University of Vaasa - Vaasan yliopisto

Regarding the activity S2 ‘Stakeholder Analysis’: this should be part of the VSMfunction
‘Intelligence’(F4) 31 .
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When resources of stakeholders are deployed in innovation processes, the function
‘Control’ (F3) is responsible for the organization and cohesion of the primary
activities carried out in this network of stakeholders. Knowledge about how these
stakeholder networks should be managed lies in the control function. The control
function must have knowledge of what the cooperation with stakeholders may
provide and what impact this will have on the viability, i.e. the realization and
adaptation of goals of the organization. The function ‘Intelligence’ (F4) studies the
same network of stakeholders, but with the perspective of the future (‘outside and
then’): e.g. is this the best competence basis, are there other stakeholders with whom
we could work together etc.
In general, the VSM functions F3 (control), F4 (Intelligence) and F5 (Policy) ensure
the adaptation of the identity and goals of the organization and deal with questions
like: what is our contribution to society, what are the possible side-effects and
dysfunctions of our business, which stakeholders could we involve in corporate
responsible innovation processes?
In the alignment between the functions Control and Intelligence perspectives of
stakeholders (knowledge lies with the Intelligence function) are balanced against the
organizational capacity and available resources (this knowledge lies in the Control
function). In this way, with the help of the VSM, it can be determined which
organizational functions should be involved in different activities regarding
stakeholders and how they should be linked to one another.
Ad. 2. Sociotechnical theory provides then the instruments to develop a concrete
organizational structure to realize these functions and their required relations (see
section 3). In this way the combination of the VSM and sociotechnical theory can
form a basis of a tool for an effective engagement of stakeholders in innovation of
products and processes, and especially for anchoring this in the organizational
structure.
Conclusion
The Viable System Model describes the functions and their required relations an
organization must produce in order to be able to realize and adapt its goals.
Sociotechnical theory offers the concrete structural instruments for this. Within the
general knowledge/decision domains coupled to the functions of the VSM (primary
activities, coordination, control, intelligence and policy) and their relations, sub
domains can be distinguished concerning the activities towards stakeholders
(regarding their involvement in CSR and innovation processes). In a concrete
31 The intelligence function focuses on developments in the environment of the company. This signifies in the
first place the spotting of opportunities and threats in the longer term. The intelligence function focuses on what
Beer calls “the outside and then”.