Strategy for Managing Complex Systems

the only one.
As I hope to demonstrate in this book, management and management theory have strong foundations in systems science, and most specifically in a certain type of cybernetics. Note that I am not referring to the kind usually referred to as control theory or control engineering. What I am talking about is the cybernetics of truly complex systems, of organismic, self-organizing, and evolving systems.
You might ask yourself whether a mundane activity such as managing really needs and justifies using such a complicated approach to provide a foundation. I think it does. Even by human standards, our world has become a very organized world in rather short time periods, a network of institutions so complex it can no longer be captured by human dimensions. This world is the result of human action, and the explosive growth in the number of managers at all hierarchical levels plays an increasingly important role. Much of our present world is a result of managerial action. But is it also a result of managerial intention?
I am not sure which answer-yes or no-would imply greater problems. An essential part of this work is dedicated to finding out which of the answers is more accurate and what the consequences are. Today there are more people handling management tasks than ever before, and more people than ever are affected by and dependent on what managers do. As a result, it is becoming increasingly important to be able to tell what good or bad management means, who is a good and who is a bad manager, and what theory is best suited to solve present and future management issues.
As mentioned before, after having completed the first three chapters of this book I focused on application-related issues. In 1977 I took on the leadership of Management Zentrum St. Gallen, an organization specializing in management training, development, and consulting. I was driven to find out whether the thoughts and concepts described here could be a

Viability140
1.44 Summary143
1.5 The Detailed Model for the Cybernetic Organization Structure of Management Systems143
1.51 System 1143
1.52 System 2156
1.53 System 3160
1.54 System 4170
1.55 System 5178
1.6 The Overall Model: Graphic Depiction at Several Levels of Recursion185

2. Strategic Management and the Problem of Complexity197
2.1 Strategic Management as a Means of Managing Complexity197
2.11 The Problem197
2.12 Strategies and Strategic Management205
2.2 Complexity211
2.21 Complexity and Variety211
2.22 The Cybernetic and Systems-Theoretical Standpoint216
2.23 The Law of Requisite Variety218
2.24 The Bremermann Limit224
2.25 The Limits to Human Knowledge and Their Consequences227
2.3 Controlling Complexity by Means of Order235
2.31 Spontaneous Orders235
2.32 The Manageability of Orders254
2.4 Managing Complexity by Solving Problems269
2.41 Introduction to the Evolutionary Approach to Problem Solving269
2.411 Misperceptions about Evolution Theory269
2.412 Two Kinds of Methods273
2.42 Basic Structure of the Evolutionary Problem-Solving Process284
2.421 Description of the Process284
2.422 Discussion of Counter-Arguments290
2.43 Special Aspects of the Evolutionary Problem-Solving Methodology303
2.431 Internalization of Process Logic304
2.432 Imposing a Structure309
2.433 Cognitive Functional Principles as Elements of Evolutionary Problem Solving312
2.44 Systematic Design of Discovery Processes325
2.45 Characteristics of Evolutionary Problem-Solving Processes335
2.451 Only a Limited Number of Options Considered336
2.452 Limited Number of Key Consequences Taken Into Account337
2.453 Decisions Based on Marginal and Incremental Differences338
2.454 Interactions between goals and behavioral options342
2.455 Restructuring Treatment of Data344
2.456 Sequential Analysis and Evaluation344
2.457 Remedial Orientation of Evolutionary Strategy347
2.458 Social Fragmentation350
2.46 Summary353

3. Strategies for Managing Complexity355
3.1 The Reality of Managers' Strategic Behavior355
3.2 Strategic Alternatives359
3.3 System and Meta-System; Communication and Meta-Communication365
3.4 Cybernetic Systems Methodology: Systemic and Meta-Systemic Strategies373
3.41 Basic Idea of the Control-Oriented Systems Methodology373
3.42 Evolutionary Overlay of Constructivist Problem-Solving Processes378
3.43 Taking Account of System Characteristics and Systemic Regulation Mechanisms386
3.431 The Feedback Principle393
3.432 Simple Regulation Systems395
3.433 Higher Forms of Control Systems397
3.44 Meta-Systemic Control: Strategies and Principles408
3.441 Case #1: Strong Influence409
3.442 Case #2: Limited Influence419
3.5 Strategies and Heuristic Principles431
3.51 Strategic Principles and Heuristics431
3.52 Strategic Behaviors448
3.6 Applying the Viable System in Systems Methodology457
3.7 Synthesis477

4. Epilog: When the End is a Beginning482
4.1 Experiences with Complex Corporate Development Processes482
4.2 Interpretations of the Viable Systems Model487
4.21 Basic Thoughts on Establishing Structures in Organizations489
4.211 Viability of the Whole489
4.212 The Whole and Its Parts490
4.213 Structure and Organization490
4.22 The Basic Components of a Viable System: System 1491
4.23 Several Parts-Chances for a Greater Whole: System 2497
4.231 Plurality of Parts497
4.232 Oscillationes and Coordination497
4.24 Operational Corporate Management: Optimization, Synergies and Resource Allocation: System 3499
4.25 Strategic Development: System 4504
4.26 Normative Management: System 5505
4.27 Top-Structure of Interfaces508
4.3 The Practice: A Case Example509
4.31 Historiography Versus Keeping a Diary509
4.32 Phase 1: Gaining a First Impression511
4.33 Phase 2: "Feeling" Complexity513
4.34 Phase 3: Making the System Talk514
4.35 Phase 4: What the System Told Me520
4.36 Phase 5: Learning to Become What You Can Be526
4.37 Phase 6: The Journey is the Reward529
4.38 Phase 7: Yes, Why Don't You Set Up a Plan ...530
4.39 Phase 8: A System Is a System Is a System535
4.4 Enlightenment or Clarification?538

References540

Index549