Level 2 – Logical

Every problem interacts with other problems and is, therefore, part of a set of interrelated problems, a system of problems…. I choose to call such a system a mess.
Russell L. Ackoff

Thinking is logical and leads to conclusions by examining old and generating new ideas.

The Logical part of the Framework works on the conception of theory linked to acknowledging how things are rather than how they should be. Logical statements try to be neutral and state the facts as they are without passing any judgment or making any analysis that may be biased because of the personal leanings of the individual.

Therefore, the purpose of a Logical Framework is to test the integrity of the actual state of things within the enterprise compared to the normative generated state of things. This requires building a business framework with all the components and relationships necessary to make the whole.

“A valid inference is one where there is a specific relation of logical support between the assumptions of the inference and its conclusion.”

Unlike Normative, Logic rests on assumptions that do not necessarily correspond to anything in the real world. Logic relies on an inference that is not valid or invalid, but inference implies conclusions that (while perhaps temporary) allow one to discover additional insight.

Logical Frameworks are a reasonable way of thinking about and understanding our business.

This section aims to take advantage of normative “rules” (any convention can create a norm) and apply more logic. Let us start with the notion that we can’t be good at everything, and either by choice or by reality, we have specific strengths, or perhaps power, that either drive our current business or will be the driving force of our new business.

That driving force could exist anywhere in our business. Still, as an example, at the highest level, it will be either Marketing, Resources, Product/Service Portfolio, or Finance (the four column headings of our Framework).

A reasonable inference if our strength is:

A)    Marketing – we have discovered a market niche that either has not been exploited before or has not

been recognized as having potential.

B)    Resources – we have a limited supply, or that we have a monopoly of resources, or perhaps we have

a particular operating skill that competitors cannot easily replicate.

C)    Product/service – our unique design capability makes our product highly desirable, even if the technology itself is not unusual.

D)    Finance – when applied, we have a formula that creates profitable business, whether it is shoes, aircraft engines, or a service.

Applying one of the above creates a full set of inferences that affect either existing or new business exploration. Choosing one allows us to logically and systematically examine all of the corresponding Key Management Entities necessary across the whole business framework. There are valid inferences that can be made between each of the cells of the Framework based on what it would take to support each of the KMEs logically and maximize our perceived strength.

Click here for sample pages, a copy of the first Chapter – Level 1 Normative Frameworks or a copy of the Level 4 Frameworks Workbook.