Imagine that you are a business manager for a mid-sized company. Propose one (1) overall strategy to build an effective business model in order to both monitor / control changes in business process and predict future business performance for your company. Provide a rationale (e.g., verification process) for your response.
Whether starting a business, running a business or being a manager of a business, having a plan and developing and improving ways (processes) in order to accomplish your goals is imperative. Models can be developed to help business managers do just that. As we read in the textbook, there are two basic strategies for develop process models: analyzing existing process data and proactively experimenting with the process.
There are two types of models: The Empirical model that’s based on collected data and plots; and, Theoretical model based on theoretical relationships. Regression modeling looks at the relationship of one mean value such as output and other variables such as time and cost. And so there is the five step strategy to developing a good business model using this regression modeling.
Hoerl, Roger, Snee, R. D. (2012-04-09). Statistical Thinking: Improving Business Performance, 2nd Edition. [VitalSource Bookshelf Online]. Retrieved from https://strayer.vitalsource.com/#/books/9781118236857/
- Get to know the data.
- Formulate the model
- Fit the model to the data
- Check the fit of the mode
- Report and use the model
Per the textbook, in order to understand the causal relationship in business process, manager often asks “whys” to drill down the root cause of failures. Select one (1) project from your working or educational environment and propose at least three (3) “why” questions that you would ask in order to identify root cause of problem. Justify your responses.
In a new position I recently accepted, there seems to be a disconnect between the programs and the finance/business office to obtain timely information on budget and expenditures.
Some of the questions I will be asking and determining how this process can be improved are: Why does it take so long to get the information to the program managers? Why is the information hard to determine? Why aren’t systems being better used to obtain the information? Why do analysts not know how to quickly obtain the data?
To get to the root cause of a problem a series of whys can be asked and answered to determine how to improve a process.