Using the Viable System Model for Methodical Assessment of Variety in Organizations

Abstract

The complexity in value chains that arises from the cooperation of multiple stakeholders is of utmost importance for managers and organizational designers. In this context, theories of organizational design seek to address the practical problem of intentionally changing organizational structures and processes to enhance organizational performance. Successful cooperation largely depends on effective and efficient information flows. This paper reports on a research project using the design science research framework to develop a method for the analysis and design of information flows. Linking information flows to the concept of variety, the Viable System Model is applied as a theoretical foundation of the so-called Variety Engineering method. The design of method is reported, the procedure for its application is demonstrated, and it is accounted for how the method was evaluated in a set of field studies.