Task A3.2: Identify Potential Conflict

What is Task A3.2?

Task A3.2 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 "Consider any conflict of interest or instabilities ('oscillations') that may occur as the operational elements interact. How are these conflicting interests resolved? List the instabilities and the ways that they are dealt with."

Purpose of Identifying Potential Conflict

The purpose of this task is to uncover areas where your operational units (Systems 1) might experience conflicts, tensions, or instabilities that could threaten the organization's smooth functioning. This serves several important functions:

1. Anticipating problems: Identifying potential issues before they escalate into serious disruptions
2. Understanding systemic tensions: Recognizing natural tensions that arise from different operational priorities
3. Assessing current resolution mechanisms: Evaluating how effectively conflicts are currently being managed
4. Identifying oscillations: Discovering cyclical problems that waste energy and resources
5. Creating a foundation for System 2 design: Providing the basis for designing effective coordination mechanisms

By identifying these potential conflicts, you gain crucial insights into where coordination mechanisms (System 2) are needed to maintain organizational stability and effectiveness.

Understanding Conflicts and Oscillations

In the context of the Viable System Model:

• Conflicts of interest occur when different operational units have competing goals, needs, or priorities that can't be simultaneously satisfied
• Instabilities are situations where interactions between operational units create problems, inefficiencies, or disruptions
• Oscillations are recurring patterns of problems that cycle back and forth, wasting energy without reaching resolution (like a pendulum)

These issues naturally arise in all complex systems with multiple interacting parts. The VSM recognizes that addressing them through effective coordination (System 2) is essential for organizational viability.

How to Complete Task A3.2

To identify potential conflicts and instabilities:

1. Examine shared environment components:
   • Do multiple operational units serve the same customers?
   • Do they compete for the same external resources?
   • Are they subject to the same regulatory constraints?
   • Do they operate in the same market segments?
2. Identify operational dependencies:
   • Which operational units depend on others for inputs?
   • Where must timing be coordinated between units?
   • Which resources are shared among multiple units?
   • Where do workflows cross between operational units?
3. Recognize competing priorities:
   • Where might one unit's goals conflict with another's?
   • Are there trade-offs between quality, cost, and time that affect different units differently?
   • Do performance measures for different units create conflicting incentives?
   • Are there competing demands for limited organizational resources?
4. Observe existing resolution methods:
   • How are current conflicts typically resolved?
   • What formal coordination mechanisms exist?
   • What informal practices have developed?
   • Who intervenes when conflicts arise?
5. Document your findings:
   • List each potential conflict or instability
   • Note what triggers these issues
   • Describe current resolution approaches
   • Assess the effectiveness of existing mechanisms

Example Application

In a manufacturing organization, potential conflicts might include:

• Production units competing for shared equipment:
  • Conflict: Both Unit A and Unit B need the testing lab at month-end
  • Current resolution: Informal negotiation between supervisors, often results in delays
  • Effectiveness: Poor - recurring monthly conflicts and production delays
• Sales and Production schedule misalignment:
  • Conflict: Sales promises delivery dates that Production can't consistently meet
  • Current resolution: Escalation to department heads, emergency rescheduling
  • Effectiveness: Moderate - conflicts resolved but at high cost to efficiency and morale
• Resource allocation between maintenance and production:
  • Conflict: Maintenance needs machine downtime that conflicts with production schedules
  • Current resolution: Weekly planning meeting with prioritization matrix
  • Effectiveness: Good - structured process prevents most conflicts

By documenting these conflicts and their current resolution mechanisms, you create a clear picture of where System 2 functions are needed and how well they're currently performing.

Key Indicators of Significant Conflicts

When identifying potential conflicts, look for these warning signs:

1. Recurring issues: Problems that appear repeatedly in the same areas
2. Escalation patterns: Issues regularly being elevated to higher management
3. Resource bottlenecks: Multiple units competing for limited resources
4. Schedule disruptions: Frequent changes to plans due to competing priorities
5. Information gaps: Units lacking information they need from other units
6. Quality problems: Issues at the interfaces between operational units
7. Employee frustration: Complaints about working with other departments
8. Customer impact: External stakeholders affected by internal coordination issues

These indicators can help you identify the most significant conflicts that will require effective System 2 mechanisms to resolve.