System Dynamics

System Dynamics sounds complicated, but is really about a few key simple concepts:

1.    Moving from looking at a single event or person to looking at the broader and deeper system/process.

2.    Increasing the scope of our perspective so a holistic approach is taken with resources and results.

3.    Deepen our perspective to take into account human natures impact on what initially appears logical.

4.    Lengthen the time frame we use since results typically change over time after a delay.

An Example

In the course of doing this, we must understand and be involved in a broader range of issues. In many ways, it is similar to The 5 Why’s that we hear about in Lean/Six Sigma environments. There is a typical example regarding seeing oil on the floor of a manufacturing company:

1.    One option is to simply clean up the oil. It demonstrates great work ethic. It fixes the event that occurred.

2.    If we ask “why is the oil on the floor?”, we may realize that the machine nearby is leaking and so the answer is to fix the machine. That is higher level and requires willingness to ask the “why” and to explore the nearby environment.

3.    If we ask “why is the machine leaking?”, we may find that there is not a regular check and maintenance program being used. This may cause us to set up a regular maintenance program. That brings value not just to the problem machine, but to the entire group of machines around the plant. This requires us to understand maintenance and processes etc.

4.     If we ask “why did we not have a maintenance program?”, we may find we are not providing the maintenance manager and other positions clear expectations of key deliverables and so now we realize we must build key deliverables for positions.

The Five Focuses

In life and business we can choose at what level we focus on the world. It is a choice. If we don’t make the choice, our minds have a tendency to focus at lower levels, immediate events and not on the bigger longer term more valuable picture. System Dynamics is a way of looking at the world from a different focus, or more accurately, a set of different focuses.

1.    Uncontrollables Focus: I have found in the past that too often people complain about issues over which they have no control. For example, the weather. All I know to do is to carry an umbrella and a jacket. 

Discussions about uncontrollables or situations we are unwilling to address, when we do have the ability to influence them, is a waste of time. The result of this type of complaining is that it burns energy and time that could be creatively used to produce better results and everyone involved would have more fun.

Both in business with teams and individuals as well as my personal life, as I have said “let’s not waste time on that unless we believe we can influence and are willing to influence the outcome”, my life and those around me has become much better for everyone (except those in the horrible and destructive habit of being a cynic and complaining. They typically begin to not interact with me). 

2.    Event Focus: Many people also complain about events. They may have been able to influence them. People in general seem to overreact to events. My definition of an event is that it was one occurrence. This is generally low level focus.

3.    Pattern Focus: Patterns are what start to get my attention. These are the dangerous and expensive part of business, relationships and delivering results. Great patterns in many cases are the reasons for an individual, team or organization’s continued sustainable success. 

Bad patterns in many cases are what prevent individuals, teams and organizations from succeeding because they not only produce poor results, there is lack of trust in those they work with, are delivering to and getting support from.

4.    Systems/Processes Focus: When we see a good pattern, the goal is to identify what is being done to create that pattern. Can we duplicate these great results intentionally? If there are some negative events from it, can we reduce the % of those events?

If the pattern is bad, what system or process can be used to create a higher level and better set of patterns?

5.    Mental Model Focus: A system or process is good, but we also need a way to think about them. Over time circumstances change and so how we may have to change how we run a system/processes. There are also exceptions periodically to standardized or habitual processes. Knowing the questions to ask and where to explore to continually refine and improve how individuals, teams/departments and organizations operate together is the most valuable long term source of focus.

The Bottomline, What To Do:

1.    In every interaction, choose your focus. Yesterday I had a coaching session with a business leader and we started first with an Event Focus, transitioned to a System Focus and ended with a Mental Model Focus. We intentionally did this from the outset of the conversation.

2.    Help others to intentionally move between levels by using questions to get them to shift levels. Lay out the levels and ask them if they are providing the right amount of focus at the right levels. This will help them have a better strategic discussion with powerful brainstorming and decision making.

3.    Next time you want to blame someone, examine the role of the process/system in the result. Identify with others if there is a new way of thinking about the situation.

4.    Determine, with the team, if there is a system for feedback along the way that help those involved to course correct. It may also be that a pre-launch meeting may help to prevent problems and maximize the big win/home run.

5.    Ultimately, look longer term, broader and deeper and you will surprise both yourself and others at what you see, learn and are able to do!