Natural selectionWhich general factors put a company in danger of loosing the battle in the arena of natural selection? And which factors enable a company to slide comfortably through time and change; evolving over time, and becoming a better version of itself with a tailor made fit to its operational landscape?Out of a systemic view of the world the IPI beliefs were born (page 6 and 7), and out of the IPI beliefs the IPI formulae evolved. The formula for corporate natural de-selection shows factors which contribute, as the name reveals, to extinction. The formula for corporate survival shows factors which contribute to evolution and strengthening of the position of the corporation in its environment.The idea of the formula is not to provide a basis for doing math calculations, but rather a intuitive basis for reasoning on the foundation of practical systems theory.

1. An introduction to IPI’s formula
Corporate natural selection
Arthur Kelderman

2. © 2014 Arthur Kelderman/@IPI
An introduction to IPI’s formula
Corporate natural selection
Arthur Kelderman
2

3. Content
Page 4 IPI what?
Page 5 Introduction
Page 6 IPI beliefs
Page 8 IPI’s law of corporate natural selection
Page 13 Workshops @IPI
Page 14 Train.Consult.Support
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4. The Initiative for Process Improvement (.IPI) is an initiative based on passion…we have
a passion for improvement, a passion for systems theory, a passion for practical no-
nonsense application of systems theory, and a passion for sharing our take on
personal and business improvement.
Passion helped us to create the following tools and events:
+IPI Workshops
+IPI (Ab)usage book©
+IPI Sparks©
+IPI Hungry for Knowledge events
+IPI Speak Up events
What?
4

5. Natural selection
Which general factors put a company in danger of losing the battle in the arena of natural
selection? And which factors enable a company to slide comfortably through time and
change; evolving over time, and becoming a better version of itself with a tailor made fit to
its operational landscape?
Out of a systemic view of the world the IPI beliefs were born (page 6 and 7), and out of the
IPI beliefs the IPI formulae evolved. The formula for corporate natural de-selection shows
factors which contribute, as the name reveals, to extinction. The formula for corporate
survival shows factors which contribute to evolution and strengthening of the position of
the corporation in its environment.
The idea of the formula is not to provide a basis for doing math calculations, but rather a
intuitive basis for reasoning on the foundation of practical systems theory.
5
Introduction

6. 1. “In order to design, improve, operate, maintain and manage
a system one must understand “what” a system is
2. “In order to design, improve, operate, maintain and manage
a optimal running system one must understand the physics
that govern the behavior of systems”
3. “In order for a system to perform to its peak ability,
variability must be actively and deliberately managed”
4 “In order for a system to reach intended and long term
results a system must have a purpose which leads to focus of
action”
5 “In order for a system to function in an optimal way system
goals must be prioritized, and system parts must be in line with
each other and the overall systems goal”
Beliefs…first 5
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7. 6. “In order for a system to be under active and deliberate
control a system must be equipped with a systems control
function”
7. “In order for a system to maintain a stable mode of
operation a system must be equipped with a maintenance
function”
8. “In order for a system to evolve a system must be equipped
with functions which allows for pro-active and responsive
(self-) reflection-, analysis-, and controlled systems change”
9. “In order for a system to be sustained the system must be
equipped with a circulation and conservation function”
Beliefs …continued
7

8. formula of corporate natural selection
8

9. Sorry…we’re F-ed
Which factors make a company
vulnerable for the laws of natural
selection, and puts it on the list of
endangered species? IPI has worked out
a formula which helps you to look at it in
a systemic and systematic way…
The equation in normal
equation language
The equation In normal language
(Factor of anti-systemicness) * (Factor of
flow illiteracy) * (Factor of focus and
alignment absenteeism) * (Factor of
system control failure) * (Factor of
system circulation and conservation
malfunction/vicious cycle) * (Factor of
non-adaptation)
The equation explained
Factor of anti-systemicness (So * Slo *
Ase)
So: level of self(ish)-optimization of
parts/departments that make up the
process
Slo: sum of local optimum
Ase: Level of asymmetrical evolution
(soxsid)x(ilxiixv)x(gucxguxguaxgixmua)x(pmixscf)x(csxcixlixcd)x(prxΔxarxrc)
Which factors put a company in a
favorable position in the arena of
natural selection, and reserves a
comfortable seat at the top of the food
chain? IPI has worked out a formula
which helps you to look at it in a
systemic and systematic way…
The equation in normal
equation language
The equation In normal language
(Factor of systemicness) * (Factor of
flow) * (Factor of focus and alignment)
* (Factor of system control) * (Factor of
system circulation and
conservation/virtuous cycle) * (Factor
of adaptation)
The equation explained
Factor of systemicness (La * Sgo * Se)
La: Level of alignment of
parts/departments that make up the
process
Sgo: sum of global optimum
Se: Level of symmetrical evolution
On top of the food chain
(La*Sgo*Se)*(Qo*Rg*Vc)*(Gcl*Gaw*Ga*Gco*Ma)*(Pmc*Scee)*(Cse*Cl*Ic*Co)*(Pra*Δr*R*Cc)
9

10. The equation in normal
equation language
The equation In normal
language…continued
Factor of flow illiteracy (Qso * Ug * V)
Qso: Factor of queuing sub-optimization
Ug: Factor of unresponsive gating to the
process/system
V: Factor of variability
Factor of focus and alignment
absenteeism (Guc * Guw * Gua * Gi *
Mua)
Guc: Factor of goal unclearness
Guw: Factor of goal unawareness
Gua: Factor of un-alignment to system
goal
Gi: Factor of goal inconsistency
Mua: Factor of market un-alignment
Factor of system control failure (Pmi *
Scf)
Pmi: Factor of process model
inconsistency
Scf: Factor of system control failure
(soxsid)x(ilxiixv)x(gucxguxguaxgixmua)x(pmixscf)x(csxcixlixcd)x(prxΔxarxrc)
The equation in normal
equation language
The equation In normal
language…continued
Factor of flow (Qo * Rg * Vc)
Qo: Factor of queuing optimization
Rg: Factor of responsive gating to the
process/system
Vc: Factor of variability control
Factor of focus and alignment (Gcl *
Gaw * Ga * Gco * Ma)
Gcl: Factor of goal clarity
Gaw: Factor of goal awareness
Ga: Factor of system alignment to
system goal
Gco: Factor of goal consistency
Ma: Factor of market alignment
Factor of system control (Pmc * Scee)
Pmc: Factor of process model
consistency
Scee: Factor of system control
efficiency and effectiveness
(La*Sgo*Se)*(Qo*Rg*Vc)*(Gcl*Gaw*Ga*Gco*Ma)*(Pmc*Scee)*(Cse*Cl*Ic*Co)*(Pra*Δr*R*Cc)
10
10
Sorry…we’re F-edOn top of the food chain

11. The equation in normal
equation language
The equation In normal
language…continued
Factor of system circulation and
conservation malfunction/vicious cycle
(Cs * Ci * Li * Cd)
Cf: Factor of circulation failure
Ci: Factor of conservation and growth of
inventory
Li: Factor of loss of inventory
Cd: Cycle deficit
Factor of non-adaptation (Pr * Δ * Ar *
Rc)
Pr: Factor of un-pro-activeness (general
inactiveness related to planning “for”
and “acting” on probable future events
Δ: Factor of unresponsiveness to urgent
threats (let’s see what happens)
Ar: Factor of responsibility avoidance
(it’s not my responsibility to (re)act)
Rc: Factor of resisting chance to adapt to
a changing environment
(soxsid)x(ilxiixv)x(gucxguxguaxgixmua)x(pmixscf)x(csxcixlixcd)x(prxΔxarxrc)
The equation in normal
equation language
The equation In normal
language…continued
Factor of system circulation and
conservation/virtuous cycle (Cse * Cl *
Ic * Co)
Cse: Factor of circulation speed and
efficiency
Cl: Factor of conservation and growth
of liquidity
Ic: Factor of inventory control
Co: Cycle overflow
Factor of adaptation (Pra * Δr * R *
Cc)
Pra: Factor of pro-activeness (general
activeness related to planning “for”
and “acting” on probable future events
Δr: Factor of responsiveness to urgent
threats
R: Factor of responsibility (it’s my
responsibility to (re)act)
Cc: Factor of controlled chance to
adapt to a changing environment
(La*Sgo*Se)*(Qo*Rg*Vc)*(Gcl*Gaw*Ga*Gco*Ma)*(Pmc*Scee)*(Cse*Cl*Ic*Co)*(Pra*Δr*R*Cc)
11
Sorry…we’re F-edOn top of the food chain

12. IPI’s formula of corporate
natural de-selection
12
Details and training on the formula?
Read on…

13. .Workshops
+System & Process Basics
+Flow
+Variability & Variability reduction
+Control
+Evolution & Culture to learn
+System design
+System circulation & conservation
+IPI’s formula
System&Process
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14. Face to face .IPI is active in:
Vietnam
Ho Chi Minh City, Vietnam
Thailand
Bangkok, Thailand
Cambodia
Phnom Penh, Cambodia
Online .IPI is active on:
World.Wide.Web
Website: www.vnprojects.com/ipi (under construction)
Email: ipi@vnprojects.com
Skype: ipi.contact
Train.Consult.Support
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15. End Start
Text & design: Arthur Kelderman/IPI 2014