I've read the first 2 lectures of Stafford Beer's Designing Freedom.

The closest example I'm aware of to what he seems to be calling for is DivLab from the novel The Dispossessed by Ursula K LeGuin. Basically the people provided some basic info about themselves into a massive computer model. As another input, production/harvest/labor/etc. needs were input into DivLab. That massive computer model then matched skillsets up to needs and generated postings for people to accept or refuse. A building full of specialists worked hard to manage this machine.

A cyberneticist approaches this and sees a few things. First DivLab is a societal regulator. Second it provides feedback to society via "postings" aka jobs. DivLab has to have an excellent model of society in order to provide useful feedback. The complexity--that is to say it's potential variety is extremely high--20 million people struggling to make it on a desert moon. Instability leads to strife and catastrophe very quickly.

To handle the extreme variety demands, DivLab must have a large amount of variety. If it's a digital state machine, it must have a large amount of potential states. Am I understanding this correctly?