Something I stress in my teaching is the need to take a systems view of an organization, i.e., don't just optimize your job or department, but understand how your domain fits into the overall organization, and work from that perspective. Establish feedback loops to monitor performance. The idea is to understand the interrelationships and the environment (i.e., the things outside the system over which you have no control, but the performance of your system is affected by these things).
For a typical business organization, the environment includes the competition, as well as political, economic, social, ecological, and legal considerations. Arguably, customers and suppliers are part of the extended organization, in its value chain. The value chain, in simple terms, is the set of links that transform inputs into outputs by adding value. Transformation occurs through alteration, transportation, inspection, and storage.
So, while I was on vacation (cruising the Inner Passage in Alaska -- thanks, Mom!), I thought about how a vacation transforms you. Or at least you hope that it does.
In my case, the inputs were a stressed-out me, baggage, the cruise facilities and staff, and cash. The outputs were a recharged me, luggage, souvenirs, photographs, memories, and referrals (it was a fabulous trip). The ways in which the cruise company transformed me:ALTER: showed me new sights, provided new experiences, prepared food, pampered me
TRANSPORT: took me round trip from Seattle very comfortably
INSPECT: assured my security by issuing cruise cards and requiring passengers to scan them to get off/on the ship
STORE: provided a lovely stateroom for my person, stocked the kitchen with ingredients
The cruise line had a good operational system, including feedback loops to ensure that the passengers were pleased with the services. However, the system was also a good illustration of the Theory of Constraints.
But that's a blog for another day.
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