System 1. System 3 represents the structures and controls that are put into place to establish the rules, resources, rights and responsibilities of System 1 and to provide an interface with Systems 4/5. Represents the big picture view of the processes inside of System 1. System 4 is made up of bodies that are responsible for looking outwards to the environment to monitor how the organization needs to adapt to remain viable. System 5 is responsible for policy decisions within the organization as a whole to balance demands from different parts of the organization and steer the organization as a whole. In addition to the subsystems that make up the first level of recursion, the environment is represented in the model. The presence of the environment in the model is necessary as the domain of action of the system and without it there is no way in the model to contextualize or ground the internal interactions of the organization. Algedonic alerts (from the Greek αλγος, pain and ηδος, pleasure) are alarms and rewards that escalate through the levels of recursion when actual performance fails or exceeds capability, typically after a timeout. The model is derived from the architecture of the brain and nervous system. Systems 3-2-1 are identified with the ancient brain or autonomic nervous system. System 4 embodies cognition and conversation. System 5, the higher brain functions, include introspection and decision making. Rules for the viable system In "Heart of Enterprise" a companion volume to "Brain...", Beer applies Ashby's concept of (Requisite) Variety: the number of possible states of a system or of an element of the system. There are two aphorisms that permit observers to calculate Variety; four Principles of Organization; the Recursive System Theorem; three Axioms of Management and a Law of Cohesion. These rules ensure the Requisite Variety condition is satisfied, in effect that resources are matched to requirement. Regulatory aphorisms These aphorisms are: It is not necessary to enter the black box to understand the nature of the function it performs. It is not necessary to enter the black box to calculate the variety that it potentially may generate. Principles of organization (Principles are 'primary sources of particular outcome') These principles are: Managerial, operational and environmental varieties diffusing through an institutional system, tend to equate; they should be designed to do so with minimum damage to people and cost. The four directional channels carrying information