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Diagnosing the System for Markets
In his books Stafford Beer presents a new way of looking at organisational structures; some of the terms and concepts could be applied in a financial markets context; here a few examples:

 

 

Viable

able to maintain a separate existence

 

Self-Reference

property of a system that contains all the levels below it

 

Homeostatis

stability of a system's internal environment, despite the system's having to cope with an unpredictable environment

 

Invariant

a factor in a complicated situation that is unaffected by all the changes surrounding it

 

Variety

a measure of complexity: the number of possible states of a system

 

The Law of Requisite Variety

only variety can absorb variety (Ashby's Law)

 

Attenuator

a device that reduces variety

 

Amplifier

a device that increases variety

 

Transducer

encodes or decodes a message whenever it crosses a system boundary - and therefore needs a different mode of expression

 

Oscillation

failing to settle down in homeostatic equilibrium, a dynamic system over-corrects itself continuously

 

Diagnosing the System for Organizations - Stafford Beer - John Wiley & Sons-

 

 

Investments Office-Ronald Weber

05.03.2007