51

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Learning Lessons on
Global Journal of
Flexible Systems
Flexible Systems Management
Management
L2 2001, Vol. 2, No. 1, pp 51-55

SAP-LAP Framework
Sushil
IIT Delhi

Introduction
In order to translate In order to deal with complexity, chaos and contradictions of fast changing business reality,
Flexible Systems
flexibility is becoming a key attribute of the evolving futuristic enterprises. The aspects of
Management
into action, flexibility and freedom have been given due consideration in the evolving paradigm of Flexible
SAP-LAP framework is Systems Management. Flexible Systems Management paradigm takes ‘systemic flexibility’ as
developed the base which has been discussed in the Learning Lesson L1 in Vol.1 No.1. In order to translate
this paradigm of management into action, a methodological construct is provided in the form of
SAP-LAP (Situation Actor Process–Learning Action Performance) framework in this learning
lesson. An outline of the framework is provided, supported by an application in case analysis.

SAP-LAP
In order to implement the Flexible Systems Management paradigm, a holistic framework is
developed that contains the basic entities in any management context and their associated
managerial functions and attributes. Basically, any managerial context consists of a “situation”
to be managed, an “actor” or a group of actors to deal with the situation and a “process” or a
set of processes that respond to the situation and recreate it.
Situation, Actor, Process The “situation”, “actor” and “process” and their interplay comprise of the SAP framework
and their interplay where the freedom of choice lies with the actor as shown in Figure 1. If the actors have more
comprise of SAP
framework freedom, the processes will become flexible and adaptive to cope with the changing situation.
Lack of freedom of choice to the actors will restrict their options, ultimately making the process
rigid and static and thereby failing to cope with the turbulence in the situation.

Figure 1: SAP Framework

© 2001, Global Institute of
Flexible Systems Management
52 Sushil
“Situation” is external The “situation” is the external and internal environment of the organization and its
and internal
performance. For example, some representative variables of external situation are competitive
environment of the
o rganization and its potential, economic policy, new technologies, type of supplies, infrastructure, industry performance
performance and so on. Similarly, some important variables of the internal situation are financial performance,
market share, corporate image, resources, capabilities and competencies, plant and machinery,
core values, and so on. In a dynamic sense, the historical development and milestones provide
the organizational situation.
“Actor” can be The “actor” can be individual managers, or groups, departments or class of actors such as
individual managers, suppliers, competitors, government, consultants, management, employees, etc. Some important
groups, departments
or class of actors variables in the “actor” domain are motivation, morale, attitude, actor performance, roles,
capabilities, world-views, freedom of choice, communication, knowledge, skills and so on.
The interface of “actor” and “situation” defines the organizational climate and culture that is
important for the evolution of the business processes.
“Process” is the The “process” is the overall transformation process that converts a set of inputs into outputs
overall to recreate the situation. The processes could be of various types, such as, supply chain process,
transformation
converting inputs customer interface process, performance management process, technology transfer process,
into outputs innovation process, investment process, distribution process and so on. Depending upon the
situation, one or more processes are to be studied and improved for higher flexibility.
The interface of “actor” and “process” defines the strategy, structure and systems that need
to be transformed for organizational change.
The interface of “process” and “situation” defines the contingency to be taken care of (e.g.
contingency planning) and adaptation and response of the process to the changing situation.
LAP is synthesis of The interplay and synthesis of SAP leads to Learning-Action-Performance (LAP). We need
SAP which includes to learn about the situation, actor and process and bring out key learning issues of interest.
interplay of
Learning, Action Based on the learnings, the action is to be taken on the fronts of situation, actor or process or
and Performance the relevant interfaces. Depending upon the effectiveness of actions, performance is generated
in terms of improved processes/actors and better situational parameters. In a business situation,
the performance parameters could be market share, profitability, quality, productivity, competitive
advantage, core competence and so on.
SAP-LAP framework can be The interplay of SAP and LAP makes the complete SAP-LAP framework as shown in
used for case analysis, Figure 2. This can be used effectively for case analysis, managerial inquiry and problem solving.
managerial inquiry and
problem solving

Figure 2: SAP-LAP Framework

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 S AP - L A P Framework 53
Case Analysis
The steps for case The SAP-LAP framework is an innovative and holistic framework for case analysis. Based on
analysis using SAP-LAP framework, following generic steps can be used for analyzing any case.
SAP-LAP
framework are: i. Understanding Situation: In this step, we bring out key points of the emerging situation of
understanding situation,
the case in terms of historical perspective, external environment, competition, government
actors and roles,
evolving process, policies, market condition, organizational performance and so on.
learning issues,
suggested actions,
ii. Major Actors and their Roles: Identification of key actors in the case and their roles,
and expected relationships, world views and freedom of choice are to be summarized. Usually, this aspect
performance of case analysis is not well addressed in the traditional case methods.
iii. Evolving Process: In this step, we critically analyze the key process(es) evolving in the case
and portray their key issues. The processes could be of any type as discussed previously.
iv. Key Learning Issues: The analysis carried out in SAP framework leads to synthesis in terms
of key learning issues for the case. These can be of two types: (i) generic, and (ii) specific.
The generic issues are in terms of lessons learnt from the case that can be generalized by
synthesizing the lessons from other cases.
The specific learning issues are linked directly with the case under consideration and are
either expressed in terms of the problem areas or in terms of the objectives to be achieved.
v. Suggested Actions: Based on the specific learnings of the case, alternatives are to be generated
and evaluated. Based on this, actions are to be suggested to improve/resolve the case problem.
vi. Expected Performance: Finally, the impact of suggested actions on performance is assessed
so as to justify the actions.
The above methodology can be applied for case analysis using a variety of quantitative or
qualitative tools and can be presented in a bullet form or using tabular presentation.
An illustration of SAP-LAP framework for case analysis is given in the next section using
bullet–form presentation.

ILLUSTRATIVE CASE OF ABB INDIA

SAP Analysis
Context
ABB India is Developing in-house R&D for technological pioneering. Electrical power generation and
developing distribution technology leader in the making.
in–house R&D for
technology Prevailing Situation
pioneering. SAP
analysis and LAP l ABB India has very stiff competition from BHEL, KEL, and other foreign multinationals.
synthesis of the case
is presented here l Independent Power Plants (IPPs) in India and development of a power generation base
in brief have opened up opportunities for ABB India.
l The company’s financial health has improved, and hence its R&D budget is also likely
to go up.
l The firm has a strong technology base and keeps the emphasis on technology in its
future planning.

Main Actors
l CEO of ABB, as the motivating force behind ABB all over the world.
l ABB India’s management as the local policy-makers.
l ABB India’s employees as the heart and soul of the company.
l Government of India and various state governments in context of IPPs.

© 2001, Global Institute of

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Process of Technology Pioneering

l Emphasis on technology in business strategy and corporate philosophy.
l ABB India managing technology through mergers and acquisitions. It has taken over
companies, which were supplying key technology components. The firm is consolidating
its technological position in the power industry and emerging as a technology leader in
many new areas. If technology development is mapped on a continuum that ranges from
in-house R&D to mergers and takeovers, then ABB India’s position falls in the range of
7.5 to 8.0 on a 10-point scale, as shown in Figure 3.
l A deep backward integration has been chosen as a technology strategy.
l The local ABB (within a country) enjoys the support of ABB at the global level. It is in
a position to offer the best technological solution to a customer, taking into account the
strengths of various national level facilities spread over the globe.

7.5-8.0

Figure 3: Technology Development Continuum

LAP Synthesis
Learning Issues
Technology Policy
l Technology policy is missing. In its absence, the company ends up as a mere
manufacturing facility.
l Dependence on developed countries continues. Core competencies have not been
identified.

Technology Development
l Backward integration of high-tech or key component manufacturing by way of takeovers
can help in improving technological health of the company.

Innovation Culture
l Takeovers of high-tech firms affect the innovation culture adversely, and those firms’
technologists lose creativity.

Technology and Competitive Advantage

l The local company draws benefit from the global image of the corporation and also can
rely on corporate technological support when needed.

Technology Absorption
l The capability to cater to local customers’ needs and innovate on existing technology
requires technology absorption to a nearly complete level.

Suggested Actions
l Make Technology Management at par with other management functions to be
accomplished more professionally by establishing a technology policy.
l Develop and deploy a core competence building agenda.
l Strengthen implementation of backward integration strategy by acquiring key component
manufacturing firms.

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l Develop in-house R&D for technology absorption so that further innovations can be
made.

Expected Performance
l Development of sustainable competitive advantage through core competence building.
l Higher customer satisfaction by way of innovation to meet local needs.
l Dependence on imported technology will be reduced.

Concluding Remarks
SAP-LAP framework SAP-LAP framework can be used in a variety of ways to gain insight into managerial problems
can be used in a and concerns. It can be used as a methodology for problem solving and decision-making rooted
variety of ways using
dynamic, multi-level in the concept of learning. It is a holistic framework that synthesies the hard and soft systems
and plural models thinking by taking both learning and action linked with the performance. It also blends the
analytic and synthetic paradigms by incorporating both the situation and the process. The
framework can be used in a variety of ways using dynamic, multi-level and plural models.
Specific models can be developed using this framework using critical questioning and matrix
based tools, which will be taken up in subsequent learning lessons.

Self Assessment and Reflection with Reality

l Analyze situation, actor and process in the context of your organization.
l Identify the characteristics of interfaces of situation and actor, actor and process, and
process and situation.
l Choose a suitable case and carry out its SAP-LAP analysis.
l What kind of innovative applications of SAP-LAP framework can be made in real life
situations? Illustrate.

© 2001, Global Institute of

Flexible Systems Management