System Transformation

A viable system is any system organized in such a way as to meet the demands of surviving in a changing environment. A system needs to be continuously leveraged in order to survive and prosper. Organization that fail to innovate risk extinction or viability decay.

Any perceived state of a system which is governed based on actuality and comfort zone in a changing environment is destined to extinction or decline / decay. This applies to any system.

It is not possible to leverage the system but rather leverage points which are places within the system which can bring big changes.

When dealing with complex systems / organizations content , context and process should be studied simultaneously:


Systemic transformation is a continuous process of adaption and transformation to ensure viability , effectiveness and efficiency considering:

  1. CONTENT : to identify doing  the right things
  2. CONTEXT : Organizational behaviour to ensure that doing the right things and doing things rights are achievable and synergy is achieved within the operational units.
  3. SCENARIO and PROCESS : Underlining processes to ensure the right things are done the right way.
  4. TECHNOLOGY : Required equipment , IT , facilities to ensure that the required viability is maintained



Is what is contained in  a system ;  A system is a group of interacting, interrelated, and interdependent components that form a complex and unified whole.  System Dynamics (SD) is a framework for understating how elements within the system interact .

Within SD Stocks represents conditions within a system (how things are) while flows represent activities that cause  conditions to change

System dynamics is about understanding dominant influences (positive and negative)  that determine stocks./conditions, Objective of SD is to define mental models  is to determine ideal system state.

  • System dynamics focuses on the structure and behavior of systems composed of interacting feedback loops.
  • System Dynamics helps in designing the interconnections and structures to give more confidence and predictability in behavior of the systems.
  • System dynamics is an approach to understanding the behaviour of complex systems over time. It deals with internal feedback loops and time delays that affect the behaviour of the entire system.


While System Dynamics provides a framework for understating how elements within the system interact, it does not address how to effectively organizes and control the embedded system to ensure continuous viability within a changing environment ; provide a platform to continuously strive.


Represent connection of system entities interrelationship that is placed in context (woven; organizational context) or embedded.   Context is about  effectively organizing and control of the embedded system to ensure continuous viability within a changing environment . Key functions within Context:


Primary activities, those responsible for producing the products or services implied by the organization’s identity at each recursive level interrelated with CONTENT in terms of  activities that influence  conditions


A viable system also has systems in place to co-ordinate the interfaces of its value-adding functions and the operations of its primary sub-units. In other words, co-ordination is necessary between the value-adding functions as well as between the embedded primary activities in order to optimize and achieve synergy. This implies coordinating at the relevant recursive level  to achieve ideal conditions (stocks)


Effective use of the communication channel can considerably lessen the requirement for supervisory control, two way communication between sub-unit and meta-level unit remains a prerequisite for viability. This is the channel through which resources are negotiated, direct line management instructions are issued (on an exception-only basis) and accountability reports flow upwards to keep the meta-level management in touch with events. The control function needs an assurance that the accountability reports it receives are indeed an accurate reflection of the status of primary activities.


The Intelligence function is the two-way link between the primary activity and its external environment. Intelligence is fundamental to adaptability;  provides the primary activity with continuous feedback on marketplace conditions, technology changes and all external factors that are likely to be relevant to it in the future; secondly, it projects the identity and message of the organization into its environment. The intelligence function is strongly future focused. It is concerned with planning the way ahead in the light of external environmental changes and internal organizational capabilities so that the organization can invent its own future (as opposed to being controlled by the environment), create new industry paradigm.


Policy making function  provides closure to the system as a whole.  The main roles of Policy are to provide clarity about the overall direction, values and purpose of the organizational unit; and to design, at the highest level, the conditions for organizational effectiveness.


Process is defined as serious of actions which are linked to dynamics of the system or events which manifest out of conditions and activities of the system under study. Process represents  activities  carried-out within relevant recursive level defined within CONTEXT  to undertake primary activity; it represents management actions to ensure co-ordination, control and audit within the organization context recursive level.


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