Information Technology Reference
In-Depth Information
Beer looked at the human form as three main interacting parts: (1)
the muscles and organs, (2) the brain and nervous systems, and (3) the
external environment. Accordingly, he recommended that we should look
at our own organizations (or projects within them) as having interacting
parts that handle day-to-day activities, the coordination functions, the
accounting and scheduling functions, etc. It is essential to identify systems
that are vital to the viability of the organization, and thereafter resource
them adequately.
In the VSM approach, Beer classified everything into the following
three categories:
1.
Operational units (organs and muscles)
These are the main func-
tional units. They do most of the work. It is essential to create the
right conditions for them to function with as much autonomy as
possible. This can be achieved through adequate budgeting, well-
defined missions, plans, metrics, and rules of intervention.
.
2.
The metasystem (brain and nervous system)
. These parts ensure the
integrated and coordinated activities of the various operational units.
The job of the metasystem is to hold the entire organization together.
The metasystem can be subdivided into three main functions:
a.
The internal eye — inward looking
. It looks at the entire col-
lection of operational units and deals with ways of getting them
to work together in mutually beneficial ways, by setting up
rules and resolving conflicts when needed.
b.
The external eye — forward looking
. It assesses the opportuni-
ties, risks, dependencies, and threats to the organization, and
makes plans to help the organization surf the tide in the
changing external environment.
c.
. This establishes the
ground rules that govern the functioning of the entire organi-
zation. It is important to be democratic while constituting these
rules, to ensure their widespread compliance.
Policy systems — rules of intervention
3.
The environment
. This includes those parts of the outside world
that are of direct relevance to the system under consideration. The
environment affects the working of the organization directly or
indirectly.
An important fallout of the VSM was its novel appr oach toward
information systems. A VSM requires a thorough and up-to-date informa-
tion system. It should have a real-time feed from
parts of the organi-
zation. Because this may be difficult to achieve in practice, a compromise
could be the use of daily performance indicators. These indicators mea-
sure, with a predetermined periodicity, only that which is seen as vital
all
