A Espinosa, HUBS

A Complexity Approach to Sustainability: Theory and

Applications

Angela Espinosa November 20th, 2012

This seminar ..

1.  Sustainability: the wickedest societal problem of all times.

2.  How can we deal with core issues of dealing with complexity in sustainability programs (i.e. insights from Organisational Cybernetics)

3.  Examples of applications of this approach to deal with organizational issues in the environmental sector.

4.  Final reflections: how this approach contributes to sustainability.

A Espinosa, HUBS

1. Sustainability: The wickedest societal problem of all times.

A Espinosa, HUBS

State of the World 2010 The Global Economy

The Environment

Resource Depletion Global Inequality

A Espinosa, HUBS

State of the World 2010

Endangered Ecoregions

A Espinosa, HUBS

The Story of Stuff – the Material Economy.

EXTRACTION PRODUCTION DISTRBUTION CONSUMPTION DISPOSAL •  Global economic development: socially and ecologically unsustainable. •  Environmental problems: Highly complex and interconnected and needs a systemic approach (Meadows & Randers, 1992). •  Complex Systems thinking: alternative paradigm to rethink socio economic development (Capra, 2003).

A Espinosa, HUBS

Identifying Planetary Boundaries

A Espinosa, HUBS

Main sustainability challenges

  We have global, national and local environmental policies, programs and investments

  They don’t always represent/ integrate the complexity and uncertainty of natural and social phenomena;

  So, we haven’t managed to deal with major sustainability (i.e. global climate change) risks timely and effectively enough

  There are still major misfits between theory and practice!

A Espinosa, HUBS

Implementation Misfits   Ineffective hierarchical structures and traditional

management practices   Mismatch in the relationship between governments, development

agencies & communities   Lack of adaptive structures to decide & implement changes   Lack of cross-disciplinary decision-making processes to support

policy integration

  Multiple and often conflicting values; and political effects

  Sustainability requires a more holistic view of environmental problems/social & institutional structures responsible for solutions.

A Espinosa, HUBS

2. Complexity and Sustainability

Insights from Organisational Cybernetics

A Espinosa, HUBS

12/7/12 VSM J Walker Slide 11

Organisational Cybernetics - Origins

  Developed by Stafford Beer during the 1970’s (originally named as Management Cybernetics).

  It was a response to his dissatisfaction with traditional approaches to management.

  His theories resulted in significant increases in productivity in the steel industry in UK.

•  He called it “ The theory of effective organisation” (Beer, 1979)

12/7/12 VSM J Walker

Slide 12

The Viable System Model - - Inspiration

Beer studied the way that the central and autonomic nervous systems “control” the operation of the organs and muscles, and used this understanding as the inspiration for his organisational model.

Control is ‘self-regulation’: the ability to keep a dynamic equilibrium in the co-evolution organism vs. niche

“We will seek the source of effective organisation in the cybernetics of natural processes - the brain itself ”

VSM Origins - The Environment Beer was looking with Cybernetic eyes - at the way an enterprise works in the context of its environment.

•  What the organisation KNOWS and MEASURES about its environment determines the way it interacts with it •  The clearer and more complete the MODEL it makes of the environment, the better it can react to external changes

Viable system

Environment

Requisite Variety?? A Espinosa, HUBS

Complexity & Variety

  Ashby (1964), : defined, both in mechanical and in social dynamic systems:   Complexity: ‘the potentiality of a system to exhibit

different states’   ‘Variety’: is:

  the number of possible states a system is capable of exhibiting;   a repertory of potential behaviours   a measure of perceived complexity

  An ‘observed system’ is described by a group of variables that an observer recognizes in a real situation and this is always determined by the observer’s complexity.

The Law of Requisite Variety

Environmental Disturbance

Organisational Reaction

Resulting State of the Organisational Relationship with its Environment

1. Competitor releases new product

2. Trade union calls industry strike

3. Govt introduces minimum wage

4. New invention cuts costs

5. Competitor ceases to trade

6. Skills shortage develops

7. …..

8. ...

1. D

ecre

ase

pric

es

2. In

crea

se sa

larie

s

3. D

owns

ize

orga

nisa

tion

4. P

urch

ase

new

mac

hine

s

5. R

eorg

anis

e pr

oduc

tion

6. In

crea

se sa

les f

orce

7. …

.

8. …

.

R Asby, MDM, HUBS!

The Viable Systems Model (VSM)   Developed as a tool to improve the

effectiveness of an organisation   Most applications involves businesses -

used as the basis for improving performance (and profits)

  Powerful and flexible: applicable from small businesses to multi-nationals and Governments.

  Always looks at an organisation in the context of its environment - so ideal for organisational transformations in conditions of uncertainty, complexity and risk ( i.e. sustainability and climate change)

A Espinosa, HUBS

12/7/12 J. Walker, 2011 Slide 17

The Three elements   The Operation,

  the primary activities, composed of smaller viable systems.

  Has ‘n’ units - all the same shape as the large system, showing they are all organised in the same way.

  The principle is ‘maximised autonomy, limited only by systems coherence’.

  The Meta-system, (logically “over & above”) designed to ensure all the parts of the operation cohere into a single, harmonious, integrated whole.   This is a service to the operational units   It can intervene, but only for system

coherence.   The Environment . Those parts of the outside

world which affect or are effected by the system. It shows the environments that are specific to the operational units

  The three elements are all interacting.

The Five Systems

•  System 5 –  Closure, policy, identity, ultimate authority

•  System 4 –  Environmental scanning, strategy,

planning, innovation

•  System 3/3* –  Overview of entire Operation,

optimisation, synergy, intervention when necessary.

•  System 2 –  Anti-oscillatory –  Resolution of conflict, synchronisation. –  Keeping the peace.

•  System 1 –  The entire Operation

J. Walker, 2011

Key issues for organisational viability

A Espinosa, HUBS

•  Self –organisation (self- regulation) •  Co-evolution with the environment •  Innovation: continuous learning and adaptation

•  Adaptive Policies and Strategies

• Continuous Learning – Closing feedback loops.

•  Optimum information & communica-tion systems • Recursive Governance: Sustainability Indexes (Critical Processes for Sustainability)

Implications for organisations   Re-distribution of

responsibilities: Based on variety management

  True democracy: Devolved control to operational levels

  Meta-systemic management: not ‘cognitive autocracy’

  Performance management: based on self-regulating units

  Need for greater democracy and power equalization

  Continuous transformation, based on self-organization.

  ‘Order generating rules’: to overcome the limitations of rational, linear, top-down, strategy-driven approaches to change.

12/7/12 20

Examples of applications

A Espinosa, HUBS

Dealing with complexity in practice.

1. Chile – Regulation of the social economy (1970’s)

12/7/12 22

2. Europe (1995-2010)   Malik on Management Consultants

  Biggest consultancy in Europe   Professor F Malik (St Gallen Business School)   Hundreds of applications of Team Syntegrity   Coaching approach to improve organisational

learning and performance   Cwarel Isaf Institute/ Metaphorum (developing

Beer’s legacy)

12/7/12 23

3. Colombia (1990’s) …

  REUNIRSE: University Network to monitor massive social investments to fights against poverty

  National Auditing Office – reengineering the auditing process – 60 national organisations analysed

  Ministry of Education – rethinking the national school system

  Ministry of Environment – designing the national environmental system

A Espinosa, HUBS

3. Colombia (2010’s)

  RENATA: Organisational Redesign   MARVAL: Organisational Redesign

A Espinosa, HUBS

4. Ongoing applications UK, Ireland, (2007-2010)

  Ecovillage (Ireland)   Self organisation   Support on learning/

self-transformation   VSM - education

  Transition Network (Peak Oil)   Bottom up

approaches to sustainability

  Community based projects

  Energy descent plans

12/7/12 26

Case Study: VSM Diagnosis in a Developing European Eco-

community

The VSM: An intervention in an eco-community

  Ecovillage – Cloughjordan (Ireland)

  130 acres –   Intention: to develop a sustainable community which can be used as

en educational model of the XXIst century way of living   About 8-families bought their lots and became members   From 2006-2010 – site development

  Renewable energies (solar panels, district heating system)   Self-production of food (allotments, permaculture growing, organic farm)   Sustainable building (use of local building materials, houses thermally isolated,

designed for low energy use/consumption)   Innovative business development   Educational NGO – courses on sustainable building/ living/ food production, etc

VSM Diagnosis Methodology (Espinosa & Walker, 2011a, 2011b)

1. Rich picture of the eco-community organisation (2007)

1. Developing Organisational Identity Agreed organisational identity

Charitable company, founded on cooperative principles to:  Create a conscious new approach to a way of life which

will benefit the individuals involved, and provide a viable example to plant the seeds for other similar projects, globally

 To build a sustainable community by transforming a greenfield site into a model of sustainable community, using the best of environmental technology and providing sustainable good and services, education and ‘dream houses’

‘Emerging organisation’

Growing Green Infrastructure

Building site infrastructure

Selling sites

Enabling the building of individual houses

Building community houses

Education/ dissemination/ networking

Creating sustainable community

Land Use

Planning Construction Management

EWW IT

Sales Legal

Communication

Building Construction Management

Legal Planning

Community building

Communications Political Lobbying

Mobility Cloughjordan

New Members Social Activities

Business Development

4. Initial VSM Diagnosis

Organisation 2009

5. Implementation of changes

Monitoring and assessing: Emerging levels of complexity

Local and Regional Transition Networks

Local initiatives   Social   Food   Transport   Household Energy   Re-use, recycling, repair   Local economy   Other aspects of

community

Regional hubs   Supporting new initiatives   Supporting existing

initiatives   Government links   Business links

A Espinosa, HUBS

National and Global T.N. National Support Networks   Infrastructure   Training and education   Transition Business Transition Movement Worldwide   Transition Network Ltd still remains,   co-ordinating role for the national networks,   helping them to work synergistically,   avoid errors that each other have made.

A Espinosa, HUBS

How this approach contributes to sustainability.

4. FINAL REFLECTIONS

A Espinosa, HUBS

Conclusion Zero.

  At all levels of recursion, the System 5 – representing ALL the people at that level - must be primarily concerned with Sustainability. Its primary task is to restore and maintain the health of eco-systems, and to focus on the well-being of ALL humanity.

  A new paradigm of sustainable governance is required rapidly.

A Espinosa, HUBS

Conclusion One

  Sustainable self-governances needs to be undertaken based upon the new paradigm of sustainability.   It requires an understanding of recursive levels of embedded

autonomous social systems, each able to self-regulate on critical issues for sustainability.

  Rather than work with the traditional administrative, economic and political boundaries, we need to develop recursive governance to allow a more conscious and responsible co-evolution of human societies and their eco-regions.

A Espinosa, HUBS

Conclusion Two   Systems must be designed and implemented which

ensure that all organisations interact with their environments in a sustainable manner. This will involve:   The design of a new family of indicators, which includes

measures of environmental health and human welfare.   Real-time measurement systems   A culture of continuous monitoring and rapid response.   The introduction of algedonic signals which by-pass the

usual channels.

A Espinosa, HUBS

Conclusion Three

  Organisations must be designed which are based upon self-organising, autonomous operational units. Without local autonomy, there is no hope of co-evolution with a rapidly changing environment. The operational units will require the services of a Meta-system to ensure they achieve sustainable governance.   The new structures will have Meta-system, which will need to be

properly designed. System 4 will need to assume its rightful place as an integrated part of the decision making structure.

  Unless organisations at every level of socio-ecological interactions behave as viable systems – with a deeply embedded ethos of sustainability - the chances of the necessary societal transformation are minimal.

A Espinosa, HUBS

A Espinosa, HUBS

In summary: Towards more sustainable social structures

  By designing more adaptive organizations and environmental networks   More knowledgeable about climate change impacts and adaptation

options, and   More effective and timely responding to them

  By understanding complementary approaches i.e. bottom up environmental management at all levels in the country, from organizations to local, rural, regional and national   Participatory governance at all levels   Progressive change in our attitudes and ultimately our consciousness

:

References   Beer, S. (1979). Heart of the Enterprise. John Wiley & Sons   Beer, S. (1985). Diagnosing the System for Organisations. John

Wiley & Sons.   Espinosa, A. Walker, J. (2011). A Complexity approach to

sustainability: theory and applications. Imperial College Press. World Scientific Press.

  Espinosa, A., Walker, J. (2011). ‘ Complexity Management in Practice: A VSM Intervention in an Irish Eco- Community’. European journal of Operational Research.

  Jackson, M.C. (2003). Systems Thinking. Creative Holism for Managers, John Wiley, Chichester.

  Figures from Beer, 1985 used with permission from Malik & Management, St Gallen, Switzerland