Viable System Model for Managing Organizational Transformation: A Case Study on Korean Food-Services System

Abstract

Purpose: In this article, the Viable System Model (VSM) is introduced and used as systems approach for managing organizational transformation at the Korean company. It aims to utilize strategic change management for understanding the nature of organizational transformation from systemic perspectives. Design/methodology/approach: Systems study using the VSM carries out regarding systemic understanding of the strategic change management of the system-in-focus within the organization. Semi-structured interviews were selected to elicit the history, decision-making process about the company's objectives, strategic plans and operation of the food-services system within the company. Findings: The Viable System Diagnosis (VSD) helps to design an effective food-services system to make this system viable in rapidly changing markets. It sets out the autonomous units of food-services system which has the necessary functions of operation, regulation and coordination, operational control, intelligence and policy that should be present in the organization. This helps initiate and facilitate the strategic change management of the company through providing the ability to respond environmental changes to the company in advance. Research limitations/implications: In this research, focus was on exploring the complex nature of strategic change management in how VSD helps design an effective food-services system to make this system viable in turbulent situations. This research can be justified only if the VSM approach is associated with its interpretivist paradigm, referred as soft systemic thinking. Originality/value: The VSM is introduc ed and applied in an effort to manage organizational transformation of the Korean food-services system in association with strategic management. The value of research was to explore the complex nature of organizational transformation using Espejo and Reyes' notion of the archetypes. It was able to demonstrate it through a case study on Korean food-services system as it shows the nature of the self-organizing whole.