A powerful diagnostic tool for agile enterprises is the Viable System Model (VSM). This tool, developed in the 1960s by Stafford Beer, can help businesses identify systemic issues and improve their agility. The VSM is based on the human body’s nervous system and consists of five interacting subsystems. These include the operations system, the coordination system, the control system, the intelligence system, and the policy system.
The operations system is responsible for the enterprise’s primary activities, while the coordination system ensures these activities are harmonised. The control system, on the other hand, ensures the enterprise is running as expected, with the intelligence system scanning the external environment for opportunities and threats. Lastly, the policy system sets the enterprise’s overall direction and values.
Using the VSM, businesses can diagnose their systemic health by analysing these subsystems. Any issues identified can be addressed, thereby improving the enterprise’s agility and ability to respond to changes. The VSM also promotes a holistic approach to management, ensuring that all parts of the business are working together effectively.
Despite its potential, the VSM remains under-utilised, possibly due to its complexity. Nevertheless, it offers a powerful and practical tool for businesses seeking to improve their agility in an increasingly volatile business environment.
Go to source article: https://www.forbes.com/sites/stevedenning/2021/01/03/a-powerful-diagnostic-tool-for-agile-enterprises/