Rethinking Business Administration: Embracing Business Engineering Systems

Innovation Cycles for Economic Models
Introduction
In a rapidly evolving global economy, traditional models of business administration are facing a crisis of relevance. The classic ‚Business Administration‘ paradigm, while once effective, no longer adequately captures the complexity and intricacies of modern business environments. The need for innovation in this arena has given rise to ‚Business Engineering Systems,‘ a new and revolutionary approach that promises to reshape the way we understand and manage businesses.

Thesis Statement
This essay argues that replacing the classic ‚Business Administration‘ with ‚Business Engineering Systems‘ is not just necessary but imperative. The new model’s integration of intangible assets, hybrid value models, and a holistic approach to economic analysis addresses critical gaps in traditional models, offering a more comprehensive, adaptable, and forward-thinking framework.

The Imperative for Change

  1. Integration of Intangible Assets: In the old model, intangible assets like employee knowledge and skills were often overlooked or undervalued. ‚Business Engineering Systems‘ recognizes the immense value of these assets, treating them as crucial components of the business landscape.
  2. Hybrid Value Model: Traditional models often relied solely on monetary metrics for measuring value. The new model introduces a hybrid value model, accounting for both monetary and non-monetary indicators. This approach reflects the multifaceted nature of modern business, where value encompasses a diverse array of factors.
  3. Embracing Innovations: ‚Business Engineering Systems‘ mirrors the S-curve innovation approach seen in the development of physical objects. Recognizing that the old model has reached its saturation point, the new model paves the way for innovative solutions that were previously unattainable.
  4. Mental Model Innovations: Philosophers and quantitative sciences are integrated into the new model, combining subjective, qualitative science with objective metrics, standards, scales, and formulas. This fusion ensures a more holistic understanding of economic systems.

Challenges with Classic Models

  1. Historical Baggage: Traditional models, like those laid out by Pacioli and Adam Smith, have deep historical roots. However, these traditions often lead to stagnation and hinder adaptability to today’s rapidly changing business landscape.
  2. Systemic Errors: The old models have systemic errors at their foundations. The overemphasis on the production factor ‚capital‘ and its monetary measurement as the standard unit of economic value overlooks the significance of knowledge, skills, and intellectual property.
  3. Lack of Employee Recognition: Traditional teachings rarely account for the value of employee knowledge and skills, along with intellectual property. In today’s ‚intelligent‘ economy, these assets are vital and should be integrated into extended accounting practices.

The Promise of Business Engineering Systems

  1. Extensive Development: ‚Business Engineering Systems‘ is not a mere concept but the result of extensive preliminary work, with a development expenditure exceeding CHF 6.5 million. Its name was copyrighted in Washington in 1992, showcasing its commitment to a transformative vision.
  2. Compatibility and Adaptability: The new model is compatible with the old one, making the transition smoother. However, it offers far greater possibilities to represent the complexities of the modern business world, providing a smarter and more adaptable reality.
  3. Target Audience: ‚Business Engineering Systems‘ is designed for a wide audience, including managers, decision-makers, professors, consultants, and auditors. Its versatility and applicability make it a valuable tool across various industries and sectors.

Conclusion
In conclusion, the replacement of the classic ‚Business Administration‘ model with ‚Business Engineering Systems‘ is not just a matter of choice; it’s a necessity. The imperative for change is evident in the gaps and limitations of the traditional models. ‚Business Engineering Systems‘ brings innovation, adaptability, and a holistic approach to economic analysis, making it the blueprint for success in the modern business world. Embrace this change, and we can truly unlock the full potential of our businesses and economies.

For more go to: Business Engineering Systems: Pioneering a New Economic Frontier

What is a Hybrid Metric?

A hybrid metric is a combination of two or more metrics that are used to measure a specific business objective. Hybrid metrics are often used to provide a more holistic view of performance than traditional metrics, which can be too narrow in focus.

For example, a company might use a hybrid metric to measure the effectiveness of its marketing campaigns. This metric could combine data on website traffic, lead generation, and sales to provide a more complete picture of how the campaigns are performing.

Hybrid metrics can be used to track a wide range of business objectives, including customer satisfaction, employee engagement, and financial performance. By using hybrid metrics, businesses can get a better understanding of how their various initiatives are impacting their overall performance.

Here are some of the benefits of using hybrid metrics:

  • They provide a more holistic view of performance. Traditional metrics can be too narrow in focus and can miss important insights into how a business is performing. Hybrid metrics can provide a more complete picture by combining data from multiple sources.
  • They can help to identify areas for improvement. By tracking multiple metrics, businesses can identify areas where they are performing well and areas where they need to improve. This information can be used to make strategic decisions about how to allocate resources and improve performance.
  • They can help to improve communication with stakeholders. By using hybrid metrics, businesses can communicate their performance in a more comprehensive and persuasive way to stakeholders, such as investors, customers, and employees.
  • If you are looking for a way to get a better understanding of your business performance, hybrid metrics can be a valuable tool. By combining data from multiple sources, hybrid metrics can provide a more holistic view of performance and help you to identify areas for improvement.

    Here are some examples of hybrid metrics:

  • Customer satisfaction score: This metric combines data on customer surveys, social media engagement, and customer churn to measure how satisfied customers are with a company’s products or services.
  • Employee engagement score: This metric combines data on employee surveys, attendance, and turnover to measure how engaged employees are with their work.
  • Financial performance: This metric combines data on revenue, expenses, and profit to measure the financial performance of a company.
  • Improve decision-making: Hybrid metrics can provide more information than traditional metrics, which can help businesses make better decisions. For example, a hybrid metric for customer satisfaction can help businesses identify which areas of their customer experience need improvement.
  • Improve performance: Hybrid metrics can help businesses track their progress over time and identify areas where they can improve. For example, a hybrid metric for customer satisfaction can help businesses track their customer satisfaction scores over time and identify areas where they can improve their customer experience.
  • Make it easier to compare different entities: Hybrid metrics can make it easier to compare different entities, such as different businesses or different products. For example, a hybrid metric for customer satisfaction can be used to compare the customer satisfaction of different businesses.
  • .
    Hybrid metrics can be used to track a wide range of business objectives, and the specific metrics that are used will vary depending on the specific objectives of the business. However, by combining data from multiple sources, hybrid metrics can provide a more holistic view of performance and help businesses to identify areas for improvement.

    And visualizing Hybrid Metric is another topic that helps to share and discuss values from a more holistic point of view.

    See here „https://hybrid-metrics.com/

    Hybrid Reporting

    Wenn Sie von ESG, von „immateriellen Gütern“, von „double-materiality“ mit ihren ’nicht-monetären‘ Werteindikatoren gehört haben, sollten Sie sich das „Hybrid Reporting“ näher anschauen.
    „Hybrid Reporting“ erweitert das klassisch „sequenzielle Reporting“ und zeigt gleichzeitig monetäre und/oder nicht-monetäre KPIs simultan in der Form von Vektoren an.
    So wird es möglich, mehrere Wertedimensionen in die Diskussion einzubringen – in der Entscheidungsfindung alle Werte in der Visualisierung simultan zu sehen und gemeinsam zu gewichten. So erreichen Sie eine echte Wertediskussion – und nicht einen Streit ums Budget.

    Beispiele und weiterführende Anregungen finden Sie auf https://HybridReporting.com

    Beispiel für Double Materiality

    If you have heard of ESG, of „intangibles“, of „double-materiality“ with its ’non-monetary‘ value indicators, you should take a closer look at „Hybrid Reporting“.
    „Hybrid Reporting“ extends the classic „sequential reporting“ and simultaneously displays monetary and/or non-monetary KPIs in the form of vectors.
    This makes it possible to bring several value dimensions into the discussion – to see all values simultaneously in the visualization and to weight them together in the decision-making process. In this way, you achieve a genuine discussion of values – and not an argument about the budget.
    For examples and further suggestions, visit HybridReporting.com

    Neue Wirtschaftsmodelle für intelligente Unternehmen

    Wenn Ihre Mitarbeiter noch mit Theorien aus der vorindustrialisierten Welt arbeiten und entscheiden, sollten Sie Ihnen die neuen Perspektiven einer Intelligenten Wirtschaft ermöglichen.
    Im Projekt NEMO (New/Next Economic Model) finden Sie die Frameworks/Strukturmodelle und die neuen Massstäbe, mit denen Sie nachhaltigere Strategien und neue Geschäftsmöglichkeiten selbständig erkennen und umsetzen können.

    Entwicklungen bei den ökonomischen Sichtweisen
    Innovationen erfolgen einer s-Kurve

    INSEDE – bereit für die nächste Kurve

    Wir haben über nachhaltige Entwicklung in unserer „intelligenten“ Wirtschaft und Gesellschaft nachgedacht.
    Und wir haben darüber nachgedacht, was die Ursachen dafür sind, dass es für Führungskräfte in Wirtschaft und Politik immer schwieriger wird, anständig und nachhaltig zu entscheiden.

    Nach vielen Umwegen sind (auch) wir zu Schluss gekommen, dass letztendlich die Wirtschaftslehre das Handeln der Führungskräfte massgebend prägt. Massgebend in dem Sinne, dass in der Wirtschaftslehre vorgegeben wird, was und wie gemessen werden kann und muss.

    Auch gute Manager können nur unter grössten Schwierigkeiten richtig entscheiden, wenn die Lehre für die Erklärung und Gestaltung von Wirtschaft und Gesellschaft systembedingt die heute wesentlichen (immateriellen) Ressourcen und Bedürfnisse aus ihrem Modell ausblendet.

    Wenn in der Literatur von zunehmender Komplexität gesprochen wird, entspricht das weniger als 38% der Wahrheit. Nicht die Reale Realität ist komplexer geworden. Die erlebte Komplexität wird verursacht durch Regeln und Gesetze, die mit einem ökonomischen Verständnis geprägt sind, deren Grundlagen für die Erklärung einer anderen Welt geschaffen wurden.

    Um guten Managern (und Consultants) geeignetere Instrumente zur Verfügung zu stellen, haben wir das Project NEMO (New/Next Economic Model) gegründet.
    Es besteht aus INSEDE (Institute for Sustainable Economic Development) und den eigentlichen Modellen und Instrumenten – den Business Engineering Systemen, das grundlegend neue Sichtweisen und Metriken nachhaltigere Entwicklungen und Lösungen ermöglicht.
    Schauen Sie sich die Informationen an – und melden Sie sich bei uns, wenn Sie mehr – auch über eine Mitwirkung oder Beteiligung – wissen möchten.

    s-Kurve methodische Innovationen
    reale und virtuelle Welten

    Oldies but Goodies… Next step from „old Accounting“ to „Accounting+“

    (ex Google+ 20110713)
    Again good thoughts from David Phillips [PWC].
    -> …recognised that a model which is overly focused on financial performance may not deliver a sustainable world. … Puma’s analysis highlights the risk that exists to the world of continuing to push an outdated reporting model. -> environmental profit and loss account….
    Next step from „old Accounting“ to a better next „Accounting+“?
    https://web.archive.org/web/20170110171721/https://pwc.blogs.com/corporatereporting/2011/06/what-doesnt-get-measured-gets-ignored.html

    Werte und Preise

    Werte neu verstanden und berechnet -> wieviel spekulative Luft (Shareholders Profit Expectation) haben Sie in Ihrem Portfolio?
    Werte-Transparenz durch neue Dimensionen. Monetäre Preise und Kosten werden auf der horizontalen Achse aufgetragen. Werte sind (primär) subjektive (nicht-monetäre) Eigenschaften und erscheinen auf der vertikalen Achse. Als (immaterielles) Potenzial, ökonomische Energie….
    Egentlich wissen Sie das. Jetzt können Sie es auch zeigen und berechnen. Vertrauen Sie in Ihre Einsichten.
    Wie halten Sie’s mit der Potenzialbilanz ihrer Unternehmung?
    Sie bringt neue strategische Optionen, die sich – weil bereits vorhanden – schnell umsetzen lassen.

    Werte sind mehr als Preise

    Vier mal Public Value

    Vier mal Public Value – über die Wertschöpfung (monetäre und nicht-monetäre) von Organisationen.
    PDF mit weiterführenden Links hier:
    http://bengin.net/dl15/public_value_i-iv_2015_d.pdf

    „Public Value II“ (Potenzialaufbau, Learning by doing und Theorien) bringt doppelten Nutzen. Bei den Unternehmen UND den Mitarbeitern.
    Unternehmer wissen es, Ökonomen und Wirtschaftsprüfer sollten es in ihren Modellen berücksichtigen.
    Denn Strategien, die vom Potenzial ausgehen, sind vier mal so interessant.

    Gemeinwohl
    Public Values