Arthur D. Little Model for Nature of High Performing Business (Philip Kotler Summary)

Model proposed by Arthur D. Little (consulting firm).

Four key success factors – Stakeholders

– Processes

– Resources

– Organization

“Set strategies to satisfy key stakeholders by improving critical business and aligning resources & organizing”.

Stakeholders:

–          Stock holders

–          Customers

–          Employees

–          Suppliers

–          Distributors.

• Business must strive to satisfy threshold expectation of each stakeholders group.
• Stakeholders group are inter related dynamically.

Processes:

– A company can accomplish its satisfaction goals only by managing & linking work processes.

– Traditionally, company work carried out in departments. This may create problems. Hence, focus should be on core business processes, such as

• New product development.
• Sales generation.
• Order fulfillment.

Cross functional team created for each processes.

Resources:

–  To carry out processes, company needs resources.

Resources could be :

– Labour/ People.

– Materials.

– Machine

– Information

– Energy.

Resources may be

– Owned

– Leased

– Rented.

–          Earlier, companies would try to own most resources.

–          Today, companies outsource less critical resources if this gives increased quality & cost reduction.

Organization: 

Organization consists of  – Companies Structures

– Companies policies

– Companies culture.

In changing market situation, company should be able to change/ adapt organization.