Purpose Driven Models

I dont find it easy to briefly explain my passion for models but here goes

over 20 years ago while working for big 5 consultancies, I disagreed with the way all Big 5 chose to go ahead with intangibles valuation - I believe goodwill could have been best modelled around: do you have a multi-win model or not? This impacts other valuation crisis areas of our net-generation including transparency and sustainability exponentilas

So friends and I started research of leading organisational and market purposes- the most direct question we could find was who would uniquely miss what if your organisation didnt exist - probe by different sides of demand and different groups who serve or produce

it turned out that once you had a list of these who's and what purposes- very few boards (even so-caleed built to lat companies) had an explicit way of auditing whether all the promises were modeled in a multi-win way; moreover if you lost the complete trust of any group the impact can be multiplicative- zeroise your trust and your whole worth can become zero unless you resolve the conflict in time

this value multiplication model for goodwill and trust-flow connects directly with brookings research (Unseen Wealth) 2000 that forecast that without a contextually true intangibles audit we would compound risk unseen - which I believe banking and other sectors have and still are

does this perspective match a chord with anyone here? very eager to meet anyone that may be thinking along simnilar lines; I am based in DC but come up to eg MIT every 6 weeks or so

 

chris macrae washington dc 301 881 1655

 

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Permalink Reply by nat.maras on February 22, 2012 at 1:02pm

Hi Chris,

I'm interested in learning more of this approach - do you have any resources or links where I could familiarise myself with these concepts?

I am a improving and building upon an enterprise business analysis capability (co-founded) in our department, and one of the many functions is to develop a whole of department view of its policies and programs. Our department produces 'outcomes' and measures its efficacy using a range of methods to evaluate what it does, one being 'program logic'.

What interests me in your area, is a potential to map contextually what happens to a business in its interaction with the outside world (and internally for that matter) that impacts on its 'purpose' being achievement of government (public/ social/ law) outcomes. Program logics are in some ways a functional view of key activities, inputs/ outputs contributing to a tiering of outcomes. What is missing, seems to be the influences and consequences onto a 'purposeful system' and the affect it has on public policy or business managements view of whether an organisation is effective or needs improving so to speak.

Again, interested in understanding this further Chris.

Nat.

Permalink Reply by Chris Macrae on February 22, 2012 at 3:22pm

hi nat - where are you located; I am normally in DC but am in boston today; I find working with (your) context much simpler than trying to find a common abstract language to our value exchange models- they are rather like a trignometry all of their own which makes trying to introduce at a general level in a non-asynchcronous mode of communications far harder than meeting and focusing on an application; unfortunately I dont use mobile phone but will check emails in case you are in boston too

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