CHAPTER 2
What is Systems
Thinking?
Contents
01 02 03
The Principles of Systems Thinking Elements of the
Thinking as a Special Language
Language
04 05
Learning the The Language of
Language Systems Thinking
THE
PRINCIPLES
OF
THINKING
The Principles of Thinking
1. The “Big Picture”
During stressful times, we tend to focus on the
immediate, most pressing problem. Systems
thinking teaches us to step back and look at the
whole picture. Every problem is part of a bigger
system, and to find its source, we need to consider
that larger context.
With this wider perspective, you’re more likely to
find a more effective solution.
EXAMPLE OF THE “BIG PICTURE”
Imagine you work for a regional appliance distributor facing service delays. As a
manager, your instinct might be to focus on technicians or order systems, but step back
for a broader view.
What if you knew that about six weeks before the service crisis started, the sales
group had implemented an incentive program that included free set-up and
installation of new appliances?
To sell more appliances, the sales force encouraged customers to make service
appointments as soon as their delivery dates were set. Then a service person could
come out to install the appliance and make all the electrical and water connections.
However, because the customer service department had not been informed of the
incentive program, it had no opportunity to add staff to handle the installation incentive.
With this wider view, you might conclude that the delays in providing customer service
do not come from the customer service department, and you might choose a different
path to solving the problem.
2. Long Term, Short Term
How often does your organization expect to see
results of its activities? In a year? A quarter? A week?
Systems thinking shows that behavior that leads to
short-term success or that is prompted by short-term
assessments can actually hurt long- term success.
However, the point is not that the long-term view is “better” than the short-
term view.
In thinking about any decision, the best approach is to strike a balance, to
consider short-term and long-term options and to look for the course of
action that encompasses both. At the very least, try making your decisions by
first thinking through their likely ramifications—both short term and long term.
EXAMPLE OF THE “LONG TERM, SHORT TERM”
As a business grows, it may use consultants to handle its
human resource and training functions. In the short run, this
sensible business decision can bring in a high level of
professional expertise. If the company decides that
consulting help is getting too expensive, how- ever, it will
eventually move to develop its own in-house HR and training
department.
To balance the long and the short term, the company could
phase in internal expertise at certain levels of revenue, sales
volume, or staffing, and overlap internal and outside
resources while the new staff members get their bearings.
Whether you’re focusing on the long term or the short term,
the key is to be aware of all the potential impacts of
whichever strategy you choose.
3. Dynamic, Complex, and Interdependent
Things change all the time, life is messy, and
everything is connected.
However, when we’re struggling, we tend to want
to simplify things, create order, and work with one
problem at a time.
Systems thinking doesn’t advocate abandoning
that approach altogether; instead, it reminds us
that simplification, structure, and linear thinking
have their limits, and can generate as many
problems as they solve.
The main point is that we need to be aware of all
the system’s relationships—both within it and
external to it.
4. Measurable vs. Non-measurable Data
Systems thinking encourages the use of both kinds of data, from measurable
information such as sales figures and costs to harder-to-quantify information
like morale and customer attitudes. Neither kind of data is better; both are
important.
Systems thinking also alerts us to our tendency to “see” only what we measure.
If we focus our measuring on morale, working relationships, and teamwork, we
might miss the important signals that only statistics can
show us.
On the other hand, if we stay riveted on “the numbers,”
on how many “widgets” go out the door, we could
overlook an important, escalating conflict
between the purchasing and the production departments.
5. We Are Part of the System
Unintended consequences. Assumptions. Values and beliefs.
Sometimes the connection is Sometimes our Deeply held values and
simple—the problem assumptions are what beliefs can lock us into
plaguing us today is an get us into trouble. counterproductive ways
unintended consequence of of making decisions.
a solution we implemented
yesterday.
SYSTEMS
THINKING AS
A SPECIAL
LANGUAGE
Systems Thinking as a Special Language
As a language, systems thinking has unique qualities that make it a valuable
tool for discussing complex systemic issues:
• It emphasizes looking at wholes rather than parts, and stresses the role of
interconnections. Most important, as we saw earlier, it recognizes that we are
part of the systems in which we function, and that we therefore contribute to
how those systems behave.
• It is a circular rather than linear language. In other words, it focuses on
“closed interdependencies,” where x influences y, y influences z, and z come
back around to influence x.
• It has a precise set of rules that reduce the ambiguities and
miscommunications that can crop up when we talk with others about
complex issues.
• It offers visual tools, such as causal loop diagrams and behavior over time
graphs. These diagrams are rich in implications and insights.
• It opens a window on our mental models, translating our individual
perceptions into explicit pictures that can reveal subtle yet meaningful
differences in viewpoints.
To sum up, the language of systems thinking offers a whole
different way to communicate about the way we see the
world, and to work together more productively on
understanding and solving complex problems.
Language has a subtle, yet powerful effect on the way we
view the world. English, like most other Western languages, is
linear—its basic sentence construction, noun-verb-noun,
translates into a worldview of “x causes y.” This linearity
predisposes us to focus on one-way relationships rather
than circular or mutually causative ones, where x influences
y, and y in turn influences x. Unfortunately, many of the most
vexing problems confronting managers and corporations
today are caused by a web of tightly interconnected circular
relationships. To enhance our understanding and
communication of such problems, we need a language more
naturally suited to the task.
ELEMENTS
OF THE
LANGUAGE
Elements of the Language
Systems thinking can be thought of as a language for communicating about complexities and
interdependencies. In particular, the following qualities make systems thinking a useful framework for
discussing and analyzing complex issues:
Focuses on “Closed Interdependencies.”
The language of systems thinking is circular
rather than linear. It focuses on closed interdependencies,
where x influences y, y influences z, and z influences x.
Is a “Visual” Language.
Many of the systems thinking tools—causal loop diagrams, behavior-over-time diagrams, systems
archetypes, and structural diagrams —have a strong visual component. They help clarify complex issues
by summing up, concisely and clearly, the key elements involved. Diagrams also facilitate learning. Studies
have shown that many people learn best through representational images, such as pictures or stories. A
systems diagram is a powerful means of communication because it distills the essence of a problem into
a format that can be easily remembered, yet is rich in implications and insights.
Adds Precision.
The specific set of “syntactical” rules that govern systems diagrams greatly reduce the ambiguities and
miscommunications that can occur when tackling complex issues.
Example:
In drawing out the relationships between key aspects of a problem, causal links are not only indicated by
arrows, but are labeled “s” (same) or “o” (opposite) to specify how one variable affects another. Such
labeling makes the nature of the relationship more precise, ensuring only one possible interpretation.
Forces an “Explicitness” of Mental Models.
The systems thinking language translates “war stories” and individual perceptions of a problem into
black-and-white pictures that can reveal subtle differences in viewpoint.
Example:
In one systems thinking course, a team of managers was working on an issue they had been wrestling
with for months. One manager was explaining his position, tracing through the loops he had drawn, when
a team member stopped him. “Does that model represent your thinking about this problem?” he asked.
The presenter hesitated a bit, reviewed his diagram, and finally answered, “Yes.”
The first man, evidently relieved, responded, “After all of these months, I finally really understand your
thoughts on this issue. I disagree with it, but at least now that we are clear on our different viewpoints, we
can work together to clarify the problem.”
Allows Examination and Inquiry.
Systems diagrams help people collectively understand a problem and collaborate on solutions. They shift
discussions from personal opinions to constructing a system behavior diagram, reducing defensiveness
in debates.
Embodies a Worldview
that looks at wholes, rather than parts, that recognizes the importance of understanding how the different
segments of a system are interconnected. An inherent assumption of the systems thinking worldview is
that problems are internally generated—we often create our own “worst nightmares.”
Example:
In systems thinking courses, participants often play the "Beer Game," taking on various roles in the supply
chain. They try to balance inventory levels, but when issues arise, blame is often placed on suppliers or
buyers. In reality, these fluctuations result from the system's structure, not the actions of individual
players.
The systems thinking worldview dispels the “us versus them” mentality by expanding the boundary of
our thinking. Within the framework of systems thinking, “us” and “them” are part of the same system
and thus responsible for both the problems and their solutions.
LEARNING
THE
LANGUAGE
Learning systems thinking is like learning a foreign language. We
start with basic vocabulary and verbs, then construct sentences. In
systems thinking, diagrams like causal loops are our sentences,
connecting variables to show causal relationships. Combine loops to
create a coherent "paragraph" explaining a problem.
Of course, the key to becoming more proficient in any language is to
practice—and practice often.
When reading a newspaper article, for example, try to “translate” it
into a systems perspective:
• take events reported in the newspaper and try to trace out an
underlying pattern that is at work,
• check whether it fits one of the systems archetypes, or if it is
perhaps a combination of several archetypes,
• then try to sketch out a causal loop or two that captures the
structure producing that pattern.
Becoming Fluent
Don’t expect to be fluent in systems thinking right
away.
We say that someone is fluent in a language when they
begin to think in that language and no longer have to
translate. But fluency means more than just an ability
to communicate in a language; it means understanding
the surrounding culture of the language—the
worldview.
As with any foreign language, mastering systems
thinking will allow us to fully engage in and absorb the
worldview that pervades it. By learning the language of
systems thinking, we will hopefully change not only the
way we discuss complex issues, but the way we think
about them as well.
THE
LANGUAGE
OF SYSTEMS
THINKING
The Language of Systems Thinking
1. Linear Thinking
Focuses on the immediate cause and effect of events. Cause and effect
are assumed to occur together.
2. Systems Thinking
Focuses on the interrelationship and dynamics among system
components. Cause and effect are separated in time and space.
3. Detail Complexity
Characterized by many variables and complex arrangements. Cause
and effect occur together. It is the basis for linear thinking.
4. Dynamic Complexity
Created by system structural interrelationships and dynamics. Cause and
effect are separated in time and space. It is the basis for systems thinking.
5. Convergent Problems
A quantified and optimal solution is possible. Linear thinking usually provides acceptable
solutions to these problems.
6. Divergent Problems
No best solution can be determined and many solutions are possible. Long-term solutions to
these problems usually require a systems approach.
7. Circles of Causality
Every event or happening is both a
cause and an effect
8. Feedback
Observed patterns of behavior or results of actions taken.
9. Leverage
Highly focused actions that can change system structure.
