Wednesday, September 8, 2010

Influence Charts

For those unfamiliar, an influence chart is "a simple diagram that shows what outcome variables the model will generate and how these outputs are calculated from the necessary inputs." - Powell, p27.

An influence chart is not meant to be a flow chart, rather they assist in bringing initial clarity to a problem model. A simple example that the text uses is a simple profit and loss chart. The motive is profit, the influence chart decomposes profit into total revenues and total costs. Total Costs are decomposed into variable costs and fixed costs.

Hexagons represent outputs, boxes represent decisions and circles represent other variables. In the chart an arrow from a variable to an output indicates a determinant.

To me this process is also similar to a mind-mapping, goal setting technique in which one identifies a specific goal in a center circle and then radiates out from the center spokes which are attached to the specific tasks or actions that must be accomplished in order to complete the goal. These actions can be composed of sub-tasks as well. This method is detailed in my first book My Happy Assetsas well as my second, Small Business Coffee Hour.

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