EPPM6132

STRATEGIC THINKING IN
LEADERSHIP

Session 3
System Thinking

NOR LIZA ABDULLAH

 THE CONCEPT OF SYSTEM
THINKING
1-2

! The behavior of a system cannot be known just by

knowing the elements of the system – Meadows,
2008
! The story of six blind men and an elephant
! https://youtu.be/Vn9BUfUCL4I
! SYSTEMS: A system is a set of elements or parts that
is coherently organised and interconnected in a
pattern or structure that produces a
characteristics set of behaviours, often classified
as its “function” or “purpose” (Meadows, 2008)
! A system is more than the sum of its parts; it is the
product of their interactions (Ackoff, 1999)
SYSTEM VS COLLECTION

! A collection is composed of a number of

parts but they are dumped together and
are not interconnected.
! Let’s play a game: Classify the item
Database of Bowl of fruit Football team
employees
background
A marriage Toaster

A kitchen Tools in a toolbox

SYSTEM VS COLLECTION

! Let’s play a game: Classify the item

! ANSWER
SYSTEM COLLECTION

A marriage Football team Database of

employees
background
Bowl of fruit Toaster

Tools in a toolbox

A kitchen
 PROPERTIES OF A SYSTEM

! A system is any group interacting,

interrelated, or interdependent parts that
form a complex and unified whole that
has a specific purpose.
! A system must consist of
¤ Elements or parts
¤ Interconnectedness

¤ Function or purpose

! Examples : A business, football team,

digestive system
CHARACTERISTICS OF A SYSTEM

! System has purpose

! All parts must be present for the system to
carry out its purpose optimally
! The order in which the parts are arranged
affects the performance of the system.
! Systems maintain stability through
feedback.
THE ICEBERG

Events: The occurrences we

EVENTS encounter on a day-to-day basis

Patterns: Accumulated
PATTERNS memories of events

SYSTEMIC Systemic structures: The

ways in which the parts of a
STRUCTURES system are organized
SYSTEM THINKING
! A way of looking at, learning about and
understanding complex situations (Wilson, 2004)
! A way of seeing and talking about reality that helps
us better understand and work with systems to
influence the quality of our lives (Kim, 1999)
! A “new way of thinking” to understand and
manage a complex problems (Cabrera et. al, 2008)
! Two facets
¤ Gaining insight – improving systemic insight of a
particular system
¤ Using insight – applying systemic insight to a particular
system
PRINCIPLES OF SYSTEM THINKING

The four basic principles of systems thinking

as per the Arnold and Wade (2015)
definition:
1.Identifying systems

2.Understanding systems

3.Predicting system behavior

4.Devising modifications to systems to

produce desired effects

SYSTEM THINKING: EXPANDING
UNDERSTANDING
! See the world around us in terms of wholes, rather than single events or
snapshots of life
! See and sense how the parts of the system works together, rather than see
the parts as collection of unrelated pieces
! See how the relationships between the elements in a system influence the
patterns of behaviour and events to which we react
! Understand that life is always moving and changing, rather than static
! Understand how one event can influence another – even if the second event
occurs a long time after the first and far away from the first
! Know that what we are see happening around us depends on where we are
in the system
! challenge our own assumption about how the world works (our mental
models) – and aware how it limits us
! Think about both the long term and the short term impact of our and other’s
action
! Ask probing questions when things don’t turn out the way we planned
(Sweeney, 2001)
LEVELS OF UNDERSTANDING
SYSTEM THINKING TOOLS
! Dynamic thinking tools
¤ Reinforcing and balancing loops

! Structural thinking tools

¤ Graphical functions

! Computer based tools

¤ Simulators
CAUSAL LOOP DIAGRAM
! Case: Dealing with feedbacks
! The linear view sees the world as a series of
unidirectional cause-and-effect relationships: A
causes B causes C causes D, etc.
! A B C D
! The feedback loop perspective, on the other hand,
sees the world as an interconnected set of circular
relation- ships, where something affects some- thing
else and is in turn affected by it:

! A B C D
LINEAR PERSPECTIVE
! When we take the linear view, we tend to
see the world as a series of events that
flow one after the other.
! Through the “lens” of this linear
perspective, we see the world as a series
of events that trigger other events. Even
though events 1 and 2 are repeating
events, we see them as separate and
unrelated.
LOOP PERSPECTIVE
! Loop (feedback) perspective, we would be continually asking
“How do the consequences of our actions feed back to
affect the system?”
! The feedback view draws our attention to the
interrelationships among all the events
! Becoming aware of all the interrelationships involved in a
problem, we are in a much better position to address the
problem than if we see separate cause-and effect pair
! Help us understand the behavior of complex systems so that
we can better manage those systems.
! Primary purpose: To gain a better understanding of all the
forces that are producing the behaviors we are experiencing.
THINKING IN LOOPS
Thank you!