University of Vaasa - Vaasan yliopisto

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existence and are able to survive (Ashby 1969; Beer 1979, 1985). Beer formulated a
model - the viable system model (VSM) - specifying what a system must do in order
to be able to survive. The Viable System Model articulates the functions a system
should fulfil and the relations between them that are required for viability. This
provides a set of norms for diagnosing organizational viability and adjusting existing
organizational structures, but can also be used to describe and analyze the relations
between different system levels like the company level, the level of a organizational
network and the societal level - which is important for CR innovation.
Beer builds his theory around the work of Ashby (1969). Ashby's law of requisite
variety signifies that each system must be able to deal with complexity (variety) in its
environment by creating sufficient internal regulatory variety which resolves the
variety stemming from disturbances to essential variables of the organization.
There are three strategies for companies to solve the problem of the complexity
differences between environment, organization and its management:
1. Goal setting. Through the setting of organizational goals it is determined which
environment variables are relevant to the organization. This means that only
certain parts and aspects of the environment may constitute a source of possible
interferences with the organization’s functioning. These parts and aspects
constitute the organization’s relevant environment.
2. Attenuation and amplification. Attenuation means the reduction of the variety of
possible disturbances. Amplification means: increasing the regulatory variety to
cope with the remaining disturbances, given the selection of essential variables
(implied in the goals) and the design of relevant attenuators.
3. Recursion. Each system contains a set of other viable systems (like business units,
teams in an organization). Each of these subsystems also has the ability to
attenuate or amplify, with the result that less regulation is needed at the level of
the higher system.
Together, the three strategies constitute Beer' s solution of the complexity problem.
By pointing at these strategies for dealing with complexity Beer couples the
existence of organizations to Ashby's Law of Requisite Variety.
For example:
(Beer, 1995: 7)