Markus Schwaninger

University of St.Gallen · Institute of Management and Strategy

The purpose of this article is to shed light on the capabilities of linear versus non‐linear forms of modelling complex systems. A comparative analysis is realized, which shows the differences between two established methods — regression analysis (RA) and system dynamics (SD). To realize that methodological comparison, we need a benchmark in substa...

Systems thinking has a lot to offer to the field of strategizing. Calls for a greater use of the Systems Approaches to management are increasingly being advanced in the world of organizations, public and private. Yet, practical implementation of such postulates is lagging. This article aims to demonstrate the potential of systems thinking in shapin...

Management in systemic terms means to cope with complexity. Ross Ashby's law of requisite variety shows the way—maintaining the varieties of interacting systems in balance. To denote that process, we use the cybernetic concept of ‘variety engineering’, which we also formalize. It refers to processes of mutual complexity amplification and attenuatio...

The Amazon Rainforest suffers from unsustainable exploitation and encroachment on native peoples’ territories, leading to poverty and environmental destruction. This inquiry aims to understand the impact of deforestation on the economic development of communities and peoples and the relationships between persistent poverty and social pathologies. T...

We aim to contribute to improving the management of pandemic crises. Our focus is on federal systems, as these are particularly powerful in dealing with environmental complexity. Through five waves of the pandemic, spanning a year and a half, we study the management of the crisis in the Swiss Federation. The purpose of this research is learning for...

Purpose-This study aims to explore an exemplar of the design and application of a systemic framework for higher education. The field of application is in the social sciences and the perspective long-term, covering three generations of faculty and many generations of students. Design/methodology/approach-This study is exploratory. It contains a conc...

The edited book combines different perspectives (medical, historical, system, management) to apprehend the complexity of the pandemic and its handling within the Swiss healthcare sector. Based on systems theory, the analysis suggests guiding principles for coping with the COVID-19 pandemic.

We aim to contribute to improving the management of pandemic crises. Our focus is on federal systems, as these are particularly powerful in dealing with environmental complexity. Through four waves of the pandemic, spanning a year and a half, we studied crisis management based on the case of the Swiss Federation. This research concentrates on three...

System dynamics (SD) is an established discipline to model and simulate complex dynamic systems. The primary goal of SD is to evaluate and design new policies that can impact the system under study in a desired way. Policy design, that is, identifying effective model levers, however, is a challenge and in many cases trial-and-error driven. In this...

Der Umgang mit dem Coronavirus wird meist aus epidemiologischer, virologischer oder ökonomischer Sicht betrachtet und kommentiert. In diesem Beitrag wird gezeigt, dass die Dimension des Organisatorischen in diesem Zusammenhang von ebenso grosser Bedeutung ist. Sie wird zu oft vernachlässigt. Wir gehen der Frage nach, wie die in der Schweiz aufgebau...

Prof. Dr. Hans Ulrich hat mit seinem Werk die Entwicklung der Managementlehre maßgeblich geprägt. Er hat auch seine Alma Mater richtungsweisend mitgestaltet, sowohl in ihrer konzeptionellen und inhaltlichen Orientierung, als auch bezüglich der Qualität von Forschung und Lehre. Ulrich war Mitbegründer und langjähriger Leiter des Instituts für Betrie...

Prof. Dr. Hans Ulrich hat mit seinem Werk die Entwicklung der Managementlehre maßgeblich geprägt. Er hat auch seine Alma Mater richtungsweisend mitgestaltet, sowohl in ihrer konzeptionellen und inhaltlichen Orientierung, als auch bezüglich der Qualität von Forschung und Lehre. Ulrich war Mitbegründer und langjähriger Leiter des Instituts für Betrie...

Purpose This study aims to explore an exemplar of the design and application of a systemic framework for higher education. The field of application is in the social sciences and the perspective long-term, covering three generations of faculty and many generations of students. Design/methodology/approach This study is exploratory. It contains a con...

How can we restore the ecological balance of our planet? The present article is aimed at contributing a structural framework for such a restoration. In the quest for ecological recovery, cybernetic–systemic approaches are in demand. They specialize in coping with complexity and offer new, transdisciplinary and non-reductionist ways of system design...

Hospitals provide highly sophisticated services, but they are largely steered by means of simplistic management models, which do not match the complexities faced by these organizations. The design of management models in hospitals and public organizations at large shows a bend toward reductionism. The reductionism of these models is rooted in their...

Purpose This paper aims to revisit the viable system model (VSM) discussing it from both the theoretical and the empirical standpoints, and ascertaining its relevance for organizational governance. Design/methodology/approach A combination of theoretical and empirical components is used: introduction to theory and critique on the one hand; case st...

Complex systems often exhibit counterintuitive behavior. They confront us with the unexpected, and the idea of anticipating the unexpected is a challenge to commonsense. The purpose of this contribution is to demonstrate the power of modeling and simulation in discovering the structures that generate counterintuitive behavior in and of organization...

While large causal models provide detailed insights to the analysts who develop them, general users are often challenged by their complexity. Commonly, these models overwhelm the cognitive capacities of human beings. The inaccessibility of large causal models is particularly regrettable when they deliver valuable expertise and information that shou...

Modern hospitals should provide integral care, with the patient at the centre, rather than technology or doctors. However, over-specialization and silo organizations obstruct such approaches. The purpose of this chapter is to explore an exemplary case, from the field of health care, of a long-term process pursuing a holistic system design. The case...

The purpose of this paper is helping managers and leaders in healthcare develop viable organizations that deliver high-level services. Health organizations such as hospitals are exceedingly complex. Therefore, we use Integrative Systems Methodology, a framework designed especially as an enabler for coping with complexity. Within that framework, we...

Access to this content is enabled by HSG Library Cite article How to cite? • .RIS Papers Reference Manager RefWorks Zotero • .ENW EndNote • .BIB BibTeX JabRef Mendeley Die Verhältnisse sind heute fast überall komplex. Unserem Machbarkeitsstreben, das sich Lösungsorientierung auf die Fahne geschrieben hat, kommt dies nicht entgegen. Man kann nämlich...

The purpose of this study is to shed light on the chain of causality from macroeconomic financial policy to the microeconomic investment function. Concretely, we aim to provide an in-depth analysis of the relationships between the monetary policy of central banks, the loan policy of commercial banks, and the investment behavior of firms. We focus o...

The Viable System Model by Stafford Beer embodies a theory about the preconditions of organizational viability. This theory has been discussed extensively by the academics and professionals of organizational cybernetics. The theoretical claim of the Viable System Model (VSM) is bold. It asserts to specify the necessary and sufficient preconditions...

Prof. Dr. Hans Ulrich hat mit seinem Werk die Entwicklung der Managementlehre maßgeblich geprägt. Er hat auch seine Alma Mater richtungsweisend mitgestaltet, sowohl in ihrer konzeptionellen und inhaltlichen Orientierung, als auch bezüglich der Qualität von Forschung und Lehre. Ulrich war Mitbegründer und langjähriger Leiter des Instituts für Betrie...

Cybernetics The science of communication and control in complex, dynamic systems. The core objects of study are information, communication, feedback, and adaptation. In the newer versions of cybernetics, the emphasis is on observation, self-organization, self-reference, and learning. Dynamical system The dynamical system concept is a mathematical f...

Purpose: The purpose of this paper is to propose a holistic structural framework for a sustainable renewal that embraces all relevant contexts – individual, organizational, local-regional and worldwide. This should help humanity achieve a future in which society, economy and ecology are united in an evolutionary process based on multiple symbiosis....

The purpose of this contribution is to learn from the theory of evolution in order to improve the design of modeling processes. The aim of the chapter is to advance the understanding of the evolutionary structural characteristics of modeling processes which lead to better models, and to find design rules for systematically achieving higher model qu...

Traditionally, model analysis follows qualitative, heuristic, and trial-and-error-driven approaches for testing dynamic hypotheses. Only recently have other methods like loop dominance analysis or control theory been proposed for this purpose. We advocate complementing established qualitative heuristics with a quantitative method for model analysis...

Purpose – The purpose of this paper is to propose a holistic structural framework for a sustainable renewal that embraces all relevant contexts – individual, organizational, local-regional and worldwide. This should help humanity achieve a future in which society, economy and ecology are united in an evolutionary process based on multiple symbiosis...

The purpose of this contribution is to elaborate an integrative framework for model-based management, drawing on the concepts of cybernetics. This conceptual frame should enhance managers' understanding of structures that give rise to patterns of system behavior, helping them to design more effective policies and improve their practice in general....

We propose a generic theory of the diffusion of eco-technologies that integrates properties of the market, technology, policy change, and public policy interventions. Eco-technologies are technologies that lead to reduced environmental stress compared to an incumbent, mainstream technology. Because our theory is generic, it can be applied to a wide...

We report on modeling work that shows how the market, technology, civil society and the state govern the diffusion of energy-efficient renovations in Switzerland’s stock of residential, multifamily buildings. The particular focus of this chapter is on the policy implications that we drew from an extensive System Dynamics modeling study. We conclude...

This contribution aims to show a way towards better models for management support. We compare linear and nonlinear models in terms of their performance. Based on a case study, the respective benefits and shortcomings are fleshed out. A linear spreadsheet model and a nonlinear System Dynamics model are used to deal with one and the same issue: capac...

In einem Umfeld der sozioökonomischen und ökologischen Turbulenzen gewinnt die Verwendung von Modellen zur Unterstützung von Führungskräften stark an Bedeutung. Bessere mentale Modelle sowie dynamische Simulationsmodelle sind maßgebend für die Qualität der Entscheidungen in Unternehmungen. Gute Modelle ermöglichen es, Krisen zu vermeiden oder besse...

Der Titel des Konferenzbandes »Interdisziplinarität und Komplexität« greift die beiden bedeutsamen Herausforderungen an die aktuelle kybernetische Forschung auf. Aufgrund der Tatsache, dass die Zerlegung hoch komplexer Problemstellungen in Teilprobleme mit detaillierten Lösungsansätzen oft nicht mehr der Lösung der Gesamtproblematik gerecht werden...

The consumption and disposal of electrical and electronic equipment forms a dynamic sys-tem. This paper applies system dynamics methodology to assess mass flows of end-of-life equipment. In the paper, two modelling approaches to forecasting disposal of consumer dura-bles are discussed, namely the “delay model” approach and the “reverse diffusion mo...

The concept of autopoiesis introduced by Maturana and Varela has, in the last four decades, triggered intellectual efforts for the understanding of phenomena of self-organization in general. This contribution aims at conceptualizing and applying two aspects of autopoiesis—operational closure and self-reference—in respect of social organizations. We...

This study proposes a research design for the enhancement of validity and reliability in conjoint analysis research. For this purpose, we are applying the concept of feedback-driven exploration to conjoint analysis and assess the proposed research design concerning its benefits and limitations in respect of validity and reliability of results. The...

Purpose The purpose of this paper is to demonstrate the potential of making the systems approach fertile for the future of our world(s). Design/methodology/approach Underpinned by a significant case study, the idea of the paper is to show how a systems study changed the basis for deciding on an incisive interference planned for a lovely alpine val...

In the domain of dynamic modeling and simulation, the assurance of model validity is a prominent challenge. An extensive number of contributions concerning model tests, terminology, and the epistemological foundations of validation have been elaborated. These contributions, however, do not fully answer the questions for novice modelers, namely, whi...

This paper relies on complexity theory to gain new insights into the dynamics of high-technology markets. We are making use of the Pólya process model to explain these dynamics. This classical model highlights the "mechanism" of positive feedback, which gives rise to the phenomenon of path dependence and lock-in.

The stress field between short- and long-term orientations is the epitome of organizational problematics: In many enterprises the latter is dominated by the former. The consequences of a dominant short-term orientation are negative in the best case, but the cases that result in destruction and catastrophe are legion. Few sustainable solutions for t...

Purpose The purpose of this paper is to introduce and conceptualize the topic of Model‐based management (MBM) in organizations. Design/methodology/approach The relevance of different types of models for management is elaborated, and a research agenda for this new topic is proposed. Findings An analysis of the concept, role and function of models...

Angesichts aktueller wirtschaftlicher und gesellschaftlicher Entwicklungen, wie z. B. die Wirtschafts- und Währungskrise, ist es fragwürdig, ob traditionelle Ansätze zur Aus- und Weiterbildung von Führungskräften diesen Gegebenheiten Rechnung tragen. In komplexen, diskontinuierlichen Realitäten benötigen Unternehmenslenker adäquate Kompetenzen, um...

The current economic crisis could deliver valuable lessons for economic agents. However, it seems that those have not learned essential lessons, continuing their "business as usual". A dynamic simulation model presented in this chapter highlights that this is likely to lead to the next crunch in the offing. Even before we have mastered this crisis...

The authors advocate building a bridge between two systems approaches, namely system dynamics (SD) and the viable system model (VSM), which is the main exponent of organizational cybernetics (OC). Such a synthesis is aimed at opening a path towards a better capability of actors to deal with complex issues in both organizations and society. Given th...

The purpose of this chapter is to draw some lessons from an experience with the creation and implementation of innovative management models. The case in point is Cilag AG, one of the leading Swiss firms in the pharmaceutical industry. The demand for new and better management support has led to an organisational process whose emergence has been brou...

Building better models is crucial for coping with complexity in general, and for the management of organizations in particular. This paper discusses the epistemological aspects of model validation for the achievement of high-quality models. Then it provides an overview of validation methods. The logic of validation is demonstrated by introducing th...

Purpose The purpose of this paper is to demonstrate and explain how distinct approaches to coping with complexity vary in their effectiveness. The different strategies are evaluated as to their respective capabilities of absorbing complexity. Virtuous versus vicious approaches are distinguished. Design/methodology/approach Based on two basic formu...

Glossary Definition of the Subject Introduction Epistemological Foundations Validation Methods Validation Process Synopsis and Outlook Appendix: Overview of the Tests Described in This Chapter Bibliography

Das Spannungsfeld zwischen Kurz- und Langfristorientierung verkörpert den Inbegriff der organisationalen Problematik. Vieles deutet darauf hin, dass in den meisten Unternehmungen die Letztere durch die Erstere dominiert wird. Die Konsequenzen einer dominanten Kurzfristorientierung sind im besten Falle negativ, aber die Fälle resultierender Zerstöru...

In this chapter, a Framework for the Design and Development of Intelligent Organizations will be developed. This, then, will be a “dry” chapter. But defining concepts at the outset is crucial, if this book is to be more than mere entertainment for its readers. The citation above from the Fourth Gospel gives a notion of the power of concepts, and fo...

In this chapter, we shall revisit our Framework for the Design and Development of Intelligent Organizations, in order to introduce the integrative connections that can only be made at this stage — that is, after having discussed each one of its dimensions in detail. For this purpose, we once more revert to the overview presented in Chap. 4 (Fig. 4....

In this chapter a first set of crucial concepts of systemic management relating to the environment or situation faced by an organization is laid out — complexity and variety. In addition, the implications of complexity and variety are examined in the light of two fundamental theorems of organizational cybernetics — Ashby's Law of Requisite Variety...

Chapter 3 is about crucial concepts related to the organizational and managerial response to complexity. These provide the key to an Intelligent Organization's ability to cope with complexity effectively.

The parsimony of this text is possible due to the transdisciplinary language used, which is inherent to the systems approach. Compared to classical business approaches, the systemic approach to intelligent organizations advocated here can be illustrated if we revert to an analogy between the classical and systemic approaches in business and the dif...

As shown in Chap. 2, the Systems Approach (and Organizational Cybernetics in particular) conceives management in terms of coping with dynamic complexity. The Model of Systemic Control (MSC), to be outlined in this chapter, specifies and interrelates the control variables which are necessary and sufficient to deal with that complexity in principle....

This chapter is about the third dimension of our framework-behaviour. This subject can be of interest at different levels, namely the behaviour of individuals, teams, organizational units, an organization as a whole, inter-organizational networks, etc. If we consider the principle of recursion expounded in the previous chapter, any unit at any one...

This chapter is about the second dimension of our framework, namely structure. The previous chapter dealt with the control parameters required for managing complexity. That picture still begs the question of how an organization must be structured to make its (self-) control and (self-) development possible. Organizational Cybernetics offers a model...

The following chapter is about the ethos of organizations. The philosophers of antiquity treated ethics by focusing upon the individual. In our age of organizations it is also necessary to look at the ethos of companies and other social bodies as wholes. West Churchman, a leading thinker of Operations Research and the Systems Approach to management...

This innovative book opens a path to overcoming the crisis of management in the face of complexity. The systems approach on which this work is grounded enables the development of the new kind of intelligent organizations so urgently needed. Powerful models, grounded in organizational cybernetics and system dynamics, are presented in a way that lets...

Systembegriff und Systemtheorie weisen bereits eine ehrwürdige Geschichte auf, bevor sie in der Soziologie ankommen und dort mittlerweile einen äußerst prominenten Status erzielt haben. Man kann das Begriffsfeld von Teil/Ganzes und die Klassifikation von zusammengesetzten Einheiten schon bei Dilthey, Hegel, Fichte oder Leibniz identifizieren und bi...

Gesamthaft wurden bereits zahlreiche Beiträge über das auf Erfolgsfaktoren gestützte Management von Gründungsunternehmen und deren zugrunde gelegten Geschäftsmodellen verfasst. Vor dem Hintergrund der erfolgreichen Führung eines Start-Up Unternehmens mit einem Geschäftsmodell basierend auf einem Web-basierten Sozialen Netzwerk (WSN) wurde eine orga...

The purpose of this chapter is to give an overview of the role of System Dynamics (SD) in the context of the evolution of the systems movement. This is necessary because SD is often erroneously taken as the systems approach as such, not as part of it. It is also requisite to show that the processes of the evolution of both SD in particular and the...

For the most part, studies on change management have attempted to determine the factors that influence employee resistance to change. The focus of the present study is to test whether job motivation and self-confidence for learning and development influence employee support for downsizing. Data were gathered from a sample of 86 teachers at one priv...

This paper introduces model-based theory building as a feature of system dynamics (SD) with large potential. It presents a systemic approach to actualizing that potential, thereby opening up a new perspective on theory building in the social sciences. The question addressed is if and how SD enables the construction of high-quality theories. This co...

The article discusses various reports published within the issue, including the articles "Closing the Loop: Promoting Synergies with other Theory Building Approaches to Improve System Dynamics Practice," by Birgit Kopainsky and Luis Luna-Reyes, and "On improving dynamic decision-making: Implications from multiple-process cognitive theory," by Bent...

Selected papers from the third European system dynamics workshop, University of St. Gallen, Switzerland.

The authors advocate building a bridge between two systems approaches, namely system dynam-ics (SD) and the viable system model (VSM), which is the main exponent of organizational cybernetics (OC). Such a synthesis is aimed at opening a path towards a better capability of actors to deal with complex issues in both organizations and society. Given t...

The purpose of this article is to draw lessons for transdisciplinary modelling endeavours in social contexts. The chosen approach is to explore a research project that was part of the Swiss National Science Foundation’s ‘Swiss Priority Programme Environment’ (SPPE). The project focused on ecological issues and was realised in collaboration with loc...

The issue of ecological sustainability has been addressed in various contexts – local, regional and worldwide. This paper postulates that sustainability can be achieved only if actors at multiple levels cooperate towards the vision of a sustainable world. For this purpose, the structure of a model is presented, which shows how the efforts for susta...