Organizations today operate in a highly dynamic business environment that requires continuous transformations and evolution. In contemporary times, organizations look at sustainability and evolution in the Viable System Model (VSM) in order to grow amid chaos. The VSM has been created by British cybernetician Stafford beer in 1970s, which serves as a blueprint for understanding an organization structure and core goals. In this guide, we will discuss the major aspects of the Viable System Model including its principles and its use in developing adaptive and robust organizations.
What is the Viable System Model (VSM)?
The Viable System Model (VSM) is a well-known perspective regarding the evolution of organizational structures and the relationship within its own scope. The term viable systems denotes the idea that organizations must possess certain functions, and form in order to potentially exist and evolve into the future in the face of competition. The conceptual framework here is based on the foundation of systems, control, and communication theory for both living organisms and machines known as cybernetics.
As VSM explanation goes, it’s likely to assert that any system, organization among others, is bound to have certain essential functions which guarantees its existence in a changing environment – which means that an organization should not be left unattended so as to ensure that it is designed in a viable manner where it is able to face necessary changes, challenges and opportunities.
Key Components of The Viable System Model
Beer identifies five functions such that they all support the survival of any organization.
1. System 1: Primary Activities (Operations)
These are the core activities which organization makes to create value. In a business context, this could include production, marketing, sales, customer service academic performance. These activities have the most direct relationship with the output of the organization.
2. System 2: Coordination (Integration)
It is system 2 which takes the burden of ensuring that the various parts of the organization are all working together in the best way possible. These include communication, collaboration, synchronization among the multiple levels of the organization.
3. System 3: Control (Management)
System 3 is responsible for supervising, reporting and evaluation; and enables the overall coordination and control of the organization by enabling monitoring of resource efficiency usage sed.
4. System 4: Intelligence (Adaptation and Strategy)
The activities contained in System 4 include environmental scanning, external trend analysis and strategy formulation. With this system in place, the organization is in a position to foresee evolution and react appropriately to new prospects or challenges.
5. System 5: Policy (Vision and Governance)
This system highlights the strategic objectives of the organization, its vision and outlines policies that govern the organization. As a result, the organization is able to focus on its mission and principles while at the same time ensuring that there is consistency across the different systems of the organization.
Applying the Viable System Model to Build Resilience
Becoming more adaptive and resilient is one of the key advantages of the Viable System Model. How do I visualize the impact of each of the five systems on resilience? Below are highlighted how each of the five systems impacts resilience:
System 1 (Operations): As long as organizations strive to provide predictable outcomes and comply with quality standards, they can afford to execute normal business processes in chaotic environments.
System 2 (Coordination): These systems ensure there’s communication and exchange of resources among the different sections of the organization which makes it possible for the organizations to adapt to environmental changes in a timely manner and ensure inter-departmental communication is not impaired by walls such as barriers imposed by structural organization.
System 3 (Control): People in charge can ensure the organization stays on track by allowing real time resolution of problems and the seizing of opportunities, which can be changed as needed.
System 4 (Intelligence): System 4 explains how the organization can predict a change because it is constantly looking out for any developments in its environment and changes or shifts in trends, threats and even chances for future opportunities.
System 5 (Policy): Absolute control assures that regardless of how the organization evolves due to the dynamics in the environment, its philosophy, mission, and objectives are always well-defined. This gives a solid base from which other systems can operate.
How to Implement the Viable System Model in Your Organization
To each organization, implementing the Viable System Model implies a very systemic way of describing and organizing and managing its operations. The following steps will help you as you begin to put the structure in place:
Step 1: Assess Your Organization’s Current Structure
Evaluate the present structure of your organization and determine the various systems therein, starting from the most rudimentary aspects. Investigate the operation of every established system, its because degree of interaction, coordination, control, and adaptability might require adjustments.
Step 2: Establish Formal Position Descriptions for All Systems
Clearly outline the individual responsibilities of every system. For instance, System 1 will take the role of operational procedures, while System 4 will take up environmental scanning and strategic management.
Step 3: Ensure Good Inter-system Relations
Inter-systems communication is important if the organization is to stay relevant. Create formal communication links and cut the information flow on all areas of the organization.
Step 4: Create an Inter-system Dependency
Set up an inter-system dependency so that every system interacts with every other. For instance, System 4 should tell System 3 (management) the external factors that can be useful or dangerous, while System 1 should inform the management on what operational factor was a problem.
Step 5: Manage the Environment flatly but Aggressively
Last but not least, know VSM is not a quick solution to the problems faced. Its application is dynamic and the aim is constant improvement. Evaluate how appropriate your systems are operating and re-strategize where necessary.
FAQs About the Viable System Model
1. What is the main goal of the Viable System Model?
The main goal of the Viable Model system is to come up with an organizational structure that is flexible enough to allow the organization to continue existing irrespective of what happens to the environment around the organization.
2. Is it true that VSM can be used in every kind of organization?
Yes, it is correct that the VSM, in fact, can be used in every organization which can be vernacular or in the business context or in the non-profit context. The universal tenets of the said model can be tailored to address the majority of systemic issues.
3. What role does VSM play in terms of decision-making processes?
VSM assists in decision-making in this instance by making sure that the appropriate people with the appropriate information make the decisions at the right time. A clear definition of roles with respect to tasks eliminates the possibility of indecisiveness at every level of the hierarchy.
4. What is the difference of VSM from other organizational models?
The VSM is different from many traditional organizational models because it emphasizes the dynamic relationships between different systems within the organization. Others depend on the hierarchy structure, the VSM depend on communicating, controlling and adapting.
5. Can the VSM be considered as a sustainable solution?
Indeed, one of the fundamental aspects of the Viable System Model is that it can enable the organization to grow and become resilient for the long-term period without outgrowing its existing environment. Because of its emphasis on flexibility and evolution, it guarantees that the organization is viable in the long-term context.
Conclusion
Organizations are able to gain a new perspective on the processes and structures through the Viable System Model which brings adaptability and resilience to withstand disruptions. Organizations are able not only to survive but to flourish through concentrating on the main functions of operation, coordination and control, intelligence, and governance. There is a dedication that comes with VSM implementation, to look at issues in a holistic manner, and to be continuously improving all systems’ components, but the benefits pay back all the efforts. This is how VSM principles help your organization deal with complexity, be proactive, and remain sustainable.
