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2. Apply Systems Thinking
with the
Viable Systems Model (VSM)

3. Find two pair of feet

4. Systems Thinking versus Linear
Linear Thinking
• Blame/reward the individual
• Cause > and > effect
• Short time span
= The world is mechanic and
simple
Systems Thinking
• Individual as part of systems
• Feedback loops
• Delays
= The world is organic and
complex

5. Organizational Design is a Science
- that can be learned

6. Viable Systems Model
(VSM)

7. The Viable Systems Model
1. Operations
3. Delivery
4. Development
5. Policy
Environment
2.Coordination
3*.Monitoring

8. Systems of systems

9. Exercise - Model the organization below
• Assume the people below collaborate in
building a product.
10 min
2 x Scrum master 10 x Developer6 x Tester2 x Product Owner 1 x Project Manager
1 x Product Manager

10. Complexity Drivers

11. Decompose according to complexity drivers
Development Test
Product
A
Product
B Dev Test Dev Test
Product A Product B
-First Product
-Secondly Function
-First Function
-Secondly Product
Product
A
Product
B

12. Examples
‘Cellular structure’
Development
department
Quality
department
Dev
Dev
DevQC
DOC
DOC
department
Product
team
‘Functional structure’

13. Autonomy around Purpose

14. Purpose rather than hierarchy
EXAMPLE:
• Team = Delivery of a subset of functionality
• Release Train = Coordinating team-of-teams for delivery of the full
solution
• Portfolio = Business Investment Decisions Portfolio
Release Train
Tea
m

15. Autonomy
• Avoid overlap of responsibility
• Information and decision power go hand-in-hand
Purpose
A
Purpose
B
Purpose
A
Purpose
B

16. Boundary Interaction
The more outside of your own control…
• The less autonomy
• The less likely to succeed!
Team A
Team B
Team C
Dependencies
Dependencies

17. Coordination
Program Manager / RTE
Team A Team B
Coordination:
Team C

18. Boundary Interaction
Program Manager / RTE
Team A Team B
Coordination:
Team C

19. 5-people group discussion
• When would you chose to design high autonomy and low
coordination?
• When would you design low autonomy and high coordination?
10 min

20. Cheat Sheet
Design for optimal Autonomy:
• Purpose
• Complexity Drivers
• Core activities have autonomy
• Support activities should not
ENSURE VIABILITY FOR EACH SUB-SYSTEM IN THE SYSTEM:
• 1. OPERATIONS
• 2. COORDINATION MECHANISMS
• 3. DELIVERY
• RESOURCES VS. PERFORMANCE DEMOCRACY
• 3.* MONITORING
• 4. DEVELOPMENT/INTELLIGENCE
• ALIGNMENT THROUGHOUT!
• ENVIRONMENT
• 5 POLICY
• AUTONOMY

21. Recommended reads