This is the third part of my series of concise, activity-based explanations of the Viable System Model. These are designed not only to support learners but also to provide ideas for VSM coaches and consultants (especially, when it is about explaining the model to clients).

Part 3: A small consulting business through the lens of the Viable System Model

Let’s map the typical activities of a small consulting business along the systems of the VSM.

System 1 (Operational Units)

Represents the direct work performed for each client or project.

1. Producing project deliverables (e.g., reports, analyses, or action plans).
2. Delivering consulting sessions (e.g., workshops or strategy meetings).
3. Conducting needs assessments for client projects.
4. Preparing tailored proposals and presentations for clients.
5. Following up on project implementation with clients.
6. Responding to client inquiries and requests.
7. Tracking project progress to ensure milestones are met.

System 2 (Coordination)

Ensures smooth operation between client accounts and prevents scheduling or resource conflicts.

1. Managing deadlines across multiple client projects.
2. Maintaining a shared calendar to schedule client meetings.
3. Adjusting schedules to accommodate urgent client needs.
4. Allocating time and effort effectively between clients.
5. Documenting workflows and processes for consistency.
6. Tracking communication with clients to ensure follow-ups.
7. Using tools like CRM software or spreadsheets to manage account details.

System 3 (Operational Management)

Oversees operational units, allocates resources, and ensures service quality and efficiency.

1. Setting pricing structures and billing clients.
2. Managing finances, including budgeting and tax preparation.
3. Evaluating client feedback to improve service delivery.
4. Reviewing project outcomes against original objectives.
5. Ensuring compliance with relevant laws or industry standards.
6. Streamlining operational processes for efficiency.
7. Monitoring personal productivity and identifying areas for improvement in daily operations.

System 3* (Audit and Monitoring)

Conducts periodic checks to evaluate System 3’s effectiveness and identify anomalies or risks.

1. Checking the accuracy and quality of deliverables.
2. Reviewing financial records to spot irregularities.
3. Conducting self-audits of time spent on various client accounts.
4. Analyzing project performance metrics (e.g., ROI for clients).
5. Seeking client feedback through surveys or informal discussions.
6. Monitoring workload balance to avoid overcommitment.
7. Identifying patterns in client requests or challenges to improve future offerings.

System 4 (Development and Strategy)

Focuses on external opportunities, market trends, and preparing for the future.

1. Identifying and pitching to potential new clients.
2. Researching industry trends to identify new consulting opportunities.
3. Exploring potential partnerships with complementary services.
4. Developing new service offerings based on market demands.
5. Planning personal professional development (e.g., certifications or workshops).
6. Building and nurturing a professional network for referrals.
7. Updating branding and marketing strategies to stay competitive.

System 5 (Identity and Policy)

Defines the consulting business’s purpose, core values, and long-term vision.

1. Establishing a mission statement for the consulting service.
2. Defining core values, such as integrity, customer focus, or innovation.
3. Setting a long-term vision for the business (e.g., becoming a niche expert).
4. Reviewing strategic decisions to ensure alignment with the mission.
5. Reflecting on personal fulfillment and alignment with professional goals.
6. Resolving ethical dilemmas, such as handling conflicts of interest.
7. Celebrating milestones, such as project successes or business anniversaries.

Algedonic Channel (Signals of Pain and Pleasure)

Provides critical feedback to prompt adjustments in the metasystem (System 2–5).

1. A client praising excellent deliverables (pleasure) → System 5 reinforces the commitment to quality.
2. Missing a project deadline (pain) → System 2 adjusts scheduling; System 3 audits time management.
3. Receiving a referral from a happy client (pleasure) → System 4 explores similar opportunities.
4. A client ending a contract abruptly (pain) → System 4 investigates diversification; System 3* reviews the causes.
5. Struggling with resource overload (pain) → System 3 reassesses project intake; System 5 reconsiders capacity limits.
6. Achieving a major project milestone (pleasure) → System 5 reflects on mission alignment; System 4 pitches to new clients using the success story.
7. Encountering a new market trend (pleasure) → System 4 plans future services based on the trend.

I hope this example gives you a feeling of what the systems of the VSM are doing and how thew are related to each other via an inclusive logic.

Check out VSMGPT to learn more about the Viable System Model

Viable System Model Explained – the Activity Series