NB. Download to see all slide transitions properly. This was presented at the ISBE conference, Sheffield, UK, 2011. It shows how soft systems methodology might be used to confirm and/or define or redefine aan enterprise's core purpose, raison d'etre and value proposition.

1. Small Firms Cured and Reborn in Ways
Both Refreshing and Agonising.
Peter L. Bond
Learning Futures Consulting
Wirral, UK.
The paper is about redefining or confirming an enterprise’s core
purpose using CATWOE, part of soft system methodology and
the benefits it can bring over methods like Strategic Intent (or
Mission Statements).

2. Aims of the presentation
To introduce CATWOE and illustrate its use
OTHERS IDEAS FOUND IN THE PAPER
Enterprises as solution concept generators, solution makers, solution
supporters
The idea of Foundational Knowledge
and its relation to core-competence

3. About CATWOE
Part of the soft systems method of organisational analysis and improvement
used to generate a concise statement of system/organisational purpose
called the root definition.
C is for CUSTOMER—principal beneficiary and why the system exists
A is for ACTORS—those with knowledge and skill underpinning service to C
T is for TRANSFORMATION —the effect/benefit felt by the customer
Places emphasis on the functionality of the system from the customer POV
W is for WORLDVIEW or values of the actors involved (manager dominant)
O is for OWNERSHIP—the person or entity able to stop the system
E is for ENVIRONMENT—the context (e.g. physical, regulatory) of operation

4. Collaborative Problem Solving is the Essence of Business
Receiving/gaining/accepting
a problem
Mechanism for creating/
conserving
Customer/
enterprise relationships is problem
CONVERSATION
about a owner
solution—
an improvement
Transferring a solution

5. Application of CATWOE
Scenario 1 Scenario 2
time
Evolving market
NEW STARTS
Evolving enterprise
Drifting out of ‘synch’ with the market
common and well recognised problem
Breakdown in conversations?
Solution often begins with reminding the
business of what it is supposed to do.

6. Illustration of CATWOE in action…1
ABC described itself as a manufacturer, involved in metal coating.
ABC Ltd is a company based in Merseyside (E) owned by Mr Y
and provides an excellent service (W), at a profit (W), to
manufacturers (C) requiring the application of performance
enhancing surface coatings (T) to metallic substrates (components)
used in high value added machinery and systems (for example
aircraft parts).
The core purpose is, therefore, not to make or manufacture, but to
increase the performance of components through the application of
a surface coating.

7. Illustration of CATWOE in action…2
This company considered itself a hat manufacturer, but they also imported
hats and supplied to retailers through a wholesaling activity. They mostly
made hats to order, but they also make hats for stock. Hats fell into three
categories: uniform hats, leisure hats, technical hats (H&S) related. They
also designed hats.
A company owned by its MD (O) and embedded in Merseyside (E) that
makes a profit (W) and created employment (W) by designing, making, and
otherwise supplying head wear as a functional element of a uniform set of
clothes so satisfying a user’s desire or need for dress uniformity (C) as an
integral part of establishing or building an identity (T).
This definition excludes hats designed for specific ‘technical’ functions
because they require different actors to design and make them, and may
be marketed to customers with special needs. CATWOE analysis suggests
this aspect of the business should be pursued as a distinct but
complementary business.
Business core purpose should be expressed captured in a single sentence,