Creativity Law of Requisite Variety

The Law of Requisite Variety

The Law of Requisite Variety originates in the field of cybernetics, control and systems theory. Outside of those areas it also has applications to many fields of human endeavour from improving one's social life to the fortunes of nations, from game theory to politics. It has definite implications for businesses that want to be able to cope with change in a fluid, modern environment.

Ashby's Law

The Law of Requisite Variety is sometimes known as Ashby's Law after William Ashby who proposed it. There are many different formulations, one of the simplest non-technical ones is:

"the variety in the control system must be equal to or larger than the variety of the perturbations in order to achieve control"

This simply means that a flexible system with many options is better able to cope with change. One that is tightly optimised for an initial set of conditions might be more efficient whilst those conditions prevail but fail totally should conditions change. And in today's business world, conditions change daily.

In its original setting of control theory, Ashby's Law concerns controllers trying to keep a system stable. The more options the controller has, the better able it is to deal with fluctuations in the system. Variety of input can only be dealt with by variety of action.

This should be well known to anyone who has programmed a non-trivial strategy game. Successful algorithms often include a bonus for keeping your options open whilst minimising those of an opponent. Perhaps the most obvious example of this is Reversi (also known as Othello) where the best strategy for the beginning of the game is counter-intuitive because it emphasises minimising the opponent's options.

Variety in Business

The application of the Law of Requisite Variety in business is obvious. Companies need to be sufficiently adaptable to cope with a changing environment. A company that is too rigid faces potential danger if its market changes or even disappears.

Consider the rise of digital photography. Companies that specialised in the production and processing of film are having to adapt to survive. Another example is the music industry which has had great trouble adapting its business models to the internet. Those old models were excellent for the age of physical goods such as CDs but could not cope with the system peturbations introduced by downloaded digital music.

These examples show why in the long term innovation and creativity are essential for a successful business. Encouraging a creative environment means taking some risks, of course. However a rigid environment that stifles innovation might well just be storing up greater risks for the future.