This work is licensed under a Creative Commons Attribution-ShareAlike 3.0 Unported License. Industrial Operations / Information Processing Convergence Control Chain Management Body Of Knowledge MI Make intelligence actionable VSM (preliminary) 04/2011 Jean Vieille www.syntropicfactory.com j.vieille@syntropicfactory.com Research community www.controlchainmanagement.org Consulting group: www.controlchaingroup.com Agenda Short overview MI - Make intelligence actionable - Viable System Model 2 Fractal model to describe a complex world Benoit Mandelbrot's fractals are a graphical tool to describe complex nature's shapes The same approach is relevant to the systemic view of the world A complex system ­ like an enterprise ­ is part of other systems, themselves embedded in larger systems Ø The Universe § The Milky way galaxy The solar system The Earth system The multinational company The main business entity The main departments : R&D, sales, marketing, production, A given facility... The nations MI - Make intelligence actionable - Viable System Model 3 What is a system? The definition of the boundary of a system is mainly up to the observer Ø Common sense suggests some breakdown as exposed before Ø In all cases, this breakdown has the only purpose and relevancy in the context of our search of understanding and controlling our environment Actually, the chosen breakdown establishes Ø Hierarchy levels § Normally consistent § Level might be skipped for simplification purposes Ø Selected boundaries § There are often gray area between interacting systems, with possibly shared components MI - Make intelligence actionable - Viable System Model 4 Viable System Model (VSM) Developed by Stafford Beer until 1972 The VSM, as any attempt to satisfy our thirst of truth has no intrinsic, absolute value Ø Beer himself presents VSM as a guideline for checking systemic constituency for a viable system Ø It is yet a valuable map to capture more understanding The VSM was build upon the well recognisable systemic patterns of biological organisms. The VSM model is valid at any level of recursion that is considered The VSM model defines 5 "systems" (or more exactly layers/facets) in a given "system recursion" 5 Viable System Model VSM System 5 System 4 Beer Higher Management Environment of decision War room Directorate Other Policy Development Operational department Steering Transformation System 3 Delivery management & monitoring Coordination Operations Implementation Planning System 2 System 1 Regulatory center Activity Coordination Implementation Support Operations 6 Management unit Variety increases from Management -> Operations -> Environment Environment Operations Management Separate the 3 domains Environment Operations Management Introducing variety/complexity control: filters and amplifiers Environment Operations Management The full VSM 5 Policy Metasystem 4 Development 3 Delivery 2 Coordination Operations Operations From "The Heart of The Enterprise" MI - Make intelligence actionable - Viable System Model 11 Example: General structure of an industrial enterprise Corporation Marketing Finances HR Distribution & sales Engineering Research Production Research departments Production Plants Distribution centers Example: IT support to Production detail Engineering Transformation Corporation Steering Planning Production Transformation Steering Planning Coordination Operations ITD Transformation Steering Planning Coordination Contractor Transformation Steering Planning Coordination Operations Research Operations .. IT support to Production ­ VSM relationships ITD ITD VSM5 Steering IT Environment Production Environment Production Production VSM5 Steering DISI VSM4 Transformat ion ITD VSM3 Planning ITD VSM2 Coordination ITD VSM1 Implementation Pro d u c t i o n V S M 4 Tran s f o r m a Production VSM3 Planning Production VSM2 Coordination Production VSM1 Operations VSM fit with Business/IT CCM Convergence Processes Steer (5) Lead Production Production Transform Production(4) Maintain Architecture Manage Requirement s (5) Lead ITD Transform ITD (4) Steer ITD Run ITD Plan (3) Coordinate (2) Build (1) Deploy (1) Operate (1) Support (1) Run Production VSM Dynamic performance management Organizatio nal Performanc e Potentiality Latent Performanc e VSM4 (Transform) Capability VSM3 (Manage) Operational Performanc e Actuality VSM2 (Coordinate) VSM1 (Execute) VSM performance metrics Metrics Organizational performance Latent Performance Operational Performance Potentiality Capability Actuality Calculation Latent / Operational performance Capability / Potentiality Actuality / Capability Any metrics Any metrics Any metrics Level VSM 2/3/4 VSM 3/4 VSM 2/1 VSM 4 VSM 3 VSM 1 Meaning Ability to close the strategic gap Willingness to close the strategic gap Actual Efficiency What we could deliver with willingness +realistic changes What we are capable to deliver in the current conditions What we currently deliver Read bottom up! Further reading Stafford Beer (1926 ­ 2002) Ø The Brain of the Enterprise Ø The Heart of the Enterprise Patrick Hoverstadt Ø The Fractal Organization