The Strategic Equality Principle

The Strategic Equality Principle

Scenario:

  • Department A is larger, has more budgetary responsibility than Department B
  • Both Departments deliver front line services of equal importance
  • A centralised support function is created which draws in previously departmentally aligned resource
  • There are varying service demands within departments, but an overall pressure to reduce cost and headcount, therefore limited elasticity of workforce
  • There is a demand tension between departments for a variety of reasons (solution architecture, integration, development work, functional enhancements, legislation and reporting changes etc.)
  • Departments operate with as much autonomy as possible, whilst respecting principles of common interest and shared services.

Strategic Equality Principle

Strategic Equality Principle

Operations Research: An Introduction

Resulting Context

  • The Principle of Strategic Equality must be applied by the central supply function (in this example an architectural / design authority function)
  • A Governance process and KPIs need to be put in place to ensure balance, whist allowing for the demand tensions and gravitational forces that will continually act on each ‘side’
  • Equality must be determined based on importance of outcome, not departmental size.

Further Reading on Operations Research and Constraint Based Planning