Leading Through Systems for Real Leadership Effectiveness

This article delves into how systems thinking can transform leadership approaches. We’ll explore various systems—from global economic structures to personal nervous systems—and their implications for leadership. Through practical exercises and reflective questions, we’ll uncover how leaders can harness systems thinking to address challenges, foster collaboration, and drive continuous improvement.

What is a System?

A system is a set of interconnected components or elements that form a complex whole. These components interact according to specific rules or relationships, and their interactions contribute to achieving a particular goal or purpose. Systems can exist in various forms, including biological, mechanical, social, and organisational systems.

There are loads of system theories, and while for theorists, it matters, for leadership, we need to know how systems thinking and systems influence how we are effective.

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Key characteristics of a system include:

Interconnectedness: The parts or elements of a system are linked and influence each other.

Purpose: Systems often have a purpose or function, such as maintaining balance, producing outputs, or achieving objectives.

Structure: Systems have an organised structure, defining how parts relate and interact.

Boundary: A system has boundaries that distinguish it from its environment, though inputs and outputs may cross these boundaries.

Feedback: Systems often rely on feedback loops to regulate and adapt to changes, ensuring they remain functional.

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How Does a System Relate to Leadership?

In the context of leadership, viewing an organisation or group as a system emphasises the importance of understanding how different parts of the organisation interact and influence each other. A leader's role within a system is to facilitate effective functioning by ensuring that all parts are aligned, integrated, and working toward the organisation's overall goals.

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Here’s how systems thinking relates to leadership:

Holistic Perspective: Effective leaders recognise that an organisation is not just a collection of isolated departments or individuals. Instead, it's an interconnected system where decisions in one area can impact other parts. Leaders with systems thinking understand the ripple effects of their actions across the whole organisation.

Problem-Solving: Leaders who think about systems approach problems by examining root causes and interdependencies rather than just addressing surface-level symptoms. They consider how various factors—people, processes, resources—affect one another and how to balance short-term solutions with long-term sustainability.

Collaboration and Teamwork: Since systems require the different elements to work in harmony, leaders need to foster collaboration and effective communication among team members and departments. Strong leadership encourages cooperation to ensure that other system parts are aligned and functioning optimally.

Adaptability and Change Management: Systems are dynamic and often need to adapt to internal and external changes. Leaders are crucial in guiding the organisation through these changes by adjusting structures, processes, or strategies in response to new information or feedback.

Feedback and Continuous Improvement: A system thrives on feedback loops. Leaders must create mechanisms for receiving and responding to feedback, allowing for continuous learning and improvement. This can involve performance reviews, open communication channels, and encouraging innovation.

In essence, systems thinking equips leaders with the tools to see the bigger picture, anticipate challenges, and make more informed, strategic decisions that benefit the entire organisation.

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The systems we work within

Global Systems of Oppression ?

There are underlying belief systems embedded in institutions and assumptions, often unconsciously. Bell Hooks defines White-Supremacist Capitalist Patriarchy as a system of interlocking oppressions where race (white supremacy), class (capitalism), and gender (patriarchy) work together to maintain and perpetuate domination over marginalised groups. Each component reinforces the others, creating a complex structure that upholds inequality and prevents true liberation from any single form of oppression.

Global Economic systems

A global economic system is the worldwide framework of economic activities, including trade, finance, and production, that connects different national economies. It is shaped by global institutions like the International Monetary Fund (IMF), World Trade Organization (WTO), and multinational corporations. The system operates across various economic ideologies, such as capitalism and socialism, and is influenced by international trade agreements, currency fluctuations, and global market trends.

·?????? Example: The European Union (EU) operates within the global economic system by engaging in free trade agreements with countries such as Japan and Canada (CETA), allowing for the flow of goods, services, and investments. The 2008 global financial crisis, originating in the US, also had significant economic repercussions in the EU, affecting economies like Greece, Spain, and Italy.

National economic systems

A national economic system refers to the structure through which a country manages its economic activities, including production, consumption, and the distribution of resources. This can include free-market economies, mixed economies, and socialist economies. National systems vary based on the country’s regulations, fiscal policies, and economic goals, with governments often playing a role in managing inflation, unemployment, and growth.

·?????? Example: Germany operates a social market economy, combining free-market capitalism with a strong welfare state. This system allows the country to maintain robust industrial growth while offering comprehensive social services like healthcare and education. France has a similar model, with significant state involvement in sectors such as energy and transport.

Industry systems

An industry system refers to the network of organisations, suppliers, labour, and regulatory frameworks within a specific industry. It includes how resources are sourced, processed, and delivered to consumers, as well as how companies in the industry collaborate and compete.

·?????? Example: The European automotive industry, led by companies like Volkswagen, Renault, and BMW, operates within a complex system involving extensive supply chains across multiple EU countries. The industry's competitiveness is also shaped by EU regulations, such as emissions standards, which encourage innovation in electric vehicles (EVs).

Organisational systems

An organisational system refers to an organisation's internal structure, roles, processes, and communications that enable it to function and achieve its objectives. It involves formal hierarchies, decision-making processes, and the interaction between departments such as HR, finance, and operations.

·?????? Example: The European Central Bank (ECB) operates an organisational system that includes governing bodies, policy divisions, and various operational units. This system allows it to manage monetary policy for the Eurozone, regulate banks, and ensure financial stability across member states.

Team systems

A team system is a framework within which individuals work together towards a shared goal. It includes collaboration, delegation of tasks, and communication within the team. Effective team systems rely on mutual accountability, clear roles, and efficient workflows.

·?????? Example: The European Space Agency (ESA) operates team systems where scientists, engineers, and project managers collaborate on missions such as the Rosetta mission to study comets. Each team member has a specific role, but they work together to ensure the mission’s success, sharing knowledge and resources across different countries.

Family systems

A family system is a social structure in which individuals interact based on roles and relationships influenced by culture and society. Family systems theory suggests that changes in one part of the family can affect the whole system, with family members acting interdependently.

·?????? Example: In many European countries, such as Italy, family systems often involve strong intergenerational ties, with grandparents playing a significant role in childcare and family decision-making. This system is shaped by cultural values and the economic reality of high youth unemployment rates, leading to extended family support structures.

Internal/Personal Nervous System

The internal nervous system refers to the complex network of nerves within your body that manages and coordinates bodily functions, behaviours, and responses to stimuli. It encompasses the autonomic nervous system (ANS), which regulates involuntary bodily functions like heart rate and digestion. It is divided into two branches: the sympathetic nervous system (responsible for the "fight or flight" response) and the parasympathetic nervous system (which promotes relaxation and recovery).

This system is essential for survival and connects deeply to the body’s response to external and internal stimuli, particularly stress. It is closely tied to Polyvagal Theory, developed by Dr. Stephen Porges, which explains how the vagus nerve influences our emotional regulation, social connection, and responses to threats. According to Polyvagal Theory, our internal nervous system shifts between different states (fight, flight, freeze, fawn) depending on perceived safety or danger.

How It Relates to the Fight, Flight, Freeze, Fawn Responses:

Fight: Triggered when people perceive a threat they believe they can overcome. The body responds by preparing to confront the danger, increasing adrenaline and heart rate.

• Example: In a situation where you feel threatened in a heated argument, your body may react by tensing muscles and raising your voice, preparing for a confrontation.

Flight: When the nervous system perceives an escape route as the best option, it triggers the flight response, leading to an increased heart rate, rapid breathing, and a rush of energy to flee from danger.

• Example: When encountering a dangerous situation, such as a car accident about to occur, your immediate reaction might be to swerve or quickly remove yourself from the scene.

Freeze: In cases where neither fight nor flight seems viable, the body may go into a freeze response. This involves shutting down, becoming immobile, or dissociating from the situation.

• Example: During a highly traumatic event, such as witnessing a natural disaster, some individuals may feel paralysed, unable to move or react as their body shuts down.

Fawn: This is the lesser-known response, often triggered when a person tries to avoid conflict or harm by seeking to appease or please the perceived threat.

• Example: In situations of ongoing abuse, individuals may try to placate the abuser as a way to minimise harm or avoid escalation.

Connecting the Internal Nervous System to Larger Systems

Your internal nervous system doesn’t function in isolation—it connects you to the larger biopsychosocial systems of your environment. How your body responds to stress, danger, or safety reflects the systems you operate within, such as family, community, and workplace environments. For example, chronic stress in a toxic workplace can keep you in a state of heightened alertness (fight or flight), which negatively impacts both your physical health and social interactions. Conversely, a supportive family system can help your body remain relaxed and parasympathetic, promoting emotional regulation and well-being.

In the context of Polyvagal Theory, understanding how your nervous system reacts to different situations helps you navigate and respond to the external world more effectively, offering tools for managing stress, building resilience, and fostering healthier relationships within broader social and organisational systems.

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Exercise: Systems Mapping for Leadership

Step 1: Identify a Key Challenge Think about a significant challenge your organisation or team is facing. Please write it down in the centre of a sheet of paper.

Step 2: Map the System Around the challenge, please list all the different elements or components (people, departments, external factors, resources) that are related to it. Draw lines connecting them and the central issue. Please pay attention to how they influence one another.

Example: If you’re struggling with team performance, consider communication channels, leadership styles, external pressures, team relationships, and organisational goals.

Step 3: Identify Interconnections Look at the map and identify how different parts of the system interact. Where do small changes in one area have big ripple effects? Highlight any feedback loops, bottlenecks, or areas where information flow could be improved.

Step 4: Reflect on Leadership Role Consider your role as a leader within this system. Where are your decisions or actions having the most impact? How are you influencing the system positively or negatively?

Step 5: Action Plan Based on your insights, create an action plan that includes steps to optimise the system. This could involve improving communication, fostering collaboration, or addressing feedback loops to improve outcomes.

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Reflective Questions: Embedding Systems Thinking into Leadership

1.?????? Interconnectedness: How are the different parts of my organisation/team connected? What are the potential ripple effects of my decisions across the system?

2.?????? Holistic Perspective: Am I addressing the root causes of issues, or am I focusing on surface-level symptoms? How can I broaden my understanding to see the full picture?

3.?????? Collaboration and Teamwork: How well do the different components of my team or organisation work together? Are there areas where communication or collaboration could be strengthened to align with our goals?

4.?????? Feedback and Adaptation: How does my organisation respond to feedback? What mechanisms do I have in place to gather and act on feedback to ensure continuous improvement?

5.?????? Adaptability and Change Management: How does my leadership approach ensure the system can adapt when faced with change? Am I flexible enough to adjust strategies based on new information or feedback?

6.?????? Global Systems Awareness: How do external factors (global economic, social, or environmental systems) influence my organisation? How can I anticipate and respond to these broader influences as a leader?

7.?????? Internal Personal Systems: How do my stress responses (fight, flight, freeze, fawn) influence my leadership style, especially in high-pressure situations? How can I regulate my nervous system to be a more effective leader?

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