A RELATIONAL SYSTEMS MODEL OF A BUSINESS
DON MIKULECKY
ISCE FELLOW
SEMANTICS OF THE
SYMBOLS USED:
Dotted arrows (- - -
>): Material Causes (Agents on materials, money, or “good will” to transform
them. The material being transformed is
the material cause of the product of the transformation)
Solid arrows ( à ): Efficient Causes (Agents which actually make the
transformation happen)
The various members
of the system (Here we define “system” boundaries in a porous way to include
the clients, consumers, consultants, etc.):
People: P
Capital: C
Raw materials and
resources : R
Products: P
Profit: $
Good will: G
The Relational
Systems Model is abstract and is an example of what has been called
“Thermodynamic reasoning”. That is it
abstract so that it fits all realizable mechanistic models but therefore it can
not be used to distinguish between alternative mechanistic models. It retains the “organization” in a purely
functional sense without embodying any of the structure. Therefore for any given application it needs
an accompanying structural diagram.
C
R - - - - - - - - > P -
- - - - - - - - > $ - - - - - - - -
- - - > G
P
Interpretation of
the mappings (organizational functions):
C à R =
investment (efficient cause for manufacturing)
C à P =
investment (efficient cause for marketing and sales)
Cà R = labor, management manufacture or
produce the product
P à P = labor, management market the product for
profit
P à $ = labor, management manage the profits
P - - - > G = labor, management create good
will
R - - - > P =
manufacturing and service/information provision
P - - - > $ = Marketing and sales
$ - - - > G = Creation of Good Will by advertising and marketing
P - - - > G = Creation of Good Will due to reputation of the product
Gà P = 
feedback (good will helping to sell the
products)
Gà P = 
feedback (good will helping to build morale
and loyalty)
$ - - - > C =
reinvestment
$ - - - > P = 
rewards
This is a crude
first attempt and I invite feedback
This
is a crude first attempt and I invite feedback