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Presented to the Sustainable Business Institute at the University of Edinburgh Business School.
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A Espinosa, HUBS
A Complexity Approach to Sustainability: Theory and
Applications
Angela Espinosa November 20th, 2012
This seminar ..
1. Sustainability: the wickedest societal problem of all times.
2. How can we deal with core issues of dealing with complexity in sustainability programs (i.e. insights from Organisational Cybernetics)
3. Examples of applications of this approach to deal with organizational issues in the environmental sector.
4. Final reflections: how this approach contributes to sustainability.
A Espinosa, HUBS
1. Sustainability: The wickedest societal problem of all times.
A Espinosa, HUBS
State of the World 2010 The Global Economy
The Environment
Resource Depletion Global Inequality
A Espinosa, HUBS
State of the World 2010
Endangered Ecoregions
A Espinosa, HUBS
The Story of Stuff – the Material Economy.
EXTRACTION PRODUCTION DISTRBUTION CONSUMPTION DISPOSAL • Global economic development: socially and ecologically unsustainable. • Environmental problems: Highly complex and interconnected and needs a systemic approach (Meadows & Randers, 1992). • Complex Systems thinking: alternative paradigm to rethink socio economic development (Capra, 2003).
A Espinosa, HUBS
Identifying Planetary Boundaries
A Espinosa, HUBS
Main sustainability challenges
We have global, national and local environmental policies, programs and investments
They don’t always represent/ integrate the complexity and uncertainty of natural and social phenomena;
So, we haven’t managed to deal with major sustainability (i.e. global climate change) risks timely and effectively enough
There are still major misfits between theory and practice!
A Espinosa, HUBS
Implementation Misfits Ineffective hierarchical structures and traditional
management practices Mismatch in the relationship between governments, development
agencies & communities Lack of adaptive structures to decide & implement changes Lack of cross-disciplinary decision-making processes to support
policy integration
Multiple and often conflicting values; and political effects
Sustainability requires a more holistic view of environmental problems/social & institutional structures responsible for solutions.
A Espinosa, HUBS
2. Complexity and Sustainability
Insights from Organisational Cybernetics
A Espinosa, HUBS
12/7/12 VSM J Walker Slide 11
Organisational Cybernetics - Origins
Developed by Stafford Beer during the 1970’s (originally named as Management Cybernetics).
It was a response to his dissatisfaction with traditional approaches to management.
His theories resulted in significant increases in productivity in the steel industry in UK.
• He called it “ The theory of effective organisation” (Beer, 1979)
12/7/12 VSM J Walker
Slide 12
The Viable System Model - - Inspiration
Beer studied the way that the central and autonomic nervous systems “control” the operation of the organs and muscles, and used this understanding as the inspiration for his organisational model.
Control is ‘self-regulation’: the ability to keep a dynamic equilibrium in the co-evolution organism vs. niche
“We will seek the source of effective organisation in the cybernetics of natural processes - the brain itself ”
VSM Origins - The Environment Beer was looking with Cybernetic eyes - at the way an enterprise works in the context of its environment.
• What the organisation KNOWS and MEASURES about its environment determines the way it interacts with it • The clearer and more complete the MODEL it makes of the environment, the better it can react to external changes
Viable system
Environment
Requisite Variety?? A Espinosa, HUBS
Complexity & Variety
Ashby (1964), : defined, both in mechanical and in social dynamic systems: Complexity: ‘the potentiality of a system to exhibit
different states’ ‘Variety’: is:
the number of possible states a system is capable of exhibiting; a repertory of potential behaviours a measure of perceived complexity
An ‘observed system’ is described by a group of variables that an observer recognizes in a real situation and this is always determined by the observer’s complexity.
The Law of Requisite Variety
Environmental Disturbance
Organisational Reaction
Resulting State of the Organisational Relationship with its Environment
1. Competitor releases new product
2. Trade union calls industry strike
3. Govt introduces minimum wage
4. New invention cuts costs
5. Competitor ceases to trade
6. Skills shortage develops
7. …..
8. ...
1. D
ecre
ase
pric
es
2. In
crea
se sa
larie
s
3. D
owns
ize
orga
nisa
tion
4. P
urch
ase
new
mac
hine
s
5. R
eorg
anis
e pr
oduc
tion
6. In
crea
se sa
les f
orce
7. …
.
8. …
.
R Asby, MDM, HUBS!
The Viable Systems Model (VSM) Developed as a tool to improve the
effectiveness of an organisation Most applications involves businesses -
used as the basis for improving performance (and profits)
Powerful and flexible: applicable from small businesses to multi-nationals and Governments.
Always looks at an organisation in the context of its environment - so ideal for organisational transformations in conditions of uncertainty, complexity and risk ( i.e. sustainability and climate change)
A Espinosa, HUBS
12/7/12 J. Walker, 2011 Slide 17
The Three elements The Operation,
the primary activities, composed of smaller viable systems.
Has ‘n’ units - all the same shape as the large system, showing they are all organised in the same way.
The principle is ‘maximised autonomy, limited only by systems coherence’.
The Meta-system, (logically “over & above”) designed to ensure all the parts of the operation cohere into a single, harmonious, integrated whole. This is a service to the operational units It can intervene, but only for system
coherence. The Environment . Those parts of the outside
world which affect or are effected by the system. It shows the environments that are specific to the operational units
The three elements are all interacting.
The Five Systems
• System 5 – Closure, policy, identity, ultimate authority
• System 4 – Environmental scanning, strategy,
planning, innovation
• System 3/3* – Overview of entire Operation,
optimisation, synergy, intervention when necessary.
• System 2 – Anti-oscillatory – Resolution of conflict, synchronisation. – Keeping the peace.
• System 1 – The entire Operation
J. Walker, 2011
Key issues for organisational viability
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• Self –organisation (self- regulation) • Co-evolution with the environment • Innovation: continuous learning and adaptation
• Adaptive Policies and Strategies
• Continuous Learning – Closing feedback loops.
• Optimum information & communica-tion systems • Recursive Governance: Sustainability Indexes (Critical Processes for Sustainability)
Implications for organisations Re-distribution of
responsibilities: Based on variety management
True democracy: Devolved control to operational levels
Meta-systemic management: not ‘cognitive autocracy’
Performance management: based on self-regulating units
Need for greater democracy and power equalization
Continuous transformation, based on self-organization.
‘Order generating rules’: to overcome the limitations of rational, linear, top-down, strategy-driven approaches to change.
12/7/12 20
Examples of applications
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Dealing with complexity in practice.
1. Chile – Regulation of the social economy (1970’s)
12/7/12 22
2. Europe (1995-2010) Malik on Management Consultants
Biggest consultancy in Europe Professor F Malik (St Gallen Business School) Hundreds of applications of Team Syntegrity Coaching approach to improve organisational
learning and performance Cwarel Isaf Institute/ Metaphorum (developing
Beer’s legacy)
12/7/12 23
3. Colombia (1990’s) …
REUNIRSE: University Network to monitor massive social investments to fights against poverty
National Auditing Office – reengineering the auditing process – 60 national organisations analysed
Ministry of Education – rethinking the national school system
Ministry of Environment – designing the national environmental system
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3. Colombia (2010’s)
RENATA: Organisational Redesign MARVAL: Organisational Redesign
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4. Ongoing applications UK, Ireland, (2007-2010)
Ecovillage (Ireland) Self organisation Support on learning/
self-transformation VSM - education
Transition Network (Peak Oil) Bottom up
approaches to sustainability
Community based projects
Energy descent plans
12/7/12 26
Case Study: VSM Diagnosis in a Developing European Eco-
community
The VSM: An intervention in an eco-community
Ecovillage – Cloughjordan (Ireland)
130 acres – Intention: to develop a sustainable community which can be used as
en educational model of the XXIst century way of living About 8-families bought their lots and became members From 2006-2010 – site development
Renewable energies (solar panels, district heating system) Self-production of food (allotments, permaculture growing, organic farm) Sustainable building (use of local building materials, houses thermally isolated,
designed for low energy use/consumption) Innovative business development Educational NGO – courses on sustainable building/ living/ food production, etc
VSM Diagnosis Methodology (Espinosa & Walker, 2011a, 2011b)
1. Rich picture of the eco-community organisation (2007)
1. Developing Organisational Identity Agreed organisational identity
Charitable company, founded on cooperative principles to: Create a conscious new approach to a way of life which
will benefit the individuals involved, and provide a viable example to plant the seeds for other similar projects, globally
To build a sustainable community by transforming a greenfield site into a model of sustainable community, using the best of environmental technology and providing sustainable good and services, education and ‘dream houses’
‘Emerging organisation’
Growing Green Infrastructure
Building site infrastructure
Selling sites
Enabling the building of individual houses
Building community houses
Education/ dissemination/ networking
Creating sustainable community
Land Use
Planning Construction Management
EWW IT
Sales Legal
Communication
Building Construction Management
Legal Planning
Community building
Communications Political Lobbying
Mobility Cloughjordan
New Members Social Activities
Business Development
4. Initial VSM Diagnosis
Organisation 2009
5. Implementation of changes
Monitoring and assessing: Emerging levels of complexity
Local and Regional Transition Networks
Local initiatives Social Food Transport Household Energy Re-use, recycling, repair Local economy Other aspects of
community
Regional hubs Supporting new initiatives Supporting existing
initiatives Government links Business links
A Espinosa, HUBS
National and Global T.N. National Support Networks Infrastructure Training and education Transition Business Transition Movement Worldwide Transition Network Ltd still remains, co-ordinating role for the national networks, helping them to work synergistically, avoid errors that each other have made.
A Espinosa, HUBS
How this approach contributes to sustainability.
4. FINAL REFLECTIONS
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Conclusion Zero.
At all levels of recursion, the System 5 – representing ALL the people at that level - must be primarily concerned with Sustainability. Its primary task is to restore and maintain the health of eco-systems, and to focus on the well-being of ALL humanity.
A new paradigm of sustainable governance is required rapidly.
A Espinosa, HUBS
Conclusion One
Sustainable self-governances needs to be undertaken based upon the new paradigm of sustainability. It requires an understanding of recursive levels of embedded
autonomous social systems, each able to self-regulate on critical issues for sustainability.
Rather than work with the traditional administrative, economic and political boundaries, we need to develop recursive governance to allow a more conscious and responsible co-evolution of human societies and their eco-regions.
A Espinosa, HUBS
Conclusion Two Systems must be designed and implemented which
ensure that all organisations interact with their environments in a sustainable manner. This will involve: The design of a new family of indicators, which includes
measures of environmental health and human welfare. Real-time measurement systems A culture of continuous monitoring and rapid response. The introduction of algedonic signals which by-pass the
usual channels.
A Espinosa, HUBS
Conclusion Three
Organisations must be designed which are based upon self-organising, autonomous operational units. Without local autonomy, there is no hope of co-evolution with a rapidly changing environment. The operational units will require the services of a Meta-system to ensure they achieve sustainable governance. The new structures will have Meta-system, which will need to be
properly designed. System 4 will need to assume its rightful place as an integrated part of the decision making structure.
Unless organisations at every level of socio-ecological interactions behave as viable systems – with a deeply embedded ethos of sustainability - the chances of the necessary societal transformation are minimal.
A Espinosa, HUBS
A Espinosa, HUBS
In summary: Towards more sustainable social structures
By designing more adaptive organizations and environmental networks More knowledgeable about climate change impacts and adaptation
options, and More effective and timely responding to them
By understanding complementary approaches i.e. bottom up environmental management at all levels in the country, from organizations to local, rural, regional and national Participatory governance at all levels Progressive change in our attitudes and ultimately our consciousness
:
References Beer, S. (1979). Heart of the Enterprise. John Wiley & Sons Beer, S. (1985). Diagnosing the System for Organisations. John
Wiley & Sons. Espinosa, A. Walker, J. (2011). A Complexity approach to
sustainability: theory and applications. Imperial College Press. World Scientific Press.
Espinosa, A., Walker, J. (2011). ‘ Complexity Management in Practice: A VSM Intervention in an Irish Eco- Community’. European journal of Operational Research.
Jackson, M.C. (2003). Systems Thinking. Creative Holism for Managers, John Wiley, Chichester.
Figures from Beer, 1985 used with permission from Malik & Management, St Gallen, Switzerland