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Guidance on applying the viable system model

Article in Kybernetes · February 2015

DOI: 10.1108/K-01-2014-0017

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 Kybernetes
Guidance on applying the viable system model
Sandra Hildbrand Shamim Bodhanya
Article information:
To cite this document:
Sandra Hildbrand Shamim Bodhanya , (2015),"Guidance on applying the viable system model",
Kybernetes, Vol. 44 Iss 2 pp. 186 - 201
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(2014),"Application of the viable system model in a complex sugarcane supply chain", British Food
Journal, Vol. 116 Iss 12 pp. 2048-2068 http://dx.doi.org/10.1108/BFJ-06-2013-0158
(2012),"The applicability of the Viable Systems Model as a diagnostic for small to medium sized
enterprises", International Journal of Productivity and Performance Management, Vol. 62 Iss 1 pp.
29-46 http://dx.doi.org/10.1108/17410401311285282
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K
44,2
Guidance on applying the
viable system model
Sandra Hildbrand and Shamim Bodhanya
186 Graduate School of Business and Leadership,
University of KwaZulu-Natal, Durban, South Africa

Abstract
Purpose – Although many cases where viable system model (VSM) was successfully applied exist,
hardly any literature advises the novice VSM user regarding the accomplishment of a VSM diagnosis.
The purpose of this paper is to show practitioners and researchers how to conduct a VSM diagnosis. The
paper further seeks to encourage others to apply VSM and to share their experience with using VSM.
Design/methodology/approach – The paper provides detailed guidelines on how to conduct a VSM
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diagnosis in conjunction with qualitative research methods. It outlines the data collection, analysis and
presentation of results.
Findings – VSM is an outstanding diagnostic tool. Qualitative research methods provide access to the
essential information for the VSM diagnosis and should be used in iteration with VSM. They can
enhance the VSM diagnosis by focusing on the soft aspects in the investigated system. The VSM
language needs to be adapted to the specific context in which VSM is used and VSM can be applied in a
participatory manner. Further research needs to explore possibilities to strengthen the handling of
detected shortcomings that were revealed during the VSM diagnosis.
Research limitations/implications – This paper is based on one experience with the VSM application
and other VSM users might provide different insights.
Originality/value – There is little practical advice in existing literature regarding the accomplishment
of a VSM diagnosis. This paper addresses that gap. In addition, VSM has not been applied to a sugarcane
production and supply system before.
Keywords Systemic thinking, Viable systems
Paper type Research paper

1. Introduction
The viable system model (VSM) is praised for its significance in the field of operational
management ( Jackson, 1988). VSM is used to design a viable system or to surface
deficiencies in an existing system ( Jackson, 2000). Consultants, decision makers and
system analysts particularly appreciate VSM given the thoroughness and rapidness
qof the VSM diagnosis and its ability to assist with complexity management (Leonard,
2000; Espejo, 2004; Gregory, 2007). A VSM diagnosis leads to a comprehensive
understanding of a system. It reveals the interactions and linkages in the system
and surfaces present shortcomings (Hoverstadt and Bowling, 2005). The investigated
system can be an organisation, a national or/and international corporate company, or
even an entire country. Besides revealing shortcomings in a system, VSM supports the
deduction of recommendations, as it provides insight into how viable systems should
be designed (Leonard, 2009).

This research was funded by the South African Sugarcane Research Institute (SASRI) and the
National Research Foundation. The authors would also like to thank the various industry
Kybernetes stakeholders who gave up their time to participate in a number of interviews and workshops. The
Vol. 44 No. 2, 2015
pp. 186-201 members of the project team are thanked for their support and valuable input. Administration
© Emerald Group Publishing Limited
0368-492X
and support staff at the University of KwaZulu-Natal are thanked for their continuous support.
DOI 10.1108/K-01-2014-0017 This work is largely based on the doctoral dissertation of the first author.
 Given this diagnostic competency of VSM, I decided to use VSM to explore the Guidance on
viability of a complex sugarcane production and supply system in a developing applying the
country. However, in order to conduct a VSM diagnosis, the model needs to be “fed”.
This requires the collection and analyses of relevant information about the system. The
VSM
literature comprehensively describes the structure, principles, merits and theoretical
underpinnings of VSM, yet little is written about how to use VSM in practice. Many
cases where VSM was successfully applied exist, but hardly any literature advises the 187
novice VSM user regarding the field methods for an effective VSM diagnosis.
Luna-Reyes and Andersen (2003) and Luna-Reyes et al. (2005) used qualitative
research methods such as interviews, to generate and evaluate system dynamic models.
Their approach seemed to be applicable for conducting a VSM diagnosis. Harwood
(2009) pointed to Beer (1985) regarding advice on how to accomplish a VSM diagnosis.
Despite providing a more practical account of VSM, this book still strongly focuses on
describing VSM, rather than tangible field methods on how to use VSM. While giving
further insight on accomplishing a VSM diagnosis, Beckford (1995) stressed the
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necessity to extend the methodological approach of using VSM.

This paper aims to make a contribution by providing advice regarding the field
methods needed for the accomplishment of a VSM diagnosis and thus seeks to assist
researchers and practitioners with using VSM. The paper also intends to introduce the
merit of VSM as a competent diagnostic tool for the research community and
practitioners and to encourage them to apply VSM and to share their experiences with
conducting a VSM diagnosis. By describing the required field methods for the VSM
usage, the paper further seeks to address the criticism that it is difficult to learn VSM
and apply it competently.
I will briefly introduce VSM, before showing how I combined qualitative research
techniques with VSM to facilitate a VSM diagnosis of a complex sugarcane production
and supply system (Hildbrand, 2013). The process of data collection, data analysis and
presentation of findings for the VSM diagnosis is outlined. The findings and discussion
section elaborates on my experience with accomplishing a VSM diagnosis. It is hoped
that other researchers are encouraged to add to this. The paper ends with a brief
conclusion.
Since this paper focuses on the process of using VSM, rather than on the outcome of
a VSM diagnosis, only a few findings from my research are presented.

2. The VSM
2.1 Principles and features
The VSM was developed by Stafford Beer. He was seeking those features in any system
that makes it viable (Beer, 1984). Viability, in this regard, describes the competency of a
system to exist, have an identity and survive despite disturbances. VSM is grounded in
cybernetics and systems thinking (Leonard, 2006) and is a generic model ( Johnson and
Liber, 2008). VSM is either used to design a viable system or to diagnose weaknesses in
an existing system. This ability and the general applicability of VSM explains why VSM
is highly appreciated by managers, consultants and system analysts ( Jackson, 1988;
Snowdon and Kawalek, 2003; Devine, 2005). The sophisticated outcome of the VSM
diagnosis is particularly valued. VSM assists with complexity management as it provides
guidance on how to handle vast external and internal complexities (Schwaninger, 2004).
This ability of VSM is based on its theoretical grounding, including concepts such as
variety engineering, Ashby’s law of requisite variety, recursion and local autonomy
(Beer, 1973).
 K Ashby’s law states that only “variety can absorb variety” (Beer, 1973, p. 11). This
44,2 means that the internal variety of the system needs to be enhanced and the external
variety of the environment needs to be decreased so that they match each other
(Leonard, 2006). The process of balancing the different varieties is achieved through
variety engineering, which reduces or increases the variety of a system through
amplifiers and transducers (Beer, 1984).
188 VSM’s concept of recursion implies that systems, which are structured in exactly the
same way, are nested in each other, comparable to a Russian doll (Beer, 1984).
Consequently, the complexity that challenges a system can be handled by distributing
it across several recursive levels (Schuhmann, 1990). The concept of recursion further
includes the principle of local autonomy, another core feature of VSM. This principle
grants lower recursive-level decision-making power as long as their activities do not
threaten the coherence of the overall system (Schwaninger, 2006). Recursion and local
autonomy enable the direct and immediate handling of issues at a local level (Lewis,
1997). This frees upper management from becoming unnecessarily involved in these
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issues (Espinosa and Walker, 2006).

2.2 Structure
VSM is composed of five subsystems and six vertical channels as shown in Figure 1.
The channels support communication and interaction between the different
subsystems, as well as coordination and control ( Jackson, 1988). C1 is the corporate
intervention channel. It facilitates the transmission of instructions and corporate
standards from the meta-system to the operative management. C2 is used for resource
provision and resource bargaining between the operational units (S1) and the
management (S3) and for accountability purposes (Beer, 1985). Channel three (C3)
facilitates the communication and exchange between the operational units and is also
referred to as squiggly line. Channel four (C4) is responsible for the communications in

S5

E
N
V S4
I
R
O S3* S3
N S2
M
S1 S1
E op mn
N
T
S1 S1
op mn

S1
Figure 1.
Overview of the Channels: C4 C6 C3 C2 C1 C5
five subsystems S1 op = S1 operational units S1 mn = management operational units
and six channels
Source: Hoverstadt and Bowling (2005, p.133)
 the environment and deals with the interactions between the environments of Guidance on
the different operational units. Channel five (C5) supports coordination processes applying the
by connecting S2 to the operational units (S1) and the management and control
system (S3). Channel six (C6) provides S3* direct access into operational units to
VSM
perform audit and control activities (Beer, 1985). In addition to these vertical
channels, several horizontal channels support the two-way interaction between
the operational units (S1) and the environment, S2 and the environment, as well 189
as the two-way communication between the operational units and their direct
management and between S1 operations and S2 (Beer, 1985).The features of the
five subsystems can be summarised as follows:
(1) S1 – operational units: S1 comprises the various operational units, which
accomplish the organisation’s essential duties (Flood and Zambuni, 1990).
These units are autonomous within the limits of keeping systemic coherence.
They interact directly with the environment (Medina, 2006). Regarding a
sugarcane production and supply system these units are, for example, hauliers,
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growers and millers.

(2) S2 – coordination system: S2 facilitates the smooth running of the system.
It softens oscillations and coordinates the operations of the operational units
(Devine, 2005). A scheduling system constitutes an example of S2.
(3) S3 and S3* – management and control: S3 manages the operational units.
It aims at synergies and the optimisation of the system as a whole (Beer, 1981). It
engages in resource bargaining with the operational units, executes corporative
instructions and controls the operational units. However, its mandate is
supportive rather than autocratic (Leonard, 2007). S3* supports S3 in its control
function through audits. It sporadically monitors variables that are not covered
by normal S3 and S2 controls. In a sugarcane production and supply system,
the mill group board, the local mill management or the local cane growers
association perform an S3 function.
(4) S4 – outside and future: S4 explores external trends and possible future threats
and opportunities (Tejeida-Padilla et al., 2010). This supports the system’s
ability to adapt to these external and future aspects. The demands of S3 and S4
need to be balanced to ensure that the system is capable to continue with its
current operations, while preparing for future developments (Bustard et al.,
2006). S4 is generally conducted by the research and development department
in an organisation.
(5) S5 – normative management: S5 completes the system. It defines its mission,
goals, objectives values and culture and presents the system to the outside
( Jackson, 2000). S5 also deals with conflicts regarding resource allocation
between S3 and S4 (Leonard, 2008). In a corporate environment, S5 is generally
accomplished by high-level management. However, Beer stresses the
importance that all recursive levels contribute to S5 and that VSM is far
from a hierarchical top-down approach (Espejo and Gill, 2004).

2.3 VSM diagnosis

The presence and proper functioning of the five subsystems and six channels are the
necessary and essential conditions for any system to be viable (Schwaninger, 2004).
 K This requirement outlines the starting point for a VSM diagnosis. For diagnostic
44,2 purposes, a VSM of the investigated system needs to be generated and
compared with the generic VSM (Gregory, 2007; Espejo, 1989). The comparison
will show to what extent the five subsystems and six channels exist and are
capable of fulfilling their responsibilities. This comparison surfaces shortcomings
in the investigated system and allows the deduction of improvement
190 recommendations (Leonard, 2009). Since a VSM diagnosis requires the generation
of a VSM of the studied system, access to relevant information about this
system is essential. However, little is written about the field methods for conducting
a VSM diagnosis. I propose the use of qualitative research techniques for a VSM
diagnosis.

3. Process of the VSM diagnosis

Obtaining a sophisticated understanding of the aspects that constitutes S1-S5 and
C1-C6, including the issues that challenge these subsystems and channels, is vital for
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the VSM diagnosis (Brocklesby and Cummings, 1996). Qualitative research provides
an in-depth insight into a situation or system (Hannabuss, 1996). It reveals the various
perspectives, motives, expectations and goals of diverse stakeholders (Miller and
Glassner, 2002; Bartunek and Seo, 2002; Bradley et al., 2007). Consequently, qualitative
research techniques are best suited to “feed” VSM with rich information. Harwood
(2009) and Watts (2009), for example, used interviews for their research. In addition,
qualitative research entails the essential flexibility that is needed for model generation
and analysis. It cannot be determined in the beginning of the study how the process will
evolve and one step will guide the next (Bowen, 2008).
Familiarising yourself with VSM describes a precondition to conduct a VSM
diagnosis. For this purpose, practical sources such as Beer (1985) or Beckford (1995) are
really valuable in addition to real life examples of VSM applications, and theoretical
discussions about VSM. Likewise, being knowledgeable about qualitative research
methods is importance for a VSM diagnosis. VSM and qualitative methods are combined
in an iterative manner, whereby VSM provides the guiding framework for data collection
and analysis.

3.1 Data collection

The purpose of data collection is to obtain sufficient information about the studied
system to be able to generate a VSM of it.
In my study, three rounds of interviews served as primary source of data. Purposive
sampling based on aspects of convenience and availability of participants was used
to approach key stakeholders. These stakeholders either knew the system very well or
provided a different insight into it. Therefore it is important to engage with representatives
from all different stakeholder groups to collect sufficient information. I, for example,
interviewed, miller and haulier representatives, and representatives from all grower groups
and the statutory body, including representatives from the sugar industry. The interviews
were semi-structured. This enabled me to probe deeper into specific issues and to focus on
those aspects of the system where the interviewees were most knowledgeable and thus
could provide the best insight. Attending workshops of a fellow researcher exploring
managerial and soft issues in the system and investigating archival data enriched the data
collection. This approach led to sufficient data to generate the VSM of the studied system
and thus I suggest that triangulation should always be used to retrieve the needed
information.
 Obtaining a general appreciation of the overall system, the core stakeholder groups Guidance on
and the key issues, in the beginning of the study was beneficial. Consequently, the first applying the
engagement with the system, for instance the first round of interviews, does not need
to be designed to focus on VSM-specific aspects, but rather could explore general
VSM
questions such as:
• Who are the key stakeholder groups in the system? What are their goals?
•
191
What major issues have they been confronted within last six months? How would
you solve these issues?
• How influential is your own position and that of your stakeholder group towards
the overall success of the system?
• What do you think can be done to improve the overall system efficiency?
After a general appreciation of the system is achieved, the next engagements need to
focus on gaining sufficient information for the VSM diagnosis, thus VSM-specific
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questions have to be asked. The VSM structure guided the design of interview questions,
which explored the presence and proper functioning of the five subsystems and six
channels. The first interviews featured a more inquisitive nature. I enquired about any
aspect that would provide information regarding the five subsystems and six channels.
In order to find out about the operational units (S1) and the interaction between them
(C3), I asked questions about the main operations in the system, how they function,
what are their challenges and how do they interact with each other. I further enquired
whether these units make decision for themselves or who has decision-making power.
Asking questions about fluctuations in the system, incidences when things are not
running smoothly and the coordination of the interaction between the different
operational units provided insight into the coordination system (S2) and C5. Obtaining
an appreciation of the management and control system (S3) implied exploring who
oversees the operational units, passes instructions and resources to them and checks
their accountability and investigating how these activities are accomplished. Probing
into these aspects additionally led to an insight into C1 and C2, as these channels
are used to transmit corporate instructions to the operational units, check their
accountability and engage in resource bargaining. To assess the presence of S4,
I investigated who is responsible to look at potential future trends and external
conditions and I analysed the capability of the system to adapt to these. Obtaining
information about S5 required an exploration of the identity, direction and vision of the
system, its presentation to the outside and the forces that hold the system together.
After having analysed the initial interviews and having started to generate a VSM of
the studied system, I used more specific questions in the later interviews. These questions
either helped me to clarify an issue that was not clear yet or to fill knowledge gaps
regarding certain subsystems or channels. In addition, I used the later interviews to ask
stakeholders how they would handle the weaknesses that had already emerged in the
VSM diagnosis. This approach directly involves stakeholders in the handling of detected
shortcomings, which should support their commitment to realise made recommendations.
Appendix 1 contains a modified version of the questions that I used in the beginning
of the interview process and Appendix 2 is a modified version of the interview
questions that I used in the later part of the research.
The interview process was enriched by conducting the interviews with my fellow
researcher who explored the soft aspects, such as leadership, transparency, communication
and trust in the system. Although, at first, the additional data seemed irrelevant for the
 K VSM generation, it proved to be highly useful, as it implied a better understanding of
44,2 the system and thus a more sophisticated VSM.
A critical necessity is to avoid VSM jargon in the interviews, as this compromises
the discussions and information retrieved. Interview questions need to be phrased in
such a way that the researcher obtains sufficient information, while the interviewee can
answer in a familiar language. Sometimes, I drew sketches of parts of VSM to clarify
192 what kind of information I required. It is important to embrace a “tell me more
approach” and to probe deeper; e.g., in which ways do the operational units interact?
How frequently? How does the interaction look like? This prevented me from getting
stuck in the structural aspects of the system, and instead allowed me to gain a
comprehensive understanding of the system. Furthermore, it is critical to clarify with
your interviewee that you are looking at the system as a whole and not at every detail
of his or her operation.
The aforementioned attendances at the workshops of a fellow researcher were very
valuable in providing additional insight. While attending these workshops, I applied a
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VSM mind-set and noted anything that seemed relevant for the construction of the VSM.
Data collection should not only rely on interviews, but consider workshops or other ways
of interacting with the investigated system, such as attending meetings as an observer.
Reaching saturation and having collected sufficient information for the VSM
generation determined the end of the data collection stage. The amount of interviews
required for a VSM diagnosis cannot be predetermined, but depends on how much
information the different interviewees can provide. As long as the five subsystems and
six channels are not clearly defined, the interview process needs to continue.

3.2 Data analysis

Like data collection, data analysis is guided by the VSM framework. The principal
“analyse as you go” applies. This means that as soon as some data are collected, it is
analysed regarding the insight it can provide for a VSM diagnosis. This approach
enabled me to discover areas where more clarity was needed and it surfaced knowledge
gaps. In the later interviews I could probe deeper into specific issues, such as who
manages the system (S3) or what holds the system together (S5).
I immersed myself into the data and read and reread it. The reading was guided by
VSM, thus a more deductive approach was used. While reading the data, I noted
anything that stood out for me and assigned codes, but I applied a VSM lens and
related the emerging themes to the five subsystems and six channels of VSM.
I searched for text segments that provided insight into the five subsystems and six
channels, while simultaneously being sensitive to any other issues that seemed relevant
and surfaced as additional themes. In order to analyse S1, I explored what the data said
about the production of the system, the responsibility of the different production units,
their autonomy and their supply with resources. This also gave insight into C1 and C2.
I derived information about the presence and functioning of S2 from data sets that
talked about coordination or fluctuation in the system. Data that presented the
relationships between the different production units led to insight into the adequacy of
C3. Text segments that described the management of the production units provided an
understanding of existing control mechanisms, thereby enabling me to analyse S3. Any
data that pointed to future development or possible trends gave me insight into S4,
and data that provided knowledge about the mission, direction, values and identity of
the system as a whole led to an indication regarding the presence and proper
functioning of S5. All the information that I derived from this data analysis enabled me
 to generate the VSM of the investigated sugarcane production and supply system and Guidance on
thus facilitated its VSM diagnosis. applying the
Furthermore, in my study, data collection included the investigation of improvement
proposals. Therefore, data analysis involved the exploration, comparison and synopsis
VSM
of these recommendations. Using the VSM framework assists in deciding which
suggestion is suitable for which shortcoming. This process leads to the generation of
improvement suggestions for the different shortcomings that emerged from the VSM 193
diagnosis.

3.3 Presenting and discussing the outcome of the VSM diagnosis

The outcome of the data analysis is critical for generating the VSM of the studied
system and its VSM diagnosis. By comparing the generated, system specific VSM with
the generic VSM, the VSM diagnosis reveals which subsystems and channels operate
adequately and which require improvements. For example, the VSM diagnosis
highlighted that the principle of local autonomy for the operational units is violated.
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The local mill management needed approval of higher-management levels before it

could make certain decisions. The VSM diagnosis further revealed, for example, a
shortcoming in C3. It should facilitate the interaction between the operational units, yet
a communication and transparency deficit existed.
The deduction of improvement suggestions described another outcome of the VSM
diagnosis. The suggestions either arose from comparing the VSM of the studied system
with the generic VSM or from recommendations that emerged during the data collection
process.
In cases, where the VSM diagnosis is mandated by stakeholders who are familiar
with VSM, its outcome can be directly presented in a report. For instance, I described
the five subsystems and some of the channels of the sugarcane production and supply
system and thereby highlighted present shortcomings and provided improvements
suggestions. In cases, where the “customer” is not familiar with VSM, the outcome of
the VSM diagnosis needs to be presented in such a manner that the VSM language
fades. The core insights that emerged from the VSM diagnosis have to be outlined in a
common language.
Ideally, the outcome of the diagnosis is presented to a group of key stakeholders.
This implies the possibility to discuss the outcomes, explore mentioned improvement
suggestions and investigate other opportunities to address the shortcomings that the
VSM diagnosis has brought afore. In this way, the handling of some of the
shortcomings is likely, which will improve the efficiency and viability of the system
investigated.

4. Findings and discussion

My research confirmed VSM’s outstanding capacity in facilitating a holistic insight
into the studied system and its excellent diagnostic competency. The VSM
diagnosis revealed core shortcomings, such as insufficient autonomy of the local
mill management, improvement potential in the coordination system, the weakness
of the management and control system and the lack of a genuine culture or
identity of the system. Key stakeholders approved the validity of these
shortcomings. Consequently, I propose that VSM is an efficient and thorough
diagnostic tool, highly suitable to guide other researchers regarding the analysis of
organisations, companies or supply chains.
 K My participation in interviews and workshops of another researcher, strongly
44,2 focusing on soft issues, has supported the integrity and quality of the VSM diagnosis.
It facilitated a better understanding of detected shortcomings. As a result, interview
questions should comprise parts that investigate the structural aspects of VSM, but
should be enriched by questions that focus on a general appreciation of the system and
present soft issues.
194 The iterative process of using qualitative research methods and VSM was critical, as
they supported one another. The VSM framework guided the development of first
interview questions, while the data collection and analysis enabled the continual
generation of the system specific VSM. This revealed areas that required further
clarification and highlighted present shortcomings, which enabled me to probe
deeper on certain issues and to explore possible interventions in later interviews.
Consequently, I encourage the iterative combination of VSM and qualitative
methods.
While analysing the data, it occurred to me that I discovered issues, such as
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shortcomings in the transport system, but struggled to determine whether they show a
deficiency in S4, S2 or C3 or in all of them, because the issues could be linked to several
subsystems or channels. I needed to go back and forward between the data and the
VSM framework and reflect on the meaning of the issues in terms of VSM, thinking
about in which subsystems or channels the issues indicate a shortcoming. Sometimes,
this reflection showed a specific shortcoming in one of the subsystems or channels, but
at other times I remained unable to link issues to particulars subsystems or channels.
Only through the richness of the qualitative data analysis and this reflective process,
was I able to see the linkages between a detected shortcoming and several subsystems
or channels. For instance, shortcomings in the communication between the sugarcane
growers and the millers existed. At first, it seemed like a deficiency in C3, but after a
comprehensive qualitative data analysis it became clear that this issue also implied
shortcomings in S2 and even in S5. Therefore using qualitative methods provides
further valuable understanding, which supports the merit of combining VSM and
qualitative research.
The VSM language is not a common language. Interviewees are generally not
aware of VSM and thus cannot directly respond regarding the presence and proper
functioning of the subsystems and channels. The VSM user needs to be creative
and develop questions that retrieve sufficient information for the VSM diagnosis
without using the VSM language. Finding alternative wording was essential and
the use of sketches was helpful. I used interviews, observations and archival data to
conduct the VSM diagnosis and then represented the outcome to stakeholders in
form of a report and presentations. However, VSM could be used in a more
participatory manner, which possibly supports the development and realisation of
improvement options.
The researcher could work with representatives off all key stakeholder groups and
introduce them to VSM and the benefits of a VSM diagnosis. Thereafter, participants
could brainstorm about the presence and proper functioning of the five subsystems and
six channels in smaller groups. Each group could be allocated to one subsystem or
channel and explore it in detail. A world café approach (Lewis et al., 2008) could be used
to obtain rich insight into the various subsystems and channels. At the end, the
generated knowledge would be brought together to generate a VSM of the studied system.
The participants would then diagnose their system and detect present shortcomings by
comparing it with the generic VSM. In the next round of interaction, different small groups
 could be working on improvement proposals to address the various shortcomings. Thereby Guidance on
it is important to overview the successful implementation of these proposals either with C2 applying the
or C6. Consequently the participants would also need to determine criteria of what counts as
an improvement in the detected shortcoming, how improvements can be measured and by
VSM
when the improvements should be achieved. This approach probably ensures that concrete
improvement activities are agreed on and realised. These interactive ways of
conducting a VSM diagnosis need to be further explored. Future research should also 195
investigate how the handling of detected shortcoming can be improved. A common
criticism, which my research partly confirmed, argues that VSM highlights what
needs to be changed, but falls short in supporting the change process. The literature
basically describes S5 as the normative management system that defines the
direction, identity and culture of the system and provides cohesion. However, my
study highlighted the importance of an adequate S5. Its partial absence, shown by
soft issues such a poor trust, communication, transparency and miller-grower
relationship, compromised the system in various ways. Therefore, a VSM diagnosis
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should always pay particular attention to the presence of S5. It can be explored by
probing deeper into present soft issues and by investigating what is the core of the
system, or what holds the system together.

5. Conclusion
My study highlighted the merit of VSM as an outstanding diagnostic tool that can
enrich other field methods regarding the analysis or diagnosis of organisations,
corporates, supply chains or entire countries. However, little is written about how to
accomplish a VSM diagnosis. The paper addressed this gap by describing the process
and possible field methods that facilitate a VSM diagnosis. This included detailed
information on data collection and analysis for the VSM diagnosis. The importance of
qualitative research methods for a VSM diagnosis and the benefit of using VSM
and qualitative research in an iterative manner were highlighted. By showing how to
use VSM, the paper encourages other researchers to apply VSM and share their
experiences. A VSM diagnosis basically implies immersing yourself into the system,
while examining it through a VSM lens. After a while the question “what could this
issue mean in terms of VSM” becomes natural. Further research should explore
alternative and more interactive ways of conducting a VSM analysis.

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Further reading
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 K Appendix 1. Gaining information for the VSM diagnosis of a sugarence production
and supply system
44,2

198
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VSM
applying the

199
Guidance on
 K Appendix 2. Gaining additional information on certain aspects for the VSM
diagnosis of a sugarcane production and supply system and inquiring
44,2 improvement suggestions

200
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 Guidance on
applying the
VSM

201
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About the authors

Dr Sandra Hildbrand is a Postdoctoral Research Fellow at the Graduate School of Business and
Leadership at the UKZN and is involved in research, lecturing and change facilitation. She holds
a BSc in agricultural science, a MSc in agribusiness (Hohenheim University) and a PhD in
leadership studies (UKZN). Prior to commencing her PhD studies, she worked as a research
volunteer on the topic of wastewater re-use in agriculture in Lesotho and South Africa. Her PhD
contributed to an inter-disciplinary project by applying systems methodologies to explore the
social complexity that challenges sugar milling areas. Dr Sandra Hildbrand is the corresponding
author and can be contacted at: sandrahildbrand@gmx.de
Dr Shamim Bodhanya is a Lecturer at the Graduate School of Business and Leadership. He
holds a BSc Electronic Engineering Degree, an International MBA and a PhD. As a trained and
practising Engineer, he worked in the corporate sector for nearly 14 years, before joining
academia. He is now actively involved in research, programme and module development,
lecturing, facilitation and consulting. He draws on inter-disciplinary research to work with
complex real-world problems.

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