A Model of Control and Communication

Abstract

Discussing the relationships between strategy, structure, and culture leads us to organizational models. A model explains certain things, yet not others. We have looked at the models of the first two dimensions of organizing: organizational charts (of the organizational structure) and flow charts (of the process organization). But what does the model of the third dimension look like, the model of the control and communication structure? Stafford Beer discovered it in nature’s most efficient control system: the human central nervous system. Beer’s Viable System Model (VSM) enables us to design the neurology of the enterprise. It has a lateral and a vertical control axis, comprises five control functions, and is based on the principle of Russian dolls. It integrates all control dimensions: inside and outside, present and future, higher and lower management levels. It is scalable and can be applied to all types of organizations. This model teaches us how to properly distribute authority and responsibility, what communication channels need to work, and that hierarchy arises from the relevance of information: Command is where the information is.