Emerging results
Chapter 4 - Corporate futuring
Previous page: Value realisation - Emerging results - Next page: Strategic cycle
Back to Book content or directly to Main Page
.
Welcome to the Emerging results page
.
What is emergence about?
| Emergence describes the direct causal action of a high-level system upon its components; qualities produced this way are irreducible to the system’s constituent parts (Laughlin 2005). An emergent property of a system, in this context, is one that is not a property of any component of that system, but is still a feature of the system as a whole. |
.
If you are not yet acquainted with relational thinking, please consult mediator, confounder and collider in Causal Thinking (Chapter 3).
.
Emerging results
We state that your business or organisation has four distict results:
- (Business) Reputation
- (Business) Culture
- Revenue
- Profit
.
The interconnections between those four
- Reputation is highly connected with your company's culture and profit
- Culture may be evident but think about how your financial results can be distributed in the case of 'profit'
- Culture benefits from reputation.
- Think about the employer branding or engagement programs, but also about your revenue because this is the core element where your employees contribute most
- Revenue is the intersection between culture and profit
- The former is about how your organisation generates revenue. The latter is about how the organisation's top deals with revenue
- Profit is how your organisation can handle the revenue, given the reputation
.
Deep dive
(Business) Reputation
A business's reputation is how people think and feel about that business. It's important because a good reputation can help your business attract customers and make more money, while a bad reputation can do the opposite.
Many factors influence your business's reputation, such as the quality of your products or services, how you treat your employees and customers, and how you handle problems or complaints. Therefore, your business must be honest, fair, and ethical to maintain a good reputation.
.
Long term thinking → Ethical decision making → Operational strategy → Reputation
Be aware of these relationships:
- Motivation → Long term thinking ← Collaboration
- Talent development → Ethical decision making ← Learning organisation
- Human capital → Operational strategy ← Requisite organisation
And these:
- Motivation → Talent development → Human capital
- Collaboration → Learning organisation → Requisite organisation
(Caution: the arrows show ideal relationships, not the real ones from your situation.)
.
.
(Business) Culture
Business culture refers to the values, beliefs, and behaviours shared by the people working in your business. It's the way that the company does things and the way that people interact with each other.
Many factors may influence your business culture, such as your business's industry, the size or the leadership. However, your company needs to have a culture that aligns with its goals and values, as this can help create a positive work environment and lead to success.
.
Appreciation → Organisational structure → Business model → Culture
Be aware of these relationships:
- Motivation → Appreciation ← Governance
- Talent development → Organisational structure ← HR management
- Human capital → Business model ← Compliance model
And these:
- Motivation → Talent development → Human capital
- Governance → HR management → Compliance management
(Caution: the arrows show ideal relationships, not the real ones from your situation.)
.
.
Revenue
Revenue is the money your business earns from selling its products or services. If your company sells something, the money you make is your revenue.
Revenue is an essential measure of your business's financial performance because it shows how much it brings in. If your company has a lot of revenue, it is doing well and making a lot of money. On the other hand, if your business has little or no revenue, it could be doing better and may have financial problems.
Your business needs a healthy revenue stream because this allows you to pay your expenses, such as employee salaries, rent, and utilities. It also allows your business to make a profit, which is the money left over after all the expenses are paid.
.
Steering → Operational management → Commercial management → Revenue
Be aware of these relationships:
- Governance → Steering ← Managing
- HR management → Operational management ← Process management
- Compliance management → Commercial management ← Activa- & enablers management
And these:
- Governance → HR management → Compliance management
- Managing → Process management → Activa- & enablers management
(Caution: the arrows show ideal relationships, not the real ones from your situation.)
.
.
Profit
Business profit is the money your business makes after paying all of its expenses.
If your business is making a profit, it is doing well and has a solid financial foundation. On the other hand, if your company is making little profit or losing money, it is not doing well and may have financial problems. Profit is what allows your business to grow and thrive.
Traditionally, companies use profit to invest in new equipment, hire more employees, pay dividends to shareholders, or expand the business in other ways. But a new way of thinking about profit involves concepts such as '3P - People, Planet, Profit', 'ESG - Environmental, Social, Governance', or 'SDG - Sustainable Development Goals'.
.
Supporting → Performance → Financial management → Profit
Be aware of these relationships:
- Collaboration → Supporting ← Managing
- Learning organisation → Performance ← Process management
- Requisite organisation → Financial management ← Activa- & enablers management
And these:
- Managing → Process management → Activa- & enablers management
- Collaboration → Learning organisation → Requisite organisation
(Caution: the arrows show ideal relationships, not the real ones from your situation.)
.