- Diagnosis: Thorough assessment of the organization in order to identify the main points that pose a threat to its survival. The diagnosis results are compiled and communicated through a specialized System Diagnosis Report.
- Design/Implementation: The diagnosis results are used for the optimization of the existing organizational structure, or the Design of a new more effective organizational structure. Moreover, we support the implementation of the proposed solutions, by conducting specialized VSM Workshops and supervising their proper application.
The VSM can be directly used for the effective design and development of a new organization (start-up) or a new business unit.
- Develop survival skills in times of crises
- Develop the organization’s adaptability
- Eliminate bureaucracy
- Discover opportunities to reduce costs through a simpler more effective management structure
- Take advantage of autonomy in order to maximize effectiveness
- Balance and harmonize internal processes
- More effective management of customer and suppliers
The Viable System Model was developed by the systems and cybernetics scientist Stafford Beer. Beer, using the generic principles of cybernetics, studied the human organism as the perfect example of an organization that can adapt, be autonomous and survive. He found that all organizations irrespective of their size (from a human being to a multinational company) or type (e.g. public or private sector) must perform 5 basic processes in order to survive:
- Policy (higher purpose, values, orientation, identity)
- Intelligence (research and development, adaptation)
- Control (coherence, synergy)
- Coordination (stability, operational harmonisation)
- Operations (implementation, fulfillment of purpose)
The VSM has been and is still being successfully implemented in organizations of all types and sizes. The most important implementation of VSM was done by Beer himself in Chile, during the famous Cybersyn Project with remarkable results.
We live in an age where the increasing complexity and speed of arising crisesrenders the known management theories more and more outdated. The Viable System Model (VSM) is a tool to quickly and effectively improve the whole performance of an organization, meet its targets and adapt to its continuously changing corporate environment. The VSM is based on the solid foundations of systems and cybernetics science and has been successfully applied to organizations and companies of all types and sizes.
The VSM can help an organization to:
- identify the points critical to its survival
- distinguish its Operational and Managerial parts
- optimize its control and coordination functions
- maximize the autonomy of its parts/departments without losing total control
- create a competitive advantage through a more effective organizational structure