Case: System Feedback Loops, SLP: Time Normal

 

Case: System Feedback Loops, SLP: Time Normal

Background Reading for Case 5

While most of models of organizational diagnosis that we have been exposed to in this class recognize the existence of feedback loops, none of them really offer a thorough discussion of the complexity of feedback or how it can be used to promote organizational improvement and development. To get a better view of this topic, we turn to the work on systems thinking and organizational learning. Much of this literature is based on the work of Peter Senge, whose seminal bookThe Fifth Discipline popularized the notion that organizations are capable of learning.

In all of the reading, pay particular attention to the two types of Feedback Loops: Reinforcing Feedback that causes growth, and Balancing Feedback that provides stabilizing effects.

This first reading is a good overview.

Bellinger, G. (2004) Introduction to systems thinking. Retrieved from http://www.systems-thinking.org/intst/int.htm on November 7, 2012.

This second reading is quite long and reviews much of the work in the area of learning organizations. Read it all if you like (see menu on left side of the page), but themost relevant part of the paper for this course is part VI, which covers systems thinking:

Larsen, K., McInerney, C., Nyquist, C., Santos, A., & Silsbee, D. (1996) Learning Organizations (Part VI: Systems Thinking) Retrieved fromhttp://leeds-faculty.colorado.edu/larsenk/learnorg/index.html on November 7, 2012

IF YOU ARE STILL CONFUSED ABOUT FEEDBACK LOOPS, [retrieved on November 7, 2012]. Here is another tutorial on this complex concept.

Optional Case 5 Reading:

Bellinger, G. (2004) theWay of systems. http://www.systems-thinking.org/theWay/theWay.htm Retrieved on November 7, 2012.

Bellinger, G. (2004) Archetypes. http://www.systems-thinking.org/arch/arch.htm Retrieved on November 7, 2012.

This is the home page for the extensive site from which much of the material for this module was taken. http://www.systems-thinking.org/index.htmRetrieved on November 7, 2012.

There are no reading assignments for SLP 5

BUS599 – MBA Integrative Project

Module 5 – SLP

Case: System Feedback Loops, SLP: Time Normal

BACKGROUND

In Module 5, you will continue with the scenario and simulation you worked on in the Module 1, Module 2, Module 3, and Module 4 SLPs.

REQUIRED READING

SCENARIO CONTINUATION:

It is still 2012: January 2, 2012, the beginning of Time Warp 3. You have completed your analysis and revised strategy for the next four years. Just like the last time, you enter your predetermined decisions each year and collect the data for future analysis.

Now it is New Year’s Eve, 2015, and you are hoping against hope that Time Warp 3 and all time warps will soon come to an end. You have the results of your decisions. How did you do? What was your final score?

It’s New Year’s day, 2016. You just had a great New Year’s Eve celebration, you finished another four years of moving Clipboard Tablet Co. through 2012 – 2015, and are ready to charge ahead into the future. You turn on the TV and notice something strange (again?). The TV commentator is saying something about New Year’s Day, 2016.You have moved ahead into 2016.

You realize that this experience has been invaluable. You know it will help you make better decisions for Clipboard Tablet Co. as you move forward. But before you move ahead, you want to make sure that you have learned what you need to know.

You decide to analyze and compare the last two Time Warp results. You want to see how this last Time Warp results compare to the previous Time Warp results (the results from this run in SLP5 to the results of the run in SLP4). Putting the results side by side and the decisions side by side, you are able to analyze what happened and how the results are different. You use CVP analysis to help you understand why the results were different.

You think this is very important and you write it all down so you can refer back to it later if you need to as you move forward into 2016 and beyond.

You hope this never happens to you again, even though you realize how valuable this experience has been.

ASSIGNMENT

Run the simulation with the Strategy that you developed in SLP4 for Time Warp 3. Collect the results for all three products over all four years. Compare the results from Time Warp 3 with those of Time Warp 2. Show the results side by side and show the decisions side by side. Explain how they are different. Use CVP analysis to explain why they are different.

Please turn in a 4- to 6-page paper, not including cover and reference page.

KEYS TO THE ASSIGNMENT

The key aspects of this assignment that should be covered and taken into account in preparing your paper include:

· You need to be detailed, clear, and complete.

· Using CVP analysis, explain how the different prices and R&D allocations have generated different results.

· Celebrate the end of the Time Warps.

· Time Line Summary.

SLP1

· 2015: Hired on December 15.

· Turned in first report to Sally a few days early on December 30.

· Celebrated on December 31.

SLP2

· Time Warp 1 begins: January 1, 2016 warps into January 1, 2012.

· You realize you have to make decisions for 2012 – 2015, which you do.

· December 31, 2015 – You have gone through all four years, and you write your report to summarize how you did. You are hoping that you will wake up tomorrow and it will be 2016.

SLP3

· Time Warp 2 begins: January 1, 2016 warps into January 1, 2012. (Again)

· Now it is January 1, 2012: You decide to use CVP analysis and develop a four-year plan for your strategy. You analyze the results of your first decisions in Time Warp 1 and make notes. You use the CVP Calculator to help you develop your strategy and you make more notes explaining your logic and your analysis.

SLP4

· January 2, 2012: You begin to implement your four-year plan. You follow it and use the pre-determined decisions for each year, through 2015. You keep track of the results, year by year, both financial and marketing.

· Celebrate – December 31, 2015

· Time Warp 3 begins: January 1, 2016warps into January 1, 2012 (Again).

· Now it is January 1, 2012 (for the third time.) You do it all over again, one more time. You decide to do the same thing you did the last time and develop a four-year plan. You use CVP, analyze your previous results, and make notes explaining what you did and why.

SLP5

· January 2, 2012: you begin to implement your four-year plan. You follow it and use the pre-determined decisions for each year, through 2015. You keep track of the results, year by year, both financial and marketing.

· December 31, 2015 – Celebrate and hope for the best.

· January 1, 2016 – You made it through the Time Warp – you analyze the results, compare this last run with the previous run, and write your final report.

ASSIGNMENT EXPECTATIONS

Your paper will be evaluated on the following seven points:

Precision – Does the paper address the question(s) or task(s)?

· Breadth – Is the full breadth of the subject, that is, the Keys to the Assignment, addressed?

· Depth – Does the paper address the topic in sufficient depth and include the background reading and other background resources as references?

· Critical thinking – Is the subject thought about critically, that is, accurately, logically, relevantly, and precisely?

· Clarity – Is the writing clear and are the concepts articulated properly? Are paraphrasing and synthesis of concepts the primary means of responding to the questions or are points conveyed through excessive use of quotations?

· Organization – Is the paper well written? Are the grammar, spelling, and vocabulary appropriate for graduate-level work? Are headings included in all papers longer than two pages?

· Referencing (citations and references) – Does the paper include citations and quotation marks where appropriate? Are the references from the background reading and assignment present and properly cited? Are all the references listed in the bibliography present and referred to via citation?

· Application – Are the concepts of the module appropriately applied to the subject?

TIPS AND SUGGESTIONS

Please note the following tips and suggestions:

· YOU MIGHT FIND THESE DOWNLOADS USEFUL:

Decision Matrix Table – Download this Word doc with a blank table you can use to show your proposed strategy decisions.

PowerPoint discussing CVP – Provides a good overview of Cost Volume Profit analysis, the various equations that you can use, and how to use it. Some examples are provided showing how to use the CVP Calculator.

CVP Calculator – This an Excel-based calculator that you can use to determine prices, volumes, and profits. Keep in mind that it will tell you what NEED, but the market determines what you actually get.

· Include a cover page and reference page, in addition to the 4-6 pages of analysis described above.

· Include headings for all papers greater than two pages (basically all papers), but do not use headings as “space fillers.”

· Cite and reference all sources that you use in your work, including those that you paraphrase. This means include citations and quotation marks for direct quotes of more than five words, and citations for that information which you have “borrowed” or paraphrased from other sources.

Follow TUI Guidelines for well-written papers.

BUS599 – MBA Integrative Project

Module 5 – Case

Case: System Feedback Loops, SLP: Time Normal

BACKGROUND

XCG

THE EXCELLENT CONSULTING GROUP

COMMUNICATION FROM ART:

Let’s wrap up this project.

So far, ABC Company and Whole Foods Market like what we’ve been doing. I have this last project, which involves analyzing Whole Foods Market’s feedback loops and organizational learning opportunities.

I want you to take a look at the feedback loops in Whole Foods Market.

REQUIRED READING:

Refer to the background reading on System Feedback Loops.

CASE 5 ASSIGNMENT:

Identify one Balancing Loop and one Reinforcing Loop. These feedback loops should be critical to Whole Foods Market’s performance and success. You should have a good idea of what these are from your previous analysis.

Explain each one of these loops – what are the causal factors and how do they affect each other. For the Reinforcing Loop, look for an area where there is growth. For the Balancing Loop, look for goal behavior. Once you have identified and explained these critical feedback loops, identify how Whole Foods Market has generated organizational learning, and how they can go further and generate additional organizational learning. What do they need to do to improve their performance further?

Be sure to include references. Turn in the 5- to 6-page paper by the end of the module.

KEYS TO THE ASSIGNMENT:

This is what you need to do:

1. Determine the two critical feedback loops. Describe each Feedback Loop that you identify in your organization and explain why you selected them.Make sure you explain the Loop, the cause and effect process within the Loop. You could also include aCausal Loop Diagram. If you do, show the arrows and direction of effect (+ or -). Also, determine what the warrant is for your case.

2. Briefly discuss the theory of organizational learning so that you provide a summary of this information to the executives – establish this as common ground.

3. Identify the learning activities in each feedback loop that Whole Foods Market has already undertaken.

4. Identify the opportunities for organizational learning in each Feedback Loop. Make a Case that these are learning opportunities. Logically show how the feedback process provides an opportunity for the organization to learn and improve its performance. Be precise. Depth and breadth in your discussion is always a good thing.

ASSIGNMENT EXPECTATIONS

Your paper will be evaluated on the following seven points:

· Precision – Does the paper address the question(s) or task(s)?

· Breadth – Is the full breadth of the subject, that is, the Keys to the Assignment, addressed?

· Depth – Does the paper address the topic in sufficient depth and include the background reading and other background resources as references?

· Critical thinking – Is the subject thought about critically, that is, accurately, logically, relevantly, and precisely?

· Clarity – Is the writing clear and are the concepts articulated properly? Are paraphrasing and synthesis of concepts the primary means of responding to the questions or are points conveyed through excessive use of quotations?

· Organization – Is the paper well written? Are the grammar, spelling, and vocabulary appropriate for graduate-level work? Are headings included in all papers longer than two pages?

· Referencing (citations and references) – Does the paper include citations and quotation marks where appropriate? Are the references from the background reading and assignment present and properly cited? Are all the references listed in the bibliography present and referred to via citation?

TIPS AND SUGGESTIONS

· You may use a simple diagram to highlight important factors. However, do not use the diagram in lieu of valuable analysis (or to take up valuable writing space) – it should be in addition to your paper of 5-6 pages of analysis.

· Just because you have written the minimum five pages does not mean that you have adequately covered the topic. Err on the side of writing more rather than less.

· Choose the data you use carefully. Is it relevant and important?

· Include a cover page and reference page, in addition to the 5-6 pages of analysis described above.

· Include headings within the paper.

· Cite and reference all sources that you use in your work, including those that you paraphrase. This means include citations and quotation marks for direct quotes of more than five words, and citations for that information which you have “borrowed” or paraphrased from other sources.

· Follow TUI Guidelines for well-written papers.