Systems Thinking: A better way of problem-solving
The mere idea of thinking about your own style of thinking can be enough to give somebody a head-tilt and a thousand-mile stare. ‘Systems thinking’ can be a difficult concept to grasp entirely, as it challenges our traditional thinking which most of us have grown accustomed to. But, once understood, the concept of 'systems thinking' can be an effective approach for problem solving and decision-making.
“94% of problems in business are systems driven and only 6% are people driven.”
~ William Edwards Deming
WHAT IS A SYSTEM
We hear the word "system" used in all different places. From nurses in medical care, the IT gurus at work who are looking at developments, or even your kid’s soccer coach who is implementing a new team formation. The term is used everywhere and its meaning is sometimes lost in favour of management jargon. To be clear, a system is an interconnecting network of parts that work together — seems simple enough. But this definition of a system is just a precept for understanding systems thinking.
WHAT IS SYSTEMS THINKING
‘Systems thinking’ takes on a broader understanding. It is considered to be a way of looking at the world as a hierarchy of systems that all connect in some way. Through this interconnecting world-view approach, a different process for problem solving emerges. Rather than isolating a problem and then fixing it, which is a common practice using traditional thinking, the ‘systems thinking’ approach widens the view to observe the area surrounding a problem. It reviews an entire system when all its parts are functioning and considers how each part interacts with each other. Through this approach, ‘causal effects’ are identified and a ‘problem space’ is mapped-out. With this in-mind, ‘systems thinking’ is more defined through three particular characteristics:
1 - EMERGENT PROPERTIES
All systems are comprised of components that contribute to a complete and hooked-up system. When a system is complete, its emergent properties are on display, which are unable to be predicted by merely looking at a system’s components in isolation. Instead, all interacting components of a system contribute to reveal its emergent properties.
2 - HIERARCHAL STRUCTURE
All systems in the world sit in a hierarchy, and where they sit is determined by their emergent properties.
3 - CONTROL
Appreciates that there is a decision-making process taken to support a system’s purpose and its measures of performance.
SYSTEMS THINKING—A WORLD VIEW APPROACH
EMERGENT PROPERTIES
Take a bicycle comprising of a frame, two wheels, handlebars, brakes, pedals, saddle, etc. The main ‘emergent property’ of dynamic balance is only produced when a rider jumps on the bicycle. Together with a road, the bicycle only becomes a means of transport when somebody powers and controls it. Take any of these components away and the system falls apart. Therefore, the properties of a system cannot be predicted solely by looking at its components. In this case, the system is the bicycle, the person using it, and the environmental factors surrounding them both.
HIERARCHAL STRUCTURE
Here in Chicago, there is a local bicycle sharing arrangement known as DIVVY bikes. DIVVY is described as a “bicycle sharing system”, and it works by letting Chicagoans share over 4000 bikes that are situated across 400 docking stations located throughout the city. The hierarchal structure of this DIVVY system sits above each bicycle, which are then observed as sub-systems in relation to DIVVY. Both the DIVVY system and each bicycle’s individual system are connected, but they are not the same system. This is one example of a hierarchal structure that can be observed between two systems. You could take it further noting that the DIVVY system creates revenue for the city, and then observe DIVVY as being a sub-system of the State Revenue Department. This world-view approach of hierarchal systems being connected can extend infinitely, but when using ‘systems thinking’ as a process for problem solving, there are boundaries in how many hierarchal systems you need to consider.
CONTROL
In DIVVY’s and each bicycle’s system, an element of control is needed to help retain their system identities. This predicates the need for observation, monitoring, and action. In the case of a bicycle’s system, the rider effects decision-making to keep the system’s identity and emergent property alive. Similarly, the DIVVY system requires observation and monitoring of the locations of all bicycles. Action is taken if too many bicycles are in one docking station, and a truck then relocates them to another empty docking station to balance the availability of bikes across the city. Lastly, the State Revenue Department monitors the income received from the public use of DIVVY bikes and action is taken to increase the cost-of-use or whether to cease using the system altogether. Control is the need for decision-making in maintaining a system.
SYSTEMS THINKING—A PROCESS FOR PROBLEM SOLVING
By understanding ‘systems thinking’ as a world-view approach, its practical value emerges. The value itself is being able to use this world-view approach to observe a direct problem, while still understanding the wider interconnected situation that surrounds it. There is a process for undertaking this kind of problem solving. The benefits of this process is that it realises problems are rarely simple, instead they are rather complex and in need of well-considered solutions. While some people may insist that problems “aren’t a big deal”, this three minute video gives an insight into the value of ‘systems thinking’. It’s titled “A Cautionary Tale”, and it shows the risks associated with using traditional thinking to solve what is considered to be a simple problem, but it overlooks the complex systems surrounding the problem itself.
SYSTEMS THINKING—APPLIED
‘Systems thinking’ as a process looks to achieve three objectives: (1) understand a system’s dynamics—analysis; (2) understand a system’s hierarchy—synthesis; and (3) develop solutions—decision making. These three elements make it possible to apply ‘systems thinking’ as a function for problem solving.
For those to better understand how ‘systems thinking’ differs from traditional thinking, you must first grasp its elements. Firstly, synthesis looks at a whole system, or how a system functions entirely in its surrounding environment. Analysis, rather, looks at taking apart the system to understand the activities and behaviour of each component. Conducting analysis, or narrowly looking into a problem situation, is in line with traditional thinking. But where ‘systems thinking’ differs is combining synthesis to appreciate the impact on interrelated components of a system.
Ultimately, and central to applied ‘systems thinking’, is an acceptance that analysis and synthesis together contribute to learning. Being able to learn about a system’s dynamics and combining that knowledge with how it behaves amongst other interrelated systems, helps to identify better solutions for a problem. It’s important to know that analysis and synthesis are activities that together are a core fundamental for applied ‘systems thinking’. Only when these two elements are combined, do they support the third element being decision making. There is some synergy with the interplay of these three elements. They can be viewed as iterative activities that operate together. The figure below illustrates how the activities interrelate.
SUMMARY OF SYSTEMS THINKING
The introduction to ‘systems thinking’ provided here is merely a primer for those interested in improving their leadership and management skills. It’s important to note that ‘systems thinking’ is a skill that can be applied to a problem situation, but it isn’t always available due to constraints of time and cost. In any task or project, decision-making is the fundamental constant in leading or managing people and technology. But more importantly, it’s the information supporting decision-making that is ultimately responsible for good or bad performance of a leader or manager. ‘Systems thinking’ is a source for discovering and learning about a problem, it’s a process of inquiry that helps to make better-informed decisions. For those that are interested in learning more about ‘systems thinking’, there are a variety of tools and techniques that are practiced by leaders and managers. They require further understanding and focus more specifically on the “hard” and “soft” styles of 'systems thinking’.
If you’re a leader or manager at any level in an organisation, I encourage you to share this post with your network to promote the benefits that ‘systems thinking’ provides. It’s important for us to acknowledge the responsibility to properly manage systemic risks that are inherent in business. Failures will continue to occur, but leaders and managers who make decisions with a basic understanding of ‘systems thinking’ will be able to significantly reduce them.
References:
McLucas, A 2003, ‘Decision Making: Risk Management, Systems Thinking and Situation Awareness’, Argos Press, Canberra
Edson, R 2008, ‘Systems Thinking. Applied.’ Analytic Services Inc., Maryland