Saturday, December 28, 2019

Effects Based Operations


Comment:   Effects Based Operations (EBO), to some folks, is controversial but only to the extent that they do not want to be accountable to a result. Furthermore, there is an even smaller percentage that feels the psychological aspects as applied in warfare are not ethical in industry despite marketing campaigns using the same techniques. I was introduced to EBO in the late 1990s and dabbled in its use up to 2005. However, during deployments between 2005 and 2008, EBO gained higher employment but not necessarily the highest acceptance. The most intensive use of EBO was during tours at Commander Naval Forces Europe.

Effects Based Operations

EBO has not been well accepted in many circles as it removes the smoke and mirrors, fudged numbers, and the mask of outrageous successes people often herald even when there is no such success. Hence, EBO does not tell the emperor what he wants to hear and does not leave the emperor naked. EBO is not about how well people do their jobs. Everyone puts forth a reasonable effort and tries hard. EBO is about how well actions were undertaken as an organization, department, or group serves the desired results. Whether competing in war or the marketplace, desired results are being pursued. While war fight tactics are for war, the management method can and should apply to companies operating in a marketplace.

Companies desire profits, market share, supply point control, price control, and other outcomes such as sustainability initiatives. During correct practice, companies express the path to the desired outcomes as a strategy then implement projects to create the desired end-state, a set of required conditions or objectives must be achieved. As in warfighting, companies have limited resources that must be economically rationed and deliberately applied to the efforts that give them the most significant gain or strategic advantage. For example, Warren Buffet operates on a concept of durable competitive advantage as a strategy. Companies need to manage strategy-to-task, and EBO offers an excellent framework.

EBO is nothing more than managing what was set out to be achieved. In a reality check, as business operations are mapped to EBO practices bear in mind these points:
  1. EBO changes the management culture but not the nature or character of the market. The marketplace is a realm amicably at war in which competitive actors seek to deter, deny, diminish, deflect their opponent's advances using a host of tactics, techniques, and practices that shape the market place and attract loyal buyers to their offering in order to capture market share. The character of this marketing war is information-based and psychological.

  2. EBO is not a substitute for marketing methods. EBO is a management method that enhances outcomes. Success is valued based on rationed deliberate actions and results achieved as opposed to the novelty of the means.

  3. EBO causes reactions. Newton's law states that for every action, there is an equal and opposite reaction. EBO seeks effects that result in outcomes. Therefore, for every EBO action, there is an equal reaction. The question is if the reaction is reasonable or not. If undesirable then adjustments are made to achieve the desired reaction or effects.

  4. Measurements count, EBO captures measurements and links them to strategy. When measurements hit thresholds, then decisions are made as triggers as set into motion. Both qualitative and quantitative measurements are valued.

  5. What-if. Hypothetical situations are abundant, and exploring them can cause paralysis. The fact of the matter is the marketplace and world we live in is dynamic and always in flux. Disruptive technologies change market directions in an instant and poorly support technologies become burdens. Designing adaptive operations to handle complex conditions can reduce organizational latencies and react swiftly to change.

EBO is not complicated but does require deliberate thought and effort. Refer to Figure 1.

Figure 1:  EBO Structure and Information Flow

In a nutshell, the effects-based method is a flow of information about progress towards goals and strategies. The ultimate goal is to achieve the end state through deliberate actions in seeking effects and objectives. There are measures of effectiveness that aid in determining when an effect has information-based.

The Effects-Based method is new to the private sector, and there will be a learning curve associated with the method. The Effects-Based method does not change the nature of the organization but does change the management methods on a project by project basis. Therefore, it can be introduced slowly and scaled to the operation. The method also applies to ongoing operations making use of triggers to indicate out of bound conditions.

I published a book, Effects Based Projects, that combines EBO with Agile project management and use hip pocket tools to focus on results more than reports and computer driven artifacts that take time to develop.  The Book is currently sold on Amazon in print and eBook form for Kindle. 



References:

Bogden, J.T. (2019). Effects Based Projects: A practical guide that Puts Strategy-to-Tasks When Complexity and Uncertainty are High. Bogden: Nashville.


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