Apply Systems Thinking with the

Viable Systems Model (VSM)

Find two pair of feet

Systems Thinking versus Linear

Linear Thinking• Blame/reward the individual • Cause > and > effect • Short time span = The world is mechanic and simple

Systems Thinking• Individual as part of systems • Feedback loops • Delays = The world is organic and complex

Organizational Design is a Science - that can be learned

Viable Systems Model (VSM)

The Viable Systems Model

1. Operations

3. Delivery

4. Development

5. Policy

Envi

ronm

ent

2. Coordination3*

. M

onit

orin

g

Systems of systems

Exercise - Model the organization below• Assume the people below collaborate in

building a product.

10 min2 x Scrum master 10 x Developer6 x Tester2 x Product Owner 1 x Project Manager

1 x Product Manager

Complexity Drivers

Decompose according to complexity drivers

Development Test

Product A

Product B Dev Test Dev Test

Product A Product B

-First Product -Secondly Function

-First Function -Secondly Product

Product A

Product B

Examples

‘Cellular structure’

Development department

Quality department

Dev

Dev

DevQC

DOC

DOC department

Product team

‘Functional structure’

Autonomy around Purpose

Purpose rather than hierarchyEXAMPLE: • Team = Delivery of a subset of functionality • Release Train = Coordinating team-of-teams for delivery of the full

solution • Portfolio = Business Investment Decisions Portfolio

Release Train

Team

Autonomy• Avoid overlap of responsibility • Information and decision power go hand-in-hand

Purpose A

Purpose B

Purpose A

Purpose B

Boundary InteractionThe more outside of your own control… • The less autonomy • The less likely to succeed!

Team A

Team B

Team C

Dependencies

Dependencies

Coordination

Program Manager / RTE

Team A Team B

Coordination:

Team C

Boundary Interaction

Program Manager / RTE

Team A Team B

Coordination:

Team C

5-people group discussion• When would you chose to design high autonomy and low

coordination? • When would you design low autonomy and high coordination?

10 min

Cheat Sheet

Design for optimal Autonomy: • Purpose

• Complexity Drivers

• Core activities have autonomy

• Support activities should not

ENSURE VIABILITY FOR EACH SUB-SYSTEM IN THE SYSTEM:

• 1. OPERATIONS

• 2. COORDINATION MECHANISMS

• 3. DELIVERY • RESOURCES VS. PERFORMANCE DEMOCRACY

• 3.* MONITORING

• 4. DEVELOPMENT/INTELLIGENCE • ALIGNMENT THROUGHOUT! • ENVIRONMENT

• 5 POLICY

• AUTONOMY

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