There are four major areas in business management: organizational development, stakeholder value management, profit management, and operations management Each of these major areas of affects the other in an integrated manner.
Affects how stakeholder value management, profit management, and operations management incrementally and radically improve to adapt to constant internal and external change:
Stakeholder Value Management affects how value is engineered for different internal and external stakeholders, before, during, and after every step, which affects profit management, operations management, and organizational development management.
Profit Management affects operations, organizational development, and stakeholder value management, and is constantly seeking to decrease costs and increase revenues to increase profits, guided by quantitative and qualitative measurement and analysis.
Operations Management affects how organizational resources are utilized to produce and deliver products and services to external and internal stakeholders.
1. Organizational Development Management
Begins with organizational learning, which frames, researches, and analyzes the internal and external changes the organization needs to adapt to in order to survive and grow.
Organizational learning is accomplished at individual, group, organizational and inter-organizational levels, which leverages the knowledge, skills, experiences and ideas of these different levels to brainstorm new ideas to adapt to internal and external changes to survive and grow.
2. Stakeholder Value Management
Because organizations have limited resources, the creative ideas generated from the creativity management process of organizational learning must be weighed using structured idea management to fund the idea that will create the greatest value for internal and external stakeholders, which results in incremental and radical innovations.
These innovations are designed, developed, evaluated, innovated, and integrated into the business and technology models, and into the organizational design, effectively creating incremental and radical organizational changes, inside and outside the organization, rolled out using change management principles.
The incremental and radical changes to the organization and its products and services requires the internal stakeholders of the organization to be trained or developed, so that they can keep up with the new changes, so that these internal stakeholders can relate these changes to external stakeholders.
Employing the organizational development techniques of learning, creativity, structured idea management, and innovation, the human resources, marketing, sales, customer service, public relations, investor relations, and regulatory affairs departments identify and communicate the best logical features and emotional benefits of the organization to internal and external stakeholders, while minimizing any weaknesses and threats, to engineer value for stakeholders before, during, and after every step.
3. Profit Management
Consequently, the organization is perceived as more valuable than risky to stakeholders who then invest in the organization and its products and services. The resulting revenues, expenses, profits, assets, liabilities, and equity are tracked by the accounting and taxation departments, and reported to stakeholders, including the finance department, who helps the organization value and model future revenues, expenses, profits, assets, liabilities, and equity under different scenarios, weighing cost and benefits.
4. Operations Management
Based on financial cost-benefit analysis, and using the organizational development techniques of learning, creativity, structured idea management, and innovation, the organizational activities and people that help the organization adapt to change better, faster, and cheaper are kept and continue to be funded.
The organizational activities and people that do not help the organization adapt to change better, faster, and cheaper are modified and funded, or discarded and not funded, respectively.
In addition, organizational activities and people that are likely to help the organization adapt to change better, faster, and cheaper in the future are developed or acquired, using the funds that previously funded the newly discarded organizational activities and people.
Employing the organizational development techniques of learning, creativity, structured idea management, and innovation, the organization then resumes production and delivery of its improved line of products and services for internal and external shareholders, and the organizational development process starts a new cycle.