Table of Content

Preface to the 1st German Edition 11

Preface to the 2nd German Edition 15

Preface to the 3rd German Edition 17

Preface to the 4th German Edition 18

Preface to the 5th German Edition 20

Preface to the 7th German Edition 24

Preface to the 10th German Edition 26

Preface to the 11th German Edition 31

Introduction to the 5th Edition 35

Is This the Final Breakthrough? 35

Misdirected Development 37

1. Lack of Specificity 37

2. Difficulties Being Blown Out of Proportion 40

3. Small or Large System? 42

4. Mystification of the Systems Approach 45

The Potential of the Systems Approach 47

0. Introduction: Construction and Evolution 53

0.1 Premises, Frames of Reference, and Illusory Worlds 53

0.2 Systems-Oriented Management Theory 56

0.3 Two Types of Management Theory 69

0.4 Seven Dominant Thinking Patterns 81

0.41 Management: Shaping and Steering Entire Institutions in Their Respective Environments (S), Not Just Managing People (C) 82

0.42 Management: Leading Many People (S) Rather Than Just a Few (C) 84

0.43 Management: A Task for Many People (S) Rather Than for Just a Few (C) 86

0.44 Management: Indirect Influence on a Meta-Level (S) Rather Than Direct Influence on an Object Level (C) 90

0.45 Management: Controllability (S) Rather Than Optimality (C) as a Key Criterion 93

0.46 Management: Never Having Sufficient Knowledge (S) Rather Than Assuming Information to be Complete (C) 96

0.47 Management: Aiming to Maximize Viability (S) Rather Than Profit (C) 99

0.5 A Chance to Rethink 102

1. The Cybernetic Organization Structures of Management Systems 106

1.1 Introduction 106

1.2 Management Cybernetics 107

1.3 The Structure of Viable Systems 110

1.31 The Viable Systems Model (VSM) 111

1.32 Invariance of Structure 122

1.33 Distribution of the Functions 124

1.4 Principles of the Model's Structure and Application 128

1.41 The Principle of Recursion 128

1.42 The Principle of Autonomy: Centralization versus Decentralization 132

1.43 The Principle of Viability 140

1.44 Summary 143

1.5 The Detailed Model for the Cybernetic Organization Structure of Management Systems 143

1.51 System 1 143

1.52 System 2 156

1.53 System 3 160

1.54 System 4 170

1.55 System 5 178

1.6 The Overall Model: Graphic Depiction at Several Levels of Recursion 185

2. Strategic Management and the Problem of Complexity 197

2.1 Strategic Management as a Means of Managing Complexity 197

2.11 The Problem 197

2.12 Strategies and Strategic Management 205

2.2 Complexity 211

2.21 Complexity and Variety 211

2.22 The Cybernetic and Systems-Theoretical Standpoint 216

2.23 The Law of Requisite Variety 218

2.24 The Bremermann Limit 224

2.25 The Limits to Human Knowledge and Their Consequences 227

2.3 Controlling Complexity by Means of Order 235

2.31 Spontaneous Orders 235

2.32 The Manageability of Orders 254

2.4 Managing Complexity by Solving Problems 269

2.41 Introduction to the Evolutionary Approach to Problem Solving 269

2.411 Misperceptions about Evolution Theory 269

2.412 Two Kinds of Methods 273

2.42 Basic Structure of the Evolutionary Problem-Solving Process 284

2.421 Description of the Process 284

2.422 Discussion of Counter-Arguments 290

2.43 Special Aspects of the Evolutionary Problem-Solving Methodology 303

2.431 Internalization of Process Logic 304

2.432 Imposing a Structure 309

2.433 Cognitive Functional Principles as Elements of Evolutionary Problem Solving 312

2.44 Systematic Design of Discovery Processes 325

2.45 Characteristics of Evolutionary Problem-Solving Processes 335

2.451 Only a Limited Number of Options Considered 336

2.452 Limited Number of Key Consequences Taken Into Account 337

2.453 Decisions Based on Marginal and Incremental Differences 338

2.454 Interactions between goals and behavioral options 342

2.455 Restructuring Treatment of Data 344

2.456 Sequential Analysis and Evaluation 344

2.457 Remedial Orientation of Evolutionary Strategy 347

2.458 Social Fragmentation 350

2.46 Summary 353

3. Strategies for Managing Complexity 355

3.1 The Reality of Managers' Strategic Behavior 355

3.2 Strategic Alternatives 359

3.3 System and Meta-System; Communication and Meta-Communication 365

3.4 Cybernetic Systems Methodology: Systemic and Meta-Systemic Strategies 373

3.41 Basic Idea of the Control-Oriented Systems Methodology 373

3.42 Evolutionary Overlay of Constructivist Problem-Solving Processes 378

3.43 Taking Account of System Characteristics and Systemic Regulation Mechanisms 386

3.431 The Feedback Principle 393

3.432 Simple Regulation Systems 395

3.433 Higher Forms of Control Systems 397

3.44 Meta-Systemic Control: Strategies and Principles 408

3.441 Case #1: Strong Influence 409

3.442 Case #2: Limited Influence 419

3.5 Strategies and Heuristic Principles 431

3.51 Strategic Principles and Heuristics 431

3.52 Strategic Behaviors 448

3.6 Applying the Viable System in Systems Methodology 457

3.7 Synthesis 477

4. Epilog: When the End is a Beginning 482

4.1 Experiences with Complex Corporate Development Processes 482

4.2 Interpretations of the Viable Systems Model 487

4.21 Basic Thoughts on Establishing Structures in Organizations 489

4.211 Viability of the Whole 489

4.212 The Whole and Its Parts 490

4.213 Structure and Organization 490

4.22 The Basic Components of a Viable System: System 1 491

4.23 Several Parts-Chances for a Greater Whole: System 2 497

4.231 Plurality of Parts 497

4.232 Oscillationes and Coordination 497

4.24 Operational Corporate Management: Optimization, Synergies and Resource Allocation: System 3 499

4.25 Strategic Development: System 4 504

4.26 Normative Management: System 5 505

4.27 Top-Structure of Interfaces 508

4.3 The Practice: A Case Example 509

4.31 Historiography Versus Keeping a Diary 509

4.32 Phase 1: Gaining a First Impression 511

4.33 Phase 2: "Feeling" Complexity 513

4.34 Phase 3: Making the System Talk 514

4.35 Phase 4: What the System Told Me 520

4.36 Phase 5: Learning to Become What You Can Be 526

4.37 Phase 6: The Journey is the Reward 529

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 System 535

4.4 Enlightenment or Clarification? 538

References 540

Index 549