Medium-sized manufacturing companies serving multiple industries face increasing organisational complexity, dynamic market conditions, and expanding regulatory requirements. Ensuring organisational viability requires management systems that balance adaptability, operational performance, and regulatory compliance. This research investigates whether governance structures based on Stafford Beer’s Viable System Model (VSM) can improve organisational steering and reduce complexity through measurable cybernetic performance indicators. Methods The research forms part of an ongoing doctoral project using a longitudinal mixed-methods case study in a German mechanical and plant engineering company operating in highly regulated sectors. The methodological approach combines semi-structured expert interviews with the longitudinal analysis of organisational and operational key performance indicators before, during, and after implementing VSM-based governance structures. Additional qualitative investigations within a comparison organisation provide contextual validation. Findings The project develops a cybernetic KPI system that translates key principles of organisational cybernetics, including recursive governance and variety management, into measurable organisational variables. The framework assesses changes in organisational complexity, coordination capability, decision quality, adaptability, and governance effectiveness. Initial observations indicate that this approach enables a structured evaluation of organisational development beyond traditional financial and operational performance indicators. Implications The study contributes to organisational cybernetics by proposing an empirical framework linking the theoretical foundations of the Viable System Model with quantitative organisational evaluation. By translating viability into measurable indicators, it seeks to strengthen the empirical basis of VSM applications and provide organisations with a practical instrument for evidence-based governance in complex, highly regulated environments.
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