A framework based approach to manage complex enterprises using Stafford Beer´s viable system model and heterarchy

The purpose of this paper is to introduce a framework and approach for managing complex enterprises of today using Stafford Beer´s viable system model (VSM) and Heterarchy. In some of today´s enterprises, in order to cut down costs, or to gain outside expertise, Information Technology function is outsourced to different Organization. But the outsourced IT organization lags in implementation of the needed dynamic business changes leading to many complex management problems in terms of silo´ed organization and in the process losing competitive edge of the business and subsequently impacting the viability of the complex enterprise. The paper proposes an approach and a cybernetic management framework that aids the managers to manage complex enterprises which is viewed to comprise of business organization and IT organization and VSM is applied to both business organization and IT organization taken separately for diagnosis. A case study applied in a telecom enterprise demonstrates its usefulness.