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Slide 2 REED E. NELSON RENELSON@SIU.EDU REEDENELSON.COM How Organizations Work, and Why Yours Doesnt Slide 3 GOALS: WHO DO WE SERVE BOUNDARIES: WHAT GETS IN ACTIVITY SYSTEM: HOW WORK GETS DONE Three Components of Every Organization Slide 4 DOMAINS CAN BE BROAD OR NARROW, STABLE OR UNSTABLE. USUALLY WHEN THEY ARE BROAD, THEY ARE ALSO LESS STABLE Goal/Domain= Turf, Who we aim to please, or What part of the environment we want to control Slide 5 BOUNDARIES CAN BE PERMEABLE OR IMPERMEABLE. EXAMPLES ARE: PRICE, LOCATION, BREADTH OF PRODUCT LINE, ENTRY AND EXIT REQUIREMENTS, DEBT, SPEED OF SERVICE Boundaries: What gets into and out of the organization, and on what terms Slide 6 SIMPLE OR COMPLEX FLEXIBLE OR INFLEXIBLE COMPLEX= MANY DIFFERENT ELEMENTS FLEXIBLE= EASE OF CHANGE Activity System Slide 7 DO BOUNDARIES AND ACTIVITY SYSTEMS FIT WITH THE ORGANIZATIONS DOMAIN Effectiveness= Fit