Future-proof entrepreneurship in SMEs: The OK!-Method

Abstract

The OK!-method is based  on a sound base of management/business administration theories,  like Systems Theory and Business Administration method (In 't Veld, Slatius, & In 't Veld, 2023) (Veeke, Ottjes, & Lodewijks, 2008) (Simons, 2014), Multiple value model (Gleeson-White, 2014), Systems Thinking (Meadows, Meadows, Randers, & Behrens, 1972), Dialogue & Communication (Scharmer, 2009) (Scharmer, 2018) and Kepner and Tregoe Method (1981).  These bases of the OK!-Method are further developed by an input-throughput-output model of the international <IR> framework of the International Integrated Reporting Council (IIRC, 2022). Besides the input-throughput-output structure, the IIRC model is linked to the external environment (including the creation, preservation, and erosion of value in time), as well as (new) business models in the context of purpose, mission and vision of the company. The outcomes can be positive and negative in time (including long-term orientation) regarding finance, social and environment (so, in fact, the well-known triple Ps in sustainability: People, Planet and Profit). New business models (Jonker, 2015) introduces business models that are not always based on ownership (but on usage) and profit maximisation. So, the orientation of new business models is more circular and sustainable ( within the Rhineland business framework (Van Aken, Riepma, & Westerdijk, 2019).

The base of management/business administration follows the mainstream literature (Bateman & Snell, 2004), and topics like External environment analyses instruments for stakeholders analyses and social factors developments,  and Internal organisational analyses instruments for Strategy, Organisational culture, Leadership, Structuring, Processes, Staff,  Company assets, Governance and Finance. Another essential layer in the OK!-Method is the Kepner-Tregoe method (1981). The method is based on four processes: Situation appraisal, Problem analysis, Decision analysis and Potential problem analysis.

What are the reasons for a company to draw attention to circularity and sustainability besides the traditional goal of generating profit? In the business environment (Van Aken, Riepma, & Westerdijk, 2019), there is a shift from the Anglo-Saxon business model (based on maximising shareholder value and profit maximisation) to the Rhineland business model (based on long-term stakeholder value). This is not only observed in annual reports of large companies (with a quotation at the stock exchanges) but also for Small and Medium-sized enterprises (SMEs). In the DOSIT method (Berendsen, Van Liere, Venselaar, Ansems, & Appelman, 2006) there are three main reasons SMEs are focusing on sustainable/circular approaches: Requirements from their clients (the market), (expected future) legislation from the government (national or international), and internal motives of the entrepreneur (often based on stewardship-related philosophies). In a recent contribution to this topic (Schoenmaker & Schramade, 2023) the long-term value of an enterprise is the integrated value (IV), and it consists of three components: Financial Value (FV), Social Value (SV) and Environmental Value (EV). Or in an equation: IV=FV+SV+EV.

The OK!-Method uses seven sequential stages to contribute to a future-proof and sustainable organisation: Sensing, Assessing, Root cause analysis, Structured decision research, Setting up implementations, Implementation, and  Evaluation.