Task A3.1: Review your Operational elements

What is Task A3.1?

Task A3.1 is part of the "Observe" phase in the Viability Canvas methodology, specifically within the "System Two - Stability and conflict resolution" step (Step A3). This task instructs you to "Look at your list of operational elements or Systems 1."

Purpose of Reviewing Operational Elements

The purpose of this task is to ensure you have correctly identified all the primary operational units (Systems 1) in your organization and understand how they interact. This serves several important functions:

1. Validation: Confirming your initial identification of operational units is complete and accurate
2. Interaction focus: Shifting your perspective to consider how these units work together
3. System boundaries: Clarifying where one operational unit ends and another begins
4. Completeness check: Ensuring no critical operational elements have been overlooked
5. Refined understanding: Deepening your comprehension of what constitutes a true System 1

By reviewing your operational elements with specific attention to their interactions, you create a solid foundation for identifying potential conflicts and coordination needs in the subsequent tasks.

Understanding Operational Elements (Systems 1)

In the context of the Viable System Model, "operational elements" or "Systems 1" are:

• The primary value-creating units of your organization
• The parts that directly deliver products or services to customers
• Relatively autonomous units that could theoretically exist independently
• Typically configured as profit centers rather than cost centers
• The aspects of your organization that justify its existence

These operational units form the foundation of your organization's viability. Each is a smaller viable system in itself, with its own operations, management, and local environment.

How to Complete Task A3.1

To effectively review your operational elements:

1. Retrieve your System 1 list from Step A2.1, where you initially identified the primary activities of your System-in-Focus.
2. Review each element with these critical questions:
   • Does this unit directly contribute to the organization's primary purpose?
   • Does it create value for external customers?
   • Could it theoretically function as a standalone entity?
   • Is it a profit center rather than a cost center?
   • Does it have its own distinct management and operations?
3. Focus on interactions between these units:
   • How do these operational elements work together?
   • What dependencies exist between them?
   • Where do they need to coordinate?
   • Are there overlapping responsibilities or environments?
4. Adjust your list based on this review:
   • Remove items that don't qualify as true Systems 1
   • Add any overlooked operational units
   • Clarify boundaries between operational units
   • Note key interactions for further analysis
5. Refine your visualization of these elements in your VSM diagram, ensuring each is properly represented with its own smaller environment shape.

Example Application

In a manufacturing company, the review of operational elements might reveal:

• Production Unit A (makes product line X) - confirmed as System 1
• Production Unit B (makes product line Y) - confirmed as System 1
• Sales Department - confirmed as System 1
• Distribution Center - confirmed as System 1
• IT Department - reclassified as support function, not System 1
• Marketing - partially reclassified; direct marketing is System 1, brand marketing is support

The review might also identify key interactions:

• Production Units A and B share machinery and staff
• Sales and Production units have critical dependencies for order fulfillment
• Distribution interacts with both Production and Sales to coordinate deliveries

Common Pitfalls to Avoid

When reviewing operational elements:

1. Confusing support functions with Systems 1: Remember that IT, HR, accounting, etc., typically support value creation but aren't Systems 1 themselves
2. Missing interdependencies: Failing to note critical interactions between operational units
3. Unclear boundaries: Not clearly defining where one operational unit ends and another begins
4. Organizational chart thinking: Mapping Systems 1 directly to the organizational chart rather than focusing on value creation
5. Including management functions: Incorrectly including pure management functions as part of Systems 1

By conducting a thorough review of your operational elements with a focus on interactions, you establish a solid foundation for identifying coordination needs and potential conflicts in the next tasks.