Leadership and Change
Management
Lecture I, Date: 11.01.2018
Contents
• System Theory – Introduction
• Postulates of system theory
• Values and Roles
• System Theory of change
• Open system Analysis
• Benefit of System Thinking
• Examples
Think Systems
• Think possibilities, not solutions
• Encourage bottom-up thinking
• Focus on new different questions, ones that generally no one asks.
• Challenge existing assumptions
• Look for patterns and relationships
• New ways and metaphors
System theory System
• System is a regularly interacting and interdependent group of people, items,
parts that form a unified whole with the purpose of establishing a goal.
• A system exists within a system of which is a part. A system is a “holon” as it
is whole in one context while being embedded inside another. Example:
Family
• The interdependence of different parts of a system is described as a
“holarchy”
• A system imports many things from the large system it is a part of. For
example if a mood of anxiety prevails in the large system, the smaller system
would also reflect the same.
Systems Theory Postulates
• All systems are alive.
• All systems are interdependent with other
systems.
• Systems strive for survival. Systems exist within
a hierarchy.
• Systems need to be open systems to survive.
• Systems have irreducible characteristics that
belong to the system as a whole.
• Sub-systems contribute to the survival of the
larger system.
System Theory Postulates
• System behavior depends on the system structure.
• Systems thrive on self-organization.
• Understanding systems means understanding patterns, relationships and
roles.
• Systems live in dynamic tension between order and chaos.
• Systems strive to attain dynamic equilibrium.
• The greatest system learning and adaptation occurs at points of
disequilibrium.
• There is an optimum size for all systems determined by their inherent
nature.
Macrocosm-Microcosm Principle
• Macrocosm: A large entity like the country (system)
• Microcosm: A smaller version of the larger entity like a village
Principle: The microcosm mirrors the macrocosm.
In a living system the characteristics and force fields that exist in the larger system are
recapitulated in every part of the sub-systems.
If the larger system is enthusiastic, you would see the same pattern in all sub-systems.
Similarly if the organization is in resistance, so would
The sub-systems. Their way of resistance however could be different from one sub-
system to another.
A good leader would possess the ability to read through the patterns.
System thinking
• Helps leaders to link the macro (the big) with the micro (the small).
• Global forces to local issues
• Macro policy to micro implementation.
• Social Character to individual personality
This brings coherence to organizational vision.
Being a system thinker…
• All systems are interlinked in nature.
• Patterns and Relationships are more important than forces and events. (A
system thinkers minds would look for a story in bullet points.)
• Such patterns/relationships also change.
• A good system thinker would possess sound understanding of the structure of
relationships. S/he would have the capacity to predict such changes based on
scenarios.
• A system thinker uses mental models based on scenarios and not events. (low
income, EMI default).
• A system thinker focuses on overall preparedness and not on situation specific
responses.
A system leader’s view of an organization
Values and Roles
• Values : Competence, Safety, Integrity, Caring
• Roles
• Techies, HR, Finance are traditional roles
• Emotional and psychological roles
• Manufacturing/quality – source of pride.
• Finance – sense of security.
• Values and Roles
• Different role holders may represent different values.
• Finance may represent “thrift” or “accountability”. HR might be about caring. Manufacturing
about efficiency.
• If there is a discordance, the matter should be investigated.
• For example, the HR department should stand for “care”. But if it is feared or disliked, the
leader should sense something was wrong.
A system thinking mind set
• Reality is seen as an inter-related network of systemic relationships.
• The network of relationships is wide, varied and always inviting new Interdependence
possibilities.
• Reality is apprehended through system narratives.
• Narratives place emphasis on values, roles and patterns of changing
relationships. Multiplicity
• Reality is explored from multiple competing perspectives.
• Reality is appreciated as comprising multiple competing perspectives.
• Reality is in flux, ambiguous, uncertain and moving toward new possibilities.
• Change occurs simultaneously and not in linear sequence of cause and effect. Fluid Nature of change
• System components assume roles to advance the survival and health of the
greater system.
• Understanding systems requires an interpretation of values, roles and
relationships.
• System roles reflect its values, emotions and mindset (beliefs and Values, roles and emotions in the system
assumptions).
• Systems can never be totally understood – an element of mystery
The systemic nature of change
• The source of new realities i.e. New realities arrive from the larger system.
• They are always systemic. they have an effect across systems.
• They are arrive in patterns and waves, i.e. not they are isolated, unrelated incidents or events.
• They are not necessarily linear in apparent cause–effect impact.
• They always impact several relationships or stakeholders.
• They have a ripple effect across systems – a new reality for one part of the network creates a
new reality for another.
• They simultaneously create new realities across networks.
• They are often first recognized intuitively.
• They impact values and roles represented by parts of the system.
• They often change relationships between networks and sub-systems.
Open system process analysis
1. Define a conceptual boundary for the system you are going to analyze. Is it the global arena, the nation, a
particular industry, or. ...? In the globalizing world of today your boundary is most likely to be wide, as nations
and industries are no longer geographically defined. Be sure not to define the boundary too broadly as the
analysis will become too complex to handle. If you define it too narrowly you will of course miss critical issues.
2. Identify key trends and new realities manifest in the macro environment. Here you will need broad horizons
since everything is related to everything else. On the other hand, clearly you cannot embrace everything, so
thoughtful screening will be necessary.
3. Identify the key systems and sub-systems that make up the larger system you have defined in (1)
4. Establish the systemic properties (values and role) of the larger system. Establish similar properties of the
sub-systems of the larger system.
6. Define the organization as a system and establish its values and role in the larger system. Do the same for its
sub-systems.
7. Identify key stakeholders in the macro environment; in the organization in the organization sub-systems.
Identify their most important values and their inter-relationships.
8. Consider how new realities are challenging system and sub-system bound.
Benefits of system thinking
• Helps managers look at organizations from a broader, big picture perspective,
something many people avoid or ignore.
• Focuses on the inter-relation of parts and systems and how they work together
rather than on isolated events and individuals.
• Leads to a more insightful understanding of the environment in which the
organization is operating
• Allows for a better understanding of what it means to be in relationship
• Places emphasis on analyzing narratives rather than linear cause and effect events
• Helps uncover the driving forces behind relationships and how relationships play
themselves out in reality
• Helps understand the meaning making between the parties of a relationship;
Revocation of Article – 370 in August 2019.
System Approach Objective
• Return normal life to the valley within
six months.
Big Power
Big Power • No law and order problem.
China
US • Restart political process.
• Organize Elections
Afghanistan
INDIA
PDP
Pakistan
Kashmir Big Power Constraints
NC Ruling
Party Opposition
Russia • Minimal violence, police measures
Hurriyat
Moderate
Hardliner
Issues
International International • Fall out in UN, call for a plebiscite
Organization Organization • Veto?
ICJ Media
UN • Adverse ICJ judgement
• Other issues
• War on border
Values and Roles
• India
• Role: To provide an environment where all citizens can lead stable and peaceful lives and achieve
their full potentials.
• Values: Safety, Security, Stability etc.
• Kashmir
• Role: similar to above for people residing within its borders.
• Values: similar to above
• Political Parties in Kashmir
• Role: Ensuring that the state fulfils the above roles without compromising on democracy.
• Values: ideals of democracy and universal adult franchise
• Pakistan
• Role: Supportive, Co-operative
• Values: Friendship
