Task A2.2: Describe the Local Environments

What is Task A2.2?

Task A2.2 is part of the "Observe" phase in the Viability Canvas methodology, specifically within the "System One: the Operation" step (Step A2). This task instructs you to "Find the local environments of the Systems 1. Environment means outside, i.e. not management or other Systems 1. We will work on these relations later. Draw in smaller overlapping environmental shapes - one for each Operational element - within the large environment."

Purpose of Describing Local Environments

The purpose of this task is to identify and map the specific external environments with which each operational unit interacts. This serves several important functions:

1. Contextualizing operations: Understanding how each unit operates within its specific external context
2. Identifying external influences: Recognizing the specific external factors that affect each operational unit
3. Clarifying boundaries: Defining where the organization ends and the environment begins for each unit
4. Revealing relationships: Showing how different operational units may share or have distinct external environments
5. Preparing for variety management: Beginning to understand the complexity each unit must handle from its environment

By mapping these local environments, you create a more nuanced understanding of how your organization interacts with the outside world, laying groundwork for later analysis of information flows and variety management.

Understanding Local Environments

In the context of the Viable System Model (VSM), "local environments" are:

• The specific portions of the external world with which each System 1 unit interacts
• Sources of both opportunities and challenges for each operational unit
• Areas outside the organization's direct control that nonetheless influence its operations
• Distinct for each operational unit, though they may overlap
• Including elements such as specific customer segments, suppliers, regulations, competitors, or other external stakeholders

The environment is not part of the organization but represents everything outside the system that affects its operations and with which it must interact to fulfill its purpose.

How to Complete Task A2.2

To describe the local environments of your System 1 units:

1. For each operational unit identified in Task A2.1:
   • Consider what external elements it interacts with directly
   • Identify specific stakeholders, markets, suppliers, or other external factors
   • Determine what parts of the broader environment are relevant to this specific unit
2. Map these environments on your VSM diagram:
   • Draw smaller, amoeba-like shapes within the large environment shape
   • Each shape should be associated with a specific System 1 unit
   • Allow these shapes to overlap where different units share parts of the environment
   • Position them to show logical relationships to their associated operational units
3. Consider environmental relationships:
   • Where do environmental segments overlap?
   • Which units share important environmental elements?
   • Are there distinct environmental segments unique to specific units?
4. Keep focus on external factors:
   • Remember that "environment" means outside the organization
   • Do not include management or other operational units
   • Focus only on elements beyond the organization's direct control

Example Application

For example, in a manufacturing company:

• Production unit environment: Raw material suppliers, equipment vendors, safety regulations
• Distribution unit environment: Shipping companies, transport regulations, weather patterns
• Sales unit environment: Customers, competitors, market trends, economic conditions

These environments might overlap where, for instance, both production and distribution deal with the same regulations, or distribution and sales interact with some of the same customers.

For a university:

• Research department environment: Funding agencies, research partners, ethical review boards
• Teaching department environment: Students, accreditation bodies, competing institutions
• Community outreach environment: Local community, media, government agencies

Common Pitfalls to Avoid

When completing this task, be aware of these common mistakes:

1. Including internal elements: Remember that the environment is strictly external; do not include management or other organizational units.
2. Too generic: Avoid broad labels like "market" or "regulations" without specifying which segments or types are relevant to each unit.
3. Missing overlaps: Fail to recognize where different operational units share environmental elements, missing potential coordination needs.
4. Overcomplicating: Adding too much detail at this stage; focus on major environmental elements that significantly impact operations.
5. Ignoring the unique: Not recognizing the distinct environmental elements that make each operational unit's context unique.

By carefully mapping the local environments of each System 1 unit, you create a foundation for understanding how your organization interacts with its external context and how different operational units relate to each other through shared or distinct environmental elements.