Management System Blueprint

I have seen some business units operating their day to day activities without a firm management system and some even with no such management system at all.

What is a management system and what is it for?

A management system is the framework of policies, processes and procedures used by an organization to ensure that it can fulfill all the tasks required to achieve its objectives.
(From wikipedia-the free encyclopedia)

In my opinion, there are 4 pertinent perspectives that an organization can base their framework of systems to ensure in creating value to its shareholders through growth in return on capital employed.

1. Financial Perspective
2. Customer Perspective
3. Internal Business Perspective
4. Learning and Technology Perspective

Financial Perspective addresses the financial goals the organization would want to achieve through growth in value to the business unit. Primarily, the  corresponding objectives are Return on Capital Employed (ROCE) and ROI. Some measures of this features are working capital efficiency growth, gross profit and gross manufacturing profit growth. 

Customer Perspective addresses the value proposition an organization would want to offer through their products and services to their targeted customers and market segments. Some examples of this perspective seen from point of objectivity are,

• Customer satisfaction
• Customer retention
• New customer acquisition
• Market share

Each objectives is than communicated down to various measures that needed to sustain those objectives. All the measures formulated are to correspond to each objectives which in turn will provide successful achievement of customer's perspective goals. 

Internal Business Perspective features originated from post formulation of the prior two perspectives mentioned above. This perspective touches on objectives that must support and lift up the goals of all functional strategic departments that addresses the perspective in relation. In addition, it follows with relevant sustainable measures that collaborates hand-in-hand with its objectives. 

Learning and Technology Perspective  addresses the training and learning part that needed to support the other three perspectives above. It also addresses the technology updates through digitalization and automation to stay ahead against other competitors. Some objectives are 

• Reskilling of workforce
• Embracing MBO ( management by objectives) work culture
• Link rewards and performance
• MIS capabilities

The measures linked to this objectives can be stated as,

• Learning aptitude level
• Tailored need based training
• Employee satisfaction and retention

So if you can observe from above, for every 4 perspective mentioned, it entails features like objectives and its measures. In reality a good system should not stop at this 2 features. Ideally it must follow with targets of each measures and its corresponding initiatives.