Issue link: https://industrialengineer.epubxp.com/i/920036
January 2018 | ISE Magazine 27 I In many ways, an organization's tag line is more important than its name, and what you are known for is more impor- tant than your title. For industrial and systems engineers, a great tag line would be "ISEs: We engineer value." And while we engineer value in organizations, solid principles and strategies can apply in any system. For in- stance, in Ohio I was part of an effort to apply these tactics and actions to a new model for managing IISE chapters that creates more value for the institute, the members, the chapter, the communities the chapters reside in and other stakeholders – increasing that value nearly ninefold by one measure. Much of the bedrock of the broad principles and strategies we will discuss comes from two seminal articles: Thomas H. Davenport's and James E. Short's "The New Industrial Engi- neering: Information Technology and Business Process Rede- sign" in the 1990 Slo M agem t Review, and Alan W.H. Grant's and Leonard A. Schlesinger's "Realize Your Custom- er's Full Profit Potential" in the 1995 Harvard Busi ess Review. The trends Davenport and Short sensed have come true in the era of big data, analytics and lean Six Sigma. Their work shows the importance of having a data model and an infor- mation technology system that supports business processes that create value for stakeholders. Our case example on the IISE chapter level shows how critical it is to develop a data model on membership that is easy to mine and analyze and that con- tains all the important data elements required to optimize the exchange of value between stakeholders. Grant and Schlesinger pointed to the importance of extending customer relationships – a key factor in the sustainability of IISE chapters. And hav- ing worked for Grant as vice president for business process re- engineering, I became intimately familiar with his model for stakeholder value exchange optimization. Although we applied these strategies to the Columbus Chap- ter of IISE, Chapter No. 1, many chapters worldwide are doing great work. And while we benchmarked to the professional chapters in Dayton, Ohio, and Los Angeles, this process is only one way to improve how we lead and operate chapters. Creating franchise value Franchise is just a generic term for an enterprise, a business unit, a professional society, a chapter, a section, etc. Value is in the eye of the beholder, and the exchange of value is ubiquitous in our world. At its most basic level, it's just a give and a get exchange. I get something; I give you something for it; you get what I give you; and we both do something with what we got. Figure 1 is a franchise value model, a cube. The x-axis is the number of stakeholder relationships (e.g., number of customers, number of employees, number of suppliers, number of mem- FIGURE 1 Engineering value This franchise value model for IISE chapters details some critical levers that can make chapters more attractive. The x-axis is the number of members, the y-axis is their level of engagement and the z-axis denotes their years as members.