Variety Calculus: Cybernetic Methodology

This presentation reports a novel systems thinking methodology based on cybernetics called the Variety Calculus.   It is applicable to most aspects of operations, such as situational understanding, strategy development, planning, and organisation design and regulation.  It seeks to calibrate systems to the nature of the task and circumstances and to thus maximise agency whether the situation is simple or complex.  One of the key challenges faced by contemporary organisations is that the dominant paradigm based on objective information and analysis, hierarchical structures, and centralised control leave decision-makers ill-equipped to deal with complex and unpredictable situations. There is increasing recognition of an alternative paradigm that emphasises decentralisation, networked structures, and constant responsive adaptation rather than fixed processes.  However, implementation remains a significant challenge.  The cybernetic basis for our work is Ashby’s Law of Requisite Variety. This states that effective agency is dependent on a system’s ability to provide sufficient options to match the situation’s potential for diverse states and outcomes.  The Variety Calculus exploits this to create the required balance of characteristics to configure each aspect of a system to the simplicity or complexity of its situation.  This largely involves a balance between cohesion, control and uniformity on one hand, and adaptation, freedoms, and diversity on the other.  It thus combines both paradigms in a single framework and lexicon.    We will describe the theoretical basis of the Variety Calculus and the range of practical techniques it offers.