What is the Viable System Model about

Understanding Organization Complexity

A view of optimizing processes dominates the business management view of organizations. This is based on the metaphor of a machine whose individual parts must be optimized to achieve an optimal overall result.

This machine view of the organization is inadequate. In our dynamic environment, it will fail sooner rather than later. VSM views the organization as a system; changes to one element have effects that can only be evaluated in an overall view.

Local optimizations and changes must always be included in an overarching view.

An organization is not a deterministic machine.

The importance of decision-making mechanisms

At its core, the VSM is not about static structures but processes and interactions. It emphasizes the importance of decision-making mechanisms, how information circulates within an organization, and how these elements contribute to its capacity to self-regulate and adapt effectively.

The model's primary concern is the organization's viability ---its ability to survive and thrive in a changing environment. This focus shifts the perspective from rigid hierarchical structures to a more fluid, responsive, and adaptive approach to organizational design.

The VSM does not draw an Org Chart.

A significant hurdle in appreciating the full potential of the VSM is our habitual way of thinking. We are inclined to view new concepts through the lens of familiar frameworks.

One common misconception is to interpret the VSM's diagram as a traditional organizational chart. This interpretation misses the essence of the VSM.

Unlike conventional charts focusing on hierarchy and reporting structures, the VSM delves into decision-making dynamics, information flow, and an organization's steerability. It provides a more dynamic view of how an organization adapts and responds to its environment.

The VSM does not draw an org chart.

Again:

The VSM does not draw an org chart.

Embracing a New Perspective

To fully leverage the insights of the VSM, one must be willing to step away from conventional organizational thinking. It requires a paradigm shift to view organizations not merely as structures of authority and responsibility but as living systems with complex feedback loops, information channels, and decision-making processes. This new perspective can unveil innovative ways to enhance organizational effectiveness, adaptability, and resilience.

Combination with existing methods

The Viable System Model (VSM) contains many concepts that play a role in the Lean and Agile environment; it is virtually a parallel world for Agilists. However, the VSM is older and originated in a different context. It anticipates many of the principles that have been (re)developed in agile development. As we will see, it has a broader foundation and deep scientific grounding.

The VSM adds a unique view of the organization, namely the view of decision-making and communication processes. It draws from its cybernetic roots powerful conceptual tools that make improvement opportunities comprehensible.

The VSM uses these tools to help identify blind spots without claiming to overturn all existing structures or replace other models and tools.