Stafford Beer’s Viable System Model

Features of the VSM Based on the structure of the human nervous system Five levels or functions The five functions recur at each level of organization

Features of the VSM Maximizes autonomy of units Minimizes bureaucracy Maintains control of essential activities Evaluates results more than methods

The five functions System five – controls the rate of innovation, defines the organization’s values System four – does long-range planning, designs the next product or service System three – middle management, defines a “resource bargain” with the system ones System two – coordinates the producing units System one – the producing units

Concerns of the Viable System Model Make sure that the knowledge and skills needed are available Be sure that the information needed to make decisions is available Design an organization that is adaptive

System One units and their environments Operation One A One B One C Present Environment Local Environ - ment Management

Repeat of the System One units with the addition of Systems Two, Three, and Three Star

System Four probing the future environment All internal functions concerned with the future Future Environment All relevant developments in the environment oriented to the future

Relationships among Systems 3, 4, and 5

The Viable System Model Operation One A One B One C Present Environment Local Environ - ment men t Management 3* System 3 2 Future System 5 System 4 The Viable System Model

The VSM applied to the Chilean economy Industry A Industry B C Sector Comittee A Ministry of Economics CORFO / ODEPLAN (National planning office ) National for statistics and census 1 2 3 4 5 Filtre Sector Com. Sector Co

Design of the algedonic feedback loop from the people to the government (Beer, 1981)

Viable System Model A diagnostic tool that can aid in understanding any organizational structure – line, staff, or matrix Defines the variety that needs to be controlled and the structures to control it Shows how both to ensure innovation and to regulate it

Relevance to Enterprise Architecture The VSM provides a way of viewing the structure of an organization It could, in principle, be used to design an information system for an organization At least one software program has been created to help people analyze an organization in terms of the VSM