Changing Systems and Upgrade to Implement the Viable Systems Model at Baghlaf El Zafer Holdings - Case Study Example

Subject name Changing systems and upgrade to implement the Viable systems Model at Baghlaf el Zafer Holdings Group Tutor Name Table of Contents Title page…...................................................................1 Table of contents…........................................................2 Executive Summary…...................................................3 The viable system model: An Introduction………........4 Findings: Cybernetics and viable systems model….. .6 Recommendations about the viable systems model…...10 Conclusions on the Viable Systems Model benefits…..16 Cited works…...............................................................18 Viable systems Model at Baghlaf el Zafer Holdings Group Executive summary The Baghlaf Group one of the world biggest conglomerate has the biggest challenges of both changing and upgrading systems and staff. A change in systems must be accompanied by a skills upgrade exercises, as new systems demand new skills of staff(Stafford, B.1995 p.4) This is because the new systems will demand less number of staff and also more advanced skills of the few staff. (Harman & koohang, 2007, p.341) This will reduce the payroll saving a lot of finance for Baghlaf Group. The upgrade and change of systems must be accompanied by a change of staff by retrenchment of non-performing staff since the problems at Baghlaf Group are caused by lack of skills adequate to meet skills demand at Baghlaf Group. Both systems go hand in hand. (Eli Cohen, Ed. 2008, p.574) Lack of adequate system combined with poor skills of staff at Baghlaf Group has led to problems of management and operations and resources wastage constraining budget for investment. The group must restructure with anew systems at both levels of skills as well as at upgrade and changing the systems at Baghlaf Group. (Stafford, B.1995 p.4) This report sets out to investigate the most suitable system and systems upgrade at Baghlaf Group el zafer holdings group. To initiate changing systems at Baghlaf Group and upgrading systems to create new system architecture with a focus on saving on budgets and avoidance of duplications of role responsibilities and functions. Due to poor systems set up as well as complexity to make the overall system architecture, more effective and less costly, the Baghlaf Group must to implement simpler system architecture .(Muehlen, M, 2004 p.27). ii. Introduction of the viable systems model cybernetics The Bahglaf group is n undertaking to implement the viable systems model or cybernetics. This is a type of systems approach to management of organisations. (Eli Cohen, Ed. 2008, P.574) The systems is modelled around technological advances to get the best technology to remain viable in dynamic changing environment suggests a new skills role for management. (Stafford, B.1995 p.4) The application of systems has seen many firms emerge with rigid systems, which refuse to adapt to change due to staff attitude and past strict controls habits (Furnell, Katsikas, Lopez, 2008.P.302). The viable systems model to be installed at Baghlaf Group is an open system in terms of interactions with outside environment and adopts the view that the organization is dynamic and evolves every second to adapt to external and internal changes. Executive duty or role is to build a viable organization that can withstand and adapt to change, by setting up a dynamic equilibrium (Harman & koohang, 2007, P.341) The system is a predictable and with cyclical reciprocity informed by constraints. The Baghlaf Group holdings is a moving equilibrium seeking for the best practice by improving what they do best as per company policy but this becomes a life long process as the achievement of company objectives leads to set up of new targets and the process oscillates upwards with new standards and new targets of performance . Simultaneously the customer’s sophistication in tastes goes up wards and the company adapted its processes to satisfy the new consumer dynamics. (Muehlen, M, 2004 P.27). The viable systems model will simplify the systems at Baghlaf Group and help the organization use its resources more effectively and efficiently. (Stafford, B.1995 P.4) This systems model will focus on core subsidiaries overlapping subsystems of the Baghlaf Group el zafer group. The changing and upgrading of this systems at Baghlaf Group will lead to modifications of leadership patterns in terms of levels of supervisions due to integration and also monitoring of personnel as computer monitoring is a rigid systems which is impersonal and it influences the total quality management dimensioned product brand management and brand excellence.(Stafford, B.1995 p.4) Changing systems and upgrading others at Baghlaf Group will entails the gradual incremental introduction of viable systems model design into the existing system in a modelling strategy of phasing out old management styles with latent operations rules and reporting structures that complements and supersedes the old systems without radically moving from the consolidated bases of customer satisfaction. It will create and implements subsystems toward specifically planned tasks or programs. (Furnell, Katsikas, Lopez, 2008. P.302). The subsystems recognise and value teamwork as a shared responsibility of an entire system within a system within the internal and external environment of the baghlaf group. ‘ The Baghlaf Group el zafer group is geared to performance with forecasts in the integrating authority. Cooperation in use of resource persons in meeting group goals is the ultimate legitimate authority on motivation and leadership geared towards better performance. This drives to meet the vision and mission of the Baghlaf Group al zafer holding group at the international markets. iii. Findings on changing and upgrading systems of Baghlaf el zafer holdings An investigation into the several systems changing and upgrading of international conglomerate systems has shown that the architecture must be changed in a gradual manner. It must not create any shocks in the old systems but must enmesh the old into the new systems. (Eli Cohen, Ed. 2008, P.574) This is because the purpose is to create and manage system architecture for the Baghlaf Group. The systems architecture is the conceptual organisation design and must define the organisational structure, which will always govern the resources allocation including human resources and capital resources. (Stafford, B.1995 p.5) It needs to use industrial standard solutions, which is the norm in the industrial sector of the economy. It will implement system to achieve the attainment of a recurrent industrial objective. (Furnell, Katsikas, Lopez, 2008.P.302). The changing and upgrading of the systems of Baghlaf Group this requires a viable systems model application. It will use information management systems for purpose of changing and upgrading of the systems at Baghlaf Group by Simplification of the overall system architecture using viable systems model. (Stafford, B.1995 p.4) This systems Implementation will lead to a more flexible architecture and we have shown that it is easily adaptable to future changes in the plant control systems especially in all subsidiaries and factories as well as other areas of service operations. The viable systems models will be the dynamic knowledge tool necessary for Improvement of reliability and robustness of the conglomerate of Baghlaf Group under the ten independent companies integrated in under a single simplified group policy of one visions ands one-mission statement of customer focus and customer value for all stakeholders of Baghlaf Group. The systems of viable systems model uses systems alerts as a critical management indicator through application of an ordered hierarchy with best market practices and heuristics. The new system takes cognizance of structures, constraints, performance, capacities and capability or potential productivity and socio economic political cultural factors for success. (Eli Cohen, Ed. 2008, p.574) It utilizes the concept of metalanguage in running the robust structure build out of simplicity while enlarging operations context to what we call meta- systems, which acquires more variety hence more complexity in simplicity and strength through diversity. The system has an inbuilt automatic process of decision-making by avoiding ambiguity using theoretical frameworks beyond quantitative analytical systems theories. The viable systems model therefore is rigorous theory for management of the Baghlaf Group operations. (Stafford, B.1995 p.3) The numerous product development activities of Baghlaf Group will benefit for the viable systems model due to the self-renewing dynamism of self-correction like a compass and removes working ambiguity teamwork conflict and ability to make necessary decisions without adverse affect on profits and customer value. We will therefore use the viable systems model as the Platform for Change giving Baghlaf customers the picture of simple conglomerate as simple total System of all the subsidiaries using ethical evolution of practices gained over historical development. This is in experience from current Baghlaf Group as sustainable self-renewing institution. This will match processes to multiple tasks and integrate actions aimed at solving simultaneous objectives that are designed into all jobs such that every action is also deemed lead from a value decision. An action embodies instruction and the beginning of new process within a process from one customer to the group Chairman and back to the customer the chain is cyclical and self-regulating like the human blood circulation system. When targets are, wrong and increased risk threatens the group the model System will automatically request alerts for help or order its peer manager for system support this is the homeostatic loops problem advanced to product development and customer care. Thus, the changing and upgrading of the systems at Baghlaf Group requires our use of current success and sustained increase from present is position with the new system inbuilt from the current departments. Simplicity of the viable systems model The viable model is a designed with simplicity in mind. It has very few lines of management and with straightforward authority structure. Its complexity is only discernible at the international top CEO. /chairman level whose work is at the touch of a button controlling ten companies through ten CEOs in one computer integrated systems. The operating and commands structure is so simple comprising a team of ten executives leading ten companies across the Baghlaf Group. These ten group leaders are called the chairperson team. The system of viable systems model uses use precise definitions each outlines specifications of task for each subsystem. The sheer size of the ten companies of the Baghlaf Group is simplified when each subsystem or company maintains its simplicity by use of the viable systems model. Flexibility of the viable system model Changing the systems and upgrading at Baghlaf Group means that its internal and external environment Conditions will change and managers must adjust operations to the new dynamism .The operations will change due to the design of the new systems and will also modify existing operating systems. (Stafford, B.1995 p.4) The existing Baghlaf Group system will not be modified but will be made flexible to accommodate the new systems .instead we will not invent the wheel the new viable system models system is flexible and integrates all the different subsidiaries with each in its diverse product portfolios. (Eli Cohen, Ed. 2008, p.574) The new system will modify an existing system of Baghlaf Group to produce better products better systems scenarios of operations, sizes, varieties, differentiated services. The difficulty of change management and change administration also favour the flexibility of the viable systems as they are system within a system .This one system with inbuilt five subsystems intertwined and interrelated yet inextricably connected and integrated by single management policy making executive team managed by one chief executive or one chairman. One entity in diversity with dynamism and innovativeness as the driving spirit de corps. Reliability of the viable systems model The consistency of the viable systems models means that predictable and constant output without surprises of emergencies as these are factored onto the processes of self-renewal and sustainability of processes .this is both manually and computerised to give no chances to failure. (Furnell, Katsikas, Lopez, 2008. p.302). The failures are expected and planned for before they occur. Thus, system operates using both extremes because reliability is designed into the system especially for industrial manufacturing systems in a performance for the key machines are Automatic hence no emergencies. Economy of the viable systems model The viable systems model provides economies of scale across alls the companies and or subsidiaries of Baghlaf Group. It will save many operational expenses, as money will no longer be paid out for unnecessary activates and routine functions will be integrated into few multi-skilled staff who use technology with upgrade skills and on the job training. Human resources Acceptability for viable systems model it is simple for The staff to accepted and trust the new system to assist them better their responsibilities without threatening careers in the short term as sooner or later some careers have to end due to saving on duplications of roles due to management gaps in the current structure. (Muehlen, M, 2004. P. 27). To ensure acceptability the system will be gradually changed and upgraded systematically over a period of change. iv. Future recommendations on for the Baghlaf el zafer Holdings Group Changing and upgrading to use Viable Systems model will automatically change the staff skill setting at the human resources department. This sis due to the efficiency of the new systems and need to get rid of non-performances by retrenchment while increasing productivity and high calibre of staff new international conglomerate structure .This will change all the structures of the Baghlaf el zafer holdings group and the relationships between the subsidiary companies the ten companies. It will also change the product focus of different processes interdepartmental and inter group communications and the flow of data. (Stafford, B.1995 p.4) It incorporate the complexity of systems composed of sub-systems it is viable systems are made up of viable subsidiary systems, which are themselves, made of viable departmental systems.(Muehlen, M, 2004 p.27). The core businesses of Baghlaf Group already divided into ten groups. These carry out activities, which utilize resources corresponding to each company structure and its departments within Baghlaf Group. It will similarly influence departmental teams within the departments and committees within teams and it will decompose all the activities of Baghlaf Group to specific defined rules of decision and staff innovative acumen. This model divided the complex group structure into ten core business activities. Each core business for the Baghlaf subsidiary is itself a viable system .the companies are part of the groups systems changing and upgrading through transformation of the whole Baghlaf el zafer group holdings. (Furnell, Katsikas, Lopez, 2008. P .302). The second level of the Baghlaf Group will be System 2 representing all the information channels and departments that each company subsidiary uses to communicate between each subsidiary. These channels are for monitoring and co-ordination across all companies and across borders. (Muehlen, M, 2004 P.27). We shall then streamline the group company the structures and controls. This will formulate some group universal rules and roles with responsibilities .according to reduction of resources as per each subsidiaries operational targets and budgets. It will be useful in providing an interface with the chief executive of the group at one point of convergence of communications at head office. This point of convergence gives the group the overall direction. It has only become integrated as a completely systematized total At level of System 4, we shall focus on functions of the group administration executives that charged with monitoring the international business environment for group to identifications of the future needs to adapting. This is in order remain viable into the future in all its business area of focus. At the level of System 5 the group of Baghlaf Group, el zafer holdings will need the chief executive team of heads of departments who are the senior management team to make and review policy decisions across the group in order to focus the global inter national market. The group demands of group products and take advantage of those opportunities so as move the group into the future of success (Muehlen, M, 2004 p.27). The international structure is made of the first level system of the Baghlaf Group at the level of the ten companies at the key core activities hence forming the first recursion level. In addition, this international business the environment is represented in the viable systems model. (Furnell, Katsikas, Lopez, 2008. P. 302). The international business environment in-group focuses on Baghlaf Group as viable systems model necessary survival of the group depends on this environment . It is a business environment that each company I going to build it own independent context. This context provides each key company with its own internal processes that are linked by a computer to the chief executive of the groups at the touch of a button. This is the use of technology to construct an intranet interface for all different group leaders as ach of the ten companies connected to the chief executive by one system. For security purposes the financial transaction limited only to the independent audit departments for the ten companies. (Muehlen, M, 2004 P.27). This model give the changing of systems and upgrading is a dynamic element by introducing systems alarms and system rewards that keep on escalating between these different system levels of administrative recursion’s give alarms on actual team performance while it gives rewards on performance. The targets excellence exceeding the set capacity and capabilities all of which are set to occur after pre-programmed timeout. The architecture of the viable system model for Baghlaf group is designed to work like the brain and nervous system and is derived from the way the human body works. The systems of Baghlaf Group will therefore work like the autonomous nervous system from the first level at international level. The third level at interdepartmental is at the atomic actions level. The fourth subsystem of Baghlaf Group will be likeable to the body’s cognition and conversation skills. The firth subsystem is the chief executive level the chairman of the Baghlaf Group el zafer holdings is brain functions of the Baghlaf Group it works is of introspection and decision making and he is the Brain of the Baghlaf Group. Methodology of changing and upgrading the systems at Baghlaf Group There are changing systems and upgrading Rules in implementation of viable system modelling at the Baghlaf Group el zafer holdings group (Beer Stafford. 1995p.4) In order to ensure resources and rare capital are matched to the needs and requirements of each company or each new or branch. It also could mean new market entry or new product offering or new sub branding. (Furnell, Katsikas, Lopez, 2008. p.302). Within a product range, making the group to have the biggest unlimited capacity to offer even thousands of products just like the human brain can accommodate thousands of functions and ideas. Variety at the Baghlaf Group The variety is system trait the new systems according to the number of possible companies or product of the group Variety factors will be measured by four Principles of Organization (Muehlen, M, 2004 p.27). These principles are variety, Recursive System Theorem, Axioms of Management and the Law of group Cohesion. These rules enhance the Variety conditions and allow for the matching of resources to company requirement at subsidiary level as well as at the group level and international market. The Baghlaf Group Regulatory aphorisms These aphorisms are designed as follows: a) it is not necessary to visit baghlaf office to understand the nature of the function it performs. B) It is not necessary to calculate the variety that it potentially may generate because variety already guaranteed (Muehlen, M, 2004 p.27). The Baghlaf Group system organizations principles The new system uses the existing principles in different manner in a systematic changing without affecting staff attitude; these include Management principles, operations principles and environment friendly or eco friendly principle (Muehlen, M, 2004 p.27). All these are implanted and ingrown into existing Bahglaf institutional system. As away to upgrading, the system these principles always tend to equitability and are designed to upgrade with little resistance to staff involved as well as little cost with savings as resource utilization focus of f scarce resources. (Furnell, Katsikas, Lopez, 2008. p.302). The four directional channels have bigger capacities to dynamic interaction between coordination and synergic between the management unit, the operation, and the environment’s capacity to integrate the three is the fourth systems with high variety selection in real time than the original three principles. It uses principle of coordination in dynamic improvement manner. The system theorem of Recursion The system theory of the news viable system at Baghlaf Group states that in a recursive organizational structure any viable system contains, and is contained in, a viable system. (Stafford, 1995 p.3-4) New systems axioms Description The performance of the subsidiary company or companies in different products areas and different various countries at the international level is results of success of consumer product operations and offerings at system level one. (Muehlen, M, 2004 P.27). It is a result of efforts equals to the sum of the departmental variety functions by the six organisational components of corporate cohesion from individual working levels at departmental levels to company level then to subsidiary level then to head group operations system levels. (Muehlen, M, 2004 P.27). These are five levels of structure .the level of group CEO or Chairman at level five, the level four is subsidiary CEO, level three is departmental coordinators integrated across the group. Two is the departmental functions of each subsidiary .level one is the atomic actions of individual staff members. The System allows the management of variety of products with un- limited offering across the group Indicators of systems Measurement of performance The system has three measures of capacity and achievement in terms of actual performance, capability and potentiality of our staff functions as actions at work. Actuality indicator This defined as What Baghlaf Group has been are managing to do now, with existing resources, under existing constraints. The Bahglaf capability indicator This is what Bahglaf group and subsidiaries could be doing right now with existing resources, present constraints. The Bahglaf potentiality indicator This is what the group ought to be doing by developing the capital and human resources and reducing or getting rid of constraints but still within budgetary allocations and business predictions of feasibility. This indicates the need to realize the synergy of the entire group through utilizing its potential as group not as divided entities hence need to integrate all functions under the viable systems model as we have shown in this report. v. Conclusion on the changing and upgrading sytems at Baghlaf el zafer Holdings group The use Cybernetic systems and computerised skills upgrade is a simultaneous activity. The staff will use the new system of the viable systems model to simplify the operations of the Baghlaf Group el zafer-holding group. (Eli Cohen, Ed. 2008, p.574) The simplification will benefit the customer and all other stakeholders and shareholder due to profit maximisation. This is by use of the simplified five systems levels of viable systems model (VSM) (Furnell, Katsikas, Lopez, 2008.P.302). The Baghlaf Group will need to change the systems to the viable systems models a systematic model for organising complex organisations into value action. The strategic method, which involves five subsystems, mapped to the ten subsidiaries companies in global different countries using an international management strategy framework. It will give a simple but complex structure easy to use and understand to all staff. The Baghlaf Group will utilize the here and now, there and then giving a strategic direction to external, environmental and future demands. It is with this dynamism and ease when managers feel the change is easy and adaptable. Since the upgrading and changing of the systems at Baghlaf Group involve a lot of strategic entry at the staff level and tactical means without affecting the motivation as well as the skill of the staff (Muehlen, M, 2004 p.27). The viable systems model also leads to systematic strategic policies that manage the Group as a viable business group for now and in the future. (Eli Cohen, Ed. 2008, p.574) It utilizes the robustness to advantage of the group by use of group synergy and integration through diversity of all the business entities and functions across borders by use the international structure of a conglomerate to get into world market. vi. Cited Works Eli Cohen, Ed. (2008) Setting Knowledge Free: The Journal of Issues in Informing Science and Information Technology Volume 5, P.574. Informing Science .USA Douglas Chalmers Hague (1993) transforming the dinosaurs: how organisations learn, Issue 3 of Paper, London, UK Stafford, B. (1995). Brain of the Firm, Chichester, John Wiley. Benjamin Chris .new York, USA, P.3-5 Hämäläinen, R, & Saarinen, E. (2004) Systems intelligence: discovering a hidden competence in human action and organizational life, Volume 88 of Research reports / Helsinki University of Technology, Systems Analysis Laboratory, SAL, Helsinki Univ. of Technology, P.241. Jalan, P. k. (2004) Industrial sector reforms in globalization era, Sarup & Sons, 2004. Journal Systemic Practice and Action Research(October 1992) ,The soul of the viable system model ,Research Note ,Issue Volume 5, Number 5 / October, 1992 Springer Netherlands,) P. 561-564 Muehlen, M, (2004) Workflow-based process controlling: foundation, design, and application of workflow-driven process information systems /Volume 6 of Advances in information systems and management science, Michael zur Muehlen, New York. .P.27 Keith Harman, Alex Koohang (2007) Learning objects: standards, metadata, repositories & LCMS, Informing Science, 2007, P.341 Michael Gerard Hinchey, Patricia Rago, James L. Rash (2006)Innovative concepts for autonomic and agent-based systems: Second International Workshop on Radical Agent Concepts, Springer 2006, MD, USA.P.185 Steven Furnell, Sokratis Katsikas, Javier Lopez (2008) Securing information and communications systems: principles, technologies, and applications Artech House information security and privacy series, Artech House, P.302. William F. Christopher (2007) Holistic Management: Managing What Matters for Company Success, Volume 46 of Wiley series in systems engineering and management Wiley-Interscience, P.2 United States, Office of Technology Assessment, Congress (2009) Federal government information technology: management, security, and congressional oversight. DIANE publishing .USA.P.128. LEARNING REPORT The learning experience was challenging and interesting especially the use of industrial standard solutions to solve current organisation problems .It has given a unique opportunity to view and understand how systems models are beneficial to management of big organisation like the Baghlaf Group. In writing this paper it been very challenging work especially in the researching the library and timing in being consistent as well. It improved my communication skills as I tried to put conceptual models into operations of the existing case study of the interplay between the various operations of the baghlaf group as well as the historical development of its current systems. The modelling to try to learn the best suitable model as per current group operation and to pinpoint how these systems will match in changing the old systems by upgrading onto the new systems. I acquired a thorough understanding of in-depth experience of how to analyse and upgrade old systems into new operational model, which are more effective in goal-orientated systems modelling by use of use of industrial standard solutions The report enabled me to get first hand theoretical frameworks comparisons in effort to ensure adequate simplification of the overall system architecture as a learning outcome, which has given a radical approach to how to simplify complex organizations into management actions with clear focus on the visions and mission objectives .Learning of technical kills in the use of systems and model studies as well as application of knowledge in the improvement of reliability of the robustness and synergies and how these work in the new systems upgrading will be a memorable task. The use of concepts in the interpretation of international strategies inline with skills in contextual analysis and insights into problem solving This work has helped in the learning of how the interrelationships between theory and practice as well as in implementation of more flexible architectures that could be easily adapted for success of management and international systems models that fit exactly to modern practices. the improvement of my skills in study of the way companies grow through changing situations as their operations grow as well as how future changes in the plant control systems are aligned.. The paper has helped me learn about system changes in line with the market requirements of manufacturing and services sectors of development of for maximise use of human resources to achieve work targets. This paper has enabled me to be qualified in handling complex situations similar to the case study in terms of the lessons of focusing into the variety and integration of ideas into consistent model into systematic detailed interpretations of activities of departments of financial implications of marketing issues, labour relations and human resources management across international function. It is memorable undertaking especially the upgrading of factories control systems and supply chain functions managements issues. It gave me a thorough insight into model analysis as well as risk indicators and monitoring and evaluation issue for total quality product assurance and customer satisfaction. Read More