Task C4.5: Collect Information Needs

What is Task C4.5?

Task C4.5 is part of the "Decide" phase in the Viability Canvas methodology, specifically within the "Optimize" step (Step C4). This task instructs you to create a research mechanism (System 3*) to collect unfiltered information about operational Systems 1 as close to real-time as possible, with the goals of preventing blind spots and providing richer context for management decision-making.

Purpose of Collecting Information Needs

The purpose of this task is to design System 3* mechanisms that provide direct, unfiltered information from operational units to management. This serves several important functions:

1. Preventing blind spots: Ensuring management sees beyond what's reported through formal channels
2. Creating ground truth: Providing direct exposure to operational realities
3. Enriching context: Giving management a richer understanding of situations
4. Complementing formal reporting: Adding qualitative insights to quantitative data
5. Breaking silos: Helping management see beyond their functional perspectives

By establishing effective System 3* mechanisms, you create vital complementary information channels that enhance management awareness and decision quality without undermining local autonomy.

Understanding System 3* in VSM

In the Viable System Model, System 3* (pronounced "three-star") is a specialized information function that:

• Provides direct, unfiltered access to operational realities
• Complements the formal reporting that comes through System 2 and the command channels
• Operates as a pure research mechanism, not a control channel
• Prevents the development of blind spots in management's view of operations
• Provides contextual understanding that enhances interpretation of formal reports

System 3* is distinct from audit or compliance functions because its primary purpose is information gathering and understanding, not enforcement or control.

How to Complete Task C4.5

To establish effective System 3* mechanisms:

1. Identify potential blind spots in current information flows:
   • Which aspects of operations might be obscured in formal reporting?
   • Where might unconscious filtering or bias affect information?
   • What contextual information might be missing from quantitative reports?
   • Which operational realities might management be disconnected from?
2. Consider potential System 3 mechanisms* such as:
   • Gemba walks or "management by walking around" practices
   • Direct observation of operations by management
   • Skip-level meetings with frontline employees
   • Customer immersion experiences
   • Cross-functional rotation programs
   • Regular surveys of operational staff
   • Independent review processes
3. Design each selected mechanism with attention to:
   • Frequency and duration appropriate to the context
   • Who will participate and their preparation
   • What will be observed or investigated
   • How insights will be captured and shared
   • How to maintain the distinction from control functions
4. Establish clear principles for System 3* activities:
   • These are information-gathering activities, not inspections
   • The purpose is understanding, not judgment
   • Observations should be approached with curiosity, not assumptions
   • Information flows should be multi-directional
   • The focus is on learning, not compliance
5. Create a balanced portfolio of System 3* mechanisms:
   • Include both regular, scheduled activities and ad-hoc investigations
   • Cover all significant operational areas
   • Use multiple methods to provide different perspectives
   • Balance breadth of coverage with depth of understanding

Example Application

For a healthcare organization:

• Patient journey shadowing: Executives regularly follow patients through the entire care process to experience it firsthand
• Frontline forums: Quarterly sessions where staff can share challenges directly with leadership
• Department immersion days: Leaders spend full days working alongside different departments
• Pulse surveys: Brief, frequent surveys of staff on specific operational issues
• Peer review process: Clinicians from one area observe and provide feedback on another area

This portfolio of System 3* mechanisms provides leadership with direct exposure to operational realities that might not be visible through formal reporting channels, enhancing their understanding and decision-making.

Key Principles for Effective System 3* Design

When designing System 3* mechanisms:

1. Authenticity: Create conditions for honest, unfiltered information sharing
2. Regularity: Establish consistent practices, not just crisis-driven investigations
3. Distinction: Clearly separate these activities from control or audit functions
4. Respect: Approach operational areas with genuine curiosity and respect
5. Follow-through: Demonstrate that insights gained influence decisions
6. Reciprocity: Make these opportunities for two-way learning
7. Balance: Cover all significant areas without creating excessive burden
8. Integration: Connect insights gained to other information sources

By following these principles, you can create System 3* mechanisms that provide vital ground truth to management while respecting operational autonomy, significantly enhancing organizational viability.