There is always an envelope that sets the limit of the firm's
understanding and therefore a limit to the effectiveness of planning and the resulting
organizational activities. Unlimited, flawless information and understanding
(theologians would call this omniscience) should at least theoretically lead
to perfect plans, which should lead to complete market domination
― unless,
of course, the competition has access to the same information and understanding.
This situation is clearly not the case in any firm that must function in a
complex and ever-changing business environment. Not only do we have limited
and imperfect information, but our understanding of that information is often
limited. Managers must constantly ask the question "What information do
we need and what does that information mean?"
IMS Quantum Corporation functions at the edge of the information/understanding
envelope by finding the keys that will yield better information and understanding
in situations where both are limited. Ironically, while managers may be
experiencing "information overload," they may also be experiencing
"understanding starvation" at the same time. This condition can occur
for two reasons: First, while we have seemingly unlimited information,
we don't necessarily have the right information. Second, even if we
fortuitously have the right information, we do not necessarily have the
right context in which to understand it. The problem is that we do not
have the tools that will clarify what information is needed and will provide
the context in which this information takes on its most complete meaning.
But how do managers know if the organization suffers from either of these
problems? Managers are supposed to believe in the systems they have set up
to guide their businesses. They have set up these systems for the express
purpose of yielding the best possible understanding. On the other hand,
managers are the ones who ask the probing questions that help others clarify
their activities and improve performance. This situation produces an
inherent conflict between the manager's desire to have the answers and his
or her mandate to provide the critical questions. When managers in the
organization have more questions than answers, the organization begins
to operate at the outer edge of the envelope. Those organizations that expand
the envelope will develop the competitive advantage required to expand market
share and enhance profitability, if not completely dominate the market.
The Integrated Planning Model is a powerful tool for taking an organization
to a new level of understanding. It forms the basis for the management
information system so that the right information is captured. It forms
the basis for the shared understanding of the organization that in turn
is the backbone of all budgeting and strategic planning. It provides the
context for a host of critical questions. IMS Quantum Corporation, by
providing integrated planning tools for top management, demonstrates its
commitment to help organizations move from the Information Age into the
Age of Understanding.
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