The Viable System Model: A Guide for Enterprise Architecture

1. The Viable System Model:A Guide for Enterprise Architecture Stuart Umpleby The George Washington University Washington, DC

2. Features of the VSM • Based on the structure of the human nervous system • Five levels or functions • The five functions recur at each level of organization

3. Features of the VSM • Maximizes autonomy of units • Minimizes bureaucracy • Maintains control of essential activities • Evaluates results more than methods

4. The five functions • System five – controls the rate of innovation, defines the organization’s values • System four – does long-range planning, designs the next product or service • System three – middle management, defines a “resource bargain” with the system ones • System two – coordinates the producing units • System one – the producing units

5. Concerns of the Viable System Model • Make sure that the knowledge and skills needed are available • Be sure that the information needed to make decisions is available • Design an organization that is adaptive

18. Present Present Environment Environment Management Management Operation Operation Local Local Operation Operation One A One A Environ Environ - - One A One A ment ment Management Management Local Local Operation Operation Operation Operation Environ Environ - - One B One B One B One B ment ment Management Management Local Local Operation Operation Operation Operation Environ Environ - - One C One C One C One C ment ment System One units and their environments

19. Repeat of the System One units with the addition of Systems Two, Three, and Three Star

20. Future Future Environment Environment System 4 System 4 All internal All internal All relevant All relevant functions functions developments developments concerned concerned in the in the with the with the environment environment future future oriented oriented to the future to the future System Four probing the future environment

21. System 5 System 5 System 4 System 4 System 3 System 3 Relationships among Systems 3, 4, and 5

22. System 5 System 5 Future Future Environment Environment System 4 System 4 System 3 System 3 Present Present 3* 3* 2 2 Environment Environment Management Management Operation Operation Operation Operation Local Local One A One A One A One A Environ Environ - - ment ment System 3 Present 3* 2 Environment Management Management Local Local Operation Operation Operation Operation Environ Environ - - One B One B One B One B t t men men Management Operation Operation Local One A One A Environ - Management Management ment Local Local Operation Operation Operation Operation Environ Environ - - One C One C One C One C ment ment Management Local Operation Operation Environ - One B One B t men Management Local Operation Operation Environ - One C One C ment The Viable System Model

23. Viable System Model • A diagnostic tool that can aid in understanding any organizational structure – line, staff, or matrix • Defines the variety that needs to be controlled and the structures to control it • Shows how both to ensure innovation and to regulate it

24. Relevance to Enterprise Architecture • The VSM provides a way of viewing the structure of an organization • It could, in principle, be used to design an information system for an organization • At least one software program has been created to help people analyze an organization in terms of the VSM

25. A presentation for the Association for Enterprise Architecture Ronald Reagan Building, Suite M 800 Washington, DC August 13, 2008

26. Contact Information Prof. Stuart Umpleby Department of Management The George Washington University Washington, DC www.gwu.edu/~umpleby umpleby@gwu.edu 202-994-1642