Management Consulting

It becomes more and more apparent that the collapse of the USSR in 1989, September 11th 2001 and the 2008 financial crisis can be seen as symptoms of an epochal transformation into a globally networked world that our time has to pass through. Some analysts speak of the greatest and most profound transformation in human history. History seems to swing back into its "normal state" - a state of risk, uncertainty and nonlinear dynamics. Of course, phases of high instability and turbulence are at the same time also periods of high sensitivity for sustainable change and paradigm shift.

The Dow Jones index as a parameter of increasing volatility (Source: FAZ, 2010)

A new way of thinking - a vision - is therefore necessary, especially for leaders in business and politics - and the new methods and tools are available: The Gartner Group has recently published a study "Top 10 Strategic Technologies for 2010" that puts simulation and optimization together with cloud computing at the forefront of current trends. SAT Strategic Advisors for Transformation GmbH has introduced a new methodology that embodies this trend, referred to as Simulation-based Complexity Management. It provides a navigation aid to holistic Change Management for company management on strategic, tactical and operational issues in a dynamic and complex environment.

Complexity, volatility, increased global risks and uncertainty: the value-added handling of complexity is at the top of the agenda of all directors and executive committees. In addition, corporate and social complexity in the environment will continue to grow due to the ever-increasing interconnectedness of the world. Traditional strategic planning is obsolete in the era of volatility.

In recent decades, consulting firms have focused on offering concepts to clients aimed at reducing complexity, in order to make the growing complexity manageable. This path is not sufficient for successful management any more. On the one hand, earning potential is given away by cutting products, customers and processes and on the other hand, the complexity is growing faster than it can be reduced.

Properly understood, complexity represents a chance, a differentiated competitive advantage. In the future, dynamics, uncertainty and global networking in the business environment are only manageable with a new paradigm: Simulation-Based Complexity Management.

As a global company, SAT for Transformation Strategic Advisors AG advises Board and Executive Management of large companies, medium-sized industrial, service, commercial and governmental organizations. By integrating the most advanced simulation and optimization methods and providing a "Management Cockpit", our proprietary methodology, Simulation-based Complexity Management allows integrated modeling and optimization to sustainably improve entrepreneurial performance in the fields of strategy, markets and innovation, processes and organization, controlling and finance.

Simulation-based Complexity Management consists of the following three steps:

  • Audit and assessment of complexity in the enterprise
  • then - depending on the task - modeling with simulation techniques such as Discrete Event Simulation (DES), Agent-Based Modeling (ABM) and System Dynamics (SD), including the integration of optimization techniques such as Constraint Logic Programming, LP, MIP and Local Search and
  • the subsequent embedding of the model in the culture of the company for daily decision support in holistic change management.

We assist our clients to control the continuously growing complexity of their business environment and to optimize the holistic approach of an "Enterprise Model" across the value chain and the silo structures of a company. "Value creating" complexity should be maximized and "value destroying" complexity minimized to realize the full potential of EBIT.