Lean Systems

Target Setting, Lean Systems and Viable Systems: A Systems Perspective on Control and Performance Measurement Author(s): A. J. Gregory Reviewed work(s): Source: The Journal of the Operational Research Society, Vol. 58, No. 11, Part Special Issue: Risk Based Methods for Supply Chain Planning and Management (Nov., 2007), pp. 1503-1517 Published by: Palgrave Macmillan Journals on behalf of theOperational Research Society Stable URL: http://www.jstor.org/stable/4622844 . Accessed: 07/11/2012 02:15
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Journal of the Operational Research Society (2007) 58, 1503-1517

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lean setting, systems a systems perspective on performance measurement

Target

and

viable

systems:

control

and

AJ Gregory*
Universityof Hull, Hull, UK The paperstartswith a critiqueof the reductionistapproachto control and performance measurement that emphasizesthe partsof a system in isolation.The critiqueprovidesthe basis for a shift in focus to a systems perspectivethat emphasizes the interactionsbetween the parts of a system. It is argued that this shift is because the behaviourof a system is a productof the interactionsof the partsnot the behaviour importantof the partsin isolation.Two systems approaches controland performance to are management comparedand Beer's viable system model and Seddon'slean systems.The paperconcludeswith the advancement critiqued: of a model for controland performance measurement that not only integratesthe work of Beer and Seddon but also compensatesfor the weaknessesin these approaches throughthe inclusionof a process ofboundary critique. Journalof the Operational Research Society(2007) 58, 1503- 1517.doi:10.1057/palgrave.jors.2602319 Published online27 September 2006 viablesystemmodel; measurement; Keywords:management; systems;control; performance lean systemsapproach; boundary critique

league tables (naming, blaming and shaming). Chapman (2004) refers to 'mechanistic and reductionistthinking as Evidence ofthe UK's failing public sector institutions is It being deeply embeddedin the cultureof government'. has widely reported (BBC News, http://news.bbc.co.uk/1l/hi/ been that the effect of this way of thinkinghas been argued 5 education/4237679.stm, February2005, last accessed 19 to stranglethe public sector: June2006; http://news.bbc.co.uk/1/hi/health/3911413.stm, 20 'Targetshave now becomeprevalentin our schools, hos2004, last accessed 19 June2006; http://news.bbc.co.uk/1/ July pitals, local authorities, government agencies and police 21 hi/uk/4112427.stm, December2004, last accessed 19 June forces.. .(they focus) managers'attentionon avoidingbeing 2006): bottomof the league tables-an entirelydifferentmotivation leading to entirely different behaviour.Targets, standards, * A total of 213schools were placedin 'specialmeasures'in service levels, activity measures and budget are the lingua the year 2004; a rise of 30% on the previousyear's figure; franca of current managementmeasures.' (Seddon, 2003, * Fourof the government's flagshiphospitalslost their3-star p. 79). statusin 2004; another11 hospitalswhich were in line to We see similarreductionist methodsat work in the service join...