Measures of Performance: The Three Es of Soft Systems Methodology and the Indices of Performance of the Viable System Model

Conclusions This paper has discussed the problems of measuring the performance of a system. The Three Es of SSM have been compared with the levels of achievement of Beer’s VSM. There seems to be a correspondence between the two first Es of SSM (Efficacy and Efficiency) and the Actuality and Productivity levels proposed by Beer. The third E of SSM, Effectiveness (is ‘x’ the right thing to be doing?) corresponds to the Beer’s level of Potentiality (what we ought to be doing). The case of improving the Foreign Exchange element on a Business Studies course has been used to illustrate the two approaches. A general conclusion is that SSM is more easy to apply in this case mainly because numerical data seems not to be available; VSM levels of achievement will give more insight if factual data is available. Both approaches are useful to shed light into situations whose performance needs to be measured. More conceptual work is needed in this area and perhaps reference to the work of Ackoff would be productive (Ackoff, 1995). Also, further research on the application of these systems concepts are necessary with the view of comparing the use and practicalities of them.