.
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
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
Johann Sebastian Bach. the music closest to silence, closest, in spite of its being so highly organized, to pure, one-hundred-degree proof Spirit" (Aldous Huxley, Island)