Mapping a Business System
Presented Causal Loop Diagram (CLD) is based on factors’ collaboration model working in Software Development, project oriented organization. The key relationship reflected by the diagram links quality factor and customer’s satisfaction. S symbolizes the Same way of relationship between linked factors. For example, quality improvement has a direct impact on customer’s satisfaction. O marked relationships work in Opposite way. For example, growing number of employees (resources) sitting on budget bench causes the decreasing level of Company’s profit.
Balancing loop approach in current diagram is used for description of the quality rising process established in software development company therefore the services’ quality improvement leads to increasing of customers’ satisfaction from services and products thus to customers demand’s level increasing. Described circumstances show how feedbacks reduce the impact of changes on overall quality of company’s processes. Reinforcing Loop is characterized by feedback increasing the impact of change on overall organizational processes.
Increasing resources’ investment at all the stages of development process is the key factor for increasing profitability of software Development Company at all stages of its operations. More qualified resources attracted at various project activities will increase the second sales of expertise to existing customers thus more RFPs will be received and more
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External factors have certain level of impact on the key factors of diagram, as economy conditions can be as much powerful in impact as customers’ satisfactions from the quality of services and products ordered. Demand factor is the weakest point in terms of external impact in present Causal Loop Diagram. Reinforcing Loop used in present diagram shows the relationship between sales and requests for development growing, at the same time it decreases the number of resources sitting on company budget bench.
The factor, which isn’t mentioned in the present scheme, is related to number of resources’ limitation. This is a gap between growing number of orders and available resources. Gap is able to create a bottle neck in the place related to growing number of projects and resources availability, so it is very important to clarify it in CLD accordingly. References: 1. Hutchens, D. (2008). The Tip of the Iceberg. Managing the Hidden Forces That can Make or Break Your Organization. Pegasus Communication Inc. , pp. 65-70.