Integrated Value Creation: The Wholonics Approach

1.5 units

The purpose of this course is to develop an integrated model of shareholder value creation in organizations that relies on concepts students have learned in various functional areas, and to show how tangible( six-sigma quality initiatives, EVA, mergers, etc.), as well as seemingly intangible( leadership development, creativity, knowledge, innovation, etc.), forms of value creation affect firms' market values. This model exposes both the complementarities and the tensions in the four basic ways in which value is created in organizations, and sheds lights on how metric-driven conflicts arise in organizations to impede effective value creation for shareholders. We will discuss the rules of value creation in the four quadrants of the Wholonics model and examine the optimal design of performance metrics in these quadrants. We will examine best practices for different forms of value creation and analyze organizational situations from the perspective of a value-creation consultant. The goal is to develop an improved understanding of how soft and hard value creation initiatives interact and how one should design, manage and lead an organization. Prerequisite: 2nd year standing.