Sub Systems

Having smaller, interdependent and cross functional departments, units and

divisions serving specialized functions such as accounting, marketing, vendor
management, information technology and management will break the monolithic
departmental chain's large business units into manable and much more recrprocal sub
systems.

A performance management system that that can perfoem features like goal-setting,
development, incentives, communication, reviews, rewards, accountability etc can
ensure whole system sucess.

Each of the smaller business units and teams with in should have the capability to
self organize and make mission critical decisions. Taking away too many layers of
overhead and command and control typeof management will ensure that the teams are
agile and respond to their environmental canges faster. Companies like John Deere
and Saab have successfully used this model to develop new machines and figherjets
and stay extremely responsive to the competition and stay successfull.

Macys business model has already changed for the better and the organization
started reacting to it's changing environment.
This has helped the company inch forward

Interaction with it's environment and processing feedback

Large brick and Morter retail stoers built with the idea of presenting an
aggregation of products under one roof for a walk in customer. But retailers can no
longer count on this business model. Being permeable and open to feedback and
inputs from it's environment and making appropriate business decisions will restore
equlibrium and keep the retailers effective. Macys in coming up with Backstage
outlets in reponse to the compition from the lower end discount chains like TjMx
and Marshalls. The retailer is expanding into international markets starting next
year. It has made significant investments to shore up its online presence. Having
poros boundaries will help organizations like Macys and other strugglling retailers
help not only aintain their help but fot this survival.

Trust your Employees

To many layers of overhead - takes forever to get sign-off on a design or project

design, which sometimes resulted in things not getting done because the approval
came too late.
Everything is build on top of legacy systems, which are slow, not integrated, and
often unstable. Development cycles are severely hampered by lack of valid data and
unstable test environments and builds that can take up to a day.

Trust your people and let them make decisions - not everything needs to be reviewed
and second-guessed.
Invest in the technology environments - so much money is wasted because the systems
can't keep up with the people!
Autonomos

In cases of systemic failure, individual executives who operate at a lower sub-

system level may be free of responsibility and blame. They may argue (correctly)
that it was the wider system that failed. They may claim that particular systems
that integrate with their own work let them down. However, responsibility and
accountability for the successful design and running of the (integrated) whole
system should rest somewhere.

Business value creation is

related both to the sub-system (through quality management, R&D activities,
internal auditing, feedback daily
research, etc.) and to the supra-system (through cooperation logics and asset
improvement in terms of technical,
cognitive, relational and adaptive aspects)

Through TQM every size of unit, from individual to team to company to region
and nation, can learn how to learn. TQM can be thought of a system for learning new
skill for the benefit of
society

competitive firm behavior is strictly linked to the ability

to identify and manage functions and relationships, thereby establishing
communication channels, organizing
information flow, and rationalizing and harmonizing a firms development aligned
with all external relationships.

Adaptation
According to the viable systems approach (Barile and Polese, 2010a), any
organization has to be able to preserve its
viability and stability, creating its own internal environment that is able to
respond effectively to external stimuli at
all levels (viability). Organizations are considered viable systems if they are
able to survive in a particular context
due to continual dynamic processes and several kinds of internal changes
(adaptation).