Study the way natural systems work

Scaling Innovations for Scaling Innovations for Sustainability:Sustainability: Theory and contributions Theory and contributions from the VSMfrom the VSMJ Walker * / A. Espinosa ** J Walker * / A. Espinosa ** * Independent researcher * Independent researcher ** Hull Business School** Hull Business School

04/21/23 VSM, Coops, Sustainability. 2013

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Study the way natural systems work.

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Generalise your findings into a universally applicable model.

3Apply to groups of people, businesses, eco-systems, villages, cooperatives, nations

Organisation as Nature Organisation as Nature IntendedIntended

Invented by Stafford BeerInvented by Stafford Beer

Developed during the 1950’s while he was a manager in the UK steel industry.

It was a response to his dissatisfaction with traditional approaches to management.

His theories resulted in significant increases in productivity.

04/21/23 VSM, Coops, Sustainability. 2013Slide 3

Developed as a practical tool : not an academic theory

Grounded in systems thinking.Grounded in systems thinking.

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It’s about seeing the world as patterns of relationships . . .

. . .whole systems interacting with other whole systems, in a dynamic, co-evolving dance.

A CB DNot like this . . . . like

this!

Where to find Inspiration ?Where to find Inspiration ?Use the human body !Use the human body !


. . . make a model !

Study the sub-systems and the patterns of relationships which explain how the brain and nervous systems regulate the muscles and organs . . .

. . . find the universal principles . . .

and . . . it works !and . . . it works !


William F. Christopher. President of The Management Innovations Group. After a management career in industry, he worked with more than 100 businesses in sixteen countries.All his work is based on the VSM.

• Worldwide the biggest expert team for consulting and education in holistic management systems (St. Gallen, Zurich, Vienna, Berlin, London, Shanghai)

• 300 employees• 30 years experience• All their work firmly rooted in

organisational cybernetics.• See www.malik-mzsg.ch


VSM: The Central Concept VSM: The Central Concept

Most fundamentally – the VSM looks at an organisation as a cluster of autonomous, self-organising parts which come together to form a new, larger whole.

Not like this . .

. . . like this !

Complexity & VarietyComplexity & Variety

Ashby (1964):◦ Complexity: ‘the potentiality of a system to

exhibit different states’◦ ‘Variety’:

the number of possible states a system is capable of exhibiting;

a repertory of potential behaviours a measure of perceived complexity

◦ An ‘observed system’ is described by a group of variables that an observer recognizes in a real situation and this is always determined by the observer’s complexity.

The Law of Requisite VarietyThe Law of Requisite Variety The law of requisite variety states that ‘only

variety can destroy variety’. In order to control a system, we need to have as much variety available to us as the system itself exhibits.◦ A viable system should always be seeking to increase its

variety of response to environmental disturbances.◦ It can do this by synthesising different experiences to

effectively respond to similar situations in the future.◦ Learning: requires exposure to different situations◦ ‘Making distinctions’ - a vital element which enables the

increase of the variety of response

Basic AssumptionsBasic Assumptions


This is the basic unit of analysis: a whole system co-evolving with its environment

• Operation, Meta-system and Environment

• A Meta-system which enables the Operational elements to come together to form a new, larger, whole system.

• Operational autonomy limited only be system cohesion.

• Nested, recursive systems within systems within systems . . .

• Continuous, dynamic, co-evolving interactions, based on real-time information.

Systemic Systemic Balance Balance


Good design means the parts of an organisation are properly balanced.

The Operation must have the capacity to deal with the complexity of the environment in which it operates.

The Meta-system must have the capacity to deal with the complexity of the Operation for which it provides cohesion.

The whole system must be in balance with its environmental niche.

The more complex and chaotic the Environment, the more capacity and flexibility the system must have.

Good design means dealing with complexity through balancing systems

The Viable Systems The Viable Systems ModelModelThe Five SystemsThe Five Systems


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Viable Systems Model – the form of the model.

The 5 SystemsThe 5 Systems


S1 - Operation, primary activities

S2 - Conflict resolution

S3 - Synergy, internal regulation

S4 - Adaptation, scanning and planning

S5 - Closure, policy, identity

All 5 systems need to be present, properly inter-connected and fit for purpose


Inside-and-now: Outside-and-Inside-and-now: Outside-and-thenthen

Outside and Then. System 4 making plans in the context of information from outside, and information from System 3

System 5 - formulating policy, monitoring, intervening when needed.

Inside and Now, Systems 1, 2 and 3 maintaining the internal environment, keeping it running as effectively as possible. Balancing autonomy and cohesion.

System 1 doing its job in the context of a changing environment

Implications for Implications for organisationsorganisationsRe-distribution of

responsibilities: Based on variety management

True democracy: Devolved control to operational levels

Meta-systemic management: not ‘cognitive autocracy’

Performance management: based on self-regulating units

Need for greater democracy and power equalization

Continuous transformation, based on self-organization.

‘Order generating rules’: to overcome the limitations of rational, linear, top-down, strategy-driven approaches to change.

Societal developmentDominant Paradigm

Selfishness Never ending economic growth Top down, hierarchical

organisation Authoritarian, coersive control Competitive

Centralised politics (exclusion, cynicism)

Measuring economic indicators Avoiding Complexity/ being

slave of unmanaged complexity

Societal developmentComplexity Paradigm

Social consciousness Sustained viability More autonomy at local levels

Self-regulation, self-organisation

Balance competitive/cooperative

Participatory democratic politics (high self-esteem)

Measuring individual and society well being

Managing Complexity◦ Transition Management◦ Sustainable Governance

Complexity in PracticeComplexity in PracticeOrganisations as Viable Systems

Organisations as Complex Adaptive Systems

Respond or anticipate environmental changes, through effecting changes in its own dynamics

Non linear, unpredictable behaviours, co-evolution, phase transitions.

It allows it to maintain an identity over time co-existent with the viability of the other organisations or systems to which it is structurally coupled

Patterns of behaviour process ofself- organisation

Focus on structural conditions forviability

Self-organisation is governed by asmall number of simple order-generating rules

Offers theory, methodology and tools tosupport self-organisation and selfregulation.

Focus on the dynamics of the interactions


The Viable Systems Model

In Action


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Case Study.

1. Recursions unclear2. Insufficient autonomy in Operational groups.3. Weak (absent) Systems 3 and 4 at

Company recursion4. Lack of measurement systems and KPIs.

Diagnosis

Intervention

1. Recursions clarified. 2. Autonomy of Operational groups enhanced, 3. New jobs created for Systems 3 and 4 at

Company recursion4. Performance measurement systems and

KPIs designed and implemented based on daily figures.

Results

1. Improved productivity/profit/service level. 2. More enjoyable working environment.

Case Study: Chile 1973.Case Study: Chile 1973.


Action ResearchAction Research

Project Based Learning:◦ What do we need to

do?◦ What do we need to

learn to do it?◦ What’s the most useful

approach to this topic?◦ What have we learned

while doing it?◦ What are the new

learning needs?

Reflecting

Experiencing

Interpreting

Taking Action


Cloughjordan Eco-village: Case Study


Cloughjordan Eco-village: Case Study 2009

1. Design of Primary Activity Groups

2. Design of new systems 3 and 4.3. Re-thinking role of Board4. Application within other primary

activities (lower level of recursion)


Magdalena River Basin

Diagnosis of whole Magdalena river basin.

Creation of new institutions to deal with entire system.

Cohering fragmented governance systems to manage bio-region.


1. On-going HQ re-organisation.2. Design of European research

network.3. Proposed recursive diagnosis of

entire British Permaculture community.

The VSM and Sustainability The VSM and Sustainability



Closing Statements (1)•We use the VSM as a meta-language for coaching organisational members on ways to understand and manage the complexity of their interactions

•Organisations can be designed to be highly efficient and profitable, and based upon individual creativity and work-team self-organisation.

•An organisation can be designed to be in balance with both it’s market and it’s eco-system. A VSM application can be extended to create a sustainable economy

•Organisations can be designed to be highly efficient and profitable, and based upon individual creativity and work-team self-organisation.

•Co-operatives and NGOs and organisations working for ethical/ social wellbeing purposes are the perfect setting for applying the VSM

•Democratic control and participation

•Ownership by all encourages identity with the whole system.

Work-team autonomy and individual creativity

Ownership by all encourages identity with the whole system.

Examples: How the VSM can Examples: How the VSM can support the BALTA projectsupport the BALTA project What is the relationship of social

economy ownership and democratic decision-making models to the effective scaling out and scaling up of sustainability innovations?

What kinds of scaling up and scaling out of sustainability innovations are occurring in each of four sectors (food, energy, finance, shelter)? What is role of social economy actors in this work?

What is occurring at each level of innovation: micro/grassroots; meso/regime; and macro/landscape levels, and how is work at various levels combined in process of spreading an innovation? Who does this work? How should we study this range of SIS work?

Modeling and identifying current governance schemes and suggesting improvements when necessary

Mapping a regional or sub-regional socio-ecological system, its key ‘primary sectors’, identifying institutional networks involved and suggesting networked governance schemes

Using a unified conceptual framework to model institutional networks at the meso and macro and micro levels

Examples: How the VSM can Examples: How the VSM can support the BALTA projectsupport the BALTA project What happens to the

innovations as we essentially create new meta-networks to diffuse or extend them to region, province or nation ?

Are innovations from one sector being used in another (land trust, ULC)?

How will our findings impact communities?

Designing the meta-networks

Mapping sectoral innovators

Providing a model for impact measuring (not just financial)

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Study the way natural systems work