Problem:
Viable Systems Theory (VST) emphasizes that senior managers need to be very attentive to the quality of information coming up the system and not get involved in micro-management. Strategy is about ensuring the policy direction of the organization. For SMEs this is very difficult since their environments tend to be unstable and the necessary information management systems tend to be weak or absent. What can our client, a tiny start-up, learn from Viable Systems Theory that might help it function more effectively in its environment? The key to this question is understanding the way Applicare requires an extensive system of partners to function. How might you advise Applicare to use the VST to improve its initial performance with its partners? Who makes the command and control decisions for that system and how can Applicare create appropriate strategic alliances with the decision makers?