What exactly is The Business Algorithm?
The Business Algorithm (TBA) is a framework that allows any Organization tapping into human performance, protecting the business rules, principles and culture of each and every organization. TBA can be applied to any kind of organization that is focused on:
- Understanding how the Business works in the present moment;
- Understanding how organizational processes respond to the Business itself;
- Understanding how decisions are made inside a specific Business and/or Business unit, in order to protect the future and the value of the Business;
To ensure perfect understanding about the TBA it is important to highlight these generic assumptions:
- A Business is built by a group of people;
- There is no Business if there are no people;
- A Business is a group of people that team-up to deliver Business Results;
- A Company is a group of people that feed a particular Business;
- A team is a group of individuals;
- People are Complex;
- Teams are far more Complex than individuals working alone;
- Different Evaluation Methods address different Corporate evaluations;
- Skills and Human Competence address a unique value to the company and make technical analysis a poor method to evaluate companies in the stockmarket;
The Business Algorithm is a Business “language” between a unique Governance model and the people that build the business everyday. This business language is unique and it depends on the will of the people who have the responsibility of deciding in each and every moment the present and the future of a particular business or organization.
The unique Governance Model should be built in a democratic negotiation platform, that protects how the business works and commits people with the approved Model.
By Organizing the structure of a specific business it is possible to get people onboard in Top-Down series of interviews and feedback. Integrity, transparency and business focus are protected this way, respecting informal leadership and dismissing formal hierarchy.
The advantages of using TBA as an independent management system are:
- Building an Independent Management System independently of Software and/or Hardware;
- Building a common language and understanding of a specific Organization/Company;
- Avoiding Agency Conflicts (Managers vs. Investors);
- Discussing how the company shall be managed in order to protect investors and the Future Value of Cash Flows;
- Preparing the company to communicate internally as well as externally;
- Avoiding unnecessary financial risk ;
- Avoiding unnecessary operacional risk ;
- Avoiding team conflict;
- Reducing people management efforts;
- Building an Agile Management system (easily adapted).
This is a custom-made functional model that can be adapted to every Business.
Example:
