Abstract
Chapter 9 introduces the reader to the axiom of requisite vertical eigen-variety that belongs to the fundamental laws for the design of organizations. This chapter details on an expert level the factors that influence the cohesion corridor of an organization and the balance between horizontal and vertical (eigen-)varieties. These factors have not only implications on the design of the right holding structure of organizations (e.g., financial versus operational holding) but also regarding the feasibility of mergers of units and organizations. Finally, Chapter 9 also shows how the choice of the control and integration point influences an organization’s level of governance and ethicality. Synergies are typically considered as positive, Chapter 9 and the axiom of requisite vertical eigen-variety will discuss the dangers for the organization’s internal complexity of organizations if the organization attempts to create too many synergies.
“A country that produces 258 different kinds of cheese cannot be governed.”
— Charles de Gaulle (French President)
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Notes
- 1.
All figures in this chapter related to the VSM are or contain adapted (detail) views from Beer (1995b: 136, Fig. 37) if not specified otherwise. For the corresponding permission details, see the reference section at the end of this chapter.
- 2.
Although the axiom of requisite vertical eigen-variety might sound very straight forward, one should not forget how difficult it is to find the right point of control due to the multitude of aspects to be processed by an organization. Here, it is vital that the metasystem develops sensors warning it when it needs to increase or decrease its or the systems 1’s eigen-variety.
- 3.
Typically, we have with the terms “crisis” and “emergency” only a negative association; for instance, sharply falling revenues. But the unexpected surge in demand and customers can also constitute an emergency and lead an organization to the brink of dysfunctionality.
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Lassl, W. (2019). The Axiom of Requisite Vertical Eigen-Variety—Managing the Operational Organization (Part 1). In: The Viability of Organizations Vol. 2. Springer, Cham. https://doi.org/10.1007/978-3-030-16473-7_9
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