The Concept of Causal Loops and Feedback Loops In Business Decision Making.

Systems Dynamics

Systems dynamics is a simulation model of a dynamic system. Systems dynamics is an approach that can help decision makers to understand the consequences of their action by developing models qualitatively or quantitively. Systems dynamics is the foundation of systems thinking. Systems dynamics is one of the tools available to decisions makers wishing to think through the consequences of their possible actions. Systems dynamics involves lagged feedback loops, expressed in the form of differential equations. The most cause and effect relationship are associated with time delays, given that time is required for an action to give rise to its results. Systems dynamics involves lagged feedback loops, expressed in the form of differential equations.

Systems dynamics is a computer aided approach for analysing and solving complex problems such managing Workforce Diversity in an organisation. Systems dynamics has its origin from control engineering and management, using information feedback and delays to understand dynamic behaviour of complex systems. Industrial dynamics is the study of information feedback characteristics of industrial activities to show how organisational structure amplification and time delays interacts to influence the success of an enterprise.

Systems dynamics models is an approach that provides a technique of viewing human systems by stressing the importance of structural features such as feedback control. As a Consultant the aim is to draw from broad field of Systems Thinking, using the main tools of casual loop diagram to challenging problems to highlight the interconnections of component parts and system dynamics simulation modelling which enables the consultant to investigate how the behaviour of managing Workforce Diversity in an organisation can evolve over time.

The Concept of Causal Loops and Feedback Loops.

In the systems dynamics, causal loops diagrams depicts cause and effects relationships between variables as shown on the Workforce Diversity. There are two types of causal loops. Reinforcing or positive feedback loops and balancing or negative feedback loops. Feedback loops are common features of most systems both human and naturals systems. If item X affects item Y this can cause one or more attributes of Y to change, such as its numeric value or its components status. This is shown by connecting the two with directed arrows. A change in Y may also become the cause of a change in Z, resulting in a chain of cause and effect.

A positive sign (a letter 'S' for same direction) attached to the arrow head simply means that an increase in the value of item X causes an increase in the value of item Y . In reverse, a negative sign (the letter 'o' for opposite direction) indicates that the increase in X will result in a decrease in Y. An arrow from an item farther down the line in the cause and effect sequence to an earlier item is a feedback loop. Feedback loops are often responsible for the main cause of complexities in an organisation or a project. Over the last 40 years equality and diversity have developed systems for the general implementation in modern organizations.

Systems Thinking In Modern Organisation.

A system is composed of a number of connected entities. Systems Thinking is a holistic way to investigate factors and interactions that could contribute to a possible outcome. In causal loop diagram below, I have deliberately incorporated a pictogram for the construct of process management paradigm dealing with with mobility in modern organisation.

The whole diagram is enormously valuable in the building of high performing diverse teams, equally providing an understanding of the importance of mobility in modern organisations The objective is to show in one single sketch how to get complex problems tamed. Examining, the cause and effects relationship of Diversity and Inclusiveness, linking them together to form some meaningful loops, incorporating the drive factors in modern organisations. This is a complex problem that can be solved by thinking about the impact of how inclusive leadership can influence the organisation as it relates to decision making processes. Leading diverse teams by focusing on employee engagement to optimise performance of the whole organisation.

Process Management models are used to map improve and adhere to organisational continuous development and management of projects. Increased competition, the need for complex products within short timescales and the need for cross-functional teams to maximise corporate-wide resources makes project management an important tool-set for global enterprise. There is a growing need to understand the connection between project management and business strategy and also there a dramatic rise in the use of process management paradigm as a strategic change management to provide customer driven results and organisational solutions.

The Shift From Project Management To Process Management.

Total employee engagement produces competitiveness within the diverse teams, this can lead to creative tensions. Managed creative tensions triggers inspiration for an advancement in the organisation. The big idea of systems thinking here, is to show how practical causal tools and insightful techniques can enrich your future growth initiatives as you transition from project management to process management paradigm.

In conclusion Systems Thinking is subject to interpretation. Have fun with causal loops / pictogram and put your own interpretations on it.

Dennis John

Dejohne Consulting