Service Units in VSM: Rethinking Viability in Action

This study explores a feature of the Viable System Model (“VSM”), an enterprise governance methodology authored by Beer (Beer S 1981) Brain of the Firm. John Wiley and Sons, Chichester; New York, Beer S (1985) Diagnosing the system for organizations. Chichester [West Sussex], New York: Wiley). It asks how units, such as marketing, finance, HR, or their equivalents in non-commercial enterprises (“service unit(s)”), should be mapped to the VSM, and specifically if they may have a role in the VSM’s System One (“S1”). S1 produces ‘what customers buy’ (Beer S (1985) Diagnosing the system for organizations. Chichester [West Sussex], New York: Wiley). Research led to a hinge insight clarifying problems induced by a common interpretation of Beer’s prescriptions. It concludes that every aspect of the company can in principle be modelled according to its relevance to any and all VSM system elements, including S1. To reach this conclusion, first, an active perceptual distinction is made between the physical operations of a company and the VSM’s steering model, which maps to them. The VSM’s bidirectional translation framework connects enterprise activities ‘on the ground’ with the VSM’s cybernetic regulation at all relevant levels of recursion and detail. In effect, every unit and activity in a viable enterprise might contribute to any of the five prime system elements of the VSM. This will likely lead to more effective structures and processes, with more potential for devolved or autonomous self-organization, one of Beer’s goals. The enterprise as a whole can be more skilfully responsive to varied conditions, relevant to contemporary enterprise structure patterns. The study therefore offers theoretical and practical applications, contributing to viability and dynamic resilience in prevailing complex environments.