Systems Thinking (Interpretations)

Thinking about Complexity

Focus on boundaries and identify the unit of analysis...
Understand feedback loops - input to output

1. Systems thinking is not a natural act...
2. Western, educational system inhibits systems thinking
3. Systems thinking cannot be taught to everyone
4. We can improve systems thinking through experiential learning.

Systems Thinking Competencies
1. Ability to define the “universe” appropriately – the system operates in this universe
2. Ability to define the overall system appropriately – defining the right
boundaries
3. Ability to see relatonships – within the system and between the system
and universe
4. Ability to see things holistcally – within and across rela;onships
5. Ability to understand complexity – how rela;onships yield uncertain, dynamic, nonlinear states and situa;ons
6. Ability to communicate across disciplines – to bring mul;ple perspec;ves to bear
7. Ability to take advantage of a broad range of concepts, principles, models, methods and tools – because any one view is inevitably wrong 

Why is systems thinking not a natural act?

• •  Human evolu;on has favored mechanisms tuned to dealing with immediate surface features of problems
  – “programmed” human tendencies
  
• •  Mechanistic/reductionist approach in decision making
  – Driven by educa;on
  
• •  Complexity of the systems overwhelms our cogni;ve
  

capabili;es
– Bounded ra;onality, predictably irra;onal – Magic number 7, plus or minus two
© Ricardo Valerdi 2011

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Examples of Systems Thinking

Essential Phenomena	Human Abilities	Human Limitations	Enhancing/ Overcoming
Estimation: How to assess what is happening or will happen?	Good at recognizing familiar patterns and mapping to action	Inaccurate mental models and perceptions of the state of the process	Stochastic forecasting models and displays of filtered, smoothed & predicted states
Stakeholders: How should stakeholders’ interests be balanced?	Good at specifying interests and importance of associated attributes	Difficult to deal with stakeholders’ differing and conflicting interests	Multi-stakeholder, multi- attribute models that enable tradeoffs and decisions
Future: How should future uncertainties be considered?	Good at imagining alternative futures and possible consequences	Difficult to consider future contingencies and specify long-term returns	Decision models that provide economic assessments of the value of contingencies
Challenges: How should management challenges be addressed?	Good at running the “as is” business to achieve familiar objectives	Tendency to be tactical rather than strategic & too focused to see situation	Toolkits that enable systematic addressing & pursuit of the essential challenges
Change: How should fundamental change be pursued?	Good at articulating a vision and leading people in pursuing this vision	Difficult to recognize forces for change and then commit to change	Methods that address value deficiencies, work processes, decisions & social networks

Rouse, W. B., People and organizations: explorations of human-centered design , Wiley 2007.

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•   Understand complexity
  
• •  Develop prototypes before
  full scale produc;on
  
• •  Focus on the human as a key element of the design
  
• •  Combine methods to arrive at the op;mal solu;on 
  
  
  
  
  
  
  Four Things Every Engineer Should Know About Systems Thinking
  

  1. 1.  Systems thinking is not a natural act
     
  2. 2.  Western educa;onal system is the
     biggest inhibitor to systems thinking
     
  3. 3.  Systems thinking can be taught (but not to everyone, unfortunately)
     
  4. 4.  The best way to develop your systems thinking abili;es is through experien?al learning 
     
     
     
     
     
     
     A Glimmer of Hope from Religion & Educa?on
     • Buddhism
     – Systems view as a systems experience
     – Appropriate level of analysis for any problem – Cause and effect (karma)
     – Cycles and con;nuous flowing (Sangsara)
     – Constant flux due to external condi;ons (Annica)

     

     • Scien;fic Habits of Mind – Systems based reasoning
     – Model based reasoning
     – Understanding feedback
     © Ricardo Valerdi 2011

     29

     

     
     

     
     

     Inhibitors to Systems Thinking
     • Western educa;onal system – No system thinker lee behind
     • Environment/ins;tu;onal constraints – Incen;ves, tradi;on
     • Work organiza;on – Over-­‐specialized job func;on 
     
     
     
     
     http://sdm.mit.edu/news/news_articles/webinar_082211/20110822_Valerdi.pdf