Multicomplex Management (MCM) and Expected Creative Potential (ECP) Picture 2 - ECP

In 2002 Hans Bruno Lund introduced the concept

"Multicomplex Management (MCM)" as a platform

for a new series of management concepts and tools,

e.g. "Expected Creative Potential (ECP)", designed as

personal tools for the CEO of large, multicomplex or-

ganizations in addition to the traditional management

concepts and tools.

 

As of January 2010 the new concepts / tools "Multicomplex Management (MCM)" and "Expected Creative Potential (ECP)" were referred to on more than 800.000 websites or 40.000.000 webpages.

 

Literature:

 

Lund, Hans Bruno

Multicomplex Management (MCM)

Version 3

CD-ROM, 741 colored illustrations

Hans Bruno Lund

Skodsborg

Denmark

2009

 

A multicomplex organization:

 

Organization Structure Model used: Nordic Industrial Fund - Nordic Council of Ministers - Bio & Chemistry Division (BCD). Photo on Picture 1: Hans Bruno Lund visiting the governor of Oulu province, Finland Dr. Eino Siuruainen during a NordTek seminar.

 

BCD Mission

Initialization, expansion and exploitation of Nordic and Nordic/International research-, education- and innovation (REI) cooperation networks between governments, academia, business and organizations to the benefit of the competitiveness of the Nordic countries and the health and wealth of their inhabitants, and based on Internordic/International cooperation projects as the primary tool and improved and new concepts, methods and technologies and products as valuable spinoffs.

 

BCD Operation Area

BCD’s operation area covers Greenland, Iceland and the Faroe Islands in the West over Norway, Denmark, the Åland Islands and Finland to the Baltic countries and Northwest Russia in the East, and from the Arctic areas in the North to the national boarders of the Middle European countries in the South, an area of 22 million km2 with 45 million inhabitants thus making BCD with its 6.000 partners and 280.000 participants the largest organization of its kind in Europe North of Bruxelles.

 

BCD Results

Every inhabitant in the Nordic countries, or more than 24 million people, and many more around the world, are each day consuming or using at least one product, and probably more products, which has been invented or improved through the 450.000 research, education and innovation activities of the Bio & Chemistry Division (BCD) of the Nordic Industrial Fund under the Nordic Council of Ministers. That is at least 70.000 new and different product-consumer-contacts each minute day and night. (BCD-Statistics 1998).

 

Multicomplex Management (MCM) is explained in Picture 2.

 

Expected Creative Potential (ECP) is explained in Picture 2.

 

Pictures to Multicomplex Management (MCM): 1, 2, 3, ... , 16.

 

Hans Bruno Lund

Contact: hansbrunolund@hotmail.com

 

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EXPECTED CREATIVE POTENTIAL (ECP)

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CONTENTS

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01 ECP - A NEW CONCEPT AND TOOL

02 MULTICOMPLEX MANAGEMENT (MCM)

03 THE ECP STANDARD UNIT (ESU)

04 ECP AS A BENCHMARKING TOOL

05 THE KNOWLEDGE SOCIETY

06 THE NORDIC POPULATIONS - A ECP COMPARISON

07 THE COMPETITIVENESS OF THE NORDIC COUNTRIES

08 GCI / ECP - AN INTERESTING RESULT

09 HIGH- AND LOWTECH

10 UNEMPLOYMENT

11 THE MULTICOMPLEX MANAGEMENT (MCM) TOOLBOX

12 MULTICOMPLEX MANAGEMENT (MCM) LITERATURE

 

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01 ECP - A NEW CONCEPT AND TOOL

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The new concept and tool ECP tries to quantify and express the average expected creative potential for a group of employees – junior operators, operators, senior operators, chief operators, assistants, technicians, B.Sc.’s, M.Sc.’s, Ph.D.’s etc. – and based on each group member’s highest education level. ECP does not measure a carpenters skills and performance as a carpenter or a laboratory assistants skills and performance as a laboratory assistant. With ECP we only try to express how much we can expect from a carpenter, a laboratory assistant etc. concerning his or hers expected abilities to achieve results within the areas of industrial, economical and technological research, education and innovation (REI).

 

Based on experience from more than 50 years of industrial and technological research-, education- and innovation activities (REI-activities) in the private as well as in the public sectors and in seven different countries I finally came up with the following ECP-scale:

 

Junior operators [JOP] (basic school, no formal training and no experience) ECP: 0.1

 

Operators [OPE] (basic school, no formal training, some months training on the job) ECP: 0.25

 

Senior operators [SOP] (carpenters, joiners, electricians etc.) ECP: 2

 

Chief operators [COP] in middle-management positions (foremen, group leaders etc.) ECP: 3

 

Short-cycle higher education [ASS] (laboratory assistants, production assistants etc.) ECP: 4

 

Short-cycle higher education [TEC] (laboratory technicians, production technicians etc.) ECP: 6

 

Medium-cycle higher education [BSC] (B.Sc.) ECP: 9

 

Long-cycle higher education [MSC] (M.Sc.) ECP: 14

 

Long-cycle higher education [PHD] (Ph.D.) ECP: 19

 

Doctors degree [DOC] (European Dr.-Ing., Tekn.Dr., Dr.-Ing.hab.) ECP: 28

 

Professors [PRO] ECP: 47

 

To get a fair picture of let’s say a company’s total ECP the organization must have at least about 60 employees.

 

In organizations with less than 60 employees you can still use the ECP-concept / ECP-tool but you have to evaluate each employee individually.

 

An experiment:

 

Based on the above mentioned abbreviations JOB OPE SOP ... PRO we are able to set up a Workforce Combination Table with 41 at least theoretical possible combinations, where each combination represent a workforce of 100 employees:

 

COM 01: 25JOB+25JOB+25JOB+25JOB = 100 EMP = 10 ECP

COM 02: 25JOB+25JOB+25JOB+25OPE = 100 EMP = 13.8 ECP

COM 03: 25JOB+25JOB+25OPE+25OPE = 100 EMP = 17.5 ECP

COM 04: 25JOB+25OPE+25OPE+25OPE = 100 EMP = 21.3 ECP

COM 05: 25OPE+25OPE+25OPE+25OPE = 100 EMP = 25 ECP

COM 06: 25OPE+25OPE+25OPE+25SOP = 100 EMP = 68.8 ECP

COM 07: 25OPE+25OPE+25SOP+25SOP = 100 EMP = 113 ECP

.

.

.

COM 41 25PRO+25PRO+25PRO+25PRO = 100 EMP = 4.700 ECP

 

From this table we can see that e.g. Peters's statement "In my last job I had the responsibility for a workforce of 100 employees" does not tell us very much as to

his level of responsibility or the complexity of his management position.

 

In e.g. Furtune 500 we find revenues, profits ... and even employees,

but we can browse the Internet and we will not find any informations

as to the capabilities of a specific company's workforce. Is it in the

2 ECP per employee class, or in the 4.5 ?

 

It is not unusual to rank companies after number of employees and

so we find a provider of cleaning services with e.g. 100.000 employees

(with relative low average workforce-ECP and many parttime employees)

ranking higher than a pharma-company with 80.000 employees (with a

much higher average workforce-ECP).

 

Another reason to incorporate ECP when we analyze and evaluate

business and other organization structures.

 

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02 MULTICOMPLEX MANAGEMENT (MCM)

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The above mentioned concepts and tools are part of an ongoing project “Multicomplex Management (MCM)”.

 

In “Multicomplex Management” we place an organization in one of four categories according to its total ECP:

 

SIMPLE ORGANIZATIONS

Total ECP ranging from 0.1 to approx. 100.

 

SEMICOMPLEX ORGANIZATIONS

Total ECP ranging from approx. 100 to approx. 1.000.

 

COMPLEX ORGANIZATIONS

Total ECP ranging from approx. 1.000 to 10.000.

 

MULTICOMPLEX ORGANIZATIONS

Total ECP exceeding 10.000.

 

Multicomplex Management (MCM)" is a platform

for a new series of management concepts and tools,

e.g. "Expected Creative Potential (ECP)", designed as

personal tools for the CEO of large, multicomplex or-

ganizations in addition to the traditional management

concepts and tools.

 

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03 THE ECP STANDARD UNIT (ESU)

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In the Multicomplex Management (ECP) Model

a ECP Standard Unit (ESU) is a 60-ECP-unit with

9 unit members:

 

01 – a MSc (14 ECP)

02 – a BSc (9 ECP)

03 – a BSc (9 ECP)

04 – a Technician (6 ECP)

05 – a Technician (6 ECP)

06 – a Technician (6 ECP)

07 – an Assistant (4 ECP)

08 – an Assistant (4 ECP)

09 – a Senior Operator (2 ECP)

 

or any other workforce-combination (full-time / part-time) adding up to 60 ECP.

 

In the Multicomplex Management (ECP) Model

we operate with the following organization levels:

 

Level 01 – 1 ESU = 60 ECP

Level 02 – 4 ESU = 240 ECP

Level 03 – 12 ESU = approx. 720 ECP

Level 04 – 36 ESU = approx. 2.200 ECP

Level 05 – 108 ESU = approx. 6.500 ECP

Level 06 – 324 ESU = approx. 19.000 ECP

Level 07 – 972 ESU = approx. 58.000 ECP

 

In many situations it is usefull to be able to compare

what the different levels means in different organization

structures.

 

In a military structure with a relative low average ECP (many

private soldiers) we need more people to compose a let´s say

Level 03 unit than in a research structure with a relative high average

ECP (many researchers).

 

Level 01

Organization Structure: Simple

1 ESU = Approx. 60 ECP

Business: Unit / Head of Unit

University: Unit / Head of Unit / Assistant Professor

Ministry: Unit / Head of Unit / Principal / Fuldmægtig DK

Military: Company / Major / US pay grade: O-4

 

Level 02

Organization Structure: Semicomplex

4 ESU = Approx. 240 ECP

Business: Section / Head of Section

University: Section / Head of Section / Associate Professor

Ministry: Section / Head of Section / Kontorchef DK

Military: Battalion / Lieutenant Colonel / US pay grade O-5

 

Level 03

Organization Structure: Semicomplex

12 ESU = Approx. 720 ECP

Business: Department / Head of Department

University: Department / Head of Department / Professor

Ministry: Department / Head of Department / Afdelingschef DK

Military: Regiment / Colonel / US pay grade O-6

 

Level 04

Organization Structure: Complex

36 ESU = Approx. 2.200 ECP

Business: Department / Head of Department

University: Faculty / Deputy Head of Faculty / Professor

Ministry: Small Agency / Head of Agency / Vicedirektør DK

Military: Brigade / Brigadier General / US pay grade O-7

 

Level 05

Organization Structure: Complex

108 ESU = Approx. 6.500 ECP

Business: Business Area / Vice President

University: Faculty / Head of Faculty / Vice President

Ministry: Larger Agency / Head of Agency / Direktør DK

Military: Division / Major General / US pay grade O-8

 

Level 06

Organization Structure: Multicomplex

324 ESU = Approx. 19.000 ECP

Business: the executive Board / Senior Vice President

University: the executive Board / Senior Vice President

Ministry: Large Agency / Head of Agency / Direktør DK

Military: Corps / Lieutenant General / US pay grade O-9

 

Level 07

Organization Structure: Multicomplex

972 ESU = Approx. 58.000 ECP and more

Business: the executive Board / President and CEO

University: the executive Board / University President

Ministry: Permanent Under-Secretaty of State / Departementschef DK

Military: Army / General / US pay grade O-10

 

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04 ECP AS A BENCHMARKING TOOL

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We have two companies in the same area of operations A and B

 

A

Employees: 3.500

Total ECP: 15.000

Average ECP: 4.3

Revenue: € 1.100.000.000

Revenue per employee: € 315.000

Profit: € 165.000.000 (15 %)

Profit per employee: approx. € 47.000

 

B

Employees: 4.200

Total ECP: 23.000

Average ECP: 5.5

Revenue: € 950.000.000

Revenue per employee: approx. € 226.000

Profit: € 115.000.000 (12 %)

Profit per employee: approx. € 27.000

 

Being the CEO of company B you might want to take a look at company A’s

latest annual statement to find one or the other explanation.

 

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05 THE KNOWLEDGE SOCIETY

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Everybody talks about the "Knowledge Society" or the "Post Industrial Society". Presidents of all developed countries want their country to be the best, the world leader. But ... is Sweden more a "Knowledge Society" than Finland ... ?

 

The ECP-concept could be a tool to a better understanding and quantification of the terms "Knowledge Society" or "Post Industrial Society".

 

And ... it might also give a hint - having limited resources - as to which way to follow (where to invest) in order to improve a country's knowledge level.

 

The optimal investment profile for a post-industrial-country varies considerably from that of let's say an African country.

 

In a developed country you might wish to invest in more assistants, technicians, engineers and researchers.

 

Wheras the optimal investment profile for let's say an African country on its long and hard way to being an industrilizised society might be to give unemployed ECP-0.1-People a lift to being employed ECP-0.25-Employees in combination with educating employed ECP-0.25-Employees to the ECP-2-Level.

 

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06 THE NORDIC POPULATIONS - A ECP COMPARISON

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All statistical data are taken from:

 

The Nordic Council of Ministers

The Nordic Statistical Yearbook 2008

 

To compare the Nordic data we have to convert the ECP-table (ECP-scale) from section 01 due to the fact, that The Nordic Statistical Yearbook (and most other statistics) only operates with 3 levels of highest education achieved:

 

Basic School

Upper Secondary School

University

 

The new ECP-table (ECP-scale) for the comparison:

 

Basic School = 0.25 ECP

Upper Secondary School (USS) = 5 ECP

University = 11.5 ECP

 

Comment: Basic School + USS + University does not add up to 100%

due to the fact that some inhabitants does not state their level

of education.

 

We have:

 

DENMARK

Population: 5.580.000

Basic School: 33% = 1.841.400 x 0.25 ECP = 460.350 ECP

USS = 40% = 2.232.000 x 5 = 11.160.000 ECP

University: 24% = 1.339.200 x 11.5 = 15.400.800 ECP

Total ECP: 27.021.150

Average ECP of the Danish population: 4.84

 

FINLAND

Population: 5.327.000

Basic School: 32% = 1.704.640 x 0.25 ECP = 426.160 ECP

USS = 41% = 2.184.070 x 5 = 10.920.350 ECP

University: 27% = 1.438.290 x 11.5 = 16.540.335 ECP

Total ECP: 27.886.845

Average ECP of the Finish population: 5.24

 

ICELAND

Population: 313.000

Basic School: 40% = 125.200 x 0.25 ECP = 31.300 ECP

USS = 40% = 125.200 x 5 = 626.000 ECP

University: 19% = 59.470 x 11.5 = 683.905 ECP

Total ECP: 1.341.205

Average ECP of the Icelandic population: 4.29

 

NORWAY

Population: 4.737.000

Basic School: 28% = 1.326.360 x 0.25 ECP = 331.590 ECP

USS = 42% = 1.989.540 x 5 = 9.947.700 ECP

University: 26% = 1.231.620 x 11.5 = 14.163.630 ECP

Total ECP: 24.442.920

Average ECP of the Norwegian population: 5.16

 

SWEDEN

Population: 9.182.000

Basic School: 24% = 2.203.680 x 0.25 ECP = 550.920 ECP

USS = 50% = 4.591.000 x 5 = 22. 955.000 ECP

University: 24% = 2.203.680 x 11.5 = 25.342.320 ECP

Total ECP: 48.848.240

Average ECP of the Swedish population: 5.32

 

RESULT

Average ECP of the Danish population: 4.84

Average ECP of the Finish population: 5.24

Average ECP of the Icelandic population: 4.29

Average ECP of the Norwegian population: 5.16

Average ECP of the Swedish population: 5.32

 

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07 THE COMPETITIVENESS OF THE NORDIC COUNTRIES

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Data:

World Economic Forum

The Global Competitiveness Report 2007 - 2008

 

From this book we have to following Global Competitivenes index

(GCI) for each of the Nordic countries:

 

Denmark: 5.55 GCI

Finland: 5.49 GCI

Iceland: 5.02 GCI

Norway: 5.20 GCI

Schweden: 5.54 GCI

 

The higher the figure the more competitive the country.

 

If we now - and for each of the Nordic countries - calculate

GCI / ECP we get:

 

Denmark: 5.55 / 4.84 = 1.15 GCI / ECP

Finland: 5.49 / 5.24 = 1.05 GCI / ECP

Iceland: 5.02 / 4.29 = 1.17 GCI / ECP

Norway: 5.20 / 5.16 = 1.01 GCI / ECP

Schweden: 5.54 / 5.32 = 1.04 GCI / ECP

 

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08 GCI / ECP - AN INTERESTING RESULT

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As to GCI / ECP the Nordic countries can be devided in two groups:

 

Denmark: 1.15 GCI / ECP

Iceland: 1.17 GCI / ECP

 

and

 

Finland: 1.05 GCI / ECP

Norway: 1.01 GCI / ECP

Sweden: 1.04 GCI / ECP

 

It will need further research to try to explain these figures.

 

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09 HIGH- AND LOWTECH

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I have always wondered that you often find companies in the Food Industry classified as Low-Tech-Companies whereas IT-firms are labelled High-Tech … ?

 

Let's look at and compare two companies.

 

Company A is a producer of IT-components

Number of employees: 2.500

Total employee ECP: 11.250

Average employee-ECP: 4.5

 

Company B is a Food-producing company

Number of employees: 1.500

Total employee ECP: 8.700

Average employee-ECP: 5.8

 

Which company is in your opinion the Low- and which is the High-Tech … ?

 

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10 UNEMPLOYMENT

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The ECP-concept could probably also be a useful tool when we want to analyze and compare the unemployment patterns of different countries or different regions. For a specific country or region we could for instance compare the average ECP of the employeed part of the workforce (ECPEMP) with the average ECP of the unemployed part (ECPUEMP).

 

We could also compare ECPEMP and ECPUEMP before and after a public initiative to bring people back to work.

 

For a specific country, region or trade we could follow the changes in ECPEMP and ECPUEMP over time or over the length of a economic depression and much more.

 

All we need is to start some research initiatives using the ECP-concept.

 

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11 THE MULTICOMPLEX MANAGEMENT (MCM) TOOLBOX

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One of the goals of the “Multicomplex Management (MCM)”- project is to try to identify / develop easy to handle tools (we call them "Cockpit Tools") for the top management of large (multicomplex) organizations.

 

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12 MULTICOMPLEX MANAGEMENT (MCM) LITERATURE

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Lund, Hans Bruno

Multicomplex Management (MCM)

CD-ROM, 678 colored illustrations

Dr. Hans Bruno Lund, Management Consultant

Skodsborg

Denmark

2009

Not available in libraries

 

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Skodsborg, Denmark

April 21. 2009

 

Hans Bruno Lund

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Done