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Systems Levers by Miller

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Chapter 11 Miller (pad 383-397)
Systems Levers

SYSTEMS AS IMPLEMENTATION LEVERS

In this chapter, we define Systems as established procedures by which organizations allocate resources and monitor their use. We refer to two categories of systems: Resourcing and Control.
While we look at control systems as a whole, we further categorize an organization’s resourcing systems into three distinct types that reflect three basic resources organizations depend on: INFORMATION, PEOPLE AND CAPITAL.
Both resourcing systems and control systems serve the needs of internal customers – those in the organization’s core processes – who, in turn, arte externally focused, serving customers outside the organization. You may remember seeing these distinctions made in previous chapters, using a model here as exhibit 11.1 A Generic Model of Core Processes and Systems

Without the resources (information, people, capital) basic to the operation, core processes cannot offer the value customers need, and they will cease to provide an affective source of competitive advantage. At the same time, with-out controls the core processes are likely to move in different directions, squandering the resources they are allocated because they lack coordination.
The way in which information is collected and provided, the general approach to developing human resources, the mind- set behind the capital allocation system, and the extent to which the firm emphasizes input –versus – outcome – oriented controls are all examples of how these support systems help determine the strategic actions organizations will take, and we discuss them in detail below.

That message will be there, but it´s more important for you to understand how small changes in the management of resourcing and control systems can have big impacts on the strategy firm implements. As

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