Casspeat & Company
Global operations

System Development

There are a number fallacies that beleaguere most management systems. First, that they ought to be IT-based or sometimes even identical with IT processes, second that they are synonymous with Lean or its ramifications, and third that they are industry specific. In fact all the three fallacies go back to the same root of process and technology based reasoning in operational management. Alternatively, corporate thinking tends to get permeated by the idea that management systems need to be directly accountable in financial terms (the two trends meeting in our days in the fad of Lean accounting). Technology on the one hand and finances or the other seem to mar the logic of management in many cases while it is very easy to demonstrate that if you put management systems back to where they belong effective management can gain foothold in any business.

The function of management systems is at least threefold and that is the way they need to be built. They transfer goals from above, enable managers to run proper management cycles (along the logic of some sort of PDCA in the vast majority of cases), and communicate results back to the top. A proper management system is neat, accurate and fully utilized. It furnishes enough information for continual improvement but does not produce and supply information over the needs. The information it supplies is accurate. All of its functions are properly utilized. The built-up of a management system, therefore, is largely independent from industry even if its details answer to different needs dictated by process, management, location, culture, and a few other aspects.

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