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Taking a systems thinking approach to problem solving

systems thinking approach to problem solving

Systems thinking is an approach that considers a situation or problem holistically and as part of an overall system which is more than the sum of its parts. Taking the big picture perspective, and looking more deeply at underpinnings, systems thinking seeks and offers long-term and fundamental solutions rather than quick fixes and surface change.

Whether in environmental science, organizational change management, or geopolitics, some problems are so large, so complicated and so enduring that it’s hard to know where to begin when seeking a solution.

A systems thinking approach might be the ideal way to tackle essentially systemic problems. Our article sets out the basic concepts and ideas.

What is systems thinking?

Systems thinking is an approach that views an issue or problem as part of a wider, dynamic system. It entails accepting the system as an entity in its own right rather than just the sum of its parts, as well as understanding how individual elements of a system influence one another.

When we consider the concepts of a car, or a human being we are using a systems thinking perspective. A car is not just a collection of nuts, bolts, panels and wheels. A human being is not simply an assembly of bones, muscles, organs and blood.

In a systems thinking approach, as well as the specific issue or problem in question, you must also look at its wider place in an overall system, the nature of relationships between that issue and other elements of the system, and the tensions and synergies that arise from the various elements and their interactions.

The history of systems thinking is itself innately complex, with roots in many important disciplines of the 20th century including biology, computing and data science. As a discipline, systems thinking is still evolving today.

How can systems thinking be applied to problem solving?

A systems thinking approach to problem solving recognizes the problem as part of a wider system and addresses the whole system in any solution rather than just the problem area.

A popular way of applying a systems thinking lens is to examine the issue from multiple perspectives, zooming out from single and visible elements to the bigger and broader picture (e.g. via considering individual events, and then the patterns, structures and mental models which give rise to them).

Systems thinking is best applied in fields where problems and solutions are both high in complexity. There are a number of characteristics that can make an issue particularly compatible with a systems thinking approach:

  • The issue has high impact for many people.
  • The issue is long-term or chronic rather than a one-off incident.
  • There is no obvious solution or answer to the issue and previous attempts to solve it have failed.
  • We have a good knowledge of the issue’s environment and history through which we can sensibly place it in a systems context.

If your problem does not have most of these characteristics, systems thinking analysis may not work well in solving it.

Areas where systems thinking is often useful include health, climate change, urban planning, transport or ecology.

What is an example of a systems thinking approach to problem solving?

A tool called the iceberg mode l can be useful in learning to examine issues from a systems thinking perspective. This model frames an issue as an iceberg floating in a wider sea, with one small section above the water and three large sections unseen below.

The very tip of the iceberg, visible above the waterline, shows discrete events or occurrences which are easily seen and understood. For example, successive failures of a political party to win national elections.

Beneath the waterline and invisible, lie deeper and longer-term trends or patterns of behavior. In our example this might be internal fighting in the political party which overshadows and obstructs its public campaigning and weakens its leadership and reputation.

Even deeper under the water we can find underlying causes and supporting structures which underpin the patterns and trends.

For our failing political party, this could mean party rules and processes which encourage internal conflict and division rather than resolving them, and put off the best potential candidates from standing for the party in elections.

The electoral system in the country may also be problematic or unfair, making the party so fearful and defensive against losing its remaining support base, that it has no energy or cash to campaign on a more positive agenda and win new voters.

Mental models

At the very base of the iceberg, deepest under the water, lie the mental models that allow the rest of the iceberg to persist in this shape. These include the assumptions, attitudes, beliefs and motivations which drive the behaviors, patterns and events seen further up in the iceberg.

In this case, this could be the belief amongst senior party figures that they’ve won in the past and can therefore win again someday by repeating old campaigns. Or a widespread attitude amongst activists in all party wings that with the right party leader, all internal problems will melt away and voter preferences will turn overnight.

When is a systems thinking approach not helpful?

If you are looking for a quick answer to a simple question, or an immediate response to a single event, then systems thinking may overcomplicate the process of solving your problem and provide you with more information than is helpful, and in slower time than you need.

For example, if a volcano erupts and the local area needs to be immediately evacuated, applying a thorough systems thinking approach to life in the vicinity of an active volcano is unlikely to result in a more efficient crisis response or save more lives. After the event, systems thinking might be more constructive when considering town rebuilding, local logistics and transport links.

In general, if a problem is short-term, narrow and/or linear, systems thinking may not be the right model of thinking to use.

A final word…

The biggest problems in the real world are rarely simple in nature and expecting a quick and simple solution to something like climate change or cancer would be naive.

If you’d like to know more about applying systems thinking in real life there are many online resources, books and courses you can access, including in specific fields (e.g. FutureLearn’s course on Understanding Systems Thinking in Healthcare ).

Whether you think of it as zooming out to the big picture while retaining a focus on the small, or looking deeper under the water at the full shape of the iceberg, systems thinking can be a powerful tool for finding solutions that recognize the interactions and interdependence of individual elements in the real world.

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A system must be managed. It will not manage itself. Left to themselves, components become selfish, competitive, independent profit centers, and thus destroy the system. The secret is cooperation between components toward the aim of the organization. —W. Edwards Deming

Principle #2 – Apply systems thinking

The four foundational bodies of knowledge that inform SAFe are systems thinking, Agile development, Lean product development, and DevOps. Systems thinking takes a holistic approach to solution development, incorporating all aspects of a system and its environment into the system’s design, development, deployment, and maintenance.

Figure 1 illustrates three primary aspects of systems thinking.

Understanding these concepts helps leaders and teams navigate the complexity of solution development, the organization, and the larger picture of total time-to-market. Each is described in the following sections.

The Solution Is a System

  • Team members must clearly understand the system boundaries and how it interacts with the environment and the systems around it.
  • Optimizing a component of the system does not optimize the whole system. Components can become selfish and hog the resources—computing power, memory, electrical power, whatever—that other elements need.
  • For the system to behave well, teams must understand the intended behavior and architecture (how the components work together to accomplish the system’s aim). Intentional design is fundamental to systems thinking.
  • The value of a system passes through its interconnections. Those interfaces—and the dependencies they create—are critical to providing ultimate value. Continuous attention to those interfaces and interactions is vital.
  • A system can evolve no faster than its slowest integration point. The faster the full system can be integrated and evaluated, the quicker the system knowledge grows.

The Enterprise Building the System Is a System, Too

There’s a second aspect to systems thinking: the people, management, and processes of the organization that builds the system are also a system. The understanding that ‘systems must be managed’ applies here as well. Otherwise, the components of the organization building the system will optimize locally and become selfish, limiting the speed and quality of value delivery. This leads to another set of systems thinking insights about the enterprise:

  • Building complex systems is a social endeavor. Therefore, leaders must cultivate an environment where people collaborate on the best way to build better systems.
  • Suppliers and customers are integral to the development value stream. Both must be treated as partners based on a long-term foundation of trust.
  • Optimizing a component does not optimize the system in this case, either. Therefore optimizing local teams or functional departments does not enhance the flow of value through the enterprise.
  • And as with physical systems, the value of the system passes through its interfaces here too. Accelerating flow requires eliminating functional silos and creating cross-functional organizations, such as Agile Teams, Agile Release Trains (ARTs), and Solution Trains.

Understand and Optimize the Full Development Value Stream

Development value streams are fundamental to SAFe. A SAFe portfolio is a collection of development value streams, each delivering one or more solutions to the market. As illustrated in Figure 2, each development value stream consists of the steps necessary to integrate and deploy a new concept through a new or existing system.

Understanding and optimizing the entire development value stream—the third aspect of systems thinking—is the only way to reduce the total time it takes to go from concept to cash [2]. Systems thinking mandates that leaders and practitioners grasp and continuously optimize the entire development value stream, especially as it crosses technical and organizational boundaries.

One essential process is Value Stream Mapping, a systematic way to view all the steps required to produce value. Value stream mapping (Figure 3) helps leaders quickly recognize that the actual value-added steps—creating code and components, deployment, validation, etc.—consume only a small portion of the total time-to-market. This recognition drives these leaders to constantly focus on the delays between steps.

Note that in this example, almost all the time between a feature request and deployment is wait time, resulting in a highly inefficient process.

Only Management Can Change the System

“ Everyone is already doing their best; the problems are with the system … only management can change the system.”

—W. Edwards Deming

This Deming quote prepares us for a final set of insights. Systems thinking requires a new approach to management as well, a perspective where managers are problem solvers, take the long view, proactively eliminate impediments, and lead the changes necessary to improve systems and performance. These Lean-Agile Leaders :

  • Exhibit and teach systems thinking and Lean-Agile values, principles, and practices
  • Engage in solving problems and eliminating roadblocks and ineffective internal systems
  • Apply and teach root-cause analysis and corrective action techniques
  • Collaborate with the teams to reflect at key Milestones and identify and address shortcomings
  • Take a long-term view, investing in enabling capabilities such as infrastructure, practices, tools, and training that lead to faster value delivery, better quality, and higher productivity
  • Foster a Continuous Learning Culture that includes relentless improvement in the application of systems thinking

Understanding the elements of systems thinking helps leaders and teams recognize the ‘why’ and the ‘what’ of their actions, as well as the impact on those around them. This understanding leads to a leaner, smarter enterprise that can better navigate organization and solution development complexities. And that results in better business outcomes.

Last update: 26 September 2023

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The Systems Thinker -

Systems Thinking: What, Why, When, Where, and How?

I f you’re reading The Systems Thinker®, you probably have at least a general sense of the benefits of applying systems thinking in the work-place. But even if you’re intrigued by the possibility of looking at business problems in new ways, you may not know how to go about actually using these principles and tools. The following tips are designed to get you started, whether you’re trying to introduce systems thinking in your company or attempting to implement the tools in an organization that already supports this approach.

What Does Systems Thinking Involve?

Tips for beginners.

  • Study the archetypes.
  • Practice frequently, using newspaper articles and the day’s headlines.
  • Use systems thinking both at work and at home.
  • Use systems thinking to gain insight into how others may see a system differently.
  • Accept the limitations of being in-experienced; it may take you a while to become skilled at using the tools. The more practice, the quicker the process!
  • Recognize that systems thinking is a lifelong practice

It’s important to remember that the term “systems thinking” can mean different things to different people. The discipline of systems thinking is more than just a collection of tools and methods – it’s also an underlying philosophy. Many beginners are attracted to the tools, such as causal loop diagrams and management flight simulators, in hopes that these tools will help them deal with persistent business problems. But systems thinking is also a sensitivity to the circular nature of the world we live in; an awareness of the role of structure in creating the conditions we face; a recognition that there are powerful laws of systems operating that we are unaware of; a realization that there are consequences to our actions that we are oblivious to. Systems thinking is also a diagnostic tool. As in the medical field, effective treatment follows thorough diagnosis. In this sense, systems thinking is a disciplined approach for examining problems more completely and accurately before acting. It allows us to ask better questions before jumping to conclusions. Systems thinking often involves moving from observing events or data, to identifying patterns of behavior overtime, to surfacing the underlying structures that drive those events and patterns. By understanding and changing structures that are not serving us well (including our mental models and perceptions), we can expand the choices available to us and create more satisfying, long-term solutions to chronic problems. In general, a systems thinking perspective requires curiosity, clarity, compassion, choice, and courage. This approach includes the willingness to see a situation more fully, to recognize that we are interrelated, to acknowledge that there are often multiple interventions to a problem, and to champion interventions that may not be popular (see “The Systems Orientation: From Curiosity to Courage,”V5N9).

Why Use Systems Thinking?

Systems thinking expands the range of choices available for solving a problem by broadening our thinking and helping us articulate problems in new and different ways. At the same time, the principles of systems thinking make us aware that there are no perfect solutions; the choices we make will have an impact on other parts of the system. By anticipating the impact of each trade-off, we can minimize its severity or even use it to our own advantage. Systems thinking therefore allows us to make informed choices. Systems thinking is also valuable for telling compelling stories that describe how a system works. For example, the practice of drawing causal loop diagrams forces a team to develop shared pictures, or stories, of a situation. The tools are effective vehicles for identifying, describing, and communicating your understanding of systems, particularly in groups.

When Should We Use Systems Thinking?

Problems that are ideal for a systems thinking intervention have the following characteristics:

  • The issue is important.
  • The problem is chronic, not a one-time event.
  • The problem is familiar and has a known history.
  • People have unsuccessfully tried to solve the problem before.

Where Should We Start?

When you begin to address an issue, avoid assigning blame (which is a common place for teams to start a discussion!). Instead, focus on items that people seem to be glossing over and try to arouse the group’s curiosity about the problem under discussion. To focus the conversation, ask, “What is it about this problem that we don’t understand?”

In addition, to get the full story out, emphasize the iceberg framework. Have the group describe the problem from all three angles: events, patterns, and structure (see “The Iceberg”). Finally, we often assume that everyone has the same picture of the past or knows the same information. It’s therefore important to get different perspectives in order to make sure that all viewpoints are represented and that solutions are accepted by the people who need to implement them. When investigating a problem, involve people from various departments or functional areas; you may be surprised to learn how different their mental models are from yours.

How Do We Use Systems Thinking Tools?

Causal Loop Diagrams. First, remember that less is better. Start small and simple; add more elements to the story as necessary. Show the story in parts. The number of elements in a loop should be determined by the needs of the story and of the people using the diagram. A simple description might be enough to stimulate dialogue and provide a new way to see a problem. In other situations, you may need more loops to clarify the causal relationships you are surfacing.

THE ICEBERG

THE ICEBERG

The Archetypes. When using the archetypes, or the classic stories in systems thinking, keep it simple and general. If the group wants to learn more about an individual archetype, you can then go into more detail. Don’t try to “sell” the archetypes; people will learn more if they see for themselves the parallels between the archetypes and their own problems. You can, however, try to demystify the archetypes by relating them to common experiences we all share.

How Do We Know That We’ve “Got It”?

Here’s how you can tell you’ve gotten a handle on systems thinking:

  • You’re asking different kinds of questions than you asked before.
  • You’re hearing “catchphrases” that raise cautionary flags. For example, you find yourself refocusing the discussion when someone says, “The problem is we need more (sales staff, revenue).”
  • You’re beginning to detect the archetypes and balancing and reinforcing processes in stories you hear or read.
  • You’re surfacing mental models (both your own and those of others).
  • You’re recognizing the leverage points for the classic systems stories.

Once you’ve started to use systems thinking for inquiry and diagnosis, you may want to move on to more complex ways to model systems-accumulator and flow diagrams, management flight simulators, or simulation software. Or you may find that adopting a systems thinking perspective and using causal loop diagrams provide enough insights to help you tackle problems. However you proceed, systems thinking will forever change the way you think about the world and approach issues. Keep in mind the tips we’ve listed here, and you’re on your way!

Michael Goodman is principal at Innovation Associates Organizational Learning

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Systems Thinking: A Holistic Approach to Solving Complex Problems

February 22nd, 2024

Everything has become so interconnected, comprising of multi-pronged challenges. We still try to tackle modern problems with linear thinking approaches that isolate problems and reduce complexity.

But, more often than usual, they fall short of providing a viable solution.

Here, systems thinking offers an alternative perspective to understand how things influence one another within embedded contexts.

This holistic approach proves uniquely capable of untangling thorny issues like sustainability , inequality, or emerging diseases and making decision making effective.

As systems thinking gains wider traction, questions arise about what exactly it entails and why it matters. This article maps out the fundamental principles of systems thinking, dynamic tools used, diverse applications across sectors, and the overall benefits of adopting a systems view, especially in 2024.

The systemic perspective holds special relevance for problem solvers and changemakers currently grappling with twisted challenges and complex systems fundamentally shaped by interdependence.

By revealing hidden connections and patented patterns, systems thinking empowers interventions well-matched to our intricately networked world.

From classrooms to boardrooms, systems tools meet teams in any field to support analysis, communication, planning, or evaluation through an inter-relational lens geared to 22nd-century dynamics shaping our existence.

What is Systems Thinking?

Systems thinking is an approach to understanding how things influence one another within a whole entity. Systems thinking studies connections between key parts to see the collective behaviors that result. Expanding perspectives brings clarity to complex situations.

Systems thinking provides a framework for seeing relationships and patterns to explain how systems function. The key concepts include recognizing the interconnected and interdependent nature of systems and shifting from linear to circular causality.

Reductionist Thinking vs. Systems Thinking

In systems thinking, systems behave as integrated wholes in which elements dynamically impact each other over time.

This contrasts with traditional forms of reductionist thinking that isolate parts to understand systems.

Reductionism breaks systems down into discrete elements, rather than examining the fuzzy system boundaries, complex interactions, and unintended consequences that arise within intricate open systems in the real world.

Systems thinking offers a new perspective focused on the linkages, relationships, emergence, and feedback processes underlying systems functioning. By mapping reinforcing and balancing loops, systems thinking can identify behavior-over-time patterns for a system. This helps explain the whole picture better than reductionism.

Key Concepts of Systems Thinking

Several principles form the foundation of systems thinking. First, systems thinking recognizes the importance of feedback loops in driving system behavior. Feedback loops capture how the output of one part of a system impacts the input to another part, creating causal chains.

Reinforcing feedback loops amplify change exponentially while balancing loops counteract the change.

By mapping these feedback loops, system archetypes emerge – common patterns like limits to growth, escalation, and tragedy of the commons. These system archetypes help diagnose systemic issues, revealing core interrelating dynamics.

System archetypes function as conceptual models for understanding challenges like sustainability, urban decay, and organizational change.

In complex systems, leverage points serve as places to intervene for substantial impact. The goal is to identify where minimal effort shifts the system, through changes to parameters, feedback loops, or paradigm-shifting transformations at the level of goals or mindsets. This contrasts with incidental low-leverage tweaks.

Changing social or ecological systems often involves unintended consequences. However each system has interconnections, time delays, and complex human motivations at play. These can undermine change efforts when not adequately mapped and anticipated.

Systems thinking aims to reveal these unintended ripple effects so they can be weighed when leveraging change.

So, while unintended consequences often limit pure design, systems thinking provides insights to navigate reform more wisely. By elevating awareness of inter-dependencies and causal loops, one can recognize patterns, structures, boundaries, and relationships fundamental to systems insights.

Using Systems Thinking Approaches

Image: Iceberg Model in Systems Thinking

Systems thinkers employ various conceptual tools to understand systems, communicate about them, and guide interventions.

Causality mapping visually depicts variables in a system, their connections, and the direction of causal influence. This illumination of causal links reveals chains of systemic connectivity not otherwise apparent. It supports the analysis of cascading effects and feedback dynamics.

Systems mapping outlines key system components, their attributes and functions, and interrelationships. This structural perspective clarifies the organization of various elements into an integrated whole.

Systems mapping tools can also overlay dynamic processes like information flows and decision pathways to evaluate systemic leverage points.

Mental models strongly shape how people perceive systems and strategic choices within them. Two people can have divergent understandings of the same system. Reflecting critically on how mental models influence thinking is crucial for expanding limited mindsets that bound perspectives on addressing systemic issues.

More detailed system dynamics computer simulations help model system behavior by mapping dynamic complexity. This computational modeling integrates time delays, feedback processes, stocks, and flows to run long-term scenario forecasts for deeper analysis of complex systems like ecosystems, markets, or hospitals.

Adaptive systems thinkers also recognize that models have limits and that systems change over time in nonlinear ways. Rather than attempting precise prediction and control, adaptive approaches use feedback to dynamically adjust interventions according to emergent system patterns.

This flexibility to meet systems in flux is well-suited for catalyzing change in complex contexts.

Applying Systems Thinking

Systems thinking has powerful and diverse applications across sectors:

In business, systems thinking helps managers gain perspective on organizational challenges and identify root causes of problems like low morale or stagnant sales. By mapping reinforcing loops, leaders can find intervention points to shift momentum.

Systems thinking offers analytic tools to rethink structures, decision processes, and feedback channels for organizational change.

Government policymakers similarly utilize systems approaches to craft robust public policies able to balance social, environmental and , outcomes. Methodologies like group model building bring together diverse stakeholders to map out key system relationships as part of the policy design process.

This systems perspective enables policies attuned to ripple effects.

Nonprofit organizations working on social change also apply systems thinking to guide advocacy and programming. For instance, systems tools like behavior over time graphs and connection circles help groups explicitly map the structural causes perpetuating social problems like homelessness at a community level.

This equips nonprofits to pursue systemic intervention points.

More broadly, systems thinking skills help strengthen collaborative problem solving in teams. Facilitating activities that surface mental models, unpack complex dynamics, and scan for unintended consequences builds shared systemic understanding to transform discussion and explore structural solutions.

Overall, systems thinking fosters paradigm shifts towards interconnected, ecological, and holistic thinking in any problem solving context. This empowers more responsible decision-making.

Benefits of Systems Thinking

Adopting a systems thinking perspective carries many advantages:

Systems thinking allows one to see situations more completely rather than getting lost in details. By focusing on interconnections and processes that link system elements, systems thinking provides a “big picture” orientation. This expanded framework reveals areas of critical linkage within the messiness of complex contexts.

A systems view also aids in identifying types of high-leverage interventions amidst complexity. For instance, by mapping system archetypes like limits to growth or tragedy of the commons, one can pinpoint potent areas to reroute damaging feedback loops.

A systems lens highlights openings for targeted changes to cascade through interconnected subsystems.

Systems thinking also anticipates longer-term consequences of potential actions. By tracing causal threads through a system, secondary and tertiary effects are revealed that may otherwise go unseen.

This equips better foresight for the unintended impacts that might ripple across time and space from well-intentioned interventions.

Additionally, systems thinking brings order and coherence to complexity. By surfacing the organic patterning at play, systems tools decode complex dynamics in understandable yet nuanced ways.

Conceptual frameworks like stocks and flows clarify the structural forces driving issues like urban brain drain or suburban sprawl without oversimplifying.

In all of these ways, systems thinking empowers solutions better aligned to real-world complexity while still providing transformational direction. It permeates analysis with key principles of inter-relationship, temporality, perspectival flexibility, and buried connectivity – allowing insight into predicaments otherwise overwhelming.

Systems Thinking in Practice

For those first learning systems thinking, frustrations can arise. Ingrained linear thinking patterns clash with the new multidimensional perspective. Beginners also face cognitive overload wrestling with interconnections between system elements. However, skills gradually build from foundational concepts towards adept systems analysis.

With consistent practice, systems thinkers progress to parsing dynamics of specialized contexts like public health, smart grids, or supply chains. These domain experts learn to rapidly orient to unfamiliar systems through a systemic lens to ask probing questions.

Expanding one’s toolkit with advanced skills like system dynamics modeling and group facilitation extends capabilities to address complex settings.

Some systems thinkers like Donella Meadows significantly advance the field through groundbreaking applications. Meadows demonstrated deep systems wisdom over her career with The Limits to Growth and pioneering system dynamics methodologies.

These mentors develop strong systemic intuition after internalizing inter-relational patterns for decades. Their capacity to shift mental models in themselves and others unlocks societal transformation.

Ultimately, accomplished systems thinkers heed the call to teach others systemic perspectives that spread. Skills-building workshops on causal loop mapping, systems archetypes, communication tactics, and facilitation techniques proliferate systems literacy.

Outreach occurs across diverse communities given universal relevance. Each effort to cultivate systems thinking and broaden capacity for recognizing systemic leverage sustains movement toward positive change.

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What’s systems thinking? The secret to a future-minded organization

systems-thinking-woman-with-laptop-older

I’ve been working on widening my aperture. What does that mean? In photography, zooming out. Seeing the forest for the trees.

As a writer, I find that I often get bogged down in the details. Sometimes, I look too closely at a topic or an idea without considering the complexities, relationships, and implications. 

It’s easy to see things when we’re close to them. But it takes a concerted effort to step back and look at the bigger picture. It requires a different type of mindset, strategic thinking, and perspective on problem-solving .  

We probably can all think of people who approach the world as system thinkers. You probably can name a few off the top of your head: Ruth Bader Ginsburg, Steve Jobs, Stacey Abrams, Bill Gates, Malala Yousafzai, Barack Obama, and many more.

They’re big-picture thinkers , dreamers, and strategists. They all share curiosity, courage , and the willingness to challenge the status quo. They see the problem at hand in a network of complex systems, and they aren’t afraid to prod at the larger ecosystem. Systems thinking might sound like a clunky, corporate jargon phrase. And in some ways, by definition, it is complex. But at its heart, systems thinking is about seeing things through a wide lens, recognizing how interconnected we are, and acting with empathy and innovation.

Actions have consequences, not always the ones intended. While it can be about solving wicked problems, systems thinking can also be about getting stuff done in ways that are beneficial to the whole organization, not just your little piece of it. A system can be a company, a school, a community, a region, or even a family.

In the context of today’s world of work, systems thinking can help you to be more strategic and better prepared for what the future has in store. Applying systems thinking to our current climate can help us look ahead with a more strategic lens. 

Especially when things are constantly changing — and uncertainty looms overhead — systems thinking helps organizations be better prepared to solve complex problems. Let’s break down what systems thinking is. We’ll also talk about what it takes to become a systems thinker — and how applying systems thinking can help your organization thrive. 

What is systems thinking?

Before we go any further, let’s pause to understand what we mean by systems thinking . 

Systems thinking is the ability that an individual or organization has to solve tough problems. With systems thinking, individuals use strategic, big-picture thinking to make sense of a complex system. 

For example, at BetterUp we talk about how optimizing for the company typically means sub-optimizing for individual teams. But it holds true for any large organization.

Without systems thinking, a team might set its goals very narrowly and pursue them. Sometimes, those pursuits result in strategies that are detrimental to another team or the bigger company objectives.

Companies that want to be more than the sum of their parts need managers who can think systemically and with enough transparency that people can understand the system.

Systems thinking is a holistic approach to problem-solving. It’s a way of looking at how systems work, what that system’s perspective is, and how to better improve system behaviors. 

The systems thinking methodology isn’t necessarily formulaic. It takes some understanding of key concepts to be able to take a systems approach to today’s most challenging problems. 

Systems thinking in leadership 

As we mentioned, many of today’s most notable strategic leaders lean on their systems thinking skills to drive change. It requires a deep understanding of mental models with the goal of improving them to optimize organizational performance . And while you might not know it, many leaders have applied system thinking tools to help come to new conclusions. 

Systems thinking in leadership, however, isn’t a one-size-fits-all approach. Every problem is different with its own set of system dynamics. Let’s break down what some of this could look like in leadership. 

  • A future-mindedness. At BetterUp, we’ve studied future-minded leaders . It’s the idea that a leader looks ahead with a sense of pragmatism and optimism. Leaders who use the future-minded lens say they spend 147% more time planning in their lives and 159% more time planning in their work than those with low future-minded leadership skills. The result of all this planning? Future-minded leaders have higher-performing teams. increased agility, team engagement, innovation, risk-taking, performance, and resilience.  

systems-thinking-future-minded-ness

  • Strategy and planning. As you could’ve guessed, strategic thinking and strategic planning are big components of adopting a systems perspective. Leaders are able to zoom out to see the whole system, then zoom in to see how the system works. 
  • A growth mindset. If we really strip down systems thinking, it’s about problem-solving. This means leaders don’t know everything. They need to learn — and be willing to learn — new things. Leaders who adopt a growth mindset are better equipped to see how the system works because of this perspective. 
  • The willingness to be wrong. We’ve probably all had managers who are unwilling to be wrong. Even if the data and science back it up, there’s some excuse as to why their theory, strategy, or process will still work. It’s a fixed mindset that won’t let go. But with system thinkers in leadership, they’re willing to be wrong. They can see when a systems theory isn’t working. And they embrace that vulnerability of admitting they need to re-think what they originally thought. 
“We learn more from people who challenge our thought process than those who affirm our conclusions. Strong leaders engage their critics and make themselves stronger. Weak leaders silence their critics and make themselves weaker. This reaction isn’t limited to people in power. Although we might be on board with the principle, in practice we often miss out on the value of a challenge network.”  Adam Grant, BetterUp Science Board Member, organizational psychologist, author, Think Again

What are examples of systems thinking?

To better understand systems thinking, let’s look at these three examples. Each example demonstrates the innovation that arises when you see the potential for a whole new board game rather than just swapping out one piece of the puzzle.

  • Smartphones. I grew up in a house where phones were plugged into the wall and computers took over phone lines. When I wanted to call a friend, I dragged the landline — cord still plugged in — into my bedroom. If I wanted to look something up on the internet, I had to make sure no one in my household was using the phone. Why? Well, because the internet required dialed-in access to the phone line. Fast forward a couple of decades and now, we have tiny, little computers that fit into our pockets. Smartphones allow you to access the internet virtually everywhere you go, so long as there’s a signal or a WiFi log-in. Smartphones didn’t come about just to change where and how we could make a phone call. They evolved because system thinkers like Steve Jobs anticipated how connectivity could change the bigger system of how we consume and interact. Systems thinkers see what could be instead of what is.
  • Cryptocurrency. When is the last time you had cash in your wallet? If you’re like me, you rarely carry any cash anymore. Though just twenty years ago, I made sure I had at least $10 in cash with me at all times. But soon, the world evolved with plastic cards that somehow, became much more valuable than any number of bills you could carry in your wallet. Debit and credit cards replaced weekly bank withdrawals. But system thinkers took currency one step further: crypto . Money now moves in networks that securely transfer different types of digital property over the Internet. This technology reimagines how the world does business, but it also has implications for larger monetary, regulatory, and political systems.
  • Renewable energy. With climate change , we’re living on the brink of irreversible damage. With global temperatures rising faster than before, system thinkers had to find a way to power the world that doesn’t harm the planet.  Enter: renewable energy. Renewable energy sources (like solar and wind power) have reimagined how we run businesses, travel, and even produce goods. This system-of-systems approach is helping to shape a low-carbon economy . According to Deloitte, slowing the accelerating pace at which the climate crisis is progressing requires overhauling how systems work. 

Push a little further on these examples and you might also see that each also shows the failure to fully imagine the impact on the broader systems they touch.

Smartphones and crypto-currency each have environmental effects, increasing demand for energy and rare materials. Shifts in demand can create new supply chains and new companies as well as shortages and power imbalances. Systems thinking is recognizing that there are no simple answers.

Complex adaptive systems are just that: adaptive. They’re dynamic systems that hinge on feedback loops, innovation, and collaboration . And it’s with systems thinking that we’re able to evolve and innovate to find better solutions to today’s modern challenges. 

systems-thinking-team-meeting-with-people

6 important concepts of systems thinking

For your organization, adopting concepts of systems thinking can help your business stay a step ahead. Especially in a fast-changing world, it’s critical that organizations stay agile and strategic to stay relevant. Here are six important concepts of systems thinking to help your organization stay resilient, agile, and relevant for the future. 

1. Systems mapping 

To understand how to solve a problem, you need to understand the ecosystems in which the problem lives. This is called systems mapping: getting to know the systems where a problem lives to better take it apart. 

Once you’ve mapped out the systems to help solve your problem, you can do some systems modeling to help understand how they’re connected. Which leads us to … 

2. Interconnectedness 

Interconnectedness. If we know anything about the world, it’s much smaller than we think. And after you’ve mapped out the systems for the problem you’re trying to solve, it’s time to figure out how the systems are connected. 

Sometimes, it may seem nonlinear or non-consequential. But if you dig deep enough, you’ll likely find some fibers connected between specific systems. 

For example, let’s use the pandemic. COVID-19 illuminated that our systems are more connected than we think. The impacts of COVID-19 disproportionately impacted communities of color and those of lower socioeconomic status. On its face, it might not have been readily apparent that a public health crisis would bleed into a different system, our economy. 

3. Synthesis 

This concept is synthesizing. Essentially, it’s making sense of things in the context of the problem you’re trying to solve. Opposite to analysis, synthesis usually is when you combine ideas or things to create something new. 

4. Emergence 

Let’s look at the solar system. We know that the solar system is a large, abstract, and complex system. It’s made up of planets, stars, galaxies, and many other things that we likely have yet to discover. 

But that’s the point of emergence: larger things emerge from smaller things. And when it comes to figuring out how synthesizing (or how you’re putting together different parts), emergence is critical. 

5. Feedback loops 

Feedback is critical to understanding if something is working. More importantly, feedback helps us understand when things aren’t working. 

If you’re adopting systems thinking in your organization, consider how you’re implementing feedback loops into the process. 

For example, let’s say you’re rolling out a new performance management software. Your HR teams are working with managers across the business to adequately train folks on how to use the platform. However, you realize that some managers are missing key milestones, like annual performance reviews . 

You set up some focus groups and office hours with your managers. In these sessions, you learn that your managers are missing out on performance review milestones in the system because they don’t know how to navigate the software. After gathering feedback , you realize that your organization requires more support. 

6. Causality 

Causality is the idea that there’s a cause and effect. It’s pretty simple: your actions impact the outcome. And so when you’re looking at a part of the system to solve, it’s important to test the cause and effect pieces of your systems. 

Let’s go back to our example from above. Because you’ve implemented regular feedback checkpoints within manager office hours, your HR team can better adjust their communication strategy. With help from the internal communication team, your HR team put together some guides on how to best use the software. This helped improve the number of “missed” performance reviews by 30%. 

How to apply systems thinking to the workplace

If you’re ready to apply systems thinking to the workplace, here are four things to keep in mind. 

Practice future-minded thinking 

Future-mindedness can keep organizations prepared for the future. Of course, we know the future is unknown. Especially now, there’s plenty of uncertainty and change looming. 

But with future-mindedness, your organization can be better equipped for what the future holds. Training your leaders to build their future-minded skills can help to keep your organization agile, resilient, and relevant for whatever the future holds. With future-mindedness , the impact speaks for itself: 

  • Individual performance and well-being increases 
  • Team performance increases with more agility, resilience, and risk-taking 
  • Teams are more innovative, creative, and collaborative 
  • Employee retention increases by 33% 

Promote a growth mindset 

Organizations, now more than ever, need to adopt a growth mindset. Learning is a lifelong journey for any person. Why wouldn’t organizations adopt the same sort of mindset? 

Think about how you can cultivate a growth mindset within your workplace. For example, how are you encouraging professional development ? Are you promoting from within and encouraging career mobility ? In what ways are you creating career advancement opportunities? Do your employees invest in upskilling or reskilling? 

systems-thinking-woman-at-white-board-strategy

Create space for feedback 

The success of any organization hinges on the ability to provide — and receive — feedback . At BetterUp, we see feedback as a gift. It’s a way to identify what’s working. But more importantly, it’s how we evolve and grow. 

Are you creating spaces for feedback? How are you keeping a pulse on your employees’ engagement ? Are you encouraging upward feedback or 360-degree feedback ? 

Use coaching 

We all need guidance. Especially when we’re tasked with solving some of the toughest problems, it helps to have an outside perspective. 

That’s where coaching comes in. With BetterUp, you can pair your employees with personalized support to help crack tough problems. A coach can help your employees tap into parts of themselves that they didn’t know existed. In turn, it will help improve your organizational effectiveness . 

Try BetterUp. Together, we can build a future better equipped to solve tomorrow’s problems.

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Madeline Miles

Madeline is a writer, communicator, and storyteller who is passionate about using words to help drive positive change. She holds a bachelor's in English Creative Writing and Communication Studies and lives in Denver, Colorado. In her spare time, she's usually somewhere outside (preferably in the mountains) — and enjoys poetry and fiction.

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In this advanced course, participants will have a comprehensive understanding of systems thinking tools. They will further explore the systems thinking methodologies and tools, decision analysis, risk assessment, strategic planning, evaluation methodologies, change management principles, and documentation standards. At the end of this course, participants will have acquired systematic problem-solving skills, enhanced decision-making abilities, and improved organizational effectiveness and innovation.  

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Reqi Systems Engineering Articles

Understanding Systems Thinking: A Path to Insightful Problem-Solving

Understanding Systems Thinking: A Path to Insightful Problem-Solving

In today’s dynamic and complex business landscape, traditional problem-solving approaches often fall short in addressing persistent challenges. Enter systems thinking, a powerful methodology that offers a fresh perspective by considering the interconnectedness of various elements within a system. In this article, we delve into the fundamentals of systems thinking, exploring its principles, benefits, and practical tips for beginners. Whether you’re eager to introduce this approach in your organisation or looking to enhance your problem-solving skills, let’s embark on a journey of understanding the intricacies of systems thinking.

Table of Contents

Understanding Systems Thinking

Practical tips for beginners, the benefits of systems thinking, when to apply systems thinking, getting started, utilising systems thinking tools, indicators of progress in systems thinking.

Systems thinking encompasses a broad range of principles, tools, and a philosophical mindset. It involves understanding the circular nature of the world we live in, recognising the role of structures in shaping the conditions we face, and acknowledging the existence of powerful laws governing systems. By adopting a systems thinking approach, we gain a deeper understanding of the consequences of our actions, allowing us to make more informed decisions.

  • Study Archetypes: Dive into the classic stories and patterns to enhance your understanding.
  • Practice Frequently: Analyse real-world scenarios, such as newspaper articles and current headlines, through a systems lens.
  • Apply Systems Thinking Everywhere: Extend your application of systems thinking beyond the workplace to gain a holistic perspective.
  • Embrace Different Perspectives: Use systems thinking to explore alternative viewpoints and understand how others perceive a system.
  • Accept the Learning Curve: Recognise that becoming skilled in utilising systems thinking tools takes time and practice. Embrace the journey!

Systems thinking offers several compelling reasons to adopt its principles in problem-solving endeavours. By broadening our thinking and enabling us to articulate problems in novel ways, it expands the range of choices available for resolving complex issues. Furthermore, systems thinking emphasises the importance of considering the interconnectedness of various elements, highlighting that every decision has ripple effects throughout the system. By anticipating these impacts, we can make informed choices and minimise unintended consequences.

Ideally, systems thinking is suited for problems with the following characteristics:

  • Importance: The issue at hand holds significant significance.
  • Chronicity: The problem persists over time, rather than being a one-time event.
  • Familiarity: The problem has a known history, indicating previous attempts at resolution.
  • Previous Failures: Past efforts to solve the problem have been unsuccessful.

When approaching a problem through systems thinking, it’s crucial to foster a blame-free environment. Instead of focusing on assigning blame, encourage curiosity within the team. Prompt discussions by asking thought-provoking questions like, “What aspects of this problem are we failing to comprehend?”

To ensure a comprehensive analysis, employ the iceberg framework. Encourage the team to describe the problem by examining its events, patterns, and underlying structures. Additionally, diverse perspectives are essential. Involve individuals from various departments or functional areas to capture a comprehensive range of mental models.

One of the fundamental tools in systems thinking is the causal loop diagram. When using this tool, remember that simplicity is key. Start with a small and straightforward diagram, gradually adding elements as necessary. The diagram should reflect the story your group aims to depict accurately. Don’t fret about creating a diagram that includes every variable; focus on capturing the causal relationships that matter most.

Another valuable resource in systems thinking is the use of archetypes. These classic stories serve as powerful illustrations of systems behaviour. Keep the application of archetypes simple and relatable, allowing individuals to draw parallels between the archetypes and their own problems.

As you progress in your journey of applying systems thinking, it’s essential to gauge your proficiency and recognise when you have truly grasped its principles. Here are some indicators that can help you determine if you’re on the right track:

  • Asking Different Kinds of Questions: A hallmark of systems thinking is a shift in the types of questions you ask. Instead of focusing solely on immediate causes and effects, you start exploring the underlying systemic structures and interconnections. You find yourself inquiring about feedback loops, dependencies, and unintended consequences, seeking a more holistic understanding of the system at play.
  • Recognising Cautionary Flags: With a growing understanding of systems thinking, you become attuned to catchphrases that may oversimplify complex problems. For instance, when someone suggests, “The problem is we need more (sales staff, revenue),” you instinctively recognise the need to delve deeper. You redirect the discussion towards systemic factors, understanding that increasing staff or revenue alone may not address the root causes.
  • Detecting Archetypes and Balancing Processes: As you deepen your knowledge of systems thinking, you begin to identify recurring patterns or archetypes in stories and real-world situations. These archetypes, such as “The Tragedy of the Commons” or “Shifting the Burden,” illustrate common systemic behaviours. Recognising these archetypes enables you to spot imbalances and reinforcing processes within a system, facilitating a more comprehensive analysis of complex issues.
  • Surfacing Mental Models: Systems thinking invites a deep exploration of mental models—the deeply held beliefs, assumptions, and perspectives that shape our understanding of the world. As you progress, you become adept at recognising and challenging your own mental models and those of others. By surfacing and examining these mental models, you can uncover potential biases and broaden your perspective, enabling more robust problem-solving.
  • Identifying Leverage Points: Leverage points are strategic areas within a system where interventions can have a significant and lasting impact. With increasing proficiency in systems thinking, you start recognising these leverage points, understanding which actions can create meaningful change. This heightened awareness empowers you to identify leverage points in classic systems stories and apply them creatively to real-world challenges.

Systems thinking is a transformative approach to problem-solving, offering a powerful lens through which to understand complex issues. By embracing these principles and utilising its tools, you can unlock fresh insights and uncover interconnected patterns. Whether you’re just beginning your journey or seeking to refine your skills, systems thinking empowers you to tackle challenges more comprehensively, paving the way for effective and sustainable solutions.

Remember, systems thinking is not just a method; it’s a lifelong practice that cultivates curiosity, clarity, compassion, choice, and courage. Embrace this holistic approach, and you’ll witness a paradigm shift in the way you perceive the world and address complex problems.

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What 'systems thinking' actually means - and why it matters for innovation today

apply systems thinking in problem solving & decision making

Systems thinking helps us see the part of the iceberg that's beneath the water Image:  Ezra Jeffrey

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apply systems thinking in problem solving & decision making

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Stay up to date:.

  • Systems thinking can help us grasp the interconnectedness of our world.
  • During the uncertainty of the pandemic, it can spur innovation.

We are currently living through VUCA (volatile, uncertain, complex and ambiguous) times.

As innovators, general professionals, key workers, citizens and humans, everything we do is ever more interdependent on each other. ‘No man is an island’ is a well-known phrase, yet in practice, how often do we understand the interconnectedness of everything around us? Enter systems thinking.

In some circles, there has been a lot of hype around taking an "ecosystems view" during this global pandemic, which frankly is not something new. Systems thinking has been an academic school of thought used in engineering, policy-making and more recently adapted by businesses to ensure their products and services are considering the ‘systems’ that they operate within.

Defining innovation

Every firm defines innovation in a different way. I enjoy using the four-quadrant model (see figure below) for simplicity: incremental innovation utilises your existing technology within your current market; architectural innovation is applying your technology in different markets; disruptive innovation involves applying new technology to current markets; and radical innovation displaces an entire business model.

apply systems thinking in problem solving & decision making

During COVID-19, we are seeing a mixture of these. Many firms will start with incremental changes, adapting their products to a new period of uncertainty. With the right methodology and balance of internal and external capabilities, there is potential for radical and disruptive innovation that meets new needs, or fundamentally, creates new needs based on our current circumstances. Systems thinking is essential in untapping these types of innovation and ensuring they flourish long-term.

A dynamic duo

‘Systems thinking’ does not have one set toolkit but can vary across different disciplines, for example, in service design some may consider a ‘blueprint’ a high-level way to investigate one’s ‘systems of interest’. Crucially, this school of thought is even more powerful when combined with more common approaches, such as human-centered design (HCD).

The latter is bottom-up – looking in detail at a specific problem statement, empathising with its users and developing solutions to target them. Whereas the former is top-down – understanding the bigger picture, from policy and economics to partnerships and revenue streams. Systems thinking unpacks the value chain within an organisation and externally. It complements design thinking: together they’re a dynamic duo.

For starters, this philosophy needs to enter our everyday thinking. Yes, it is crucial for innovation, but an easy first step is to use systems thinking casually throughout your life. How is this purchase affecting other systems in the supply chain? What is the local economic impact of me shopping at the larger supermarket? Who will be the most negatively impacted if I don’t practice social distancing?

apply systems thinking in problem solving & decision making

This mapping tool from the World Economic Forum is central in understanding causal relationships and effects during COVID-19. It helps to drive systems-informed decision making. Once this becomes mainstream, we can begin integrating data for systems modelling tools that will help us map impact across the multiple layers of influence from this pandemic. So, what does this mean for businesses?

Systems thinking for business

To illustrate how systems thinking applies in business, let's use a simplified example of a bank branch.

Event: COVID-19 declared a pandemic, lockdown implemented for all people and businesses, except key workers and essential firms. Branches are shutting, people are afraid to go to non-essential establishments.

Patterns/trends: what trends have there been over time? Scientists have warned us about being ‘pandemic-ready’ for years, but we have had misinformation or a lack of transparency from other ‘systems’ who should have been driving this.

However, what about banking patterns? More customer service has moved online, digital banks and fintech developments have decreased the urgency for face-to-face business in branches. Are there trends in customer behaviours? More consumers are searching for all their products and services online, and this was common before the pandemic had begun.

Underlying structures: what has influenced these patterns and how are they interconnected? A growing desire for digitalised experiences and convenience is popular in financial services and customers will begin to seek and only interact with businesses who have the infrastructure to operate this way. A minimal number of touchpoints is seen as desirable, providing quicker, stress-free experiences, as consumers want to spend less time on these engagements when work-life balance has become more integrated, and therefore is important to preserve.

Mental models: what assumptions, beliefs and values do people hold about the system? Behavioural economics tells us that customers will adapt and change their consumer spending habits. Used to the convenience of online, less relevance will be seen for branches, and banks will need to further adapt. The ‘new normal’ will contain old and new beliefs. Which ones keep bank branches in place? Human contact and customer service? The agency in dealing with your finances face-to-face? Will a new experience or service be required to keep bank branches relevant or are online digital banks all consumers will need?

Beyond this, do banks have an ethical obligation to monitor spending habits to identify signs of debt and underlying mental health problems? What relationship should banks have with data? How do they balance intuitive service with consumer privacy?

Going through the layers of this iceberg unearths part of the power from using systems thinking and exemplifies how to guide your strategy in a sustainable way.

Only focusing on events? You’re reacting.

Thinking about patterns/trends? You’re anticipating.

Unpicking underlying structures? You’re designing.

Understanding mental models? You’re transforming.

Transformative thinking is how we innovate and systems thinking is essential for this journey.

apply systems thinking in problem solving & decision making

We’ve only explored the tip of the iceberg (pun intended) on the philosophy of systems thinking. There are many in-depth tools available to discover the approach in more depth.

Ask yourselves if you want to survive the VUCA future ahead. Do you want your organisation to have the capacity to innovate and sustain itself? Are you willing to change your thought pattern to consider the systems in which we all live in?

If the answers to any of the questions above are yes, then you are on the right path to mastering systems thinking to successfully innovate.

The more we begin to use systems thinking every day, the better our innovation will become. We can all be architects for a better world with sustainable growth if we understand the core tenants of this approach. To echo my introduction, no customer, or citizen, or business, or policy, or company, or idea itself is an island. Whatever ‘new normal’ we have, systems thinking should drive this future and will ensure innovation is pursued with knowledge of the complex intricacies that we are living through.

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The views expressed in this article are those of the author alone and not the World Economic Forum.

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Systems Thinking: How to Solve Problems So They Stay Solved

From production to customer service and marketing, organizations are made up of a series of interconnected parts. While each function may appear to operate efficiently on its own, a change in just one cog can throw the whole system out of whack. The problems that arise in interconnected organizations can be difficult to solve.

Systems thinking is problem-solving approach that examines the relationships between functions in an organization. Systems thinking is powerful because it enables you to predict the consequences of a potential change. This problem-solving method can also help you eliminate silos, see different viewpoints, and remain focused on the big picture.

Ultimately, systems thinking empowers you to solve problems so that they stay solved. Instead of offering quick-fix solutions that work only in the short term, systems thinking helps you make decisions that benefit your organization in the long run.

You will learn how to:

  • Apply systems thinking in the workplace in ways that benefit you and your organization: encouraging innovation, learning from mistakes, and enhancing leadership and management skills.
  • Apply the tools of systems thinking to solve a problem.
  • Minimize the unintended consequences of major decisions.

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Understanding and Solving Complex Business Problems

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Management and Leadership

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Course Highlights

  • Discover MIT's unique, powerful, and integrative System Dynamics approach to assess problems that will not go away
  • Experience the Beer Game, which simulates the supply chain of the beer industry
  • Learn a new way of thinking about and resolving complex, persistent problems that emerge from change
  • Earn a certificate of course completion from the MIT Sloan School of Management

Why attend Understanding and Solving Complex Business Problems?

Systems thinking was designed to improve people's ability to manage organizations comprehensively in a volatile global environment. It offers managers a framework for understanding complex situations and the dynamics those situations produce. Systems thinking is a response to the rapid changes in technology, population, and economic activity that are transforming the world, and as a way to deal with the ever-increasing complexity of today's business.

Senior managers can use systems thinking to design policies that lead their organizations to high performance. The program is intended to give participants the tools and confidence to manage organizations with full understanding and solid strategy.

Course experience

This complex problem-solving course introduces participants to MIT's unique, powerful, and integrative System Dynamics approach to assess problems that will not go away and to produce the results they want. Through exercises and simulation models, participants experience the long-term side effects and impacts of decisions and understand the ways in which performance is tied to structures and policies.

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This program is designed to empower you to analyze complex problems in any area by using powerful yet very simple tools which are also very easy to use in real world, I enjoyed it a lot.

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apply systems thinking in problem solving & decision making

A Systems Thinking Decision-Making Process

How to Avoid Burnt Toast

  • © 2022
  • Vincent P. Barabba 0

Capitola, USA

You can also search for this author in PubMed   Google Scholar

  • Provide guidelines for decision-making using systems thinking
  • Provides examples of the consequences of good and bad decision-making
  • Explores cross-functional decision making

Part of the book series: Management for Professionals (MANAGPROF)

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Table of contents (16 chapters)

Front matter, how i learned to access the right information for making the best decisions during complex conditions, an uncertain and more complex environment requires you learn from your decisions: question the known and seek answers to the unknown.

Vincent P. Barabba

How the Journey to Improved Decision-Making Started with My Introduction to the Silo Problem and the Importance of Understanding Both Sides of a Story

What was learned by supporting and making decisions during local and national political campaigns, my first government job: getting to the census bureau: an important personal decision, my first job in the private sector – xerox, my second job in government: back to the bureau, my second job in the private sector: getting to kodak on my way to general motors, my final job in the private sector: how earlier involvement in the gm decision-making process led to more effective use of market research, based on those experiences here is what you need to design and implement an inquiry center for your enterprise, using systems thinking to create an experienced-based decision process, keep an open mind, think systemically, and encourage transparency, encourage learning, the relationship between data and wisdom, based on good and bad experiences, a beginning discussion of the potential decision-making framework from which lessons can be learned and burnt toast can be avoided, to illustrate how a decision process should work, let’s examine how an inquiry center with a learning and adaptation approach might have helped kodak take advantage of a missed opportunity and avoid its eventual fall into bankruptcy, developing the design and implementation of an inquiry center that contributes to the ability to avoid burnt toast, the benefit of leadership’s improved thinking and decision-making that overcame the desire of some to focus exclusively on the existing business, back matter.

  • Solving Complex Problems
  • Silo Management
  • Effective Use of Market Research
  • Decision-Making
  • Anticipate-and-Lead

About this book

This book illustrates how to access the right information for making the best decisions during turbulent times. It is written from an experienced-based perspective that is beneficial for those looking for the development and improvement of the decision-making process. The approach is centered on the author’s experience in developing and implementing effective and efficient approaches to decision-making in business and government. Based on those experiences, this book provides insights into how to improve the decision making process of your organization, whether it be large or small.

For decision makers and those providing market information for making decisions, this book provide guidelines for a framework which includes systems thinking. For those interested in change management and corporate governance, the book presents examples where it was done well and some examples where it was not and the ensuring consequences.

Praise for Systems Thinking Decision-Making Process…

--Ian I. Mitroff

“…Vince has masterfully blended the art of organizational respect with the science of data inquiry to drive change and realize strategic vision.  A master storyteller, he does not just teach, his book brings his learnings to life in a meaningful way that if carefully listened to, can change the course of a career.”

-- Paul D'Alessandro

Principal, Health Industries, PwC US

CEO, Kilmann Diagnostics

Co-Author, The Thomas-Kilmann Conflict Mode Instrument (TKI)

— Chunka Mui

Co-Author, A Brief History of a Perfect Future and Billion Dollar Lessons

“…if you are interested in ‘thinking in systems,’ this book is for you. The ‘On Star’ story demonstrates to you how the initial product-centered thinking was proselytized to ‘thinking in systems’."

-- John Pourdehnad

Visiting Professor, IESE Business School and Faulty of Systems Leadership, Thomas Jefferson University

“In writing Systems Thinking Decision-Making Process: How to Avoid Burnt Toast , Vince Barabba is addressing the limits of knowledge management systems which enable ‘organizations as usual’ to share best practices on how to scrape toast faster and cheaper… The examples shared by Vince, from his first-hand experiences in corporate America or his services as a marketing consultant, contribute invaluable clarity to his goal of providing a “sketch of an Inquiry Center Learning and Support System” for those with the ambition to lead efforts to work smarter, not harder, firmly against the grain of ‘organizations as usual’…”

-- Bill Bellows, Ph.D.,

President, InThinking Services

Adjunct Professor, California State University, Northridge and Southern Utah University

Advisory Council Member and Former Deputy Director, The W. Edwards Deming Institute®

“In his ‘last book’, Vince weaves the experiences and learning of a lifetime into whole cloth of insight and wisdom. He helps us to find relevant information from a rapidly changing world and apply it to making good decisions. This is a masterpiece of knowledge presented in a very entertaining way.”

-- Carl Spetzler

Chairman, Strategic Decisions Group International LLC

“This is a truly inspiring and mind changing book directly relevant for our times… Vince has shown through his remarkable work that business and government are a force for good when leaders think long term, work with, not against nature, and use their influence and resources for the many, not the few…”

-- Osvald Bjelland

Founder and President, Xynteo

Founder, The Performance Theatre Foundation

Authors and Affiliations

About the author.

Vincent Barabba is the Co-founder and Chairman Market Insight Corporation (Scottsdale, AZ, USA) which created MyProductAdvisor.com --- a consumer-facing web site designed to provide shoppers with unbiased customized automotive product recommendations. He retired in 2003 as the General Manager of Corporate Strategy and Knowledge Development at the General Motors Corporation where he played a critical role in the development of OnStar. He was a member of the first California Citizens Redistricting Commission, he twice served as Director of the U.S. Bureau of the Census, and was President of the American Statistical Association, and was inducted into the Market Research Council Hall of Fame.

He is the co-author of Wise Decision Making (2017 Amazon Books), Business Strategies for a Messy World (2013 Palgrave Macmillan), Hearing the Voice of the Market (1991 Harvard Business School Press), and The 1980 Census: Policy Making Amid Turbulence (1983 Lexington Books). Mr. Barabba also authored The Decision Loom (2011 Triarchy Press), Surviving Transformation (2004 Oxford University Press) and Meeting of the Minds (1995 Harvard Business School Press).

Bibliographic Information

Book Title : A Systems Thinking Decision-Making Process

Book Subtitle : How to Avoid Burnt Toast

Authors : Vincent P. Barabba

Series Title : Management for Professionals

DOI : https://doi.org/10.1007/978-3-030-89960-8

Publisher : Springer Cham

eBook Packages : Business and Management , Business and Management (R0)

Copyright Information : The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2022

Hardcover ISBN : 978-3-030-89959-2 Published: 04 January 2022

Softcover ISBN : 978-3-030-89962-2 Published: 05 January 2023

eBook ISBN : 978-3-030-89960-8 Published: 03 January 2022

Series ISSN : 2192-8096

Series E-ISSN : 2192-810X

Edition Number : 1

Number of Pages : XXII, 168

Number of Illustrations : 30 b/w illustrations, 14 illustrations in colour

Topics : Knowledge Management , Cognitive Psychology , Business Strategy/Leadership

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Systems Thinking—A Process For Problem Solving in SDLC

“94% of problems in business are systems driven and only 6% are people driven.” ~ William Edwards Deming

WHAT IS A SYSTEM?

We hear and use the word System in all different contexts, all different places, and almost all the time. Also, we probably interact with dozens of systems, such as nature, our own home, retail stores, the organization we work for, etc. So, a system is an interconnecting network of parts that work together thereby creating a larger whole of a complex thing.

WHAT IS SYSTEMS THINKING?

System thinking is a method of critical thinking by which one can analyze the relationship between the system’s parts to understand a situation for better decision-making. Through this system-view approach, a different process for problem solving rises. Rather than isolating a problem and then fixing it, which is a common practice using traditional thinking, the systems thinking approach extends the sight to observe the scope surrounding a problem. Through this systematic approach, causal effects are recognized and a problem space is found-out.

CHARACTERISTICS OF SYSTEMS THINKING

  • Shifting perspective from Parts to Whole: The most general characteristic of system thinking is shifting perspective from parts to the whole. System’s properties cannot be reduced to the part’s properties; likewise, systematic properties are properties of the whole which none of the parts have.
  • Shifting perspective from Objects to Relationship: System is a collection of objects that interact with each other and build a relationship. In a systematic view, objects themselves build networks.
  • Shifting perspective from Structures to Process: In a systematic approach, continual flow of things in system is more important than considering configuration or structure of objects.

SYSTEMS THINKING—A PROCESS FOR PROBLEM SOLVING

By understanding systems thinking as a holistic view perspective, its real value emerges. The value itself is being able to use this holistic view perspective to identify an actual problem, while understanding the extended interconnected network that surrounds it. Traditional analysis focuses on separating the individual parts of the problems caused whereas system thinking allows us to focus on how the individual parts interact with each other and helps identify the cause of a problem.

Consider defect or bug fixing for example. Generally, we have two choices:

  • To update patch over the defect or bug
  • To find out the root cause of the bug and fix it.

Most common approach is to update the patch while leaving the root cause un-addressed. Simply updating the patch over a defect can produce a code that is difficult to maintain, and may result in more bugs/defects which again need to be fixed with more patching. This loop ultimately triggers unmaintainable software. So, short term result may be what is intended but long-term result is different.

There are other examples also. For example, if an organization is suffering from poor quality in production, the immediate step is to increase more manual testers instead of investing in automated testing and continuous testing approach. More manual testing means lesser focus on automation testing , creating the requirement for more manual testers in future as the application code increases which indirectly will result in more cost to the company. System thinking approach provides a broader picture of the system which help us to design long-term solution.

A SOFTWARE DEVELOPMENT LIFE CYCLE PERSPECTIVE

Let me talk about system thinking from Software Development perspective.

Software Development Lifecycle unleashes a business idea into reality which at the end enables the user to enjoy the intent and presence of an application/product. Although the prime purpose of the application/product existence is to serve its users, not many products/applications achieve the expected customer satisfaction levels. Why is it so? System Thinking approach definitely helps us find out the reason and solutions for the same. A product is comprised of many components and many believe that all such features integrated shall make or manifests a product.

Per Russell L. Ackoff, “System is not a sum of the behavior of its parts, it’s the product of their interactions.”

We must apply system thinking as it allows us to see the end-to-end system and understand & optimize the value stream. The value stream can be shown as a business value generating feature to flow through the system to transform into a usable product, i.e., through a robust software development lifecycle comprising of phases like build, test, deploy and release phases. We need to map this end-to-end process or value stream at each stage or function of the process.

It is also necessary to take care how well the flow operates through the system. Doing so enables the teams to remove constraints or bottlenecks in the systems by making them visible with the help of measuring the queue time. Let us take an example, by measuring rate of test case execution or test coverage we can say manual testing would be an obvious constraint in testing phase which will lead to delay in production. The solution could be implementing Continuous Testing that facilitates automated testing, allowing test team to reduce the cycle time in Testing phase.

The usual downtime in product releases are attributed predominantly to the lack of scalability of the environments and performance of the product. Non-functional requirements are not either prioritized or detailed during the initial ideation of the product. Even if it is considered, it is not properly communicated to the test/operation team. The design team defines the structure of the product/application in silo and masks the information from the downstream teams like Test teams or Operation teams. System thinking will enable us to address these kinds of challenges considering the end-to-end perspective rather than siloed modular approach.

System thinking enables the architect/design team detail and considers each aspect of the design, technology landscape, associated limitations, testing phase requirements, environmental needs, and release aspects (operational) aligning with the overall application/product and the downstream teams, like Test and Operations plan and scale to the expectations of the product intent and usage. Test teams start preparing in parallel and identify the appropriate strategy to ensure proper coverage of both functional and non-functional requirements during validation and verification. The strategy should set the context for validation and verification rather than defining number of cycles of test execution with the same test suites. Likewise, the operations team can plan per the actual usage and help the upstream phases accordingly providing dedicated environment for proper development, validation (test) which resembles the production environment.

CAUSAL LOOP DIAGRAM-A TOOL FOR SYSTEM THINKING APPROACH

Causal loop diagram can be used to understand the challenges and relationships between different variables of the IT project Life cycle. The objective is to include maximum number of key variables and their interconnections/relationships to represent reality.

Here comes the concept of feedback loop of system thinking – Reinforcement loop and Balancing loop. A reinforcing loop is one in which an action produces a result which influences more of the same action which results in a growth or decline (Positive or Negative), while the balancing loop encourages systems to stay in balance.

In an IT project Life cycle, there can be four loops; Product development loop (Balancing Loop), Product Management Loop (Reinforcing Loop), Employee Productivity Loop (Balancing Loop), and Product Maintenance Loop (Reinforcing Loop).

The balancing Product Development loop describes that when there is an increase in customer requirements, the need for re-structuring the current software functionality and design increase. The Reinforcing Product Management loop (Positive) suggests that quick management actions should be taken to implement changes in project schedule and prioritization. The reinforcing Employee Productivity  loop (Negative) indicates if there is an urgent customer requirement and the project progress falls behind schedule, the team needs to work overtime to satisfy customer deadlines. The Product Support & Maintenance loop shows the post product development support & maintenance activities that involve deploying the software to meet customer requirements.

To conclude, System Thinking is a powerful tool for solving complex problems as it helps us to see the influencers behind the face value of a problem. Addressing many of the problems the organizations face every day requires us to adopt a System Thinking approach provided the extremely complex Landscape and challenges they face to be competitive.

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Diti works as a Consultant for the ATS team at Cigniti Technologies Ltd. She has 3.5 years of consulting and industry experience across various industries. Diti is an MBA in Marketing and IT and BE in IT. She has experience in conducting assessments across SDLC/STLC, Tools & Technology Landscape, Change Management, and Process improvement.

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Problem Solving Through Systems Thinking: How To Apply Systems Thinking To Tackle Pressing Issues And Unfold A Clear Solution In A Highly Interconnected ... The Labyrinth Of Decision Complexity)

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Problem Solving Through Systems Thinking: How To Apply Systems Thinking To Tackle Pressing Issues And Unfold A Clear Solution In A Highly Interconnected ... The Labyrinth Of Decision Complexity) Kindle Edition

Learning to become a holistic problem-solver has never been easier.

In her role as a senior manager at a regional health organization, Amy encountered a daunting challenge: the community’s prevalent drug addiction issue.

Her initial response was straightforward: develop campaign materials to convince individuals to say no to drugs and create support groups to encourage them to quit.

But the longer she worked on it, the more she learned the complexities of this seemingly stubborn problem.

Amy recognized that the issue wasn’t solely about individual choices but interconnected factors—social, cultural, economic, political, and so on.

Amy discovered systems thinking.

In a 2009 study on Global Health Promotion , researchers asserted that systems thinking can make health projects stronger and have a longer-lasting impact.

"Elaborating on Systems Thinking in Health Promotion Practice" showed how this thinking style requires the participation of all stakeholders at each phase of the program, producing sustainable learnings and innovations.

Armed with this understanding, Amy integrated multiple but interlinked solutions into her plan.

Aside from ads and support groups, she also led partnerships with pharmaceutical companies, volunteer groups, local councils, and lobbyists.

Along the way, not only did the relapse cases decline, but each stakeholder learned from one another’s expertise and changed the ways they ran their own organizations.

Amy’s and the involved organizations’ experiences encapsulate the transformative power of systems thinking.

And it’s experience you can gain too.

Imagine addressing issues not just on the surface level but also understanding their roots and connections.

Through this book, you’ll learn to strategize solutions that influence the entire system.

Whether you’re in a managerial role like Amy or navigating personal challenges, this guide illuminates the path to holistic problem-solving and a new way of perceiving the world.

Here’s a sneak peek into what’s waiting within the pages of this book:

  • The simple yet overlooked rules governing systemic interactions (key to predicting micro and macro impacts, transforming how you approach problem-solving)
  • How a mysterious phenomenon shattered agricultural systems worldwide… (unveil the different factors of cause-and-effect scenarios to prevent disasters in your world)
  • Why recognizing the eight-level hierarchy is crucial for deconstructing system dynamics and how it reshapes your approach to organizational problems, unlocking strategies that will truly address the crux of the matter
  • The three simple questions to analyze systemic issues and aid in decision-making even if you’re new to systems thinking
  • Ten strategies to navigate complex systems and steer clear of common pitfalls
  • How to differentiate between asking for help and being dependent while balancing old wisdom with new solutions
  • How negative feedback can actually influence and bolster system stability
  • How to sharpen your organizational skill set and embrace strategic thinking for real-world solutions (practical exercises to apply systems thinking, transforming how you tackle challenges)

… and much, much more!

This book isn’t just about systems thinking; it’s a guide designed to empower you, free from the pitfalls of complex jargon and outdated examples.

You’ll discover the leverage points for change and gain practical tools to navigate the complex systems shaping our lives.

It’s a handbook for living, offering applicable wisdom that transcends time, inviting you to understand and influence the world around you.

Ready to decode life’s secrets? Click “Add to Cart” and unleash the power of systems thinking today!

  • Part of series Navigate The Labyrinth Of Decision Complexity
  • Print length 250 pages
  • Language English
  • Sticky notes On Kindle Scribe
  • Publication date December 7, 2023
  • File size 7463 KB
  • Page Flip Enabled
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apply systems thinking in problem solving & decision making

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Problem Solving Through Systems Thinking

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  • ASIN ‏ : ‎ B0CPSZFQ5C
  • Publication date ‏ : ‎ December 7, 2023
  • Language ‏ : ‎ English
  • File size ‏ : ‎ 7463 KB
  • Simultaneous device usage ‏ : ‎ Unlimited
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IMAGES

  1. Guidelines to Problem Solving and Decision Making

    apply systems thinking in problem solving & decision making

  2. how to improve your problem solving and decision making

    apply systems thinking in problem solving & decision making

  3. Master Your Problem Solving and Decision Making Skills

    apply systems thinking in problem solving & decision making

  4. Problem Finding, Problem Solving, and Decision Making: Critical Skills

    apply systems thinking in problem solving & decision making

  5. chapter 1 decision making problem solving and critical thinking

    apply systems thinking in problem solving & decision making

  6. Problem Solving and Decision Making

    apply systems thinking in problem solving & decision making

VIDEO

  1. Systems Engineer Interview Questions and Answers

  2. LET’S MEET: How to apply systems theory in practice in Arts, Culture and Conflict Transformation?

  3. Critical Thinking Skills for Turbulent Times

  4. 2024-FEB-20 (OLS) REFLECTIONS TO APPLY SYSTEMS THINKING TOOLS RESPONSIBLY THROUGH TIME/SPACE

  5. Using systems thinking tools to inform Safe System partnership, strategic planning, and research

  6. Design Thinking an Problem Solving

COMMENTS

  1. Taking a systems thinking approach to problem solving

    Systems thinking is an approach that views an issue or problem as part of a wider, dynamic system. It entails accepting the system as an entity in its own right rather than just the sum of its parts, as well as understanding how individual elements of a system influence one another. When we consider the concepts of a car, or a human being we ...

  2. Principle #2

    A system must be managed. It will not manage itself. Left to themselves, components become selfish, competitive, independent profit centers, and thus destroy the system. The secret is cooperation between components toward the aim of the organization. —W. Edwards Deming Principle #2 - Apply systems thinking The four foundational bodies of knowledge that inform SAFe are systems thinking ...

  3. Systems Thinking: What, Why, When, Where, and How?

    Systems thinking expands the range of choices available for solving a problem by broadening our thinking and helping us articulate problems in new and different ways. At the same time, the principles of systems thinking make us aware that there are no perfect solutions; the choices we make will have an impact on other parts of the system.

  4. Systems Thinking: A Holistic Approach to Solving Complex Problems

    Overall, systems thinking fosters paradigm shifts towards interconnected, ecological, and holistic thinking in any problem solving context. This empowers more responsible decision-making. Benefits of Systems Thinking. Adopting a systems thinking perspective carries many advantages:

  5. Systems Thinking: A better way of problem-solving (7min read)

    But, once understood, the concept of 'systems thinking' can become an effective approach for problem solving and decision-making. "94% of problems in business are systems driven and only 6% are ...

  6. Systems Thinking in the Workplace: A Complete Guide

    Here are six important concepts of systems thinking to help your organization stay resilient, agile, and relevant for the future. 1. Systems mapping. To understand how to solve a problem, you need to understand the ecosystems in which the problem lives.

  7. Apply Systems Thinking in Problem Solving and Decision Making

    Apply critical thinking, problem-solving, and researching skills to achieve desired goals. Use system thinking, system modelling, decision-making tools, corrective action mechanisms, and documentation systems to solve complex issues within organizations and to develop and implement solutions that address these issues.

  8. Systems Thinking: Definition and Pro Tips to Apply It at Work

    Systems thinking is the process of approaching problems by identifying how different responses will lead to specific outcomes. There are many steps to systems thinking, so focus on the first one: planning. Systems thinking begins before an action or event happens. The benefit is having responses to various outcomes planned before they occur so ...

  9. Understanding Systems Thinking: A Path to Insightful Problem-Solving

    The Benefits of Systems Thinking. Systems thinking offers several compelling reasons to adopt its principles in problem-solving endeavours. By broadening our thinking and enabling us to articulate problems in novel ways, it expands the range of choices available for resolving complex issues. Furthermore, systems thinking emphasises the ...

  10. Systems Thinking

    Systems thinking is a method of analysis using frameworks that are based upon a theory of systems. ... their goal setting and decision-making processes require "space" to facilitate discussion and debate in order to agree on objectives. ... (1972). Towards a systems-based methodology for real-world problem solving. Journal of Systems ...

  11. Introduction: Managing Complex Tasks with Systems Thinking

    We used various channels to disseminate our call for contributions on "Managing Complex Tasks with Systems Thinking: Practical Insights for Better Decision Making," such as social media platforms and professional networks, including the "Systems Thinking Group" at Linkedin.We also advertised the call for chapters on the message boards of some international conferences related to the topic.

  12. How To Apply Systems Thinking (With Benefits)

    Here are 10 steps for implementing systems thinking at work: 1. Observe the system as it currently works. Identify subsystems, which may be areas of the business like accounting or human resources. Within these subsystems, consider individual elements, including people, technology and the physical environment.

  13. Systems Thinking Applied to Problem Solving: System Levers

    The previous chapter stressed the role of Systems Thinking in building "simple" models of control systems that can allow us to understand - explain and simulate - how to achieve an objective; that is, to reach and maintain a preset value for a given variable.. This chapter will demonstrate how Systems Thinking can aid in the decision-making process; more specifically, in recognizing ...

  14. What 'systems thinking' actually means

    Systems thinking unpacks the value chain within an organisation and externally. It complements design thinking: together they're a dynamic duo. For starters, this philosophy needs to enter our everyday thinking. Yes, it is crucial for innovation, but an easy first step is to use systems thinking casually throughout your life.

  15. PDF Introduction to Systems Thinking Principles and Analytical Tools

    Systems thinking requires a local, multi‐perspective, participatory and iterative approach to be effective. A systemic approach provides a suitable environment for good policy / decision making. Having good visual, dynamic and responsive tools is also necessary to strengthen effective policy decisions.

  16. Systems Thinking: How to Solve Problems So They Stay Solved

    Systems thinking is problem-solving approach that examines the relationships between functions in an organization. Systems thinking is powerful because it enables you to predict the consequences of a potential change. This problem-solving method can also help you eliminate silos, see different viewpoints, and remain focused on the big picture.

  17. Systems

    Systems thinking is an approach to reasoning and treatment of real-world problems based on the fundamental notion of 'system.' System here refers to a purposeful assembly of components. Thus, systems thinking is aimed at understanding relationships between components and their overall impact on system outcomes (i.e., intended and unintended) and how a system similarly fits in the broader ...

  18. Complex Problem Solving Through Systems Thinking

    Systems thinking was designed to improve people's ability to manage organizations comprehensively in a volatile global environment. It offers managers a framework for understanding complex situations and the dynamics those situations produce. Systems thinking is a response to the rapid changes in technology, population, and economic activity ...

  19. A Systems Thinking Decision-Making Process

    For decision makers and those providing market information for making decisions, this book provide guidelines for a framework which includes systems thinking. For those interested in change management and corporate governance, the book presents examples where it was done well and some examples where it was not and the ensuring consequences.

  20. Systems Thinking

    System thinking is a method of critical thinking by which one can analyze the relationship between the system's parts to understand a situation for better decision-making. Through this system-view approach, a different process for problem solving rises. Rather than isolating a problem and then fixing it, which is a common practice using ...

  21. PDF Systems Thinking, Decision Making: What Is Known and What Needs to Be

    systems indicated only occasional practice of systems thinking, while those who had no understanding indicated practicing it at least half of the time. The few respondents who indicated they always used systems thinking in decision making, when indicating in which circumstances they used it, they made conditionalized when and how they used it.

  22. This one style of thinking helps my team solve problems more creatively

    The goal of systems thinking is to understand the subtle and lasting impacts that each decision has on the web as a whole. Take for instance Google. At the time of the company's launch, the ...

  23. Problem Solving Through Systems Thinking: How To Apply Systems Thinking

    "As a builder of software systems that function together, 'Problem Solving Through Systems Thinking' by Susan Ferebee offers a profound understanding of complex systems. The author skillfully explains the intricacies of systems thinking, which is essential in my field for designing and managing interconnected software systems.