Human Capital practitioners are often accused of not playing the strategic role they should; failing…
What Is The Data Centric Model (DCM®)?
The Data-centric Model (DCM®) is a conceptual hierarchy or framework that describes, defines and shows the integration of the varying levels of operational complexity within an organisation or business system. That system may be any function (finance, sales, IT production etc) but it is the Human Capital function that we are interested in here.
The DCM®describes and defines the multidirectional and interactive relationships between the various levels within the hierarchy in terms of governances, predictable processes and procedures and clearly defined standards that together make the operating model of that system. The various elements combine to produce high quality information that is meaningful, trustworthy, credible and relevant.
It is when we look at the Data Centric Model (DCM®) that the systems thinking work we did previously becomes particularly relevant.
Organisations consist of people, processes and technology and, while this sounds simple enough, the fact remains that processes and technology are largely predicable in their responses but people are not. It is therefore the management of the interrelationship between these three components which merits investigation.
An inspirational and challenging business vision, combined with a strategy or long term plan to succeed is a given requirement in any professional organisation. How we actually build a business system or deliver on the vision and strategy is both simple and complex.
Defining a business model and value chain to satisfy the client is a design issue and as we will see when examining the Business Architecture Model BAM®some components of this design are based on the size of the business.
However, the business system will essentially consist in some form of some of the following: Finance, Human Capital, Communications, Technology, Marketing and Sales and other components will be closer to the core of the business model itself; purchasing, manufacturing, research and development, call centres, distribution etc. We can refer to all these as business sub systems.
No matter which of the above sub systems we refer to, a specific chain of events exists in order for this sub system to deliver value to the business. One can refer to this chain of events as a natural law of business. Fragmentation anywhere along this chain of events substantially decreases this sub system’s ability to deliver value.
This chain of events (delivering the value for a sub system in business) is highly deterministic in nature. Important at this point though, is that this chain of events exists to counter the effect people, as totally random systems, have on business.
This chain of events forms the baseline of the DCM®(Data Centric Model). This chain represents a systemic breakdown of sub-sub systems to the last meaningful element in business; the transactions themselves, the basic work elements of an operating business, and then slowly builds it back up from data produced by the delivery of transactions to show the link through different layers of complexity to wisdom or business intelligence. The basic premise of this model illustrates that a lack of thinking, formulation and agreement of an operating model influences the practices and the policies that govern them in business and ultimately the quality of information etc. used in decision making.
We can use leave as an example to help us understand what this means:
Policies : annual leave, sick leave, overtime etc.
Process : Process of applying for leave
Transaction : The approval of requested leave
Data : Amount of leave approved
Information : Leave taken in the last month for all staff, leave balances for all staff, staff going into negative balances, movement in leave accrual for the last 6 months, cycles of leave in the business (high and lows) are just some examples.
Knowledge : Increasing sick leave, increasing overtime, decreasing annual leave, lowering staff numbers, call volumes in the call centre and the call centre SLA with the client all combined can help the business plan staff numbers, budgets or various other diagnostics.
DCM®is a diagnostic tool, articulating maturity level and
The Data Centric Model (DCM®) supports a virtuous cycle of quality decision-making at strategic level, which is rolled out in the practical implementation of a clearly defined business strategy.
Data Centric Model (DCM®) enables us as practitionersto provide value whichin this context, means the ability to inform, guide and influence decision making operationally and tactically to inform and guide the formulation of business strategy; be that as a support or core function of the business.
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