In: Organisational Fitness, Corporate
Efectiveness through Management
Cybernetics. Raul Espejo, Markus Schwaninger
(Editors). Campus Verlag 1993.
sue
AN INTERVENTION WITH THE CYBERNETIC
METHODOLOGY IN REGENT ENGINEERING
Diane Bowling and Rail Espejo
‘Syncho Ltd.
Aston Science Park
Birmingham
General Overview
“The purpose of this paper is 10 examine the Cybernetic Methodology
(Espejo, 1990, 1991) as it currently stands and to demonstrate its applica~
tion in a particular situation, This methodology offers a way to tackle
cnganisational problems by taking into account their content and structural
context,
Problems are experienced by people as they perceive problematic
interruptions to the flow of their interactions with others inside or outside
the organisation. The way in which people explain these interruptions
defines the content of the perceived problem. Content may relate to any
aspect of the operations, human relations, finance, marketing, customer
vorelations, inier-unit relations, or any other issue of concern. Problem
content relates to the experiences people have and the explanations they
provide for them, But problems take place in an organisational context, that
is, in the context of particular structures, with particular types of relation-
ships among the participants. Context is frequently ignored in problem
solving. The Cybemetic Methodology argues that structure must have a
bearing on paople's ability to solve problems and introduce change.
It is the organisational structure, and thus the cybemetics of that
organisation, which provides the communication channels linking people as
they constitute the situations of their interest and learn about problems. It
is also through these channels hat the implementation of change takes place.
‘The adequacy, or otherwise, of the cybernetics of the organisation will
therefore have considerable e'Yect on the quality of solutions possible,
Furthermore, implementaton must be organised. A new structure or
structural adjustments may be required for implementation, This implies
changes in relationships between the parts of the organisation, as well as
between people. These fundamental changes in organisational structure are
too frequently ignored. Its current state is rarely explicitly examined,
therefore, the changes which the implementation of any solution will give
rise to, cannot be evaluated, nor can organisational plans be developed to
ease the provess of change.
‘The Cybernetic Methodology permits the study of the cybemetics of the
organisation to be explicitly carried out alongside organisational leaming
about the problems in quesion. This leaning includes all aspects of
‘understanding about a problen situation. It must therefore include leaming,
about the politics, culture, pewer relationships and other human concerns
as well as a technical understanding of the problem situation.
‘This methodology was used in Regent Engineering (Walsall) Ltd. The
‘company had recognised a number of problems which were affecting their
performance. These included meeting customer requirements throughout the
range of products, delivery times, product quality and supervision. All these
0
problems were different, but shared the same organisational structure,
Problem solving depended on th: same retwork of communication chanel.
Furthermore, tackling these problems was bound to affect, and change, the
organisation of the company as well as the people and the technologies
used, thus changing the context for the problems themselves.
“The work was undertaken by the Company supported by the Training
Agency (Wolverhampton Office) under their Business Growth Training
Programme, which enabled Syrcho Ltd and the West Midlands Technology
‘Transfer Centre to get involved in this work. Two consultants worked with
Regent throughout a year, John Watt, principally involved with interactions
about the issues of organisational concern (we will call this the leaming.
loop) and Diane Bowling, related to the structural issues underlying these
(ve will call this the cybernetic loop). The objective of the intervention was
to look at the current situation of the company and investigate the problems
restricting its growth. From this background, business and training plans
were to be procuced to help the company develop into the future.
Jn this paper we first explain briefly the methodology, which is then
used to illustrate aspects of the work done with Regent Engineering. The
methodology is used to discuss two of the several issues of organisational
‘concer that emerged in this work. The first issue ~despatching of metal
‘components: jointly with several others, was a concera of the first stage of
the intervention, we refer to this stage as the first eration, It was as a
consequence of this First iteration that the need for a "Production Organiser”
emerged as a major issue of organisational concern. The creation of such
fa role was the content of the second iteration of the methodology as
discussed in this paper. Finally, in the conclusions we lalk over some of the
‘outcomes of the intervention and highlight methodological issues.
301The Cybernetic Methodology
The i
= Cybemetic Methodology is used to aid conversations about change i
—— ‘making explicit differences of viewpoint and interpretatior
individuals. As such it is an attempt to balance the individua
‘concems with those of the organisati i
reanisation. Figure 1 illustrates the methodo!
‘ho probiem Naming orprieatons
‘stuaton|
and nsuee
Figure 1: The Cybemetic Methodology
302
In this paper we offer only a brief explanation of the methodology. It is
composed of two loops: The cberneric loop and the learning loop. The
cybemetic loop is concerned with the context or operational domain in
‘which people interact. The learning loop is concerned with content and can
be interpreted in two conversational modes; we will refer to them, as
conversations for possibilities and conversations for action. Conversations
for possibilities put the emphasis in the logical domain of ideas, conversa-
tions for action put the emphasis in change and the management of
complexity.
People develop, to different degrees, appreciations about the situations
of their concern. This is a natural activity; however it may or may not be
facilitated by the context of their action, In one form or another people
develop a grasp of these situations. Unfortunately, for a large number of
‘people this grasp is not good enough, that is, itis not adequate to support
‘effective learning. People who have difficulty in establishing how “the
system works", or the purposes attached to a range of relevant events, are
tunable to "find out about the problem situation". In this case, the complex
ity of the situation overwhelms people. The possibilities are either that they
‘do not have the "handles” to make sense of this complexity, or that the
communications supported by the existing structures and processes are not
facilitating the discovery of meaningful patterns.
In either case, these people are facing a fundamental problem; they are
in a non-leamning situation. If the problem is that they do not have the
“handlest, then some kind of training may be necessary. If the problem is
that communications are inadequate, then the cybernetics of the situation
needs improvement.
“The cybernetics of a situation is defined by the actual mechanisms
supporting the communications between the people involved inthe situation.
Among others, the mechanisms for adaptation and rionitoring-contro, as
defined by the VSM, are references tostudy communications (Espejo 1989).
Methodologically, studying the cybernetics of a situation involves working‘out a name (oF names) abou: the identity of the organisation(s) relevant to
the concerned people, These names provide the reference points to study the
cybernetics of the situation, that is, the communication mechanisms
‘underlying the interactions. Diagnosing communication problems may lead
to the discovery of causes hindering organisational leaning and problem
solving. However, creating the conditions for effecive problem solving, that
is, improving the cybemetics of the situation, requires making structural
changes acceptable. The view is thet by improving the cybemetics of the
situation itis possible to make the complexity of the organisation more
transparent to the participants. Making it more transparent means to reduce,
for them, the complexity of organisational processes; thus helping them to
find out more effectively abcut the situation, closing their cybernetic loop.
‘Whether 0: not the required improvements are implemented, or wkether
‘or not there is agreement about which are the relevant organisation(s) of
concem, the fact is that, for each person, there is “a cybemetics of the
situation" defining the context for his individual learning. It is in this
context that people get involved in conversations about possibilities. In
hierarchical structures problem solving is likely to be centred in higher
structural levels. On the other hand distributed preblem solving is likely to
be the case in recursive orgunisations (Espejo 1990). In any case, in one
form or another problems are structured (naming systems is a method to
support this de facto process). The issues discovered in these conversetions
are also modelled in one form or another. The models in use will depend
‘on the cognitive models of the concemed people. However, this modelling
can be helped by more formal modelling techniques... this is the activity of
producing relevant models. & major characteristic of these models is that
they should be logical, unconstrained by the situation itself. The purpose of
this activity is to enhance the conversational processes leading to agreements
about possibilities. For this purpose, logical models should be freed from
the blinkers of current experence; this is the value of producing insightful
‘names in problem structuring, It is by contrasting these new insights with
304
the current situation that new possibilities emerge. These conversations are
the processes ty which managing the process of problem solving takes
place. Their outcomes are agreements upon changes that are, at the same
time, systemically desirable and culturally feasible.
‘Agreements about change trigger the need to manage change processes.
‘This time leaming is focused on implementation; the management of
‘complexity might be essential for an effective implementation. Again, this
process depends on the quality of the communication and control processes,
that is, on the cybernetics of the situation. The costs of implementation may
vary depending on the cybernetics of the situation. In one form or another
the participants will be involved in conversations for action, for which there
are multiple ways of structuring the problem, producing relevant models
‘and managing the process of change. Infact, the process of implementation
will be recursive as long as the agreed change involves the contribution of
1 group of people. The learning process, in this case, is about producing
change, that is, about its systemic feasibility (i.e. whether or not a change
that was seen as culturally feasible is also systemically feasible). It is not
‘enough to accept a change to make it happen. Indeed, it is common to find
that however hard a person (or an organisation) works, stil the desirable
‘change may not happen; its structural context lacks the necessary capacity
to produce the desirable change.
Intervention at Regent Engineering (Walsall) Ltd
‘The intervention at Regent Engineering demonstrates two iterations of the
methodological loops. In the fist iteration one problem issue is highlighted;
despatch of "Component" products. Several other issues were handled in the
company in a similar manner; all of them contributed! to the observations‘and conversations which Ie¢ to the second iteration; the management of
“Components.
Finding out about the problem situation
Regent Engincering (Walsall) Ltd is a small, West Midlands engineering
company, employing about 50 people, with a tumover in the region of
£1.5m. Ttis based on metal forming technologies. The company has always
‘been family owned and run. All key positions have been held by members
of the family. Growth has been, and will continue to be, entirely organic for
the foreseeable future.
‘The study took place in the late 1980s during, and towards the end of the
boom. Regent had weathered the recession of the early eighties well.
However, during that time, new products were added to the range in an
‘opportunistic manner, to ensure the company's short term survival. It
wished to use the boom time of the late cighties to consolidate its position
and ensure that it was well organised to survive any further recession, with
Jess need to take on opportunistic work which did not fit with the compa-
ny's overall strategy.
At the time of this intervention, Regent carried ou: metal pressing for
‘other pressing and assembly companies in the area, refurbishment of heavy
‘earth moving machinery and production of flip charts, a fully assembled
Product line for a branded supplier in the visual aids market. The
refurbishment side of the business worked closely with a sister company,
who acted as agents in the plant refurbishment market. Flip charts were
dropped soon after the start ofthis study.
The technologies used by Regent were principally those of metal
pressing, welding and cutting, sls assembly. Regent specialises particularly
in short, flexible production runs, eschewing the large volumes of mass
production,
‘An organisation chart was provided by the company (Figure 2). This
gave a general picture of those involved in the company, but proved tohave
some very interesting omissions and inconsistencies, Itwas used as a simple
introduction to the company aid as a basis on which to arrange the early
interview schedules.
‘The problems of customer satisfaction, delivery and product quality were
key issues of concern for Regent Engineering at the time of the intervention.
‘Therefore a pictufe of “what is Regert Engineering", and “what do these
problems mear to the people in the company” was developed through
interviews, informal discussion and various meetings. This is illustrated in
‘Table 1. Alongside this work, technical information was gathered about
delivery times, order processing and delivery scheduling, customer
‘complaints and returns, and product quality.Reger Eraneetne
‘See ove
France and Careers
eset
ry
Figure 2: Organisation Chart of Regent
Table 1. A Rich Picture
+ We must keep the presses ruining.
+ John Shaw spends most of his time ox the shopfloor evaluating new jobs
in the toolroan.
= The Light Press Operators siay by their presses.
‘Measure dimensions? The Light Press Operators are paid by the piece.
= We have no Hierarchy - except for tke family we are all the same.
= We are a family run company, they hoid all key positions, but the family
is only three. *
= ‘Deliveries are late again, what is the Despatch Organiser doing?” -
Production Controller (PC):
= "Customers are always hassling me for delivery - so 1 have (0 spend time
in the factory geting things out.” PC.
- "Why haven't we made enough product? I don’t know what's going on
‘around here, there’s no information.” Despatch Organiser.
= "Where's the product for today's delivery? I'm not iold early enough to
‘make up loads." Despaich Organiser.
= “Late deliveries are due to late customer call off." John and Alan Shaw.
= "The semers and I are ruaning about moving products and sewing
presses. I cannot possibly know all our products and customers." Heavy
Press Foreman.
~ The Office sends weekly schedules to the Production Controller and
Despaich Organiser.
= “Heavy Press is separate.” Light Press Foreman.
= “Tran the heavy presses, 1 do not report to the Light Press Foreman.”
Heavy Press Leader.
- “All press work is organised by the Light Press Foreman.” John and
Alan Shaw.
= ‘Alan finds the leads and negoriates the contracts, John develops the
technology.
= The Production Controller ivitiates route sheets after ordering marerals.
= The Despatci Organiser keeps completed route sheeis,
Structuring the problem situation: naning systems
‘Afier a period of fact finding and “impressionistic” structural modelling
using the Viable System Model, the study was focused in answering two
questions: “wht are the particular issues of concern?" and "which pans of
308the organisations are particularly involved?" Both these questions are likely
to receive different answers depending of the viewpoint of the observer.
‘Therefore sructuring the issues of concern and the identities of the
organisations in focus, were the outcome of considerable debate within the
‘company. Indeed, these debates themselves triggered the process of change
in Regent,
‘Naming Organisations: Identty of the organisation in focus
‘At the outset of the work it appeared that the problems to be addressed
belonged to Regent Enginecring as a whole. However, it became apparent
that the system in focus was not the whole company, but only the one
‘Producing pressed metal components (i.e. Components). In fact, atthe time
‘of the intervention, Components was not recognised as a primary activity;
the company wide activities and those of Components were blurred in the
minds of people. However, forthe analyst, all the issues of concern related
to "Components and not to the whole company, for example
Refurbishment was not involved in these issues. Te key people involved
‘were the Components’ foremen, the Despatch Organiser, the Production
Controller and the Press Operators. The customers af concern were only
those for pressed components; Refurbishment customers had no bearing on
the problems discussed. The Identity of Components, therefore, was