A knowledge based business grows its potential by sensing and responding to the feedback of its customers, employees and other stakeholders. The OODA loop that was originally meant for military strategy explains how a knowledge based business/ system grows to become smarter. This is due to the feedback mechanism inherent in the decision making and acting on the feedback process (Reference: http://radar.oreilly.com/2012/01/the-feedback-economy.html). The quality of information enables growth of information systems from basic reporting to insights that allow prediction, optimization and simulation (Reference: Chapter 1, What it means to put analytics to work, Analytics at work by Thomas Davenport).
The concept of sensing and responding applying to businesses is seen as a capability to iterate in the sense-interpret-act-decide-act cycle. The competencies required of a manager in a sense and respond environment are articulated in Post Industrial Manager. The discussion is on the "emergence of an adaptive managerial framework" along with coverage of the principles of the "sense-and-respond prescription for organizational design". This includes "methods and tools derived from systems theory, along with adaptive design principles such as modularity. The result is a role and accountability design that serves as a structure for action and becomes the central strategy document of the organization" [Reference: Post Industrial Manager.].
The managerial framework mentioned above is adaptive - paying attention to context and coordination for governance, a system of modular roles and accountabilities for structure, follows strategic design for action and is customer-centric. The essence of the sense and respond approach is that leaders not postpone or pass on the changes needed for a new paradigm - instead address the pressing, current issues with new approaches and new ways of handling. This lets the incremental changes take place in new, innovative ways so that the need for a whole new generation of managers is not a matter of urgency!
Technology use, changing managerial methods, adapting incrementally to changes as and when the urgency is sensed are keys to achieving the transformation of process and organizational design. This in essence is responding to feedback in a knowledge based business.
The concept of sensing and responding applying to businesses is seen as a capability to iterate in the sense-interpret-act-decide-act cycle. The competencies required of a manager in a sense and respond environment are articulated in Post Industrial Manager. The discussion is on the "emergence of an adaptive managerial framework" along with coverage of the principles of the "sense-and-respond prescription for organizational design". This includes "methods and tools derived from systems theory, along with adaptive design principles such as modularity. The result is a role and accountability design that serves as a structure for action and becomes the central strategy document of the organization" [Reference: Post Industrial Manager.].
The managerial framework mentioned above is adaptive - paying attention to context and coordination for governance, a system of modular roles and accountabilities for structure, follows strategic design for action and is customer-centric. The essence of the sense and respond approach is that leaders not postpone or pass on the changes needed for a new paradigm - instead address the pressing, current issues with new approaches and new ways of handling. This lets the incremental changes take place in new, innovative ways so that the need for a whole new generation of managers is not a matter of urgency!
Technology use, changing managerial methods, adapting incrementally to changes as and when the urgency is sensed are keys to achieving the transformation of process and organizational design. This in essence is responding to feedback in a knowledge based business.
