OSTO system model

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The OSTO system model is based on the OSTO system theory, which understands complex systems and organizations as living systems and depicts them in the form of the OSTO system model as an orienting map. It is a cybernetic model that is derived from elements of the theory of control loops . The basic approaches to this were developed by David P. Hanna in the 1980s and published for the first time in 1988. The model assumes that several central transformation processes take place in the inner workings of a complex organization, which are determined by interaction processes between inner and outer life (environment). In the sense of a control loop, the OSTO system model shows the essential elements of such a living system in their networks, dependencies and interactions with one another. Thinking in terms of network structures is decisive .

The acronym "OSTO" stands for o ffene, s ozio t echnical and o ekonomische aspects of a system . In relation to organizations and economically active companies , the model takes into account both the openness of the system towards an environment and the fact that it is a matter of “multidimensional, socio-techno-economic structures”. Taking these four aspects into account, the model depicts the complexity of a system in its dimensions.

application areas

In practice, the OSTO system model, as a concrete modeling of the OSTO approach, is a management and thinking tool.

The view through the so-called "OSTO glasses" should help to enable dealing with the constantly growing dynamics and complexity of systems in order to be able to derive new strategies for action by creating distance.

Therefore method is applied in the context of organizational development in change management (ger .: Change Management ). Companies use them in the area of diagnosis , design and redesign of organizations as well as in project management .

Associated with this, there are concepts for personnel development within the framework of the systemic qualification of managers ("SYMA"). The approach has so far been taught at the University of Klagenfurt and at RWTH Aachen University , there in particular at the Institute for Business Cybernetics (IfU).

O for open system

Organizations are viewed as open systems in the OSTO system approach. The attribute “open” refers to both the spatial-factual level and the temporal aspect. Spatially and objectively, not only the wanted, but also the unwanted exchange processes with the environment are considered. In terms of time, a system is viewed as open to its own future. Closed systems hardly ever occur, so the bidirectional interactions between the system and its environment must be carefully observed. The internal relationships and external dependencies of the overall system must be understood in order to develop a long-term oriented and consequential action strategy.

S for social subsystem

The social sub-system comprises the classic areas of structure and process organization , information and decision-making paths, the distribution of functions and tasks, and the reward and control system. Under this aspect, the motivation in the company and the relationships between employees, the working atmosphere and the entire corporate culture are also considered . The decisive factor for understanding this sub-area and its influence on the entire system is the fact that the “trust” factor plays a paramount role in all procedures and processes in which people are involved.

T for technical subsystem

The technical subsystem mainly includes the material aspects of companies, such as B. Machines, devices, interior and exterior architecture, as well as tools and procedures. In addition, it also includes the technical conception with regard to central and / or decentralized solutions. The question of the extent to which technical concepts and tools promote the fragmentation of work or, on the contrary, enable holistic work structures - if they are desired - is the subject of the investigation.

O for economic subsystem

The economic subsystem describes all aspects that directly affect the profitability of the organization, such as sales development , productivity development , controlling procedures , remuneration systems , investment and budget planning , tax issues , lead times , cost structure, etc.

Origin and development

Organizational theorists first addressed the complexity of entrepreneurial action in the years from around 1975 onwards. Therefore, various management schools and consultants have attempted to develop new forms of organizational models: They wanted to understand the internal and external complexities of companies and the economy by developing methods of thinking and designing models.

Until then, there were models that represented organizations as Taylorist structures based on the division of labor (organizational structure, process organization). These models are still used, but have the disadvantage that the required flexibility cannot be represented. The systemic approach depicts organizations as living organisms that have to adapt and adapt flexibly to new circumstances. What was and is new about these models is that the internal and external complexity of an organization is considered and that the social-psychological phenomena in and around an organization come into focus.

The three most important models of this development are the viable system model (according to Stafford Beer, 1959), the new St. Gallen management model (according to Rüegg-Stürm , 2002) and the OSTO system model. All three models structure the (multi-dimensional) complexity of large organizational structures in one or multi-dimensional representations. Another, rather unknown, model is Frederic Vester's “sensitivity model” .

The OSTO system model is based on the "Organization Performance Model", which David P. Hanna developed, tested and finally published in 1988 during his time as a consultant for the Procter & Gamble company . The Clark / Krone 1972, Krone 1974 and Krug 1992 who were involved in the development should not go unmentioned.

The model was later further developed and systematized by Heijo Rieckmann ( University of Klagenfurt ) and Klaus Henning ( RWTH Aachen University ) for science and by Renate Henning for systemic organizational consulting. A large number of dissertations in Klagenfurt and Aachen deal with additions and applications of the OSTO system model.

Description of the model and its variants

Components outside the system environment

System boundary

Every organization is (at least) conceptually distinguishable from its environment by different kinds of boundaries. Possible types of boundaries are: physical (e.g. a building), temporal (e.g. a work shift), social (e.g. a work team) or psychological (e.g. a stereotypical prejudice) system boundaries. In order to be able to describe and delimit a system as precisely as possible, the limits of the system must be carefully defined. Today it is assumed that the system boundaries are at least partially permeable.

environment

The environments of an organization, i. H. anything out of bounds, have a strong impact on any organization. The model assumes that systems cannot exist without an environment with which they interact. A system that is little influenced from the outside is called self-sufficient, a system that is strongly influenced by external influences is called dependent. For example, a business environment can be a market environment , customers , political framework, and the like. a. act.

Reason for existence

The existence (ger .: reason for existing , purpose; French .: raison d'être ) of a system - also to be understood as purpose - provides the contractual, reciprocal relationship between the system and its environments is He describes what need of environments. should be satisfied by the core processes of the organization. The reason for existence can never be defined unilaterally, which distinguishes it from a one-sided, “personal” interest. It is also not to be regarded as static, but is subject to numerous influences from inside and outside the system, so that a regular comparison with reality must take place. Together with the reason for meaning and the goals, the reason for existence represents the overarching " corporate strategy ".

Reason

In addition to the reason for existence , a sustainable and future-oriented reason for meaning is an advantage for the long-term existence of any living system . The reason for meaning poses the question of the long-term meaningfulness of the reason for existence. By looking into the future in the longer term, internal motivation and identification on the one hand and social acceptance on the other hand can be maintained. The focus here is the meaningfulness in relation to sustainability against the background of individual, cultural, ethical and similar. a. Ask.

Reason

In Europe , the original reason plays little attention in the applied practice of the model. He goes deep into the "basic or meta-values, the views of life and the world, the images of people and God, which in turn provide the framework of convictions and beliefs within which the questions of meaning then take on their more concrete form".

In the second half of the eighties, Rieckmann and Henning included both Sinngrund and Urgrund in the OSTO system model, as both aspects are becoming increasingly important under the influence of globalization and social crises of meaning.

Components within the system

output

For the organizational diagnosis it is necessary to get an adequate picture of the initial results ( outputs ). It should be noted that the "output" of a system includes not only the numerically ascertainable results, but also the qualitatively ascertainable aspects (e.g. job satisfaction, motivation, etc.). It is also important to record the actual or seemingly unusable initial results and not just the "official" or "desired" ones.

Outcome

The term “ outcome ” encompasses all financial events of an organization: income from product sales, research, etc. a. more. The term is extra a bit broad, so that the organization that works with the model can decide for itself whether it means prices, sales , return on investment (ROI) or something else.

Process variant

Representation of the OSTO system model in the process variant

The OSTO system model describes that inside an organization the information from the environment, from the reason for existence, and the outputs / the outcome are converted into real results through transformation processes. The model offers two explanations for this:

  • Implementation via core / transformation processes (process variant)
  • Realization through strategies, design components and behavior (structural variant).

The process variant explains the transformation of information from the environment, reason for existence and the outputs / the outcome through a transformation process. This is made up of three central core processes. The term "core process" is intended to make it clear that only those processes are relevant that hit the "core of the matter"; H. which secure the existence of the company. A distinction is made between three core processes:

Task core process (ACP)

The core task process describes all activities, communications, actions, etc. that are geared towards creating the system results (output).

Individual core process (IKP)

An essential basis for all processes in a system is the energy (manpower, performance) that every single person in the system is ready and able to use for the goals of the system, i.e. the organization. The systemic approach speaks of the individual core process.

Core social process (SKP)

In the social core process, the people of an organization work together towards the corporate goals: There the individual core process and the task core process are linked in such a way that synergy effects arise in the cooperation.

Structural variant

Representation of the OSTO system model in the structural variant

The structural variant explains the internal system conversion process alternatively via strategies, design components and (system) behavior. In this case, the transformation process is structured by the company's design components. They represent the attempt to bundle and structure all processes and structures of an organization:

Goals and Strategies

On the OSTO map, the company's objectives belong in the internal design of an organization, i. H. in the so-called transformation process. The goals in the sense of system theory are to be understood as internal concretizations and derivations of the reason for existence. You define what needs to be done internally. To achieve the goals, strategies are necessary that define how something must be implemented so that the goals can be achieved. The strategies are implemented by adapting the design components accordingly.

(System) behavior

In every system / organization there is a multitude of very different behaviors (e.g. leadership behavior, work behavior, etc.) that are produced by the design components. This also means that the system behavior can only be influenced via the design components. Since systems are dynamic processes, they are not object-oriented, but event-oriented. The overall system can have properties that none of its individual parts have ( colligative property ) and generally does not behave like the sum of its individual parts. The OSTO system model is currently the only model of its kind that takes an organization's behavior into account.

Design components

Human (M)

The human design component includes the members of the company or organization and their roles (talents, qualifications, etc.), expectations and needs of a material nature. These conditions of cooperation also include the network of socio-emotional relationships and interaction conditions (“climate”) .

Technology (T)

The design component technology comprises the technical machines, the operating resources, the buildings etc. (material resources) and their relationships with one another, i.e. H. all material and spatial conditions.

Organization system (O)

The organizational system describes the structure and process organization, i.e. functions, hierarchies, subordinate relationships and the regulation of the process processes in terms of time, space and subject matter.

Exercises (A)

The design component tasks results from the open nature of companies or organizations. It includes the description of the individual tasks that result from the customer's needs , as well as their division into subtasks in the form of concrete work orders, expectations of functions, workplaces, etc. This allows processes to be developed to install and consolidate changes in organizations.

Decision system (E)

The decision-making system describes where, how, by whom, at what level, at what point and with what tools decisions are made. It also describes which mechanisms, procedures, rules of the game etc. control the decision-making processes.

Information system (I)

The information system describes who, when, from whom, with what aids, what information - or what information is not - and why this is so.

Reward and Control System (BKS)

The reward and control system is understood to mean reinforcement and weakening systems of both a material / immaterial and a formal / informal nature. This refers to mechanisms and processes that observe and control human and technical behavior, results and processes. These include a. For example, remuneration structure , allocation of budgets and positions, appreciation, control according to KPIs or the unwritten rules of a company.

Development and Renewal System (EES)

Thanks to the development and renewal system , the flexibility as well as the performance and adaptability capabilities of an organization are maintained and continuously developed. It can be a group of employees anchored in the company who are responsible for the internal and external development of the company. Generally speaking, this can be subsumed under the term innovation management.

Side effects, repercussions and long-range effects - "feedback loops"

In the sense of the model, regressions are for the survival of a system, i.e. H. of an organization in turbulent environments, fundamental. Since the systems are understood as open systems, they are dependent on feedback loops in order to continue to exist . The feedback consists of feedback loops that have a controlling, stabilizing and renewing effect on the system. The literature names four types of regression:

Quality feedback

Quality returns are responses to the quality of the output. Usually all forms of quality management start here in their methods.

Renewal repatriation

Renewal returns report reactions from the environment regarding the reason for existence. This form of feedback is used to determine the needs of the environment (e.g. development of new markets).

Responsibility repatriation

Responsibility returns question the purpose of the system. They relate to the long-term chances of survival of the system and its environment (earth-humanity-future problem). In this respect, sustainability is in the foreground with this return.

Feedback

Cognitive feedback provides information about fundamental “truths” - about people, human coexistence and transcendent values ​​- and absolute (“true”) values. In doing so, consideration is also given to the effects and consequences on the system and the members in the system (e.g. through religious orientations).

Differentiation from other management concepts

The OSTO system model, like the St. Gallen management model or the viable system model , is classified in economic and sociological systems theory . In contrast to these more production-oriented models, the OSTO system model is process-oriented and assumes an open system that is controlled by permanent feedback. Unlike other models, it considers systems independent of hierarchies and is not based on key figures . As the only model of its kind, it also takes into account the (system) behavior of an organization. Likewise, conscious and unconscious goals and strategies are made visible, as well as wanted and unwanted outputs are revealed and taken into account.

Critical appraisal

The model assumes that precisely the central transformation processes marked in the model take place in the inner workings of a complex organization . In theory, the concepts of system and organization are by no means clearly clarified. On the part of systems theory, there is hardly any connection to the modern theory of social systems with its core concepts of the observed observer and autopoiesis . On the part of organizational theory, Karl E. Weick described the problem early on that when it comes to organization, one can never be sure to what extent a special behavior of a participant takes place in a certain place or relates to a certain place. Likewise, it is by no means clear to what extent a behavior is controlled by an organization or contributes to the design of an organization, both at the same time or none of them. Also pointed Gareth Morgan points out that organizations are observable from different angles. Depending on the observation, there are significantly different implications for the structure, the change, and the control and management concepts.

Individual evidence

  1. ^ David P. Hanna: Designing Organizations for High Performance. Addison-Wesley Publishing, Reading, Mass. 1988.
  2. ↑ Frederic Vester: The Art of Thinking Networked - Ideas and Tools for a New Dealing with Complexity. dtv, Munich 2002, ISBN 3-423-33077-5 .
  3. ↑ JV Clark, C. Krone: Towards an overall View of Organizational Development in the early Seventies. In: JM Thomas, Warren G. Bennis : The Management of change and conflict. Harmondsworth 1972, pp. 284f.
  4. ↑ C. Krone: Open Systems Redesign. In: J. Adams (Ed.): Theory and Method in Organization Development. NTL, Rosslyn Va. 1974.
  5. ^ HE Krug: Diagnosis and Design of Complex Organizations. In: K. Henning, B. Harendt (Hrsg.): Methodology and Practice of Complexity Management. Berlin 1992
  6. ^ David P. Hanna: Designing Organizations for High Performance. Reading, Mass .: Addison-Wesley Publishing Company 1988, pp. 97 ff.
  7. ↑ Heijo Rieckmann: Managing and leading on the edge of the 3rd millennium. Practical, theoretical, questionable. 2nd, revised edition. Peter Lang, Frankfurt am Main / Berlin 2000, p. 67.
  8. ^ Karl E. Weick : The process of organizing. Suhrkamp Wissenschaft, Frankfurt am Main 2007, p. 48.
  9. ^ Gareth Morgan: Images of Organization. Sage 1986.
  10. ^ Derek S. Pugh , David J. Hickson : Writers on Organizations. 5th edition. Penguin Books, London 1996, ISBN 0-14-025023-9 , pp. 208-213.

literature

  • Thomas Buro: Design of global airfreight transport systems with the help of the OSTO-TOC approach. (= VDI. Row 12: Verkehrstechnik / Fahrzeugtechnik, No. 439). Düsseldorf 2000.
  • JV Clark, C. Krone: Towards an overall View of Organizational Development in the early Seventies. In. Thomas, JM / Bennis, WG: The Management of change and conflict. Harmondsworth 1972, pp. 284f.
  • Jürgen Hansel, Gero Lomnitz: Project manager practice: optimal communication and cooperation in project work. Springer 2002.
  • David P. Hanna: Designing Organizations for High Performance. Addison-Wesley Publishing Company, Reading, Mass 1988.
  • Klaus Henning, Renate Henning: The Chaos Trap - systematic leadership in turbulent environments. In: Planning and Production. 3/1995, pp. 18-22.
  • Klaus Henning, Ingrid Isenhardt: Cybernetic organizational development - design principles for complex, socio-technical systems. In: B. Schiemenz (Ed.): Interaction. Berlin 1994.
  • Klaus Henning, Siegfried Marks: Communication and organizational development. Verlag der Augustinusbuchhandlung, Aachen 1996.
  • Ingrid Isenhard: Complexity-oriented design principles for organizations - illustrated by case studies on reorganization processes in a large hospital. (= Aachen series man and technology. Volume 7). Publishing house of Augustinus Buchhandlung, Aachen 1994.
  • C. Krone: Open Systems Redesign. In: J. Adams (Ed.): Theory and Method in Organization Development. NTL, Rosslyn Va. 1974.
  • HE Krug: Diagnosis and Design of Complex Organizations. In: K. Henning, B. Harendt (Hrsg.): Methodology and Practice of Complexity Management. Berlin 1992, ISBN 3-428-07569-2 .
  • Siegfried Marks: Joint design of technology and organization in socio-technical cybernetic systems. (= VDI series: Technology and Economy. No. 60). VDI, Düsseldorf 1991.
  • Christiane Michulitz: Communication process analysis - an interdisciplinary contribution to the analysis of communication in organizations. (= Corporate cybernetics in practice. Volume 11). Shaker, 2005, ISBN 3-8322-3952-9 .
  • G. Morgan: Images of Organization. Updated edition. Sage Publications, 2006, ISBN 1-4129-3979-8 .
  • Stephan Petzold: Introduction of the balanced scorecard as a performance measurement system for systemic organizational development processes. (= Corporate cybernetics in practice. Volume 4). Shaker, 2001.
  • Heijo Rieckmann: Managing and leading on the edge of the 3rd millennium. Practical, theoretical, questionable. 2nd, revised edition. Peter Lang, Frankfurt am Main / Berlin 2000, ISBN 3-631-35865-2 .
  • Heijo Rieckmann, P. Weissengruber: Managing the Unmanageable? Or ... can complex systems still be controlled? Open system management with the OSTO system approach. In: H. Kraus, N. Kailer, K. Sandner (Eds.): Management Development in Change. Vienna 1990, pp. 27-96.
  • JR Taylor, L. Lerner: Making Sense of Sensemaking. In: Studies in Cultures, Organizations and Societies. Vol. 2.2, 1996, p. 259 ff.
  • H. Ulrich, GJB Probst: Instructions for holistic thinking and acting - A breviary for managers. Paul Haupt, Bern / Stuttgart 1989.
  • Frederic Vester: The art of networked thinking - ideas and tools for a new way of dealing with complexity. dtv, Munich 2002, ISBN 3-423-33077-5 .