Viable System Model

By Stafford Beer

Antonius Victor
• P022191019
  The model was developed by operations
research theorist and cybernetician
Stafford Beer in his book Brain of the
Firm (1972)
 Stafford Beer was Head of the
Department of Operational Research
History

and Cybernetics for United Steel

 Developed as a Tool for dealing with
organizational structure issues
 Idea of viable systems originated from
the human bodies:
 Neuro-physiological terminology
 Organization is a neural network
that co-evolves with the
environment.
 Model presented in graphic
representations
 The viable system model (VSM) is a model of
the organizational structure of any
autonomous system capable of producing
itself.
 A viable system is any system organized in
such a way as to meet the demands of
surviving in the changing environment.
 Viable System Model is a diagnostic tool that
can aid in understanding any organizational
structure – line, staff, or matrix
 Stafford Beer, described it as a “holistic model
involving the intricate interactions of five
identifiable but not separate subsystems”.
 Features of the VSM
Based on the structure of the Five levels or functions, each
human nervous system functions recur at each level

Adaptable Maximizes autonomy of units

Evaluates results more than Maintains control of essential

methods activities
 Major Components Of VSM
5 Management Functions
Horizontal
Communication Channels
Connecting to the
Environment
Vertical Communication
Channels
VSM Input
a meta-system (which reflects on the
various distinct operations from the
perspective of an observable whole).

a set of operations (which do

something or have something done
to them).

the environment within which it impacts

and sustains itself
 In detail
The Operation
Whatever your organization, the Operational part
will be composed of sub-units

Operation is composed of (smaller) Viable

Systems, and is embedded in a (larger) Viable
System

This illustrates the principle of recursion, originally

formulated mathematically by Beer, and one of
the key concepts of VSM diagnosis.

The Metasystem
The job of the metasystem is to provide a service
to the Operational units

It ensures they work together in an integrated,

harmonious fashion.

arrows connecting systems 3, 4 and 5 are a

representation of the details of how those parts of
the Metasystem interact.

.
HOW IT WORKS
 System one – the producing
units
 System two – coordinates the
producing units
 System three – middle
management, defines a
“resource bargain” with the
system ones
 System four – does long-range
planning, designs the next
product or service
 System five – controls the rate of
innovation, defines the
organization’s value
 Quick Guide to VSM
Preliminary Diagnosis
Look at your own organization and
Designing Autonomy examine the units which compose it
Create the right conditions for all the Operational units
to function with as much autonomy as possible.

Balancing the Internal Environment

Look at the various parts of you organization
and decided how they map onto the VSM

Information Systems
Create up-to-date information systems.

Balance with the Environment

Maintain contact with the relevant parts of the
Policy Systems external environment.
Create the policy systems
 Quick Guide to VSM (2)
01
Preliminary Diagnosis
List the bits that do things, the co-
ordination functions, the accounting
and scheduling functions and so on
Identify the Operational parts, the
parts which deal with stability and
optimization of the Operational
units, the parts which make long
term plans in the light of
Environmental information, the
Policy Systems.
At the end of this process, you will
have a large picture which gives a
representation of your organisation
in its totality.
02
Designing Autonomy
It is essential to create the right
conditions for all the Operational
units to function with as much
autonomy as possible.
1. Individual Mission Statements.
2. Budgets for the resources they
need to carry out this Mission.
3. An agreement that they can deci
de on their own internal develop
ment as long as they are workin
g to the agreed Mission
03 04
Balancing the Internal
Information Systems
Environment
The perfect information system
1. Maximize autonomy so that the
would measure everything it needs
vast majority of problems are
to know continuously,
dealt with within the Operational
units.
These measure whatever is seen
2. Examine the exchange of goods
as important within each
and services between the
Operational units at the end of the
Operational units, and see if
day
improvements may be made.
3. Examine the bits of the external
The figures are then plotted onto a
environment peculiar to each
time series so that the trends may
Operational unit and see if
be assessed.
changes can be made (perhaps
they all use the same suppliers
The essence of the VSM approach
and thus benefit from joint
to information is that you only need
buying).
to know if something changes.
 Quick Guide to VSM
05 06
Balance with the Environment Policy Systems

The External Eye maintains contact with

the relevant parts of the external The policy systems oversee the
environment, entire organization

the various parts must be balanced: They constitute the ultimate

authority. Thus they must be
1. The future planning system must have designed with great care.
the capabilities to find the relevant
information. For a co-operative it is crucial that
2. It must be aware of the capabilities of everyone is involved in policy
the Operational units decisions and this usually involves
3. It must be able to agree and a meeting of all members.
implement its plans through the
connections to the Operational units.
4. It must function within policy
guidelines.
 Measuring performance

Capability
"This is what we could be doing (still
right now) with existing resources, under
existing constraints, if we really worked
02
at it.".
Actuality
"What we are managing to do
now, with existing resources, 01
under existing constraints."
03
Potentiality
"This is what we ought to be doing by
developing our resources and removing
constraints, although still operating within the
bounds of what is already known to be
feasible."
04
Ratios
 Productivity: is the ratio of
actuality and capability;
 Latency: is the ratio of capability
and potentiality;
 Performance: is the ratio of
actuality and potentiality
Measuring performance (2)
 VSM Output
VSM diagnosis revealed core shortcomings,
insufficient autonomy of the local mill
such as:
management.

improvement potential in the

coordination system

the weakness of the management

and control system

the lack of a genuine culture or identity

of the system
BENEFITS OF THE MODEL

Enormous diagnostics power

Demonstrates complexity of interactions

Accounts for variety

Used across many countries

scalable
Criticisms & Possible Limitations

Need a facilitator or someone

with VSM knowledge

Ideas are not easy to grasp

People are the basic elements

(people have free will)
WHERE IS IT USED?

Applications VSM deal with contemporary issues

in management in different organizations
worldwide Such as:

 Organizational performance
 Change and adaptation
 Knowledge management
 Complexity management
 Resilience,
 Corporate governance,
 Sustainability
The VSM Applied
• A Case Study Evaluation of the Use of the Viable
System Model in Information Systems Development
(P. Kawalek, 1999)
• S. Beer’s Viable System Model Application in
Furniture Industry-A Case Study (Mikela, 2012)
• The Viable Systems Model Applied to a National
System of Innovation to Inform Policy Development
(Sean Devine, 2005)
• Using Viable System Model To Analyse Indonesia’s
Anti-Corruption Strategy (Nugroho, 2017)
The VSM applied to the Chilean economy
 REFERENCES
Beer, S. (1972), Brain of the Firm, Allene Lane, London.

Michael C. Jackson, (2018) Critical Systems Thinking and the Management of Complexity

P. Kawalek , (1999). A Case Study Evaluation of the Use of the Viable System Model in Information Systems
Development

Mikela, (2012) S. Beer’s Viable System Model Application in Furniture Industry

Sean Devine, (2005) A Case Study The Viable Systems Model Applied to a National System of Innovation to
Inform Policy Development

Nugroho, (2017) Using Viable System Model To Analyse Indonesia’s Anti-Corruption Strategy.

https://en.wikipedia.org/wiki/Viable_system_model

https://www.esrad.org.uk/resources/vsmg_3/screen.php?page=home