To increase diversity, we must ensure that all members of the organization have access to the widest possible variety of information at the fastest possible speed through the fewest possible steps.

from knowledge creation company p.122 Minimum effective diversity requisite variety

  • To meet the challenges from a complex and diverse environment, an organization must have the same degree of diversity within it
    • Ashby, W.R. (1956). An introduction to cybernetics. New York: John Wiley & Sons.
    • cybernetics
  • Minimum effective diversity can be enhanced by allowing everyone in the organization to quickly combine information in a variety of flexible ways and to use information equally.
    • To increase diversity, we must ensure that all members of the organization have access to the widest possible variety of information at the fastest possible speed through the fewest possible steps.
    • Numagami, T., Ohta, T., & Nonaka, I. (1989). Self-renewal of corporate organizations: Equilibrium, self-sustaining, and self-renewing models (working paper). Berkeley, CA: University of California at Berkeley.
  • Developing a flat, flexible organizational structure and connecting departments with information networks is one way to deal with the complexity of the environment.
  • Another way to react quickly to unexpected fluctuations in the environment and maintain internal diversity is to change the organizational structure frequently.

2024-04-24 nishio.iconAshby 1956 Explain.

gpt.iconAn Introduction to Cybernetics,” published by W. Ross Ashby in 1956, is an important book that details the basic principles and concepts of cybernetics (the discipline dealing with control and communication theory.) Ashby describes how a system adapt to its environment, self-organize, and maintain stability. The book specifically focuses on feedback mechanisms and how they affect the behavior of the system.

Specifically, Ashby introduced the concept of the “law of necessary diversity.” This is the principle that for a system to survive, it must have enough internal diversity to equal the external diversity it must handle. For example, if an environment is very complex and unpredictable, the system must also have an adaptive and flexible structure in order to function effectively in that environment.

Ashby also used “state transition diagrams” to describe how the state of a system changes over time. This allows for a better understanding and prediction of the dynamic behavior of the system.

An Introduction to Cybernetics has influenced many fields, including systems theory, artificial intelligence, ecology, and management, and its concepts are still widely used today.

nishio.iconIkujiro Nonaka uses the term “minimum effective diversity. Explain more in depth.

gpt.iconMinimum Effective Diversity” proposed by Ikujiro Nonaka is a concept based on W. Ross Ashby’s “Law of Necessary Diversity,” but applied particularly in organizational operations and management strategy. This concept refers to the degree of diversity required for an organization to cope with the problems and uncertainties it faces, and refers to the “minimum” level of diversity that should be maintained within an organization.

principles and applications Minimum Effective Diversity represents the range of knowledge, skills, and abilities required for an organization to meet the challenges and complexities posed by its environment. This diversity represents the minimum range required for an organization to continue to function and adapt effectively. In other words, the organization must have lean but sufficiently diverse resources.

Impact on organizational design For an organization to respond to new technologies and market changes, it needs people with different expertise and perspectives. However, rather than being prepared for all possibilities, it is important to maintain the “minimum necessary diversity” to enable the most effective response. This allows the organization to respond flexibly and quickly without wasting resources.

practical example As an organization expands into international markets, it must be able to understand and accommodate cultural diversity. In this case, “minimum effective diversity” is to incorporate an appropriate percentage of personnel with international communication and negotiation skills. This will enable the organization to operate effectively in a multinational environment.

Ikujiro Nonaka’s concepts serve as strategic guidelines to help organizations maintain a sustainable competitive edge, especially in today’s volatile business environment. By properly managing the scope of diversity an organization needs, it can effectively manage uncertainty and achieve sustainable growth.


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