the international level from Individual contributor and Specialist to Manager, Director, President, and nowadays very often in C-level CXO positions, is what I am very proud of. I learned to be the very best of mine during each activity and mission to create a structured system consistent with "precise and accurate planning", "regular and orderly organization", "subtle and dedicated leading" and finally "controlling based on timely corrective actions and performance improvements" in order to achieve maximum success in each one of the pillars of time, cost and quality in the project optimal range.

Now I live in Omani and the main Honor I would like to talk about is; Both of my children have successfully experienced Science Olympiad and my son as my elder child has granted by National Olympiad Silver Medal in Astrophysics.

 Business

 Definition:

A person, partnership, corporation, or organization that provides goods and/or services to the community in exchange for money is a BUSINESS, with the goal of becoming profitable. Businesses are focused on Products or Services to sell, making a profit (Exchange of Sources and Resources to Benefit and Profit), and meeting a particular need for society (Environment). All individuals (Parts) in a business work together toward common goals (System Definition) which are dependent on the type of business.

Strategy is the “Route” toward the “Goal”.

Management comes on the board when there is limit and restriction in sources and resources,

Business characteristics:

There are certain major key characteristics that must be met to have a business.

·       Individuals work together in an organized way and purposefulness. (In ordered System)

·       Adequate Source and Resources

·       Strategy / Business Model / Business Plan

·       Business MUST satisfy a societal need.

·       And business must seek to make a profit

·       Today, resiliency and business continuity matter a lot too as a character

As Pride, Hughes, and Kapoor note, businesses are comprised of individuals (as the parts) working together in an organized and purposeful way in order to be successful and meet benefit and profit. Businesses are organized around the resources needed to be successful, as well as the type of business that is being operated. Some businesses may be organized in a way that requires constant cooperation and communication with other employees. Other businesses may not require as much contact with other employees but may instead rely on automated workflows. They must decide the best way to be organized based on their individual goals.

 Sources & Resources

 What is Source:

The source is a noun that refers to the origin from which something is obtained. It can refer to a place, person or thing. The meaning of this word can slightly differ according to different contexts. A source can refer to a person who provides information, a book or document that acts as the primary reference, and the point of origin of a stream of water. A source can sometimes also refer to a generative force; in such cases, a source also acts as a cause. The sentences below will help you to understand the meaning of the source better. (www.pediaa.com)

 Dairy products are a rich source of calcium.

They claimed that they received this information from a reliable source who wishes to remain anonymous.

The secondary sources are listed in Appendix A.

Solar energy is an important source of renewable energy.

This old wooden box has been a source of curiosity for as long as he remembered.

The source can also act as a verb. But this usage is not very common. As a verb, it refers to the act of obtaining something from a particular source.

What is a Resource

Resource means something that can be used to function effectively. A resource can refer to money, materials, staff, or other assets. Oxford Dictionary defines a resource as a stock or supply of money, materials, staff, and other assets that can be drawn on by a person or organization in order to function effectively. Resource can also refer to a natural feature or phenomenon that enhances the quality of human life. The word resource is mostly used in plural form.

The principal advised the teachers to make maximum use of the available resources.

This book can be used as a reference and a teaching resource.

Our country is rich in natural resources.

Our company doesn’t have the resources to complete such a project.

Apart from this meaning, a resource can also refer to an action, strategy, capabilities, or competencies which may be adopted in adverse circumstances.

The resource can also be used as a verb. This verb refers to the act of providing resources. But this is not very common usage, as with the verb source.

Difference Between Source and Resource

Though the two words source and resource look a bit similar, they are two different words with different meanings. Source refers to a place or origin from where something is obtained. A resource refers to materials, staff, supplies, and other assets that are needed for something to function effectively. This is the main difference between source and resource.

Important Note: In HR and Management Science, there is a very distinguished difference between sources and resources:

Resource = Source + Intrinsic Value

Some other general differences.

 Source refers to a place, person, or thing from which something originates.

The resource is a stock or supply of money, staff, materials, and other assets that can be used by an individual or organization in order to function efficiently and effectively.

A source is a place from which you can obtain something useful or valuable.

A resource is something that helps you to perform some function.

 Plurality

The source is mostly used in the singular form.

The resource is mostly used in plural form.

Management

Relying on two decades of experience, a deep recent literature review, and DBA and Post DBA topics from the engineering mind, I tried to develop a collection of equations on which each precisely describes the important terms of today’s business atmosphere. For this achievement, I reviewed also many references who matter in each subject such as McKinsey, RAND Corporation Histomaps, Deloitte, Accenture, Oxford Business School, etc. and I cooked them in a phrase or equation as an outcome of my personal deduction, elicitation, presumption and working experience.

I am sharing these clarifications and verification essays for any individual and/or organizational use in order to avoid the most often PERCEPTUAL ERRORS which many entrepreneurs, business owners, and managers make a mess with them or conflict. I do would highly appreciate it in advance if you kindly share with me your valuable comments, feedback, and modification proposals.

Each term, phrase, and equation has been precisely considered and obsessively processed to be presented here.

Histomap of evolution shows that the most important key factor in Human life and a nation’s destiny and also in business was and is COMPETENCY.

“Competency” = Average level of (Knowledge, Ability, and Skill)

Genuine = Maximum extreme of Competency

That’s why how these three words pup up in recent business literature.

Also, we have to know Skill = Knowledge + Ability

Skill: in 34 categories

Knowledge: in 33 categories

Ability: in 52 Categories (Ref.: www.Onetonline.org )

“Management” (Latin root: Manus) = Accurate & Précised (Detailed & Big picture) Planning +

               Structured Organizing +

                  Delicate Leading +

                  In-time Control        

These 4 competencies and skills as minimum MANAGEMENT pillars have amazing relationships as well:

·       Accurate and Precise (Detailed & Big picture) Planning + Structured Organizing = “System”

·       Acc. Edward Deming, 94% of the failures deals with the WRONG system!

·        Structured & ordered Organization: Person-to-procedure process (Human Independence)

·        Management Technology= summation of FOUR a.m. pillars

·        “Technology”: what makes and changes the RESOURCES into PROFIT

“HR” uses the term: “RESOURCE”

                                     Resource = Source + Intrinsic Value (I.V.)

That’s why humans are more important than Sources.

We need “Management” to overcome the “Shortage in Sources and Resources” to reach a goal.

Nowadays to pass the exiting crucial atmosphere and to let a company remain operational in the event of a crisis, some methodologies and concepts are developing very fast in terms of Management, such as Business Continuity Management, Resilient Management, Strategic Management, Management based on Systems Thinking, etc. A session with a professional approach on this topic is under preparation to release.

It is also important to have a quick look at “Leadership” Vs “Management”.

A Classic Overview:

Managers

A classic definition is that “Leaders do the right thing and managers do things right.”

A more standard definition is “managers work toward the organization’s goals using its resources in an effective and efficient manner.”

In a traditional sense, let’s say top (or executive) managers are responsible for overseeing the whole organization and typically engage in more strategic and conceptual matters (Exploration Level), with less attention to day-to-day detail (Operational or Exploitation Level). Top managers have middle managers working for them and who are in charge of a major function or department.

Middle managers may have first-line managers working

for them and who is responsible to manage the day-to-day activities

of a group of workers.

Leaders

Very simply put, a leader is interpreted as someone who sets the direction in an effort and influences people to follow that direction. They set direction by developing a clear vision and mission and conducting planning that determines the goals needed to achieve the vision and mission. They motivate by using a variety of methods, including facilitation, coaching, mentoring, directing, delegating, etc. As noted above, one of the four key functions of management is leading (along with planning, organizing, and controlling). Leaders carry out their roles in a wide variety of styles, e.g., autocratic, democratic, participatory,

laissez-faire (hands off), etc. Often, the leadership style depends on the situation, including the life cycle, culture, and strategic priorities of the organization.

There are many views about what characteristics and traits leaders should have. There are also numerous theories about leadership, or about carrying out the role of a leader r, e.g., servant leader, democratic leader, principle-centered leader, group-man theory, great-man theory, traits theory, visionary leader, total leader, situational leader, etc. See All About Leadership

“Leadership versus Management”?

According to many references and recent DBA and MBA books, there would be a lot about comparing these two terms to each other as a normal practice. They mostly express like whatever the title, the person in the top-level position in the organization is (or at least should be) responsible for setting (or, in the case of corporations, pursuing) the overall direction for the organization. Consequently (and unfortunately?), the “executive” level of management is often referred to as the “leadership” of the organization.

With recent focus on the need for transformational leadership to guide organizations through successful change, the term “leadership” has also been used to refer to those who embrace change and lead the change of organizations for the betterment of all stakeholders. Some people believe that leadership occurs only at the top levels of organizations and managing occurs in the levels farther down the organization. Some people believe that leadership occurs (or should occur) throughout the organization but still use the term “leadership” mostly to refer to the top positions in the organization. Others believe that managing and leading occur at many levels of the organization. For more information, see Is Leading Different than Managing? (pros and cons of this debate)

(This term is commonly misapplied when people use the term mostly to refer to the top levels in an organization. The term has — and should have — much broader usage. Anyone at any level in an organization can show leadership; thus, almost anyone can be a leader in the organization.)

Objective Clause and important complement:

“Leadership” stands as one of the 4 competencies and skills as the minimum requirement of “Management” and one of the Management pillars, and in some way, the most important one.

But by all means, this item, Leadership, is a part of the whole and according to Systems Thinking, Can’t be compared with management as a “whole”.

Leadership is a very important skill, competency, and also a key factor in conducting a business, but can’t be a substitution for management.

Keeping the balance between this two could be the best professional and effective approach, this equilibrium and balance is an ART indeed. Leadership and management could be different in some features and concepts but are not and shouldn’t be against each other.

System

There are many definitions for the system, all could be correct and subjective:

-        A system is a group of interacting or interrelated elements that act according to a set of rules to form a unified whole.[1] A system, surrounded and influenced by its environment, is described by its boundaries, structure, and purpose and expressed in its functioning. Systems are the subjects of study of systems theory and other systems sciences. Wikipedia Quoted

-        An Accurate and Precise Planning and Structured Organization to achieve a predefined Goal. (HR People like this definition)

-        And many define People and parts as the elements form the system and their interrelationship and interaction together to achieve a goal.

In a business atmosphere, I call it a “System”; the whole and the parts (Including Persons) and the connection between the parts. They are all interconnected for a purpose.

With respect to “System Boundaries”, as far as it is under our control, it is system boundaries, and far further are “Environment”, Micro and Macro. Obviously, systems boundaries are Dynamic.

Based on Systems Thinking principles, a collection of parts that DO NOT CONNECT, that’s not a system, that’s “Heap”.

·       Maximum System Performance happens in Optimum parts performance.

·       All parts have the same value

·       It’s not Boss-based culture, it is Rule-based and more, network or value-based.

·       And also, the other 11 laws of Systems Thinking and Stakeholder Engagement from Peter Senge could be found in google.

In terms of Purposefulness & System, based on whole and part level of AUTHORITY, we could have the below diagram schematic models for systems:

Strategy

What is Strategy? Is Every decision “Strategic”?

Many references have very different definitions of “Strategy”.

-        A plan of action designed to achieve a long-term or overall aim, by Oxford

-        A careful plan or method, by Merriam -Webster

-        “Nobody really knows what Strategy Is”, The Economist

-        Or many others with a focus on Plan, Poly, Pattern, Position, or perspective …

Just like the blind men describe the elephant (Mintzberg’s 10 Schools)

Prescriptive (Design, Planning, Positioning) + Descriptive (Configuration, Cognitive, Cultural, Entrepreneurial, Environmental, Learning, and Power)

I would like to say: Our “Route” toward the “Goal”; that is “Strategy”

It is two-dimensional, looking and interacting between “System” and the environment” simultaneously.

It is not just a tool or method, but Mind-Set. Talks about tomorrow with Uncertainty involved. It cannot be precisely defined indeed.

STRATEGY: Explorational nature, so money consumer it is

       VS

OPERATION: Exploitation nature, so money generator it Is

“Ambidextrous Managers” are able to make a balance between Exploitation & Exploration, which is an art. The beauty is the “Balance”.

It’s not a goal, nor an act, not a formula not a secret, since if nobody knows about it, it cannot influence their actions and decisions.

Professor Costas Markides, of the London Business School, put it well: “strategy is about making choices; about ‘who, what, how’: who is our chosen customer; what are we going to sell; and how are we going to deliver that value proposition”. It should lead to a coherent set of mutually reinforcing choices. For example, Nespresso’s strategy is to sell an easy-to-use system for consuming high-quality espresso at home, sold directly to individuals via their Nespresso club. It involves a clear set of choices, that fit together. The litmus test for any strategy is whether what you are not doing is meaningful and could be profitable for someone else (e.g. serving offices, or filter coffee, or selling coffee in supermarkets). If someone else is making money on what you choose not to do, it just might be a sign that you have a good strategy. (Ref.: By Forbes)

Strategy Levels:

Strategic Thinking Level ………………………………………………  neither needs tool nor methodology

                  Analytic Strategic Level ……………………………….. Needs Analytic Methodology

                                  Prescriptive Strategic Level ……………. Tools Based

“SYSTEMS THINKING “

Systems thinking is a way of making sense of the complexity of the world by looking at it in terms of wholes and relationships rather than by splitting it down into its parts. It has been used as a way of exploring and developing effective action in complex contexts. Wikipedia

Systems thinking is a holistic approach to analysis that focuses on the way that a system's constituent parts interrelate and how systems work over time and within the context of larger systems.

From the Systems Thinking point of view, as I earlier expressed, Strategy is a dynamic two-dimensional concept and mindset, looking and interacting between the “System” and the “environment” simultaneously.

And after that, the next future release and authorship would be on JOB (as occupation) and POSITION (As the level of the JOB) and governing hierarchy levels in very simple words.

That acc. to Onet. We deal most often with 150 categories in JOB, but as the position, we could have a lot!

Copyright © 2022 by Abbas Khodadadi Aski

Endpapers and map © & TM 2022 Abbas Khodadadi Aski. All rights reserved.

No part of this material may be used or reproduced in any manner whatsoever without written permission except in the case brief quotations embodies in critical articles and reviews.

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