The design of internal structures in a company is formed by its organization and work processes. This design is named the Management System and may be certified according to international standards, e.g. ISO 9001. Activities inside the company refine available assets into value for external stakeholders.

Good designs of the Management System take into consideration both external aspects to the company as well as internal strengths and weaknesses. The performance of a company viewed by customers and owners describes the effectiveness of the management system. Internal performance as viewed by managers and staff inside the company describes the efficiency of the management system.

Management System Architecture

So to do a good design of the management system you have to have these top level (architectural) considerations. The company has to find a position in the selected external environment. It has to identify a business logic that matches the behavior of major stakeholders in the external environment. The company shall design a value creation chain that enables customers to make use of products and services in the most convenient way. Internal value creation needs to be aligning with both the customer value flow and the nature of internal value creation. Responsibilities have to be distributed in organization structures and relevant controls should be applied.

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