SYSTEMS THINKING AND STRATEGY

Systems Thinking and Strategy



Systems thinking is an approach for developing models to promote our understanding of events, patterns of behavior resulting in the events, and even more importantly, the underlying structure responsible for the patterns of behavior. If we are interested in addressing a particular situation it is only through our understanding of the underlying structure that we will be able to identify the most appropriate leverage points to effect change within the system.

After years of doing what I thought was systems thinking, one day I asked myself the fateful question, "How is it that I actually go about doing this?" Finding that I didn't have a real good answer to this question prompted me to write this paper in an attempt to sort out an answer.

Define the Situation

Develop a description of the situation as it is currently perceived. Ensure that the description doesn't attempt to describe the situation from the perspective of possible solutions. If there are multiple perspectives on the situation describe those also. "Formulating Questions" may be of some assistance in understanding how to describe the situation.

Is Systems Thinking Appropriate?

While systems thinking is an approach that can provide a very rational view of the situation, as well as the identification of approaches that are highly likely to produce the desired result, it is an approach that requires a substantial investment of effort. The following are some of the signs that indicate a systems thinking approach is most likely warranted.

There are multiple perspectives on just what the situation is, and how to deal with it.

Things seem to oscillate endlessly.

A previously applied fix seems to overshoot the goal

A previously applied fix has created problems elsewhere

Over time there is a tendency to settle for less

After a fix is applied the problem returns in time

The same fix is used repeatedly

There is a tendency to allow an established standard to slip

Growth slows over time

Partners for growth become adversaries

Limitations experienced are believed to result from insufficient capacity

There is more than one limit to growth

Limited resources are shared by others

Growth leads to decline elsewhere

These are the most often experienced situations indicating a systems thinking approach is appropriate. These indicators are actually an interrelated set of systems archetypes, which are described in "theWay of Systems".

A systems thinking approach is unwarranted whenever the situation contains no balancing or reinforcing feedback. That is, when the action and the result has no affect on the actors, which is actually very seldom the case.

Research consistently shows that over 70% of all strategic change projects fail. The major reasons cited are poor implementation and people problems. Given that there is such a high failure rate, it seems reasonable to assume that the problem lies, not within the individual strategic plans, but rather the underlying methodology or models used to develop those plans. Such methodologies can be considered as meta-strategies, or the strategies about creating ...