Level of recursion 2 Creativity System 1 Overview The fundamental operations of creativity are performed in system 1.

. The three tasks in system 1 are interconnected by the flow of information and material between the three tasks to perform the fundamental operations. There may be oscillations in the system so the co-ordination of tasks is critical to properly perform the three tasks. The oscillations in the system must be dampened to minimise the negative impact on the fundamental operations. Application The tasks performed by the creativity level of recursion are concept development, design and prototype. The concept development task is driven by customer needs that are converted into technical product specifications and depicted in conceptual designs and technological solutions. The technological solutions represent the type, form and features of the proposed concept to assess the viability and sustainability of the concept in the target market. The design task develops initial designs and specifications that are assessed to determine whether the concept meets the customer needs. If the initial designs and specifications meet the customer needs then formal industrial designs are drafted to develop a real world solution to meet the customer demands. The prototype task develops experimental prototypes to determine whether the prototype meets the customer need. Several prototypes may be developed to assess the prototypes against the customer need and may incorporate several amendments to the type, form and features. The prototype task would involve several iterations of prototypes until a final selection is made that converts a concept into a marketable product. The three tasks performed in the system are conducted in projects and are established, operated and closed based on the development of concepts. System 2 Overview The system regulates the three tasks of system 1 and serves as a supervisory regulatory centre for system 5. The regulation is managed by system 2 because system 5 does not have the requisite variety to determine the operation of system 2. Application System 2 regulates the three tasks of system 1 by the five project management measures of time, cost, quality, scope and benefits established to monitor project performance. The project manager appointed for the creative projects monitors these measures to evaluate and control project performance. The co-ordination channel ensures that the measures are relayed to the project manager on a continuous basis to monitor project performance. System 3 Overview The system controls the tasks of system 1 and supervises the activities of system 2. The control function is performed through the command channel established to control the tasks of system 1. System 3 may not have the requisite variety to control system 1 and uses the audit channel to conduct audits and inspections of tasks in system 1 to monitor, control and rectify deviations from the five project management measures.

Application The five project management measures of time, cost, quality, scope and benefits have been established to monitor the continuous performance of the projects. The measures are monitored on a continuous basis to ensure compliance to the measures so that deviations can be identified and rectified as soon as possible. The command channel has been established to control the operations of system 1 to ensure that the three tasks are performed in terms of expectations. Where there are deviations from the five measures the audit channel serves as the audit and inspectorate of the organisation to determine and overcome the cause for the deviation from standards. System 4 Overview The function of system 4 is to secure intelligence on the total environment so that the organisation is capable of adapting to the changing environment and remain viable. The system overcomes the internal focus of systems 1, 2 and 3 and interacts with the total environment and the future to model the organisation into a continuous and viable organisation. The system communicates with system 3 to secure internal information on the organisation to incorporate this knowledge into the total environment. Application The brand executive interacts with the external environment of the market, the government, suppliers, retailers, couriers and market intelligence agencies to determine the factors that may change the environment. There is a flow of intelligence to the external environment to manage the impact on the external role players to influence external factors to sustain the viable organisation. The intelligence from the external market measures the rate of the changing environment on the organisation. System 5 Overview The function of system 5 is to determine the personality and purpose of the organisation and to maintain balance between system 3 and system 4. The system needs to resolve the imbalances that may appear between system 3 and system 4 because the imbalances would misdirect the organisation and make it vulnerable. Application The system is performed by the managing director of the business because he has the authority and responsibility for determining the personality and purpose of the organisation and to maintain balance between system 3 and system 4. The managing director also defines the policy for the organisation that is maintained by system 3 in the operations of the business. The managing director has the authority and responsibility for maintaining and restoring the balance between system 3 and system 4 when imbalances occur in the organisation.