Viable system model indicator : how can the viability of organizations be measured?

Organizations today operate in increasingly complex and uncertain environments, which poses significant challenges to their long-term viability. In response to this, the Viable System Model (VSM) provides a cybernetic framework for understanding and designing organizations capable of adapting and sustaining themselves in dynamic contexts. Although the model is well established theoretically, practical instruments for assessing an organization’s viability based on its principles remain limited. This Master's thesis addresses this gap by developing and validating an assessment tool that measures organizational viability in accordance with the foundations of the VSM. The research identifies core competencies and structural characteristics that define viable organizations and translates them into an operational diagnostic framework. To achieve this, a mixed method research approach process was conducted. It began with a systematic literature review to derive a theoretical foundation for viability and viable organizations. This was followed by the development of an assessment model. Expert (n = 6) and practitioner (n = 4) interviews were conducted to validate the conceptual design and to identify relevant dimensions and criteria. Based on these insights, a quantitative online assessment (n = 66) for organizations was designed and implemented, enabling statistical analysis and refinement of the instrument. The results confirm that the assessment instrument Viable System Model Indicator captures key dimensions of organizational viability. The developed assessment demonstrates internal consistency and provides initial evidence of practical relevance. Further validation is advised to assess its generalizability across various industries and organizational contexts. This thesis contributes to both theory and practice in the fields of organizational design and complexity management. The developed instrument offers decision-makers, consultants, and researchers a new means to evaluate and strengthen the adaptive capacity and long-term viability of organizations operating in volatile environments.