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The Viable System Model a More Adequate Tool for Practising

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The Viable System Model a More Adequate Tool for Practising Summary of Thesis submitted for PhD Degree by John Leonard William Beckford on The Viable System Model: A More Adequate tool for Practising Management? This thesis is concerned with the need for a more adequate tool for practising managers to enable them to deal with the increasing complexity and rate of change of the world. The first part of the thesis explores the inadequacies of the currently dominant organisational models before introducing the cybernetic approach. The Viable System Model is introduced and its development and history reviewed before its adequacy is compared with that of the dominant models. The second part of the thesis reports four interventions carried out using the Viable System Model. Its contribution in each case is evaluated and its strengths and weaknesses in the contemporary organisational context highlighted. The third and final part of the thesis critically reflects on the whole of the work undertaken. Chapter Eleven adopts a SWOT analysis to provide a critical framework through which the superiority of the Viable System Model as compared to the dominant models is demonstrated. The second part of the chapter considers the theory, utility, ideology and methodology of the model, proposing additions to, and adaptations of, the methodology and ways in which it may be made more accessible. THE UNIVERSITY OF HULL The Viable System Model: A More Adequate Tool for Practising Management? being a Thesis submitted for the Degree of Doctor of Philosophy in the University of Hull by John Leonard William Beckford September 1993 I keep six honest serving men (They taught me all I knew); Their names are What and Why and When And How and Where and Who. (Rudyard Kipling, (1902). Just So Stories, Macmillan (1958 Edition), London). Contents Page Acknowledgements xv Preface xvi Chapter One: A Problem of Organisation 1 1.1 Introduction 1 1.2 Complexity and the rate of change 2 1.3 Problems with problem solving 4 1.4 Conclusion 16 Chapter Two: The Dominant Models of Organisation 17 2.1 Models of Organisation 17 2.2 Problems with models of organisation 18 2.3 The Rational (Machine) Model ("Closed" System) 19 2.4 The Human Relations and Systems (Organic) Model ("Open System") 29 2.5 The Neurocybernetic ("Viable System") Model 37 2.6 Summary 40 Chapter Three: The Cybernetic Insight 42 3.1 Development and History of Cybernetics 42 3.2 Meaning and Role 44 3.3 Characteristics, Tools and Principles of Cybernetics 45 3.3.1 Systems: a starting point 46 3.3.2 Characteristics of cybernetic systems 47 3.3.3 Cybernetic Tools 49 3.3.3.1 The Black Box Technique 49 3.3.3.2 Feedback 54 3.3.3.3 Variety Engineering 59 3.3.4 Principles of Cybernetics 61 3.4 Dominant models and cybernetics 62 3.5 "Management" and "Organisational" cybernetics 66 3.6 Summary 67 Chapter Four: The Viable System Model: Conception, Construction and Methodology 68 4.1 The Nature of the Model 68 4.2 The Organisation in its Environment 71 4.3 System One 77 4.4 System Two 82 4.5 System Three* 85 4.6 Senior Management: The Metasystem 87 4.7 System Three 88 4.8 System Four 92 4.9 System Five 96 4.10 Algedonic Mechanism 98 4.11 Environment 100 4.12 Recursion 100 4.13 Autopoiesis 102 4.14 Amplifiers and Attenuators 106 4.15 Measurement 106 4.16 Methodology 108 4.16.1 System Identification 109 4.16.2 System Diagnosis 112 4.16.2.1 System One: Implementation 113 4.16.2.2 System Two: Co-ordination 113 4.16.2.3 System Three: Control 114 4.16.2.4 System Four: Planning 114 4.16.2.5 System Five: Policy 115 4.16.2.6 Information Channels 116 4.16.2.7 Rectification and common faults 116 4.17 Summary 117 Chapter Five: The Viable System Model: Applications, Developments and Criticisms 118 5.1 Introduction 118 5.2 Applications 118 5.2.1 "El Pueblo" 119 5.2.2 "Useful or not" 140 5.3 Say Aaah!: Diagnosing the System 152 5.4 Developments 167 5.5 Criticisms 182 5.6 Beer, a latter day Diogenes? 192 5.7 Conclusion 197 Chapter Six: The Viable System Model; A More Adequate Representation? the Cases for and against 199 6.1 Introduction 199 6.2 The Dominant Models Revisited 200 6.3 The Cases for and against the Viable System Model 202 6.4 Research Proposed and Empirical Investigations 203 6.5 Conclusion 205 Chapter Seven: Empirical Investigations 206 7.1 Introduction 206 7.2 Carco 207 7.3 Finco 209 7.4 Cakes 210 7.5 Teaching Viability 211 7.6 Conclusion 212 Chapter Eight: Passing on a Family Business, or a Family Business Passing on? 213 8.1 Introduction 213 8.2 Background to the Application 214 8.2.1 The Initial Situation 214 8.2.2 The Retail Motor Industry 217 8.2.3 Why Use the Viable System Model 220 8.3 Organisation "now, or bust" 222 8.3.1 System Identification 222 8.3.2 System Diagnosis: Reorganisation of Carco 227 8.3.2.1 System One 229 8.3.2.2 System Two 238 8.3.2.3 System Three* 241 8.3.2.4 System Three 242 8.3.2.5 System Four 246 8.3.2.6 System Five 249 8.4 Further Developments 251 8.5 Summary 257 8.6 Conclusion 259 Chapter Nine: Guiding Freedom, Developing Organisation & Action Learning 260 9.1 Introduction 260 9.2 Finco 261 9.2.1 Introduction 261 9.2.2 Background 262 9.2.3 System Identification 267 9.2.4 System Diagnosis 269 9.2.4.1 System One 269 9.2.4.2 System Two 271 9.2.4.3 System Three 272 9.2.4.4 System Four 273 9.2.4.5 System Five 273 9.2.4.6 Communication & Information Channels 273 9.2.4.7 Commentary 274 9.2.5 Redesign 276 9.2.5.1 System One 277 9.2.5.2 System Two 280 9.2.5.3 System Three 282 9.2.5.4 System Four 284 9.2.5.5 System Five 286 9.2.5.6 Communication and Information Channels 287 9.2.5.7 Commentary 289 9.2.6 Recursion Two 290 9.2.6.1 Building a Process of Self- organisation 290 9.2.6.2 On Success 298 9.2.6.3 Summary 299 9.3 Cakes 300 9.3.1 Introduction 300 9.3.2 Background 300 9.3.3 System Identification 302 9.3.4 System Diagnosis 304 9.3.4.1 System One 305 9.3.4.2 System Two 305 9.3.4.3 System Three 306 9.3.4.4 System Three* 307 9.3.4.5 System Four 308 9.3.4.6 System Five 309 9.3.4.7 Communication and Information Channels 309 9.3.4.8 Summary 310 9.3.5 Redesign 310 9.3.5.1 System One 312 9.3.5.2 System Two 314 9.3.5.3 System Three 314 9.3.5.4 System Three* 315 9.3.5.5 System Four 316 9.3.5.6 System Five 316 9.3.5.7 Recursion Two - Production Lines One & Two 317 9.3.5.8 System One 317 9.3.5.9 System Two 319 9.3.5.10 System Three 319 9.3.5.11 System Four 320 9.3.5.12 System Five 320 9.3.6 On Success 321 9.3.7 Summary 323 9.4 Teaching Viability - the Viable Classroom 324 9.4.1 Introduction 324 9.4.2 Classroom Organisation 325 9.4.2.1 System One 327 9.4.2.2 System Three 327 9.4.2.3 System Two 328 9.4.2.4 System Three* 328 9.4.2.5 System Four 328 9.4.2.6 System Five 329 9.4.2.7 Communication Channels and Control Loops 329 9.4.3 Practical Work 330 9.4.4 Difficult Points 332 9.4.4.1 Role Articulation 332 9.4.4.2 Diagrammatic Representation 335 9.4.5 Summary 336 9.5 Conclusion 337 Chapter Ten: Theory in Practice 338 10.1 Introduction 338 10.2 Theory Revisited 339 10.3 Carco 340 10.3.1 Strengths 340 10.3.2 Weaknesses 342 10.3.3 Consequences for the Model 344 10.3.3.1 Utility 344 10.3.3.2 Ideology 345 10.3.3.3 Theory 346 10.3.3.4 Methodology 346 10.4 Finco 347 10.4.1 Strengths 348 10.4.2 Weaknesses 350 10.4.3 Consequences for the Model 351 10.4.3.1 Utility 351 10.4.3.2 Ideology 352 10.4.3.3 Theory 353 10.4.3.4 Methodology 353 10.5 Cakes 354 10.5.1 Strengths 355 10.5.2 Weaknesses 357 10.5.3 Consequences for the Model 358 10.5.3.1 Utility 358 10.5.3.2 Ideology 359 10.5.3.3 Theory 359 10.5.3.4 Methodology 360 10.6 Teaching Viability 361 10.6.1 Strengths 361 10.6.2 Weaknesses 362 10.6.3 Consequences for the Model 363 10.6.3.1 Utility 363 10.6.3.2 Ideology 363 10.6.3.3 Theory 363 10.6.3.4 Methodology 364 10.7 Conclusion 364 Chapter Eleven: Critical Reflections 365 11.1 Introduction 365 11.2 Comparison of the Models 366 11.2.1 Strengths 366 11.2.2 Weaknesses 369 11.2.3 Opportunities and Threats 372 11.2.4 Summary 376 11.3 Reflections on the Model 376 11.3.1 Theory 377 11.3.2 Ideology 378 11.3.3 Utility 380 11.3.4 Methodology 383 11.3.4.1 System Identification 383 11.3.4.2 System Diagnosis 387 11.3.5 Role Articulation 402 11.3.6 Autonomy, Development and Efficiency 403 11.3.7 Summary 408 11.4 Conclusion 409 Chapter Twelve: Conclusions and Future Research 410 12.1 Introduction 410 12.2 Summary of Conclusions 410 12.3 Further Research 415 12.5 Conclusion 416 Appendices Appendix i 417 Appendix ii 419 Appendix iii 420 Appendix iv 434 References 440 Bibliography 451 Figures Page 1.1 Chasing "the problem" 11 3.1 The Black Box Technique 51 3.2 Multiply by 3 51 3.3 A Closed-Loop First Order Feedback System 56 4.1 The Organisation in its Environment 72 4.2 The Environment, Operations and Management unit separated to reveal the communication channels 74 4.3 System One with local regulatory centres 79 4.4 Systems One, Two and Three* 86 4.5 General Example of a System Three 91 4.6 Generalised View of a System Four 95 4.7 The 3-4-5 Metasystem 99 4.8 The Complete Viable System Model showing three levels of recursion 101 4.9 Possible Chains of Systems 103 4.10 Performance Measurement System 108 4.11 Triple Recursion with System in Focus at the Centre 111 5.1 The Recursive Model of Chile in the World of Nations 123 5.2 Systemic Diagram for Determining the Combinations of Insurance Plans to be Regulated 144 5.3 Orthogonal Mapping of Different Perspectives of the Whole System 151 8.1 Triple Recursion with the System-in- Focus at the Centre 225 8.2 Carco: The Initial Situation 228 8.3 Minimal Diagram for the Reorganisation of Carco 252 9.1 Finco: Original Organisation Chart 264 9.2 Finco:
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