On the Usefulness of the Ackoff–Gharajedaghi Model of System Types for the Design of Business Systems

Abstract

The Ackoff–Gharajedaghi Model of System Types distinguishes 3 fundamental empirical systems: deterministic, animate, and social, with regard to their purpose. It has been formulated as a meta-model to support understanding, selection, and formulation of management models and theories. It is argued here that this model is also valuable for the interpretation and design of actual, empirical business systems. A study of a malfunctioning business is presented and interpreted with the Ackoff–Gharajedaghi Model, which supports this argument. Additionally, the study shows a pragmatic value of the proposed “Imperative of Goals Alignment” for the design of business systems, which is an operationalization of the Ackoff–Gharajedaghi Model. Furthermore, the investigation illustrates the importance of clear goals and incentives in business design; and it supports the thesis of the Ackoff–Gharajedaghi Model that management models and theories, founded upon empirical observations of deterministic and animate systems, impose limitations on the design of business systems.