Re-thinking the Business

Abstract

A key question facing the analysis of small/medium sized businesses is how the complexity of the business can be appreciated in a clear and incisive manner. Adoption of too simplistic a view can obscure issues, whilst an oversophisticated view can confuse.

A framework has been developed which supports a clear understanding of the business. It commences with the view of the business as regulated process composed of four variables: people; transformation; interaction; technology. Consideration is given to the difference between what is thought to happen and what actually happens. The meaning a person attaches to an event can be viewed either from a performance stance (i.e. what is achieved) or from a conduct stance (i.e. the acceptability of what is done). When an explanation for events is sought reference is made to the underlying structure of the situation in terms of interactions and transformations. This is developed to reveal the contribution of the Visible System Model to understand the structural complexity of a viable business. Finally, technology is recognized as a device to amplify the variety that a person can handle.