Abstract
This chapter continues the description of system 4 but focuses on its internal processes such as creating focus, balancing out with system 3, and creating one of the catalysts for the organization’s identity formation process. Here, we will encounter the problem that although innovations are welcome by an organization in principle, at the same time, they can significantly challenge its self-understanding and are thus often resented. Although being a vital function for the strategic adaptation process of an organization, system 4 nevertheless faces three major organizational challenges. This chapter will describe how system 4 can counteract to these challenges and why the design of a robust balancing mechanism between systems 3 and 4 is of paramount importance to the vitality and viability of an organization. Stafford Beer envisaged for this equilibrium the concept of an “operations room”; what this concept entails will be outlined at the end of chapter.
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Notes
- 1.
All figures in this chapter related to the VSM are or contain if not stated otherwise adapted detail views from (Beer 1995a: 136, Fig. 37). For the corresponding permission details, see the reference section at the end of this chapter.
- 2.
One should not be misled by the static term “Self”, which insinuates continuity and immutability. However, if one follows how organizations define themselves over the course of time, one notices how much their Self changes in response to environmental changes (Schwaninger 2006: 151).
- 3.
In modern organizational theory, we find the same question asked from 1991 onward in the research on the “ambidexterity” of organizations. Ambidexterity concerns the relation between the optimization of the existing business (“exploitation”) and the invention/creation of the new business (“exploration”), so between systems 3 and 4 (for this see March 1991; Stadler, Rajwani, and Karaba 2014; Turner, Swart, and Maylor 2013).
- 4.
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Lassl, W. (2019). “Creating Orientation and Direction”—The Strategic Metasystem (Part 2). In: The Viability of Organizations Vol. 1. Springer, Cham. https://doi.org/10.1007/978-3-030-12014-6_7
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