Three of the biggest breakthroughs in how we understand and successfully guide changes in ourselves, others and organizations are systems theory, systems thinking and systems tools. To understand how they are used, we first must understand the concept of a system.
Many of us have an intuitive understanding of the concept. However, we need to make that intuition even more explicit in order to use systems thinking and systems tools.
Definitions: Systems, Systems Theory, Systems Thinking, Tools
One of the biggest breakthroughs in how we understand and guide change in organizations is systems theory and systems thinking. To understand how they are used in organizations, we first must understand a system. Many of us have an intuitive understanding of the term. However, we need to make the understanding explicit in order to use systems thinking and systems tools in organizations.
Simply put, a system is an organized collection of parts (or subsystems) that are highly integrated to accomplish an overall goal. The system has various inputs, which go through certain processes to produce certain outputs, which together, accomplish the overall desired goal for the system. So a system is usually
made up of many smaller systems, or subsystems. For example, an organization is made up of many administrative and management functions, products, services, groups and individuals. If one part of the system is changed, the nature of the overall system is often changed, as well — by definition then, the system is systemic, meaning relating to, or affecting, the entire system.
(This is not to be confused with systematic, which can mean merely that something is methodological. Thus, methodological thinking — systematic thinking — does not necessarily mean systems thinking.)
Systems range from simple to complex. There are numerous types of systems. For example, there are biological systems (for example, the heart), mechanical systems (for example, a thermostat), human/mechanical systems (for example, riding a bicycle), ecological systems (for example, predator/prey) and social systems (for example, groups, supply and demand and also friendship).
Complex systems, such as social systems, are comprised of numerous subsystems, as well. These subsystems are arranged in hierarchies, and integrated to accomplish the overall goal of the overall system. Each subsystem has its own boundaries of sorts, and includes various inputs, processes, outputs and outcomes geared to accomplish an overall goal for the subsystem. Complex systems usually interact with their environments and are, thus, open systems.
A high-functioning system continually exchanges feedback among its various parts to ensure that they remain closely aligned and focused on achieving the goal of the system. If any of the parts or activities in the system seems weakened or misaligned, the system makes necessary adjustments to more effectively achieve its goals.
A pile of sand is not a system. If you remove a sand particle, you have still got a pile of sand. However, a functioning car is a system. Remove the carburetor and you no longer have a working car.
Systems Thinking in Organizations
So Why is it Important to Look at Organizations as Systems?
In the past, when an organization was struggling, managers typically focused on fixing one part. For example, when there were continual shortages of money, then they worked to get more money. Soon, they realized that they were still running out of money because they still were spending too much and perhaps not earning enough. So they would cut costs, while doing more marketing in order to get more revenue.
Then they would realize that they were not getting more customers because customers were reporting that the quality of their products and services was very poor. So then the mangers would attend to improving quality. Then the managers might realize that they could not improve quality without getting more internal expertise, which requires yet more money. That, in turn, requires he top executives to really believe that more money is really going to make a difference -t his time.
Today’s managers have learned to have a systems perspective. They work to improve their organizations, not by examining what appear to be separate pieces of the organization, but by recognizing the larger patterns in interactions.
Five Disciplines of Systems Thinking — Per Peter Senge
Peter Senge wrote a seminal book about systems thinking, The Fifth Discipline (Doubleday, 1990). In his book, he suggested five disciplines necessary to cultivate systems thinking in an effort or organization. In addition to the discipline of systems thinking, he suggests the following four disciplines, as well.