IT RECRUITING & STAFFING COMPANY OF THE YEAR
What does cybernetics – the study of biological and mechanical control systems – have to do with optimal team structure? A lot! In his book ‘Management Cybernetics: healthy finances & healthy employees’ fits Joost van der Leij cybernetic thinking to organizations. During C-EATS, Amon’s executive lunch, he elaborated on the practical lessons to optimize the operation of IT teams.
Who?
Joost Van der Leij is a Dutch management philosopher and author. He combines insights from Organizational Behavior Management and Management Cybernetics to help organizations structure themselves in such a way that they keep complex and changing circumstances manageable.
What?
During C-EATS, Amon’s executive lunch, Van der Leij talked to 10 CIOs and IT Directors from as many sectors. They presented concrete cases and shared personal insights. Christophe VanDriessche, Managing Director of Amon, challenged them with sharp questions.
Why?
The more complex the external world, the greater the internal complexity of organizations. This confronts managers with variables and uncertainties. Management Cybernetics offers a way to structure organizations in such a way that complexity remains manageable – and effective management becomes possible.
5 vital systems for every organization
It is central to Van der Leij’s approach Viable System Model (VSM), developed by British professor Stafford Beer. This model identifies five essential systems for the viability of any organization:
1 – Autonomous teams
Teams that contribute directly to core activities and revenues. These teams function best with maximum autonomy and minimal interference from senior management.
2 – Coordination
Coordinating functions that ensure stability and prevent conflict between System 1 teams.
3 – Operational management
Focuses on managing and optimizing daily operations.
4 – External orientation
Focuses on innovation, market developments and future opportunities.
5 – Strategic leadership
Determines the course and monitors the balance between internal and external needs.
From model to concrete application for IT teams
The Viable System Model offers a practical framework to clarify your IT team structure and make it work better. This is how you use each system in a targeted manner:
Map the core (system 1)
Identify which IT teams are directly responsible for value creation. Consider, for example, the team that develops software in a product-driven organization. It is best for these teams to be given as much autonomy as possible. Arrange everything so that they can do their work optimally.
Set up smart coordination mechanisms (system 2)
Without good coordination, friction arises between teams. This can be prevented by introducing standardized tools, processes and communication. Think of joint planning rituals, uniform dashboards or clear escalation paths
Ensure strong operational management (system 3)
Set up a management layer that has insight into daily operations – without micromanagement. Give management access to data and feedback loops so that they can take targeted action.
Leave room for innovation (system 4)
Create space for technology exploration, innovation and monitoring market trends. For example, set up an R&D or innovation team. Please note: keep the focus sharp and prevent the core teams (system 1) from being constantly distracted by experiments.
Formulate a clear IT strategy (system 5)
Capture how IT contributes to broader business goals. That strategy should not disappear in a drawer, but should really be brought to life in the organization. So actively build a culture that supports the strategic direction.
Without feedback mechanisms, every structure comes to a standstill
No matter how well an organization is structured according to the Viable System Model, the model does not work without well-thought-out feedback mechanisms. A common pitfall in organizations is that autonomous teams (system 1) are mainly focused on their own operations. But without insight into each other’s needs and impact, there’s a risk of silo thinking.
That is precisely why coordination (system 1) and operational management (system 2) are essential. They ensure coordination, adjustment and the prevention of blind spots – without falling into cumbersome bureaucracy.
That also confirmed one CIO of an international tech company during C-EATS. He outlined how various autonomous teams operate in his organization:
- A sales organisation who brings in customers;
- An IT product team that builds solutions; and
- A service team that implements solutions for customers.
IT senior leadership focuses on strategy and coordination between these systems. But the temptation is great to intervene yourself. And that is often an alarm signal.
The CIO himself put it as follows:
“If the C-level is continuously inundated with operational problems, then this is not a leadership problem, but a sign that the organization is not optimally set up.”
CIO during C-EATS
What is the best way to provide feedback?
According to Van der Leij there are 3 crucial feedback loops to take into account:
- From junior to senior: Employees must be able to escalate problems as soon as they arise – or better yet, even before they arise.
- Between supportive and autonomous teams: if supporting teams (such as IT support) have to continuously assist the autonomous teams, this must be visible and discussed at management level.
- From the top – via audits or spot checks: unannounced audits by management help to collect objective feedback on what is going well and where there are opportunities for improvement.
The role of IT: catalyst of simplicity
Within organizations, IT is often accused of adding complexity. But according to Van der Leij, the idea is for IT to help reduce that complexity.
During C-EATS, a CIO shared a striking case: within his international organization, IT leads the standardization of business processes – thus driving simplicity, efficiency and scalability. In another context, that leading role may lie with operations or finance. There is no fixed recipe: everything depends on the maturity and context of the organization.
“What does it take to survive as an organization?” Van der Leij wondered out loud. “One: being able to scale. Two: being efficient. And three: remaining flexible.”
In short, the right balance between autonomy and direction, exploration and exploitation – that is the real challenge for leadership.
“What is needed to survive as an organization? One: being able to scale. Two: being efficient. And three: remaining flexible.”
Joost Van der Leij
The right people create the right structure
Cybernetic thinking helps structure your organization to make complexity manageable. But even the best-designed system only really works if the right people are in the right place – people who can switch between autonomy and coordination, between innovation and stability.
At Amon we believe that IT leadership is crucial to safeguard and shape that balance. We help organizations find top talent that helps build scalable, flexible and future-oriented teams.