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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