Develop a Systems Thinking Mindset
We are surrounded by systems. The products, processes, and projects that we work on are increasingly complex and interrelated systems. Systems thinking helps individuals and organizations examine complexities and simplify it. Systems thinking is the ability or skill to perform problem-solving in complex systems. This is an essential skill to improve the performance of the projects and processes. Individual contributors who want to perform at their highest potential; managers who intent on architecting successful and collaborative teams, can apply systems thinking to improve the performance. Systems thinking can be used in diverse areas such as logistics & transportation, project management, and computation etc.?
Barry Richmond the originator of the systems thinking term, defines systems thinking as the art and science of making reliable implications about behaviour by developing an increasingly deep understanding of underlying structure. Linear thinking is cause-and-effect thinking - one cause has one effect, but Systems thinking provides a perspective that, most of the time, various components affect each other in various, and often unexpected ways. It is a combination of creative thinking and critical thinking.
What is System?
According to Donella Meadows “A system is a set of related components that work together in a particular environment to perform whatever functions are required to achieve the system’s objective.” In other words, if there is no relationship between elements, it is not a system. A system is an entity with interconnected and interdependent parts; it is defined by its limitations and it is more than the totality of its parts (subsystem). Changing one part of the system affects other parts and the whole system, with predictable patterns of behaviour.
According to the book Thinking in Systems, “A system is a group of interacting parts. These parts form a unified whole which is directed towards a specific goal. This whole (the system) has widely differing properties which are greater than the sum of its parts. System display emergence, which means a small change to one part can have an outsized and unpredictable effect upon the whole system.” Examples of systems are the human body or a business system etc.?
Systems Thinking vs System Dynamics
System dynamics is an approach to understanding the nonlinear behaviour of complex systems over time using stocks, flows, internal feedback loops, table functions, and time delays. It is a methodology and mathematical modelling technique to frame, understand, and discuss complex issues and problems. System dynamics is an aspect of systems theory as a method to understand the dynamic behaviour of complex systems. Systems thinking is a causality driven approach to describe the interrelations between parts and systems. System dynamics quantify the impact on the interactions between parts and systems.
Fundamental Concepts of System Thinking
Interconnectedness
Systems thinking requires a shift in mindset, away from linear to circular. The fundamental principle of this shift is that everything is interconnected. We can shift the way we see the world from a linear, structured “machine-driven worldview’ to a dynamic, chaotic, interconnected array of relationships and feedback loops. This skill involves the ability to identify key connections between parts of a system. A systems thinker uses this mindset to untangle and work within the complexity of life on Earth. For example, in a project scenario, the schedule is connected to scope and cost, and vice versa.
Synthesis
The word synthesis comes from the Greek word meaning “to put together.” Synthesis is a process of reasoning whereby we put dissimilar parts together to gain an understanding of the whole. Synthesis is the opposite of analysis. Synthesis is focused on the relationship between parts of the system. Synthesis is about understanding the whole and the parts at the same time, along with the relationships and the connections that make up the dynamics of the whole. Basically, synthesis is the ability to see interconnectedness.
Feedback Loops
Feedback is defined as the sending and returning of information to a system. The primary function of feedback is to let a system know how it is doing relative to the desired state. Since everything is interconnected, there are constant feedback loops and flows between elements of a system. The two main types of feedback loops are reinforcing and balancing.?
Systems Mapping
Systems mapping is one of the key tools of the systems thinker. The central principles and practices of systems mapping are general. Recognize and map the elements of ‘things’ within a system to understand how they interconnect, relate, and act in a complex system, and from here, exclusive insights and discoveries can be used to create interventions, shifts, or policy decisions that will intensely change the system in the most effective way. There are various types of Systems Mapping like behaviour over time graph, Iceberg model, Casual Loop diagram and connected circles
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Causality
Cause and effect are common concepts in many professions and life in general. Causality as a concept in systems thinking is about being able to interpret the way things influence each other in a system. Understanding causality leads to a deeper perspective on the agency, feedback loops, connections and relationships, which are all fundamental parts of systems mapping.
Bottleneck Reduction
According to the book Thinking in Systems, “As a chain will always have the weakest link, there will always be the weakest constraint within a system. We call this constraint the bottleneck, the point of greatest congestion causing delay within a system.” Performance of any system is essentially restricted by the output of the bottleneck. The inefficiencies brought about by the bottleneck often creates delays and higher production costs. Systems thinking helps in bottleneck reduction.?
Leverage?
Leverage is the ability to influence a system in a way which returns maximum effect per unit of effort. With limited time, energy, and focus to invest, we can maximize our ROI from these resources by applying them with leverage. For example, think about a bathtub. The faucet and drain are the leverage points. If you turn on the water but don't close the drain, water will keep flowing and the tub will never fill. Leverage tells us that there will always be opportunities to make a small change which will have an outsized effect.
Second-Order Thinking
Second-level thinking is a hands-on process, where you critically assess your options in order to make the best long-term choices. Second-order thinking is more cautious. It is thinking in terms of interactions and time, understanding that despite our intents, our intrusions often cause harm. Second-order thinkers ask themselves the question – “And then what?” Second-order thinking is the process of sketching down and untying the implications of those first-order effects.
Our world is made up of interconnected and interdependent systems. Systems thinking is a way of helping a person to view systems from a broad viewpoint that includes seeing overall patterns, structures, and cycles in systems, rather than seeing only specific events in the system. As a manager, you are always employed at the micro-level of the process or project. You are into the nitty-gritty of projects and systems. With systems thinking approach, you will be able to gain a leader’s bird-eye viewpoint at the projects and processes. The interconnectedness and interdependencies will be clear to you. This broad view can help you to quickly identify the real causes of issues in the organizations and know just where to work to address them.
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