Systems Thinking

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Systems Thinking
• "How we think is how we act, is how we are, and determines the results we get".
• "The world we have created is a product of our thinking; it cannot be changed without
changing our thinking". - Albert Einstein
Contents
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• 1 Why Conventional (Analytic) Thinking Fail? or Why Do We Need A Holistic

Approach?
• 2 The Systems View of Life - UNITY through DIVERSITY
• 3 Introduction to Systems Thinking
o 3.1 Backward Thinking
o 3.2 Twelve Characteristics of Living Systems
o 3.3 Systems Thinking Skills
o 3.4 Guiding Principles of Systems Thinking for Enterprise Leaders
• 4 Systems Thinking and Sustainability
o 4.1 Systems Intelligence
o 4.2 Spiritual Wisdom and Sustainability
• 5 References and Resources for Further Study on Systems Thinking

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Why Conventional (Analytic) Thinking Fail? or Why Do

We Need A Holistic Approach?
• "We live and work in an analytic prison. Working hard within this prison produces
nothing. We cannot remodel the prison; we must get rid of it. To do this, a
transformation is required. Cooperation between people, companies, government,
countries. There will be joy in working. Everyone will win". - Dr. W. Edwards Deming,
April 21, 1992, presentation, The New Economics.
Analytic Thinking: A Mindset Left Over from the Industrial Age
Since the Machine Age and Industrial Revolution, mechanization and machines have colored
how we look at the world. Assembly lines, mass production, and countless machines brought
with them the idea that the universe itself is a machine, not an organic, living system.
Mechanistic or analytic thinking has spawned prevalent (and damaging) assumptions about
the nature of people and the world itself.
Analytic Thinking Assumptions: Micro Smart and Macro Dumb

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• Reductionism: If you take anything apart or reduce it to its lowest common denominator,
you will ultimately reach indivisible elements. For instance, we repair car motors by taking
them apart to work on their smallest parts.
• Analysis: If you take the entity/issue/problem apart, breaking it up into its components, you
can solve it. Then you aggregate all the solutions and reassemble things. Analysis tends to
explain things through parts, rather than a view of the whole. Even today, analysis is probably
the most common technique used in organizations. Managers cut their problems down to size,
reduce them to a set of solvable components, and then reassemble them into one solution.
Many managers continue to see analyzing as synonymous with thinking.
• Mechanization: In this set of assumptions, virtually every phenomenon begins and ends with
a single relationship: cause and effect. Environment is irrelevant. Indeed, the basis of modern
scientific methods is the isolation of variables in highly controlled laboratories—an
artificially closed systems view of the world.
While reductionism, analysis, and mechanism may appear to resolve problems initially,
they almost always fail to provide long-term, longer-lasting solutions. Analytic thinking is
such a common way of thinking that it is unconscious. Because its central, mechanistic, linear
approach is to diagnose and treat only one issue at a time, other issues must wait their turn,
causing further problems and unintended consequences. It’s an inherent deficiency of this
thinking mode.
Analytic thinking usually assumes one cause for one effect and asks, “Is it either, or?” Paired
with reductionism, analytic thinking makes us “micro-smart and macro-dumb”—good at
thinking through individual elements, like solving one side of Rubik’s Cube, but prone to
missing the larger, more important picture. Too often, we find ourselves with five unintended
jumbled “other” sides as a result of analytic approaches to change.
Analytic Thinking Is Becoming Obsolete
The reason analytic thinking is less effective in business today than it was in earlier ages is
that the global economy is increasingly complex, interconnected, and interrelated. Analytic
thinking doesn’t usually consider all environmental factors as it looks for one-and-only-one
best way. The environment, other systems, relationships between and among systems, and
multiple and circular causalities surrounding the enterprise have great impact on daily
functioning. Yet analytic thinking often looks inward instead of considering these
relationships, multiple solutions, interdependencies, and environment.
Analytic, piecemeal, and reductionist thinking resists considering multiple issues and their
relationships at the same time or taking a larger view of entire systems. When we approach a
complex system and attempt to recognize multiple and delayed causes for every effect, we can
become overwhelmed quickly and retreat back into the perceived “safety” of considering
individual pieces of a problem in isolation. Unfortunately, as with a Rubik’s Cube with just
one side solved, the end result is often the unintended consequences on the other sides of the
organization.
• Source: Enterprise-Wide Change Superior Results Through Systems Thinking,

Stephen G. Haines, Gail Aller-Stead, and James McKinlay, 2005 by John Wiley &
Sons, Inc.
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The Systems View of Life - UNITY through DIVERSITY

"Reductionism and holism, analysis and synthesis, are complementary approaches that, used
in proper balance, help us obtain a deeper knowledge of life". - Fritjof Capra
The Systems View of Life - A talk of Fritjof Capra (video, 10 min)
The Systems View of Life - chapter 8 in "The Turning Point"
Everywhere we look, we can see living, breathing examples of systems in our lives, in
organizations, on our Earth, and floating in the vast universe. The material universe is seen as
a dynamic web of interrelated events. None of the properties of any part of this web is
fundamental, they all follow from the properties of the other parts, and the overall consistency
of their interrelations determines the structure of the entire web. In a Systems Thinking view
of the world, human beings are simultaneously the creators of systems, systems ourselves, and
parts of larger systems. Don’t lose sight of the fundamental point that human life on Earth is a
living societal system overall, with supporting and manmade mechanical, electrical, and
electronic systems. This global, human, social system exists within the context of the
ecological and biological systems that naturally make up the Earth. At the highest level,
humans share a planet with all other forms of life, protected by a fragile layer of ozone, which
preserves the conditions necessary for life as we know it. At this and every other level of life,
we exist as part of many interdependent systems.
When one key element of a system in our lives changes, it simultaneously affects many
other elements in our lives. Life itself is made up of complex and interdependent
systems.
• Wonderful Journey You all are invited to a wonderful journey, from the biggest to
the smallest distance of the universe... (You can see it online by click to the "Full"
button or you can download the file here). Ever since early NASA astronauts saw a
faraway Earth floating in space, we’ve become increasingly aware that humanity and
the Earth are part of a vast, interdependent universe—a system in which we play but
one small part. Photos of the Earth taken from space allow us a view of the planet
itself as a single organism— a worldview that is relatively new in science and
philosophy.
• Seven Levels of Living Systems
Kenneth Boulding first outlined the seven natural levels of living systems in The Meaning of
the 20th Century (1964). These seven levels represent the hierarchy and network of living
systems.
1. Cells: The basic unit of life
2. Organs: The organic systems within our bodies
3. Organisms: Insects, bacteria, animals, fish, birds, and humans

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4. Groups: Families, teams, departments, units, etc.
5. Organizations: Firms, companies, private, public, and not-for-profit organizations
6. Community and/or Society: Microclimates, ecosystems, neighborhoods, communities,

cities, states, provinces, nations, regions within countries
7. Supranational Systems: Eco-regions, continents, Earth
• Systems Within Systems
While these seven levels may initially appear to be discrete and separate from each other,
Systems Thinking tells us that each system level is nested within other systems, exists in
relationship with every other system, and affects every other system. Every system level
exists in a nested, hierarchical relationship with every other system (systems within systems).
Each one is unique and distinct, yet includes all the same characteristics of each other system
—just the size is different.
Each systems level, of course, also interrelates and reacts to other living systems at higher and
lower levels, in addition to other systems at its own level. Within systems, there are numerous
collaborations, collisions, and relationships among, within, and between individuals (one-to-
one), teams and departments (department-department or cross-functional teams), and the
organization (organization- environment/organization-organization).
As Einstein pointed out, the solution to a systems problem is often found at the next higher
level of system (or interaction of systems).
• Natural and Universal Laws: The Basis of Systems Thinking
One of the fundamental assumptions behind General Systems Theory is that the Earth and the
systems that comprise it (including human systems like teams and organizations) are
governed by natural and universal laws. If we can correctly identify and understand these, we
have a better chance of successfully interacting with, and transforming, the systems of which
we are a part. Some of the natural and universal laws of life on Earth are:
• Four seasons
• The life cycle
• The food chain on land and in the water
• The sun and the moon (day and night)
• 365 (plus a few hours. . .) days in a year...
We believe: If life on Earth is governed by the natural laws of living systems, then a
successful participant should learn the rules.
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The natural world does not operate in a linear, sequential fashion. The way of natural life and
open systems is to move gradually and incrementally through cycles of change—day and
night, up and down, awake and asleep—slowly growing, changing, and evolving.

Sons, Inc.
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Introduction to Systems Thinking

• "The significant problems we face cannot be solved at the same level of thinking we
were at when we created them". - Albert Einstein
• Why Is Systems Thinking Important?
Why is systems thinking valuable? Because it can help you design smart, enduring solutions
to problems. In its simplest sense, systems thinking gives you a more accurate picture of
reality, so that you can work with a system's natural forces in order to achieve the results you
desire. It also encourages you to think about problems and solutions with an eye toward the
long view—for example, how might a particular solution you're considering play out over the
long run? And what unintended consequences might it have? Finally, systems thinking is
founded on some basic, universal principles that you will begin to detect in all arenas of life
once you learn to recognize them.
• Key characteristics of systems thinking:
(1) The shift from parts to the whole. Living systems are integrated wholes whose properties
cannot be reduced to those of smaller parts. Their essentials, or “systemic” properties are
properties of the whole, which none of the parts have.
(2) The ability to shift one’s attention back and forth between systems levels.
Systems thinking is environment thinking: Exploration of living systems-organism,

communities of organisms had led scientists to the same new way of thinking in terms of
connectedness, relationships and context. In the shift from mechanistic thinking to systems
thinking, the relationship between the parts and the wholes has been reversed. Systems
science shows that living systems cannot be understood by analysis (Cartesian science
believed that in any complex system the behavior of the whole could be analyzed in terms of
the properties of its parts). The properties of the parts are not intrinsic properties but can be
understood only within the context of the larger whole. Thus, systems thinking is “contextual”
thinking. And since explaining things in terms of their context means explaining them in
terms of their environment, we can also say that all systems thinking is environment thinking.
Systems thinking is network thinking, emphasizes on relationships among objects more

than separate objects themselves. Ultimately – as quantum physics showed so dramatically –
there are no parts at all. What we call a part is merely a pattern in an inseparable web of
relationships. Therefore, the shift from the parts to the whole can also be seen as the shift
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from objects to relationships. In the systems view, we realize that the objects themselves are
networks of relationships, embedded in larger networks. For the systems thinker, the
relationships are primary. The perception of living world as a network of relationships has
made thinking in terms of networks another key characteristic of systems thinking.
Systems thinking is process thinking: "If we want to change the result, we must first change
the process that led to the result". - Systems thinking focuses on processes more than
outcomes as a way of managing. Systems thinking associates with interaction, and unifying of
opposites through oscillation. In systems science, every structure is seen as the manifestation
of underlying processes.
In summary, systems thinking is holistic thinking. Holistic thinking is the essential of

problem solving. Holistic thinking is a way of thinking that attempts to widen the circle of
understanding in order to comprehend the connections that exist between all things. It reminds
us that all things are connected. Holistic thinking strives for clarity and simplicity but it does
so by embracing diversity and sometimes seeming chaos in order to uncover a closer
approximation of truth. Holistic thinking involves asking questions, striving for win/win
solutions for people and the environment. The process involves testing assumptions and
asking many questions in order to get to the root of the problem.
• Systems thinking promotes holism as its primary intellectual strategy for handling
complexity. Instead of analysing complex systems by breaking them down into their
parts, it advocates studying them as `wholes' using concepts such as boundary,
emergency, hierarchy, communication and control. These core systems ideas can also
be employed to construct systems methodologies and methods for treating problems
caused by organizational and societal complexity in a systemic manner.
• Systems thinking has been fascinated by the tensions between stability and change,
and has embraced a process philosophy in order to grasp the way systems develop
over time. It advocates studying them as `wholes' changing according to their own
internal dynamics and in interrelationship with their environments. To this end it
employs concepts such as positive and negative feedback, relationships, input and
output, thesis, anti-thesis and synthesis, chaos and dissipative structures. Again, these
central ideas can be incorporated in systems methodologies and methods to provide
guidelines for productive intervention in change processes.
• Systems thinking attempts to illustrate that, in complex systems, small catalytic events
can cause large change in a system. Acknowledging that a change in one area of a
system can adversely affect another area of the system, it promotes organizational
communication at all levels in order to avoid the silo effect.
Source:
• Fritjof Capra, "The Turning Point" (1982), "The Web of Life" (1996).
• Jason F. Mclennan, "The Philosophy of Sustainable Design" (2004).
• Stephen G. Haines, Gail Aller-Stead, and James McKinlay, "Enterprise-Wide Change,
Superior Results Through Systems Thinking" (2005).
• ISSS Conference 2002
• The Systems Thinker
• Systems Thinking in Ecoliteracy Resource
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Backward Thinking
• Change
Change is constant. Humans, as living systems, keep on changing. It is a natural part of life
and death. The key is to find simplicity on the far side of complexity. For example, it is
sometimes easier to write a long letter than a short one. You usually have to write the long one
first and then pull the essence into a short form— just as we have distilled these concepts into
an elegantly simple book. This is what the science of Systems Thinking is all about.
The basic sequence of change looks like this figure: The Rollercoaster of Change
We coined the phrase Rollercoaster of Change to describe this natural law, because a
rollercoaster is a simple metaphor for understanding the dynamics of successful change.
Cycles of stability—change—instability—new stability—and change all over again are
normal and natural, the product of several characteristics of living systems, like dynamic
equilibrium and entropy.
• The Simplicity of Systems Thinking Is Backwards Thinking - Backwards Thinking

is the core of where to start in Systems Thinking.
What Does a System Look Like? How does a system (any system) operate? Can you draw a
system at its most basic level?
All systems (especially living systems) take inputs from the environment and transform them
into different and better outputs back into the environment. Effective systems provide outputs,
which then cycle back around (feedback) to the system again as new inputs to enhance system
effectiveness.
Systems Thinking is about design. Design is the organizing principle in Systems

Thinking. It is about how to design the organization based on its ideal desired future vision
(vision, purpose, positioning, and values). (Analytic thinking is different. It does not begin
with the end in mind. Analytical thinking is about sense-and-response. The organizing
principle in analytical thinking is our normal action-reaction mode or the sense-and-response
way of living and behaving).
It is quite simple to draw a system. It might look like the one in this figure The Simplicity of
Systems Thinking
Systems Thinking allows complex problems to be approached through elegant simplicity by

allowing leaders to first focus on outcomes, and then to think and work backwards to identify
numerous potential pathways to reach the desired outcomes.
In turn, exploring many alternatives makes it easier to find solutions that best fit and optimize
all of the parts and relationships within the system toward achieving these outcomes.
By thinking in terms of outputs, the feedback loop, inputs, and then throughputs last as Phases
A-B-C-D (and the environment, the all-pervasive E), executives and change consultants can
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use Systems Thinking to diagnose and make change more effectively by thinking right to left,
rather than the analytic tradition of reading and proceeding left to right.
Right to left thinking yields a “gap” between the outputs and inputs of the system, leading to
creative, innovative, and more comprehensive solutions that drive you to your desired
outcomes. (Left to right traditional thinking solves today’s problems, but has no “gap” to
close to achieve a future vision).
The Systems Thinking diagram in figure above provides an elegantly simple way to reduce
complexity by focusing attention on
• The system as a whole
• Its outputs/outcomes
• Feedback within the environment
• Its inputs
• Its throughputs
From the diagram, we can see that five strategic questions underlie the Systems Thinking
approach to Change. The questions begin with the future environment and the end in mind
and work backwards from there to trace possible paths to those desired outcomes:
• Phase A: Where do we want to be? The first systems question must answer the desired
outcomes of the target system, within its context, environment, and the other levels of systems
that surround it.
• Phase B: How will we know when we get there? Phase B identifies what signs and
mechanisms in the feedback loop can indicate that the desired outcomes have been achieved.
How will we measure our results? This phase often reveals that additional work is required on
the first question. Goals may be too broadly defined and may need redefinition.
• Phase C: Where are we now? This question defines the gap between the present state and
the desired future.
• Phase D: How do we get there? Phase D uses Systems Thinking to define and implement
strategies and tactics that will integrate all of the processes, activities, relationships, and
changes needed to close the gap and create the desired outcomes identified through Phase A.
• Phase E: What other factors could change in the future environment that we need to
consider? The last (but really ongoing) question is one of the most important (and often
missed) components of change. Failure to adapt to a changing environment is one of the
greatest reasons for the decline and death of organizations.
From an ongoing change perspective, this A-B-C-D-E Simplicity of Systems Thinking

framework is circular, as it occurs over and over again as cycles and cycles of change. Thus,
the application of Systems Thinking for this book is as seen in this figure: The Systems
Thinking Approach
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Systems are circular. So is the Systems Thinking Approach. After Phase E, we come back
around to Phase A.
(Analytic and sequential problem solving, by contrast, is vastly different. It often includes
only two of the five phases of change (Phases C and D): Analytic problem solving
- starts with today’s current state, issues, and problems.
- breaks issues and/or problems down into their smallest components (Phase C).
- solves each component separately (Phase D).
- generally has no future-oriented, far-reaching vision or goal (Phase A); it simply aims for
absence (or solving) of the identified problems).

Sons, Inc.
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Twelve Characteristics of Living Systems
At the most fundamental systems level, von Bertalanffy and the others who started the
Science of Systems Thinking researched and listed just twelve characteristics that form the
standard and predictable systems behaviors that are always present in living systems. These
are the yearly research results from the Society of General Systems Research mentioned
earlier. The first six of these characteristics apply to the living system as a whole, while the
last six describe the inner workings of a living system. Keep in mind that it is the relationship
and fit of all these parts and characteristics into one whole system that is key, not just each
characteristic standing alone.
The Whole System: Living Systems Characteristics 1–6
Characteristic 1: Holism (Living Systems Are Whole Entities with Unique Characteristics)
Holism is the principle that says the whole is not just the sum of the parts and, conversely, that
a system can be explained only as a totality. Holism is the opposite of elementism, which
views the whole as the sum of individual parts. A holistic unit has overall purpose and a
transformational synergy that transcends its component parts.
Characteristic 2: Living Systems Are Open SystemsLiving systems can be considered in

two ways in relation to their environment: (1) relatively closed or (2) relatively open. Open
systems exchange information, energy, or material with their environments. Biological and
social systems are inherently open systems; mechanical systems may be open or closed.
(A closed system is one that is isolated from its outside environment. Experimental, sterile
chemistry labs and clean rooms in computer chip manufacturing are examples of relatively
closed systems. There are, however, few fully closed systems in the world. Only a vacuum is
a totally closed system—and does not occur naturally in our world).
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All living systems are either relatively more open or more closed to their environment. Living
systems, by definition, are open systems. They are interactive with their environment and
actively adapt to fit into that environment to a greater or lesser extent.
Characteristic 3: Living Systems Have Defined Boundaries All systems have boundaries
that separate them from their environments. Relatively closed systems have rigid,
impenetrable boundaries, whereas relatively open systems have more permeable boundaries
between themselves and a broader suprasystem.
Open systems can more easily integrate and collaborate with their environments. Boundaries
are easily defined for biological systems, but are difficult to delineate in organizations and
ecological or social systems such as communities.
Closed boundaries tend to lead to fragmentation, internecine battles over turf, separation, and
parochialism. The ideal is integration, collaboration, and harmony with the environment.
Characteristic 4: Living Systems Transform Inputs into Outputs Open systems are
transformational in nature. That is, living and open systems receive inputs from the
environment, transform these inputs in some way via throughput and processes, and then send
outputs back into the environment. This produces feedback and begins the loop of new inputs
one more time. At the most basic level, for example, the system we call the “animal kingdom”
takes inputs (food and water) and transforms them into energy to sustain life. The animals’
throughputs and outputs in turn pollinate plants, affect populations of other animals, fertilize
soil, serve as food for other species, and, after death, return vital nutrients to the earth itself.
This web of inputs, throughputs, and outputs constantly changes one kind of matter or energy
into another.
Characteristic 5: Living Systems Require Feedback to Continue Living Information about

outputs of the system in turn feeds back as inputs into the system, leading to changes in the
transformation process and achieving more effective future outputs. Evolution is an
expression of this characteristic in action.
The value of feedback in improving effectiveness and maintaining a desired steady state
cannot be overstated. Feedback is key to stimulating learning and change. There is no “bad”
feedback. Bad news, in fact, can help guide leaders to find root-underlying causes of
problems in the enterprise.
Characteristic 6: Living Systems Pursue Multiple Outcomes Action toward multiple

outcomes or goals is a characteristic of all living systems. Social systems, for example, seek
multiple goals if for no reason other than that they are comprised of individuals and
subgroups with different objectives. One need only look at any government body to verify this
characteristic of systems.
The Inner Workings of Systems: Living Systems Characteristics 7–12 The second set of six
characteristics of living and open systems concerns the inner workings of systems.
Characteristic 7: Living Systems Display Equifinality Equifinality is the principle that the
same results can be achieved with different initial conditions and through different means and
pathways. Equifinality offers a basis for flexibility, agility, and empowerment, because it
suggests many roads can lead to the same destination. Equifinality recognizes there are many
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ways to the same ends. In mechanistic systems, there is a direct cause-and-effect relationship
between initial conditions and the final state. Action begins at a prescribed point, passes
through one set of steps, and arrives at one predictable outcome. Social systems operate
differently from mechanistic, mechanical, and electronic systems. Social organizations can
accomplish their objectives with diverse inputs and with varying internal processes, and there
is usually not just one “best” way to solve most problems.
Characteristic 8: Living Systems Are Subject to Entropy Entropy is the natural tendency
for all living systems to run down over time. Entropy is a natural characteristic of all open
(living) systems. They slowly break down, deteriorate, lose organization, and eventually die.
The good news is that entropy can be arrested in open systems. Entropy may even be
transformed into negative entropy—a process through which social and organizational
systems can become more organized and enhance their ability to transform themselves
through new inputs, energy, and resources from the environment. Entropy is what leads to a
system’s obsolescence, rigidity, decline, and death. Addressing and reversing entropy is one of
the primary processes of Systems Thinking Approach.
Characteristic 9: Living Systems Are Hierarchical All relationships among discrete

systems are hierarchical. Any given system is composed of subsystems (lower-order systems)
and is, itself, part of a suprasystem (higher-order system). In the natural world, for example,
the predatory food chain is an inescapable hierarchy found both on land and in water. Simpler
organisms (plankton, seaweed, grasses, shrubbery) are consumed as inputs by more complex
organisms (fish, deer, cattle), which in turn become inputs for even more complex organisms
(sharks, whales, bears, wolves, humans).
The secret to successful Systems Thinking Approach is to simplify and flatten the hierarchy as
much as possible and go with the flow of life in a self-organizing, natural way, without the
imposition of rigid, bureaucratic, complex, and artificial structures. One of the challenges of
Change is to reduce the naturally negative effects of hierarchy. Rigidity and bloated
bureaucracies based on commandand- control assumptions amplify the negative effects of
hierarchy and assume that lower-level systems can be fully controlled. But they cannot—not
for long, and not predictably. The existence of hierarchy and its inherent conflicts requires
participation and involvement—a key construct in Systems Thinking Approach to Change.
Characteristic 10: Living Systems Have Interrelated Parts Systems working optimally
have their elements coordinated to maximize the power of the whole. If we maximize the
elements of a system, by contrast, we usually inadvertently damage the whole. Consider the
practice of “doping” in sports. An athlete who attempts to artificially maximize just one
element—muscles—through steroid use ends up doing serious long-term damage to the larger
system (his or her body).
Characteristic 11: Living Systems Tend Toward Dynamic Equilibrium Living systems
have a dynamic quality even as they resist change. The concept of dynamic equilibrium
within a steady state is closely related to entropy. Closed systems eventually attain an
equilibrium state with maximum entropy (death or disorganization). In contrast, open systems
may attain a state in which a continuous inflow of materials, energy, information, and
feedback produce a dynamic yet steady state. This is a natural state of balance and stability,
which is why established societies, cultures, and enterprises are resistant to change. They are
like rubber bands that stretch out, bounce back, and are difficult to break. Humans (as systems
and parts of larger systems) tend to resist change and cling to their routine—the dynamic
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equilibrium—of the present state. Resistance to change often leads to short-term views and
actions as well as passive resistance.
Characteristic 12: Living Systems Produce Internal Elaboration Internal elaboration leads
naturally to greater complexity. Open systems such as enterprises tend to move in the
direction of greater differentiation, complexity, and higher levels of potential effectiveness.
The theory of evolution is an example of the characteristic of internal elaboration,
demonstrating that life on earth changes and adapts itself to environmental inputs through
selective survival and propagation of individuals within the system of a species.
Figure: The Inner Workings of a System
Source: Enterprise-Wide Change Superior Results Through Systems Thinking, Stephen G.

Haines, Gail Aller-Stead, and James McKinlay, 2005 by John Wiley & Sons, Inc.
[edit]
Systems Thinking Skills
Figure: Process step and 7 skills
Specify Problem/Issue
• Dynamic Thinking: Framing a problem in terms of a pattern of behavior over time.
• Systems-as-Cause Thinking: Placing responsibility for a behavior on internal actors

who manage the policies and plumbing of the systems.
• Forest Thinking: "See the forest for the trees". To know something, we must
understand the context of relationships.
Construct Hypothesis
• Operational Thinking: Concentrating on getting at causality and understanding how a

behavior is actually generated.
• Closed-Loop Thinking: Viewing causality as an ongoing process, not a one-time

event, with the "effect" feeding back to influence the causes, and the causes affecting
each other.
• Quantitative Thinking: Accepting that you can always quantity, though you can't
always measure.
Test Hypothesis
• Scientific Thinking: Recognizing that all models are working hypotheses that always
have limited applicability.
Source and recommended reading: The "Thinking" in Systems Thinking.

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Guiding Principles of Systems Thinking for Enterprise Leaders
Two preconditions must be met before Systems Thinking principles can be successfully
applied to a given situation:
• The entity to be changed must be clearly understood. Successful change requires identifying
which of the Seven Natural Rings of Reality is the subject of a planned change. Leaders must
be clear about the entity they are targeting. Is it an individual, a team, a family, a business
unit, a community, or an organization? What are its boundaries? Is it relatively open or closed
in its environmental interactions? The question that must be answered based on this
precondition is, “What entity, system, or collisions of systems are we dealing with?”
• All systems are linked to other systems—some larger, some smaller—in a hierarchy (systems
within systems). No living system is independent of any other. We are all, as human beings,
linked to a greater or lesser extent to all others on this planet in a hierarchy of systems.
Organizational linkages are subject to the same hierarchy characteristics. Within our identified
system and Seven Rings of Reality, what level(s) of the system are impacted by our change?
Once the two preconditions have been met, change leaders can then approach Change
systematically, based on the following guiding principles and their related systems question.
Principle 1: Systems Are Multiple-Goal-Seeking Organisms Develop clarity and

agreement on this principle before beginning any actions. Keep in mind that there are usually
multiple outcomes, not either/or questions that come from reductionist thinking. Other words
for outcomes include vision, ends, goals, objectives, mission, and purpose (the what).
This principle relates to Systems Question 1: What are the desired outcomes? Without
agreement on ends, our actions will never have a chance of succeeding. Once the what is
clear, there are many ways to achieve the same end (the how) through empowerment.
Principle 2: Feedback Is the Breakfast of Champions; Be Flexible and Adaptive (The

Feedback Loop)In today’s complex and fast-changing world, the ability to come up with
initial solutions is not nearly as important as the ability to generate reliable and constant
feedback and to adapt in order to achieve our desired outcomes. The ability to be flexible and
adaptive (for example, to learn, grow, change, and adapt to changes in the environment) is
crucial. Economies of speed are replacing economies of scale as a key competitive edge.
Feedback is the key need in today’s learning organizations. It will help them learn, grow, and
adapt at all levels of the organizational system (individuals, teams, and the organization as a
whole).
This principle relates to Systems Question 2: How will we know we’ve achieved our goals?
Principle 3: Work and Align the Entity to Be Changed from the Outside In, Not the
Inside Out Remember to employ Backwards Thinking. To gain clarity from the beginning,
start with the future environment, the wants and needs of the customer, and your desired
future outcomes. Then work backwards from the environment into the organization to
determine how to meet those current and future customer needs. At the same time, keep
meeting the multiple outcomes of other key stakeholders. Align all employees, suppliers, the
14
entire organization, and business processes across departments to achieve these outcomes.
This is the conceptual basis for business process reengineering. Unfortunately, it is often
fragmented into departmental elements or internal cost-cutting activities. Customer impact is
too often ignored.
This aligns with Systems Question 3: What will be changing in the environment in the future
that will impact us? For example: Has your change process included a future environmental
scan-both external to your enterprise as well as inside the enterprise but outside the process—
and taken this into consideration?
Principle 4: The Whole Is More Important Than the PartsThe relationships and processes
are key (holism and subsystems). The synthesis of how the parts fit and link together in an
integrated process in support of the whole outcome is the most important assessment.
An analysis of each part’s effectiveness cannot be done in a vacuum. Effectiveness is

determined only in the context of relationships between the parts and the processes that lead
to the whole. Always remember that a system cannot be subdivided into independent parts.
Achange in one part affects the whole and the other interdependent parts or processes.
This relates to Systems Question 4: What is the relationship of X to Y? (And how do they
contribute to the overall objective of the whole system and its desired outcomes?) For
example: Has your change process considered its impact on other changes that the enterprise
is undergoing at the same time, such as a cultural change and a team-building effort? Have
you considered how other changes going on in the entire organization fit with any large-scale
complex change you are undertaking?
Principle 5: Focus and Strengthen the Basic Units/Systems of Organizations

(Holism)The basic unit of enterprises is not just the individual. It also includes individual
relationships. The basic units are (1) individuals, (2) individuals to individuals, (3) teams, and
(4) cross-functional teams. We need to counter-balance our strong Western tendency to glorify
the individual at the expense of the team and enterprise. (Asian, First Nation, and indigenous
societies around the world often are the opposite.)
This relates to Systems Question 5: Are we dealing with means or ends? What is the purpose
of each level of the system and how does it relate to the system as a whole? For example:
When a group seems to have a conflict, what are they fighting over? Is it about the next steps
or about the desired outcomes?
Principle 6: People Support What They Help Create; There Are Many Different Ways to
Achieve the Same Desired Outcomes; Involvement of the Right People in Planning and
Implementing the Solutions and Actions Is Key (Equifinality) It follows that decision
making should be as close to the actions as possible. People have a natural desire to be
involved and provide input into decisions that affect them before the decision is made. For
leaders, this is called participatory management.
This relates to Systems Question 6: What do we need to do to ensure buy-in, stayin, and
perseverance over time (to reverse the entropy)?
Principle 7: The Steady-State Equilibrium We All Want Can Kill Us—In a Rapidly
Changing Society, the Biggest Risk Is to Stay the Same (Steady State, Entropy) Change
15
keeps us creative, even if it is awkward, uncertain, ambiguous, and even painful. Our natural
inclination is to maintain the status quo and its comfortableness. Change requires us to (1)
admit we need to change and will it to happen and (2) acquire the new skills and abilities
needed to function more effectively. Knowledge and information are inputs into a system. By
themselves, they are not enough to make change happen. New skills need to be developed if
we want to learn, grow, and change. Short-term creative destruction can sometimes be key to
long-term advances. Today’s steady state is one of constant change.
This relates to Systems Question 7: What are the new structures and processes we are using to
ensure successful Enterprise Change? For example: Have you set up a Change Leadership
Team structure that meets regularly? Does it conduct checkups (monthly at a minimum) for
your Enterprise Change? Does it bring all the leadership together to review all sub-changes
involved in the larger change?
Principle 8: Systems Within Systems Within Systems Are Too Complex to Fully
Understand and Manage Centrally (Internal Elaboration, Complexity) Liberation from
regulation, shaping corporate bureaucracies into smaller units, privatization, and free market
economies are generally more efficient and effective than government or big business can
ever be in understanding the complexities of systems. Thousands of little decisions we all
make each day in our businesses are what shape and meet market needs, not central
government regulations. Big government and big corporations have roles to play in today’s
society, just not allencompassing ones.
This relates to Systems Question 8: What do we centralize (mostly ends) and what should we
decentralize (mostly how’s and means)?
Principle 9: Root Causes and Effects Are Usually Not Linked Closely in Time and Space
(Open Systems and Systems Boundaries)Simplistic cause-effect analyses and the desire for
quick fixes often create more problems than solutions. Because our world is composed of
levels of complex and interdependent systems, multiple causes with multiple effects are
reality, as are circles of causality-effects.
For example: What effects on a farmer and his crops do the ocean—clouds— sun—rain—
wind—plants—food play? What causes what? Delay time—the time between causes and their
impacts—can have enormous influences on a system. The concept of “delayed effect” is often
missed in our impatient society. It is subtle, and almost always underestimated. When we feel
results aren’t happening quickly enough, unnecessarily “knee-jerk” reactions can result.
Decisions often have long-term consequences, even years later. Mind mapping, fishbone
diagrams, and all sorts of creativity and brainstorming tools are useful here. However, the
complexity encountered is often far beyond our human ability to fully assess and comprehend
intuitively. For this reason, it is crucial to anticipate delays, understand them, and learn to
work with them, rather than against them.
This relates to Systems Question 9: What are the root causes? Caution: Dig deep, and dig
again. The root causes are rarely obvious.
For example: When a group seems to have a chronic and complex problem they cannot solve,
ask the “Why” question again, just slightly differently: “Why does this situation exist?” Ask
the same question over and over until you get to deep, root cause(s).
16
Principle 10: Reverse the EntropySystems increase in complexity until they become
bureaucratic and ossified, ultimately resulting in death of the system. All living systems
require constant energy and inputs (feedback and booster shots) if they are to reverse the
process of entropy. Otherwise, all living systems eventually run down and die. While human
beings and families obviously have a finite lifecycle, it doesn’t have to be this way for
neighborhoods, communities, and organizations. For them, the renewal process is key to long-
term success. Chaos and disorder are often precursors to renewal and growth at a higher level.
We now have a virtually limitless supply of constant feedback, which provides us with new
inputs for change. On the reverse side, however, we can get information overload and feel that
life is becoming too complicated. We need to eliminate the waste that complexity brings. The
virtual corporation may become more effective than more traditional, vertically integrated
complex organizations.
This relates to Systems Question 10: How can we go from complexity to simplicity, and from
consistency to flexibility, in the solutions we devise? For example: Simplicity and flexibility
are two criteria for success. They must be explicit in the process on a regular basis or they will
not occur (they go against natural system characteristics). Simplicity wins the game every
time!
Principle 11: Change Is an Individual Act (Seven Levels of Living Systems)Organizational

change is a myth. Organizations and institutions change only when people change. Processes
and procedures change when people change their behaviors. Accepting responsibility and
accountability for your actions is key. This interdependence is the highest order in terms of
wisdom and maturity, coming after dependent and independent growth stages. Independence
is really a myth! Focusing on assisting individual change within the family, team, or unit (as a
system) is the best way to assist individual change.
This relates to Systems Question 11: What do I contribute to the problem and what can I
change to be a positive and proactive leader on this? For example: Each member of a Change
Leadership Team should look at his or her own behavior first. They should do it as a group as
well to promote openness and teamwork.
Principle 12: Problems Can’t Be Solved at the Level at Which They Were Created
(Albert Einstein) In many of your change projects, you will need to go to the next higher
systems level and its desired outcome in order to succeed—the "helicopter" view of the world.
This relates to the Ultimate Systems Tool and System Question 12: What is our common
superordinate goal here? For example: If you are having differences and conflict as a group,
can you get the team to agree on a higher-level goal—get them up in a helicopter for a
higherlevel, 5,000-foot view?
Principle 13: Paradigm Shift—The World Continually Evolves, Often in Discontinuous

Ways, Leading to Breakthroughs Occurring on a Regular Basis Just as the world has
undergone a series of ages on Earth over thousands of years, so do the views we have about
What Is the Truth? A key to change is letting go of the current “truth” for the new one
replacing it.
This brings forth Question 13: What today is impossible to do that, if it could be done, would
fundamentally change what we are? For example: If your team seems unable to get “out of
17
the box” in their thinking, brainstorm answers to this question, even to the point of being silly
or unrealistic.
Principle 14: We Are Holistic Human Beings in Search of Meaning (Multiple Goal
Seeking) The search for meaning in our lives is crucial to our successes and failures. It only
comes from the desired ends and whom we want to serve outside of ourselves. This requires
that we understand our own interdependence with others. The more we can balance ourselves
in body, mind, and spirit, the better we can serve others. Starve any of these essential human
elements and we starve as human beings. Dehumanize us in our work settings and we don’t
perform anywhere near our potential.
This brings up Systems Question 14: What are the multiple goals for this project?
Principles 15, 16, 17, 18...: You Tell Us . . . :) Above all in Systems Thinking is the
understanding that we learn about our systems and ourselves as we evolve and grow and
change. The learning never stops, nor should it.

Sons, Inc.
[edit]
Systems Thinking and Sustainability

Expand the boundary of caring.
Living successfully in a world of complex systems means expanding not only time horizons
and thought horizons; above all it means expanding the horizons of caring. There are moral
reasons for doing that, of course. And if moral arguments are not sufficient, then systems
thinking provides the practical reasons to back up the moral ones. The real system is
interconnected. No part of the human race is separate either from other human beings or from
the global ecosystem. It will not be possible in this integrated world for your heart to succeed
if your lungs fail, or for your company to succeed if your workers fail, or for the rich in Los
Angeles to succeed if the poor in Los Angeles fail, or for Europe to succeed if Africa fails, or
for the global economy to succeed if the global environment fails.
As with everything else about systems, most people already know about the interconnections
that make moral and practical rules turn out to be the same rules. They just have to bring
themselves to believe that which they know.
Celebrate complexity.
Let's face it, the universe is messy. It is nonlinear, turbulent and chaotic. It is dynamic. It
spends its time in transient behavior on its way to somewhere else, not in mathematically neat
equilibria. It self-organizes and evolves. It creates diversity, not uniformity. That's what makes
the world interesting, that's what makes it beautiful, and that's what makes it work.
18
• Source: Dancing With Systems by Donella Meadows, 2001.
[edit]
Systems Intelligence
Systems approach starts when you want to perceive the world through the eyes of another
person. Systems Intelligence is about the betterment and improvement of human life. Systems
Intelligence is a philosophy of life, a way out of egocentricity, aiming at achievements
reachable by common effort.
Systems Intelligence in Everyday Life:
+ Appreciation + No judgements + Interest + Humor + Listening + Thanking +

Encouragement + Friendliness
Reading Resources:
• Systems Intelligence on Wikipedia

• Raimo Hämäläinen, Esa Saarinen (2004) Systems Intelligence - Discovering a hidden
competence in human action and organizational life Systems Analysis Laboratory
Research Reports
• Systems Intelligence Research Group at Systems Analysis Laboratory, Helsinki
University of Technology
[edit]
Spiritual Wisdom and Sustainability
Systems thinking will be needed to evolve our systems into a sustainable form. Systems
thinking involves putting the well-being of the whole ahead of the individual, because the
individual cannot survive apart from the whole. In reality, everything on the Earth is part of
one interconnected system. When the scale of human activity was small in relation to the
Earth, it was logical to consider the well-being of the individual apart from the whole. Now,
as human activity is degrading every life support system and making many unhappy, it is no
longer logical. It would be like considering the well-being of the hand apart from the body to
which it’s attached. Modern economic, political and social systems were developed largely
from a reductionistic perspective that does not take the whole Earth system into account. As a
result, these systems produce unintended consequences that undermine the good they seek to
bring about in society.
To survive on this planet, human society must abide by the laws of nature. In effect, this
means we must model our systems after nature. The technologies and systems of nature are
almost infinitely more sophisticated and complex than human technologies and systems.
Fortunately, we are part of nature. We have the capacity to operate at far higher levels of
complexity and sophistication than that reflected in our current systems.
Competition at the individual level in nature has been used to justify the development of
competitive human systems, such as our current form of capitalism. However, what makes
sense at the micro level does not necessarily make sense at the macro level. At the system
19
level, the overwhelming force in nature is cooperation, not competition. In a healthy system,
such as a forest or human body, the parts cooperate. When they don’t, as with cancer, the
system dies.
The human mind evolved to serve and protect the individual in a world that was very
competitive at the individual level. As a result, it is understandable that the logic of the
individual (competition) would be scaled up to the system level to develop human systems.
To achieve sustainability, human thinking must rise to a higher level – systems thinking
(cooperation). Through the intuitive function, the level at which nature operates, humans have
the ability to operate in harmony with natural systems. The greatest leaps forward in human
knowledge have come from the intuitive.
In many ways, humanity has become arrogant. We often make the mistake of thinking human
thought is the highest form of intelligence on Earth. Yet it is obvious we are surrounded by
vastly superior intelligence, including in our own bodies. Humanity needs much greater
humility. Humility comes from wisdom.
Wisdom is defined here as the ability to see the big picture – to understand and act upon the
interconnectedness of all things – to operate in harmony with others and with nature. This is
the wisdom displayed by nature at the system level.
Older religious beliefs allowed humans to live sustainably on this planet because they saw
nature as the manifestation of the divine. This caused them to revere and respect nature, which
is logical since nature actually is the source of our lives. If there is a divine manifestation on
Earth, it is life and that which gives life – nature. The core of each religion is essentially the
same – to love and respect each other, to care for the poor, to protect the environment. Higher-
level systems thinking in the religious area means we increase cooperation and sustainability
among humanity by emphasizing these core values and de-emphasizing older cultural ideas
that split us apart.
The vast intelligence obviously displayed in nature’s creations is often labeled as divine and
thought to be largely inaccessible to humans. However, through the intuitive, we have access
to this immense wisdom – the wisdom of nature. In effect, we can be infinitely wise. Our
education systems usually teach us to be intellectually smart rather than intuitively wise.
Teaching more people, especially children, to access, discern and utilize intuitive wisdom
through meditation and other techniques is important. It will greatly advance systems
thinking, cooperation and sustainability in society.
Religions have called us to a higher level of consciousness for ages. They say, one’s needs
will be better met by putting others first. Now as quantum physics and common sense show
we are in fact part of one interconnected system, this spiritual wisdom is seen as logical and
practical. As we train our minds to seek and utilize intuitive wisdom, the frontiers of human
knowledge will quickly and vastly expand. Our consciousness will reach a higher level as we
see beyond the illusion of separation (fostered by the five senses) to the reality of
interconnectedness.
The symmetry, order, complexity, sophistication and beauty of natural systems show that very
high intelligence of some type is present. This intelligence is much greater than that normally
occurring in the human mind. Through the evolution of consciousness, our awareness can
move from the individual to the system level. This is the function of intuitive wisdom – to be
20
conscious at the system level – to perceive and actually experience our connection to the
whole.
Wisdom in effect is systems thinking. It involves thinking from the perspective of the whole
system rather than the individual.
Business and political leaders often must act without full information. Our greatest leaders are
those that seem to know the right thing to do, even when they don’t have full understanding of
a given situation. Intuitive wisdom guides them to make the right decision. True wisdom,
leadership and humility involve recognizing that the mind is part of a whole. It cannot
understand everything. The wise mind is one that allows itself to be guided by intuitive
wisdom. A person acting in this manner is placed in harmony with others and the overall
system. As a result, they live a more satisfying and effective life and are better able to deal
with the growing complexity of modern society.
Doing the Right Thing: As noted above, systems thinking involves putting the well-being of
the whole ahead of the individual (because the individual cannot survive apart from the
whole). Caring for the whole mostly means caring for future generations – for our children. In
this sense, all children on the planet are the responsibility of today’s adults. We should be
willing to make any sacrifice, short of our own lives, to ensure the survival of our children.
• Source and Main Reading: System Change by Frank Dixon, 2006.

• Sustainable Systems Implementation: Building a Sustainable Economy and Society by
Frank Dixon, 2007. (Highly recommended!)
• Further reading: A complexity approach to sustainability by A.Espinosa, R.Harnden,
J.Walker, 2007
[edit]
References and Resources for Further Study on Systems

Thinking
Articles:
• An Introduction to Systems Thinking by Karl North.

• Dancing With Systems by Donella Meadows, 2001.
• Systems Thinking - Critical to Sustainability Education
• Systems Thinking - What It Is, What It Hopes to Accomplish by Lynn M. Stuter, 2003
• System Change by Frank Dixon, 2006.
• Sustainable Systems Implementation: Building a Sustainable Economy and Society by
Frank Dixon, 2007. (Highly recommended!)
• A complexity approach to sustainability by A.Espinosa, R.Harnden, J.Walker, 2007
• Raimo Hämäläinen, Esa Saarinen (2004) Systems Intelligence - Discovering a hidden
competence in human action and organizational life Systems Analysis Laboratory
Research Reports
Books:
• Fritjof Capra, "The Turning Point" (1982), "The Web of Life" (1996).
21
• Jason F. Mclennan, "The Philosophy of Sustainable Design" (2004).
Ebooks:
• Stephen G. Haines, Gail Aller-Stead, and James McKinlay, Enterprise-Wide Change,

Superior Results Through Systems Thinking (2005).
• The "Thinking" in Systems Thinking.
• Michael C. Jackson, University of Hull, UK, John Wiley&Sons Ltd, Systems Thinking
- Creative Holism for Managers (2003)
• Introduction to System Dynamics online book was written to introduce system
dynamics, a powerful methodology for framing, understanding, and discussing
complex policy issues and problems.
• Stephen Sterling, Doctoral Thesis "Whole Systems Thinking as a Basis for Paradigm
Change in Education: Exploring in the Context of Sustainability" (2003)
Conference presentations:
• Systems Thinking Introduction - Workshop presentation

• ISSS Conference 2002
Resource Links and Organizations:
• International Society for the Systems Sciences (ISSS)

• Leadership Systems Thinking for Transformational Change - 1st module in Leadership
Training Guide (click on right sidebar to download)
• Systems Thinking in Ecoliteracy Resource
• Systems thinking on Wikipedia
• Global System Change
• Systems Intelligence on Wikipedia
• Systems Intelligence Research Group at Systems Analysis Laboratory, Helsinki
University of Technology
• The Creative Learning Exchange
• Systems Thinking in Schools
• Systems Thinking Organization
• Agricultural Systems Thinking
'''This page is done. However still i have one more thing to do: trying to make a powerpoint
presentation with audio narration. I'll email to inform you later.'''
*"''How we think is how we act, is how we are, and determines the results we get''".
*"''The world we have created is a product of our thinking; it cannot be changed without
changing our thinking''". - Albert Einstein
== Why Conventional (Analytic) Thinking Fail? or Why Do We Need A Holistic Approach?

==
*"''We live and work in an analytic prison. Working hard within this prison produces nothing.
We cannot remodel the prison; we must get rid of it. To do this, a transformation is required.
22
Cooperation between people, companies, government, countries. There will be joy in

working. Everyone will win''". - Dr. W. Edwards Deming, April 21, 1992, presentation, The
New Economics.
'''Analytic Thinking: A Mindset Left Over from the Industrial Age'''
Since the Machine Age and Industrial Revolution, mechanization and machines have colored
how we look at the world. Assembly lines, mass production, and countless machines brought
with them the idea that the universe itself is a machine, not an organic, living system.
Mechanistic or analytic thinking has spawned prevalent (and damaging) assumptions about
the nature of people and the world itself.
'''Analytic Thinking Assumptions: Micro Smart and Macro Dumb'''
• ''Reductionism:'' If you take anything apart or reduce it to its lowest common denominator,
you will ultimately reach indivisible elements. For instance, we repair car motors by taking
them apart to work on their smallest parts.
• ''Analysis:'' If you take the entity/issue/problem apart, breaking it up into its components,
you can solve it. Then you aggregate all the solutions and reassemble things. Analysis tends to
explain things through parts, rather than a view of the whole. Even today, analysis is probably
the most common technique used in organizations. Managers cut their problems down to size,
reduce them to a set of solvable components, and then reassemble them into one solution.
Many managers continue to see analyzing as synonymous with thinking.
• ''Mechanization:'' In this set of assumptions, virtually every phenomenon begins and ends
with a single relationship: cause and effect. Environment is irrelevant. Indeed, the basis of
modern scientific methods is the isolation of variables in highly controlled laboratories—an
artificially closed systems view of the world.
'''''While reductionism, analysis, and mechanism may appear to resolve problems initially,
they almost always fail to provide long-term, longer-lasting solutions.''''' Analytic thinking is
such a common way of thinking that it is unconscious. Because its central, mechanistic, linear
approach is to diagnose and treat only one issue at a time, other issues must wait their turn,
causing further problems and unintended consequences. It’s an inherent deficiency of this
thinking mode.
Analytic thinking usually assumes one cause for one effect and asks, “Is it either, or?” Paired
with reductionism, analytic thinking makes us “micro-smart and macro-dumb”—good at
thinking through individual elements, like solving one side of Rubik’s Cube, but prone to
missing the larger, more important picture. Too often, we find ourselves with five unintended
jumbled “other” sides as a result of analytic approaches to change.
'''Analytic Thinking Is Becoming Obsolete'''
The reason analytic thinking is less effective in business today than it was in earlier ages is
that the global economy is increasingly complex, interconnected, and interrelated. Analytic
thinking doesn’t usually consider all environmental factors as it looks for one-and-only-one
best way. The environment, other systems, relationships between and among systems, and
multiple and circular causalities surrounding the enterprise have great impact on daily
23
functioning. Yet analytic thinking often looks inward instead of considering these
relationships, multiple solutions, interdependencies, and environment.
Analytic, piecemeal, and reductionist thinking resists considering multiple issues and their
relationships at the same time or taking a larger view of entire systems. When we approach a
complex system and attempt to recognize multiple and delayed causes for every effect, we can
become overwhelmed quickly and retreat back into the perceived “safety” of considering
individual pieces of a problem in isolation. Unfortunately, as with a Rubik’s Cube with just
one side solved, the end result is often the unintended consequences on the other sides of the
organization.
*Source: [http://inspiration.diinoweb.com/files/System_Thinking/Management%20-
%20Enterprise-Wide%20Change%20-
%20Superior%20Results%20Through%20Systems%20Thinking%20-
%20S%20G%20Haines%2C%20G%20Aller-
Stead%20%26%20J%20McKinley%20%28John%20Wiley%20%26%20Sons%29%20-
%202005.pdf Enterprise-Wide Change Superior Results Through Systems Thinking, Stephen
G. Haines, Gail Aller-Stead, and James McKinlay, 2005 by John Wiley & Sons, Inc.]
== The Systems View of Life - UNITY through DIVERSITY==
''"Reductionism and holism, analysis and synthesis, are complementary approaches that, used
in proper balance, help us obtain a deeper knowledge of life".'' - Fritjof Capra
[http://www.youtube.com/watch?v=o_MDRI-Q76o The Systems View of Life] - A talk of

Fritjof Capra (video, 10 min)
[http://www.mountainman.com.au/capra_0.html The Systems View of Life] - chapter 8 in

"The Turning Point"
Everywhere we look, we can see living, breathing examples of systems in our lives, in
organizations, on our Earth, and floating in the vast universe. The material universe is seen as
a dynamic web of interrelated events. None of the properties of any part of this web is
fundamental, they all follow from the properties of the other parts, and the overall consistency
of their interrelations determines the structure of the entire web. In a Systems Thinking view
of the world, human beings are simultaneously the creators of systems, systems ourselves, and
parts of larger systems. Don’t lose sight of the fundamental point that human life on Earth is a
living societal system overall, with supporting and manmade mechanical, electrical, and
electronic systems. This global, human, social system exists within the context of the
ecological and biological systems that naturally make up the Earth. At the highest level,
humans share a planet with all other forms of life, protected by a fragile layer of ozone, which
preserves the conditions necessary for life as we know it. At this and every other level of life,
we exist as part of many interdependent systems.
'''When one key element of a system in our lives changes, it simultaneously affects many other
elements in our lives. Life itself is made up of complex and interdependent systems.'''
*'''[http://www.slideshare.net/pthuyduong/wonderful-journey/1 Wonderful Journey]''' You all

are invited to a wonderful journey, from the biggest to the smallest distance of the universe...
(You can see it online by click to the "Full" button or you can download the file
24
[http://inspiration.diinoweb.com/files/System_Thinking/Wonderful_Journey.pps here]). Ever

since early NASA astronauts saw a faraway Earth floating in space, we’ve become
increasingly aware that humanity and the Earth are part of a vast, interdependent universe—a
system in which we play but one small part. Photos of the Earth taken from space allow us a
view of the planet itself as a single organism— a worldview that is relatively new in science
and philosophy.
*'''Seven Levels of Living Systems'''

Kenneth Boulding first outlined the seven natural levels of living systems in The Meaning of
the 20th Century (1964). These seven levels represent the hierarchy and network of living
systems.
1. Cells: The basic unit of life
2. Organs: The organic systems within our bodies
3. Organisms: Insects, bacteria, animals, fish, birds, and humans
4. Groups: Families, teams, departments, units, etc.
5. Organizations: Firms, companies, private, public, and not-for-profit organizations
6. Community and/or Society: Microclimates, ecosystems, neighborhoods, communities,

cities, states, provinces, nations, regions within countries
7. Supranational Systems: Eco-regions, continents, Earth
*'''Systems Within Systems'''

While these seven levels may initially appear to be discrete and separate from each other,
Systems Thinking tells us that each system level is nested within other systems, exists in
relationship with every other system, and affects every other system. Every system level
exists in a nested, hierarchical relationship with every other system (systems within systems).
Each one is unique and distinct, yet includes all the same characteristics of each other system
—just the size is different.
Each systems level, of course, also interrelates and reacts to other living systems at higher and
lower levels, in addition to other systems at its own level. Within systems, there are numerous
collaborations, collisions, and relationships among, within, and between individuals (one-to-
one), teams and departments (department-department or cross-functional teams), and the
organization (organization- environment/organization-organization).
As Einstein pointed out, the solution to a systems problem is often found at the next higher
level of system (or interaction of systems).
*'''Natural and Universal Laws: The Basis of Systems Thinking'''

One of the fundamental assumptions behind General Systems Theory is that the Earth and the
systems that comprise it (including human systems like teams and organizations) are
governed by natural and universal laws. If we can correctly identify and understand these, we
have a better chance of successfully interacting with, and transforming, the systems of which
we are a part. Some of the natural and universal laws of life on Earth are:
25
• Four seasons
• The life cycle
• The food chain on land and in the water
• The sun and the moon (day and night)
• 365 (plus a few hours. . .) days in a year...
We believe: If life on Earth is governed by the natural laws of living systems, then a
successful participant should learn the rules.
The natural world does not operate in a linear, sequential fashion. The way of natural life and
open systems is to move gradually and incrementally through cycles of change—day and
night, up and down, awake and asleep—slowly growing, changing, and evolving.
== Introduction to Systems Thinking ==
*''"The significant problems we face cannot be solved at the same level of thinking we were at
when we created them"''. - Albert Einstein
*'''Why Is Systems Thinking Important?'''
Why is systems thinking valuable? Because it can help you design smart, enduring solutions
to problems. In its simplest sense, systems thinking gives you a more accurate picture of
reality, so that you can work with a system's natural forces in order to achieve the results you
desire. It also encourages you to think about problems and solutions with an eye toward the
long view—for example, how might a particular solution you're considering play out over the
long run? And what unintended consequences might it have? Finally, systems thinking is
founded on some basic, universal principles that you will begin to detect in all arenas of life
once you learn to recognize them.
*Key characteristics of systems thinking:
(1) The shift from parts to the whole. Living systems are integrated wholes whose
properties cannot be reduced to those of smaller parts. Their essentials, or “systemic”
properties are properties of the whole, which none of the parts have.
(2) The ability to shift one’s attention back and forth between systems levels.
26
'''Systems thinking is environment thinking''': Exploration of living systems-organism,

communities of organisms had led scientists to the same new way of thinking in terms of
connectedness, relationships and context. In the shift from mechanistic thinking to systems
thinking, the relationship between the parts and the wholes has been reversed. Systems
science shows that living systems cannot be understood by analysis (Cartesian science
believed that in any complex system the behavior of the whole could be analyzed in terms of
the properties of its parts). The properties of the parts are not intrinsic properties but can be
understood only within the context of the larger whole. Thus, systems thinking is “contextual”
thinking. And since explaining things in terms of their context means explaining them in
terms of their environment, we can also say that all systems thinking is environment thinking.
'''Systems thinking is network thinking''', emphasizes on relationships among objects more

than separate objects themselves. Ultimately – as quantum physics showed so dramatically –
there are no parts at all. What we call a part is merely a pattern in an inseparable web of
relationships. Therefore, the shift from the parts to the whole can also be seen as the shift
from objects to relationships. In the systems view, we realize that the objects themselves are
networks of relationships, embedded in larger networks. For the systems thinker, the
relationships are primary. The perception of living world as a network of relationships has
made thinking in terms of networks another key characteristic of systems thinking.
'''Systems thinking is process thinking''': "''If we want to change the result, we must first
change the process that led to the result''". - Systems thinking focuses on processes more than
outcomes as a way of managing. Systems thinking associates with interaction, and unifying of
opposites through oscillation. In systems science, every structure is seen as the manifestation
of underlying processes.
'''In summary, systems thinking is holistic thinking'''. Holistic thinking is the essential of
problem solving. Holistic thinking is a way of thinking that attempts to widen the circle of
understanding in order to comprehend the connections that exist between all things. It reminds
us that all things are connected. Holistic thinking strives for clarity and simplicity but it does
so by embracing diversity and sometimes seeming chaos in order to uncover a closer
approximation of truth. Holistic thinking involves asking questions, striving for win/win
solutions for people and the environment. The process involves testing assumptions and
asking many questions in order to get to the root of the problem.
*Systems thinking promotes holism as its primary intellectual strategy for handling
complexity. Instead of analysing complex systems by breaking them down into their parts, it
advocates studying them as `wholes' using concepts such as boundary, emergency, hierarchy,
communication and control. These core systems ideas can also be employed to construct
systems methodologies and methods for treating problems caused by organizational and
societal complexity in a systemic manner.
*Systems thinking has been fascinated by the tensions between stability and change, and has
embraced a process philosophy in order to grasp the way systems develop over time. It
advocates studying them as `wholes' changing according to their own internal dynamics and
in interrelationship with their environments. To this end it employs concepts such as positive
and negative feedback, relationships, input and output, thesis, anti-thesis and synthesis, chaos
and dissipative structures. Again, these central ideas can be incorporated in systems
methodologies and methods to provide guidelines for productive intervention in change
processes.
27
*Systems thinking attempts to illustrate that, in complex systems, small catalytic events can
cause large change in a system. Acknowledging that a change in one area of a system can
adversely affect another area of the system, it promotes organizational communication at all
levels in order to avoid the [http://en.wikipedia.org/wiki/Silo_effect silo effect].
Source:
*Fritjof Capra, "The Turning Point" (1982), "The Web of Life" (1996).
*Jason F. Mclennan, "The Philosophy of Sustainable Design" (2004).
*Stephen G. Haines, Gail Aller-Stead, and James McKinlay,
"[http://inspiration.diinoweb.com/files/System_Thinking/Management%20-%20Enterprise-
Wide%20Change%20-%20Superior%20Results%20Through%20Systems%20Thinking%20-
%202005.pdf Enterprise-Wide Change, Superior Results Through Systems Thinking]" (2005).
*[http://isss.org/world/conferences/shanghai2002 ISSS Conference 2002]
*[http://www.thesystemsthinker.com/systemsthinkinglearn.html The Systems Thinker]
*[http://www.ecoliteracy.org/education/sys-thinking.html Systems Thinking in Ecoliteracy
Resource]
=== Backward Thinking ===
*'''Change'''
Change is constant. Humans, as living systems, keep on changing. It is a natural part of life
and death. '''The key is to find simplicity on the far side of complexity.''' For example, it is
sometimes easier to write a long letter than a short one. You usually have to write the long one
first and then pull the essence into a short form— just as we have distilled these concepts into
an elegantly simple book. This is what the science of Systems Thinking is all about.
The basic sequence of change looks like this figure: [http://i7.tinypic.com/6fgk8y8.jpg The
Rollercoaster of Change]
We coined the phrase Rollercoaster of Change to describe this natural law, because a
rollercoaster is a simple metaphor for understanding the dynamics of successful change.
Cycles of stability—change—instability—new stability—and change all over again are
normal and natural, the product of several characteristics of living systems, like dynamic
equilibrium and entropy.
*'''The Simplicity of Systems Thinking Is Backwards Thinking''' - Backwards Thinking is the

core of where to start in Systems Thinking.
What Does a System Look Like? How does a system (any system) operate? Can you draw a
system at its most basic level?
All systems (especially living systems) take inputs from the environment and transform them
into different and better outputs back into the environment. Effective systems provide outputs,
which then cycle back around (feedback) to the system again as new inputs to enhance system
effectiveness.
28
'''Systems Thinking is about design'''. '''Design is the organizing principle in Systems

Thinking.''' It is about how to design the organization based on its ideal desired future vision
(vision, purpose, positioning, and values). (Analytic thinking is different. It does not begin
with the end in mind. Analytical thinking is about sense-and-response. The organizing
principle in analytical thinking is our normal action-reaction mode or the sense-and-response
way of living and behaving).
It is quite simple to draw a system. It might look like the one in this figure
[http://i15.tinypic.com/4loocur.jpg The Simplicity of Systems Thinking]
Systems Thinking allows complex problems to be approached through elegant simplicity by

allowing leaders to first focus on outcomes, and then to think and work backwards to identify
numerous potential pathways to reach the desired outcomes.
In turn, exploring many alternatives makes it easier to find solutions that best fit and optimize
all of the parts and relationships within the system toward achieving these outcomes.
By thinking in terms of outputs, the feedback loop, inputs, and then throughputs last as Phases
A-B-C-D (and the environment, the all-pervasive E), executives and change consultants can
use Systems Thinking to diagnose and make change more effectively by thinking right to left,
rather than the analytic tradition of reading and proceeding left to right.
Right to left thinking yields a “gap” between the outputs and inputs of the system, leading to
creative, innovative, and more comprehensive solutions that drive you to your desired
outcomes. (Left to right traditional thinking solves today’s problems, but has no “gap” to
close to achieve a future vision).
The Systems Thinking diagram in figure above provides an elegantly simple way to reduce
complexity by focusing attention on
• The system as a whole
• Its outputs/outcomes
• Feedback within the environment
• Its inputs
• Its throughputs
From the diagram, we can see that five strategic questions underlie the Systems Thinking
approach to Change. The questions begin with the future environment and the end in mind
and work backwards from there to trace possible paths to those desired outcomes:
• ''Phase A: Where do we want to be?'' The first systems question must answer the desired
outcomes of the target system, within its context, environment, and the other levels of systems
that surround it.
• ''Phase B: How will we know when we get there?'' Phase B identifies what signs and
mechanisms in the feedback loop can indicate that the desired outcomes have been achieved.
29
How will we measure our results? This phase often reveals that additional work is required on
the first question. Goals may be too broadly defined and may need redefinition.
• ''Phase C: Where are we now?'' This question defines the gap between the present state and
the desired future.
• ''Phase D: How do we get there?'' Phase D uses Systems Thinking to define and implement
strategies and tactics that will integrate all of the processes, activities, relationships, and
changes needed to close the gap and create the desired outcomes identified through Phase A.
• ''Phase E: What other factors could change in the future environment that we need to
consider?'' The last (but really ongoing) question is one of the most important (and often
missed) components of change. Failure to adapt to a changing environment is one of the
greatest reasons for the decline and death of organizations.
From an ongoing change perspective, this A-B-C-D-E Simplicity of Systems Thinking

framework is circular, as it occurs over and over again as cycles and cycles of change. Thus,
the application of Systems Thinking for this book is as seen in this figure:
[http://i15.tinypic.com/4r7rk89.jpg The Systems Thinking Approach]
Systems are circular. So is the Systems Thinking Approach. After Phase E, we come back
around to Phase A.
''('''Analytic and sequential problem solving, by contrast, is vastly different'''. It often includes
only two of the five phases of change (Phases C and D):'' ''Analytic problem solving''
- ''starts with today’s current state, issues, and problems.''
- ''breaks issues and/or problems down into their smallest components (Phase C).''
- ''solves each component separately (Phase D).''
- ''generally has no future-oriented, far-reaching vision or goal (Phase A); it simply aims for
absence (or solving) of the identified problems)''.
=== Twelve Characteristics of Living Systems ===
At the most fundamental systems level, von Bertalanffy and the others who started the
Science of Systems Thinking researched and listed just twelve characteristics that form the
standard and predictable systems behaviors that are always present in living systems. These
are the yearly research results from the Society of General Systems Research mentioned
earlier. ''The first six of these characteristics apply to the living system as a whole, while the
30
last six describe the inner workings of a living system.'' Keep in mind that ''it is the
relationship and fit of all these parts and characteristics into one whole system that is key, not
just each characteristic standing alone.''
'''''The Whole System: Living Systems Characteristics 1–6'''''
'''Characteristic 1: Holism''' (Living Systems Are Whole Entities with Unique Characteristics)
Holism is the principle that says the whole is not just the sum of the parts and, conversely, that
a system can be explained only as a totality. Holism is the opposite of elementism, which
views the whole as the sum of individual parts. A holistic unit has overall purpose and a
transformational synergy that transcends its component parts.
'''Characteristic 2: Living Systems Are Open Systems'''

Living systems can be considered in two ways in relation to their environment: (1) relatively
closed or (2) relatively open. Open systems exchange information, energy, or material with
their environments. Biological and social systems are inherently open systems; mechanical
systems may be open or closed.
(A closed system is one that is isolated from its outside environment. Experimental, sterile
chemistry labs and clean rooms in computer chip manufacturing are examples of relatively
closed systems. There are, however, few fully closed systems in the world. Only a vacuum is
a totally closed system—and does not occur naturally in our world).
All living systems are either relatively more open or more closed to their environment. Living
systems, by definition, are open systems. They are interactive with their environment and
actively adapt to fit into that environment to a greater or lesser extent.
'''Characteristic 3: Living Systems Have Defined Boundaries'''

All systems have boundaries that separate them from their environments. Relatively closed
systems have rigid, impenetrable boundaries, whereas relatively open systems have more
permeable boundaries between themselves and a broader suprasystem.
Open systems can more easily integrate and collaborate with their environments. Boundaries
are easily defined for biological systems, but are difficult to delineate in organizations and
ecological or social systems such as communities.
Closed boundaries tend to lead to fragmentation, internecine battles over turf, separation, and
parochialism. The ideal is integration, collaboration, and harmony with the environment.
'''Characteristic 4: Living Systems Transform Inputs into Outputs'''

Open systems are transformational in nature. That is, living and open systems receive inputs
from the environment, transform these inputs in some way via throughput and processes, and
then send outputs back into the environment. This produces feedback and begins the loop of
new inputs one more time. At the most basic level, for example, the system we call the
“animal kingdom” takes inputs (food and water) and transforms them into energy to sustain
life. The animals’ throughputs and outputs in turn pollinate plants, affect populations of other
animals, fertilize soil, serve as food for other species, and, after death, return vital nutrients to
the earth itself. This web of inputs, throughputs, and outputs constantly changes one kind of
matter or energy into another.
31
'''Characteristic 5: Living Systems Require Feedback to Continue Living'''

Information about outputs of the system in turn feeds back as inputs into the system, leading
to changes in the transformation process and achieving more effective future outputs.
Evolution is an expression of this characteristic in action.
The value of feedback in improving effectiveness and maintaining a desired steady state
cannot be overstated. Feedback is key to stimulating learning and change. There is no “bad”
feedback. Bad news, in fact, can help guide leaders to find root-underlying causes of
problems in the enterprise.
'''Characteristic 6: Living Systems Pursue Multiple Outcomes'''

Action toward multiple outcomes or goals is a characteristic of all living systems. Social
systems, for example, seek multiple goals if for no reason other than that they are comprised
of individuals and subgroups with different objectives. One need only look at any government
body to verify this characteristic of systems.
'''''The Inner Workings of Systems: Living Systems Characteristics 7–12''''' The second set of
six characteristics of living and open systems concerns the inner workings of systems.
'''Characteristic 7: Living Systems Display Equifinality'''

Equifinality is the principle that the same results can be achieved with different initial
conditions and through different means and pathways. Equifinality offers a basis for
flexibility, agility, and empowerment, because it suggests many roads can lead to the same
destination. Equifinality recognizes there are many ways to the same ends. In mechanistic
systems, there is a direct cause-and-effect relationship between initial conditions and the final
state. Action begins at a prescribed point, passes through one set of steps, and arrives at one
predictable outcome. Social systems operate differently from mechanistic, mechanical, and
electronic systems. Social organizations can accomplish their objectives with diverse inputs
and with varying internal processes, and there is usually not just one “best” way to solve most
problems.
'''Characteristic 8: Living Systems Are Subject to Entropy'''

Entropy is the natural tendency for all living systems to run down over time. Entropy is a
natural characteristic of all open (living) systems. They slowly break down, deteriorate, lose
organization, and eventually die. The good news is that entropy can be arrested in open
systems. Entropy may even be transformed into negative entropy—a process through which
social and organizational systems can become more organized and enhance their ability to
transform themselves through new inputs, energy, and resources from the environment.
Entropy is what leads to a system’s obsolescence, rigidity, decline, and death. Addressing and
reversing entropy is one of the primary processes of Systems Thinking Approach.
'''Characteristic 9: Living Systems Are Hierarchical'''

All relationships among discrete systems are hierarchical. Any given system is composed of
subsystems (lower-order systems) and is, itself, part of a suprasystem (higher-order system).
In the natural world, for example, the predatory food chain is an inescapable hierarchy found
both on land and in water. Simpler organisms (plankton, seaweed, grasses, shrubbery) are
consumed as inputs by more complex organisms (fish, deer, cattle), which in turn become
inputs for even more complex organisms (sharks, whales, bears, wolves, humans).
32
The secret to successful Systems Thinking Approach is to simplify and flatten the hierarchy as
much as possible and go with the flow of life in a self-organizing, natural way, without the
imposition of rigid, bureaucratic, complex, and artificial structures. One of the challenges of
Change is to reduce the naturally negative effects of hierarchy. Rigidity and bloated
bureaucracies based on commandand- control assumptions amplify the negative effects of
hierarchy and assume that lower-level systems can be fully controlled. But they cannot—not
for long, and not predictably. The existence of hierarchy and its inherent conflicts requires
participation and involvement—a key construct in Systems Thinking Approach to Change.
'''Characteristic 10: Living Systems Have Interrelated Parts'''

Systems working optimally have their elements coordinated to maximize the power of the
whole. If we maximize the elements of a system, by contrast, we usually inadvertently
damage the whole. Consider the practice of “doping” in sports. An athlete who attempts to
artificially maximize just one element—muscles—through steroid use ends up doing serious
long-term damage to the larger system (his or her body).
'''Characteristic 11: Living Systems Tend Toward Dynamic Equilibrium'''

Living systems have a dynamic quality even as they resist change. The concept of dynamic
equilibrium within a steady state is closely related to entropy. Closed systems eventually
attain an equilibrium state with maximum entropy (death or disorganization). In contrast,
open systems may attain a state in which a continuous inflow of materials, energy,
information, and feedback produce a dynamic yet steady state. This is a natural state of
balance and stability, which is why established societies, cultures, and enterprises are resistant
to change. They are like rubber bands that stretch out, bounce back, and are difficult to break.
Humans (as systems and parts of larger systems) tend to resist change and cling to their
routine—the dynamic equilibrium—of the present state. Resistance to change often leads to
short-term views and actions as well as passive resistance.
'''Characteristic 12: Living Systems Produce Internal Elaboration'''

Internal elaboration leads naturally to greater complexity. Open systems such as enterprises
tend to move in the direction of greater differentiation, complexity, and higher levels of
potential effectiveness. The theory of evolution is an example of the characteristic of internal
elaboration, demonstrating that life on earth changes and adapts itself to environmental inputs
through selective survival and propagation of individuals within the system of a species.
[http://i15.tinypic.com/6f5e26x.jpg Figure: The Inner Workings of a System]
Source: [http://inspiration.diinoweb.com/files/System_Thinking/Management%20-
=== Systems Thinking Skills ===
Figure: [http://i11.tinypic.com/61k26ty.jpg Process step and 7 skills]
''Specify Problem/Issue''
33
*Dynamic Thinking: Framing a problem in terms of a pattern of behavior over time.
*Systems-as-Cause Thinking: Placing responsibility for a behavior on internal actors who

manage the policies and plumbing of the systems.
*Forest Thinking: "See the forest for the trees". To know something, we must understand the
context of relationships.
''Construct Hypothesis''
*Operational Thinking: Concentrating on getting at causality and understanding how a

behavior is actually generated.
*Closed-Loop Thinking: Viewing causality as an ongoing process, not a one-time event, with
the "effect" feeding back to influence the causes, and the causes affecting each other.
*Quantitative Thinking: Accepting that you can always quantity, though you can't always
measure.
''Test Hypothesis''
*Scientific Thinking: Recognizing that all models are working hypotheses that always have
limited applicability.
Source and recommended reading:

[http://inspiration.diinoweb.com/files/System_Thinking/The%20Thinking%20in%20Systems
%20Thinking.pdf The "Thinking" in Systems Thinking.]
=== Guiding Principles of Systems Thinking for Enterprise Leaders===
Two preconditions must be met before Systems Thinking principles can be successfully
applied to a given situation:
• ''The entity to be changed must be clearly understood''. Successful change requires

identifying which of the Seven Natural Rings of Reality is the subject of a planned change.
Leaders must be clear about the entity they are targeting. Is it an individual, a team, a family, a
business unit, a community, or an organization? What are its boundaries? Is it relatively open
or closed in its environmental interactions? The question that must be answered based on this
precondition is, “What entity, system, or collisions of systems are we dealing with?”
• ''All systems are linked to other systems—some larger, some smaller—in a hierarchy
(systems within systems)''. No living system is independent of any other. We are all, as human
beings, linked to a greater or lesser extent to all others on this planet in a hierarchy of systems.
Organizational linkages are subject to the same hierarchy characteristics. Within our identified
system and Seven Rings of Reality, what level(s) of the system are impacted by our change?
Once the two preconditions have been met, change leaders can then approach Change
systematically, based on the following guiding principles and their related systems question.
34
'''Principle 1: Systems Are Multiple-Goal-Seeking Organisms'''

Develop clarity and agreement on this principle before beginning any actions. Keep in mind
that there are usually multiple outcomes, not either/or questions that come from reductionist
thinking. Other words for outcomes include vision, ends, goals, objectives, mission, and
purpose (the what).
This principle relates to ''Systems Question 1: What are the desired outcomes?'' Without
agreement on ends, our actions will never have a chance of succeeding. Once the what is
clear, there are many ways to achieve the same end (the how) through empowerment.
'''Principle 2: Feedback Is the Breakfast of Champions; Be Flexible and Adaptive (The

Feedback Loop)'''
In today’s complex and fast-changing world, the ability to come up with initial solutions is not
nearly as important as the ability to generate reliable and constant feedback and to adapt in
order to achieve our desired outcomes. The ability to be flexible and adaptive (for example, to
learn, grow, change, and adapt to changes in the environment) is crucial. Economies of speed
are replacing economies of scale as a key competitive edge. Feedback is the key need in
today’s learning organizations. It will help them learn, grow, and adapt at all levels of the
organizational system (individuals, teams, and the organization as a whole).
This principle relates to ''Systems Question 2: How will we know we’ve achieved our goals?''
'''Principle 3: Work and Align the Entity to Be Changed from the Outside In, Not the Inside
Out'''
Remember to employ Backwards Thinking. To gain clarity from the beginning, start with the
future environment, the wants and needs of the customer, and your desired future outcomes.
Then work backwards from the environment into the organization to determine how to meet
those current and future customer needs. At the same time, keep meeting the multiple
outcomes of other key stakeholders. Align all employees, suppliers, the entire organization,
and business processes across departments to achieve these outcomes. This is the conceptual
basis for business process reengineering. Unfortunately, it is often fragmented into
departmental elements or internal cost-cutting activities. Customer impact is too often
ignored.
''This aligns with Systems Question 3: What will be changing in the environment in the future
that will impact us?'' For example: Has your change process included a future environmental
scan-both external to your enterprise as well as inside the enterprise but outside the process—
and taken this into consideration?
'''Principle 4: The Whole Is More Important Than the Parts'''

The relationships and processes are key (holism and subsystems). The synthesis of how the
parts fit and link together in an integrated process in support of the whole outcome is the most
important assessment.
An analysis of each part’s effectiveness cannot be done in a vacuum. Effectiveness is

determined only in the context of relationships between the parts and the processes that lead
to the whole. Always remember that a system cannot be subdivided into independent parts.
Achange in one part affects the whole and the other interdependent parts or processes.
35
This relates to ''Systems Question 4: What is the relationship of X to Y?'' (And how do they
contribute to the overall objective of the whole system and its desired outcomes?) For
example: Has your change process considered its impact on other changes that the enterprise
is undergoing at the same time, such as a cultural change and a team-building effort? Have
you considered how other changes going on in the entire organization fit with any large-scale
complex change you are undertaking?
'''Principle 5: Focus and Strengthen the Basic Units/Systems of Organizations (Holism)'''

The basic unit of enterprises is not just the individual. It also includes individual relationships.
The basic units are (1) individuals, (2) individuals to individuals, (3) teams, and (4) cross-
functional teams. We need to counter-balance our strong Western tendency to glorify the
individual at the expense of the team and enterprise. (Asian, First Nation, and indigenous
societies around the world often are the opposite.)
This relates to ''Systems Question 5: Are we dealing with means or ends? What is the purpose
of each level of the system and how does it relate to the system as a whole?'' For example:
When a group seems to have a conflict, what are they fighting over? Is it about the next steps
or about the desired outcomes?
'''Principle 6: People Support What They Help Create; There Are Many Different Ways to
Achieve the Same Desired Outcomes; Involvement of the Right People in Planning and
Implementing the Solutions and Actions Is Key (Equifinality)'''
It follows that decision making should be as close to the actions as possible. People have a
natural desire to be involved and provide input into decisions that affect them before the
decision is made. For leaders, this is called participatory management.
This relates to ''Systems Question 6: What do we need to do to ensure buy-in, stayin, and
perseverance over time (to reverse the entropy)?''
'''Principle 7: The Steady-State Equilibrium We All Want Can Kill Us—In a Rapidly Changing
Society, the Biggest Risk Is to Stay the Same (Steady State, Entropy)'''
Change keeps us creative, even if it is awkward, uncertain, ambiguous, and even painful. Our
natural inclination is to maintain the status quo and its comfortableness. Change requires us to
(1) admit we need to change and will it to happen and (2) acquire the new skills and abilities
needed to function more effectively. Knowledge and information are inputs into a system. By
themselves, they are not enough to make change happen. New skills need to be developed if
we want to learn, grow, and change. Short-term creative destruction can sometimes be key to
long-term advances. Today’s steady state is one of constant change.
This relates to ''Systems Question 7: What are the new structures and processes we are using
to ensure successful Enterprise Change?'' For example: Have you set up a Change Leadership
Team structure that meets regularly? Does it conduct checkups (monthly at a minimum) for
your Enterprise Change? Does it bring all the leadership together to review all sub-changes
involved in the larger change?
'''Principle 8: Systems Within Systems Within Systems Are Too Complex to Fully Understand
and Manage Centrally (Internal Elaboration, Complexity)'''
Liberation from regulation, shaping corporate bureaucracies into smaller units, privatization,
and free market economies are generally more efficient and effective than government or big
business can ever be in understanding the complexities of systems. Thousands of little
36
decisions we all make each day in our businesses are what shape and meet market needs, not
central government regulations. Big government and big corporations have roles to play in
today’s society, just not allencompassing ones.
This relates to ''Systems Question 8: What do we centralize (mostly ends) and what should we
decentralize (mostly how’s and means)?''
'''Principle 9: Root Causes and Effects Are Usually Not Linked Closely in Time and Space
(Open Systems and Systems Boundaries)'''
Simplistic cause-effect analyses and the desire for quick fixes often create more problems
than solutions. Because our world is composed of levels of complex and interdependent
systems, multiple causes with multiple effects are reality, as are circles of causality-effects.
For example: What effects on a farmer and his crops do the ocean—clouds— sun—rain—
wind—plants—food play? What causes what? Delay time—the time between causes and their
impacts—can have enormous influences on a system. The concept of “delayed effect” is often
missed in our impatient society. It is subtle, and almost always underestimated. When we feel
results aren’t happening quickly enough, unnecessarily “knee-jerk” reactions can result.
Decisions often have long-term consequences, even years later. Mind mapping, fishbone
diagrams, and all sorts of creativity and brainstorming tools are useful here. However, the
complexity encountered is often far beyond our human ability to fully assess and comprehend
intuitively. For this reason, it is crucial to anticipate delays, understand them, and learn to
work with them, rather than against them.
This relates to ''Systems Question 9: What are the root causes?'' Caution: Dig deep, and dig
again. The root causes are rarely obvious.
For example: When a group seems to have a chronic and complex problem they cannot solve,
ask the “Why” question again, just slightly differently: “Why does this situation exist?” Ask
the same question over and over until you get to deep, root cause(s).
'''Principle 10: Reverse the Entropy'''

Systems increase in complexity until they become bureaucratic and ossified, ultimately
resulting in death of the system. All living systems require constant energy and inputs
(feedback and booster shots) if they are to reverse the process of entropy. Otherwise, all living
systems eventually run down and die. While human beings and families obviously have a
finite lifecycle, it doesn’t have to be this way for neighborhoods, communities, and
organizations. For them, the renewal process is key to long-term success. Chaos and disorder
are often precursors to renewal and growth at a higher level. We now have a virtually limitless
supply of constant feedback, which provides us with new inputs for change. On the reverse
side, however, we can get information overload and feel that life is becoming too
complicated. We need to eliminate the waste that complexity brings. The virtual corporation
may become more effective than more traditional, vertically integrated complex
organizations.
This relates to ''Systems Question 10: How can we go from complexity to simplicity, and from
consistency to flexibility, in the solutions we devise?'' For example: Simplicity and flexibility
are two criteria for success. They must be explicit in the process on a regular basis or they will
37
not occur (they go against natural system characteristics). Simplicity wins the game every
time!
'''Principle 11: Change Is an Individual Act (Seven Levels of Living Systems)'''

Organizational change is a myth. Organizations and institutions change only when people
change. Processes and procedures change when people change their behaviors. Accepting
responsibility and accountability for your actions is key. This interdependence is the highest
order in terms of wisdom and maturity, coming after dependent and independent growth
stages. Independence is really a myth! Focusing on assisting individual change within the
family, team, or unit (as a system) is the best way to assist individual change.
This relates to ''Systems Question 11: What do I contribute to the problem and what can I
change to be a positive and proactive leader on this?'' For example: Each member of a Change
Leadership Team should look at his or her own behavior first. They should do it as a group as
well to promote openness and teamwork.
'''Principle 12: Problems Can’t Be Solved at the Level at Which They Were Created''' (Albert
Einstein)
In many of your change projects, you will need to go to the next higher systems level and its
desired outcome in order to succeed—the "helicopter" view of the world.
This relates to the Ultimate Systems Tool and ''System Question 12: What is our common
superordinate goal here?'' For example: If you are having differences and conflict as a group,
can you get the team to agree on a higher-level goal—get them up in a helicopter for a
higherlevel, 5,000-foot view?
'''Principle 13: Paradigm Shift—The World Continually Evolves, Often in Discontinuous

Ways, Leading to Breakthroughs Occurring on a Regular Basis'''
Just as the world has undergone a series of ages on Earth over thousands of years, so do the
views we have about What Is the Truth? A key to change is letting go of the current “truth” for
the new one replacing it.
This brings forth ''Question 13: What today is impossible to do that, if it could be done, would
fundamentally change what we are?''
For example: If your team seems unable to get “out of the box” in their thinking, brainstorm
answers to this question, even to the point of being silly or unrealistic.
'''Principle 14: We Are Holistic Human Beings in Search of Meaning (Multiple Goal
Seeking)'''
The search for meaning in our lives is crucial to our successes and failures. It only comes
from the desired ends and whom we want to serve outside of ourselves. This requires that we
understand our own interdependence with others. The more we can balance ourselves in body,
mind, and spirit, the better we can serve others. Starve any of these essential human elements
and we starve as human beings. Dehumanize us in our work settings and we don’t perform
anywhere near our potential.
This brings up ''Systems Question 14: What are the multiple goals for this project?''
'''Principles 15, 16, 17, 18...: You Tell Us . . .''' :)

38
Above all in Systems Thinking is the understanding that we learn about our systems and
ourselves as we evolve and grow and change. The learning never stops, nor should it.
== Systems Thinking and Sustainability ==
'''Expand the boundary of caring.'''
Living successfully in a world of complex systems means expanding not only time horizons
and thought horizons; above all it means expanding the horizons of caring. There are moral
reasons for doing that, of course. And if moral arguments are not sufficient, then systems
thinking provides the practical reasons to back up the moral ones. The real system is
interconnected. No part of the human race is separate either from other human beings or from
the global ecosystem. It will not be possible in this integrated world for your heart to succeed
if your lungs fail, or for your company to succeed if your workers fail, or for the rich in Los
Angeles to succeed if the poor in Los Angeles fail, or for Europe to succeed if Africa fails, or
for the global economy to succeed if the global environment fails.
As with everything else about systems, most people already know about the interconnections
that make moral and practical rules turn out to be the same rules. They just have to bring
themselves to believe that which they know.
'''Celebrate complexity.'''
Let's face it, the universe is messy. It is nonlinear, turbulent and chaotic. It is dynamic. It
spends its time in transient behavior on its way to somewhere else, not in mathematically neat
equilibria. It self-organizes and evolves. It creates diversity, not uniformity. That's what makes
the world interesting, that's what makes it beautiful, and that's what makes it work.
*Source: [http://www.sustainabilityinstitute.org/pubs/Dancing.html Dancing With Systems]

by Donella Meadows, 2001.
=== Systems Intelligence ===
Systems approach starts when you ''want to'' perceive the world through the eyes of another
person. Systems Intelligence is about the betterment and improvement of human life. Systems
Intelligence is a philosophy of life, a way out of egocentricity, aiming at achievements
reachable by common effort.
''Systems Intelligence in Everyday Life'':
+ Appreciation
39
+ No judgements
+ Interest
+ Humor
+ Listening
+ Thanking
+ Encouragement
+ Friendliness
Reading Resources:
*[http://en.wikipedia.org/wiki/Systems_intelligence Systems Intelligence on Wikipedia]
*Raimo Hämäläinen, Esa Saarinen (2004) [http://www.sal.hut.fi/Publications/pdf-
files/systemsintelligence2004.pdf Systems Intelligence - Discovering a hidden competence in
human action and organizational life] Systems Analysis Laboratory Research Reports
*[http://www.systemsintelligence.tkk.fi/ Systems Intelligence Research Group at Systems
Analysis Laboratory, Helsinki University of Technology]
=== Spiritual Wisdom and Sustainability ===
Systems thinking will be needed to evolve our systems into a sustainable form. Systems
thinking involves putting the well-being of the whole ahead of the individual, because the
individual cannot survive apart from the whole. In reality, everything on the Earth is part of
one interconnected system. When the scale of human activity was small in relation to the
Earth, it was logical to consider the well-being of the individual apart from the whole. Now,
as human activity is degrading every life support system and making many
unhappy, it is no longer logical. It would be like considering the well-being of the hand apart
from the body to which it’s attached.
Modern economic, political and social systems were developed largely from a reductionistic
perspective that does not take the whole Earth system into account. As a result, these systems
produce unintended consequences that undermine the good they seek to bring about in
society.
To survive on this planet, human society must abide by the laws of nature. In effect, this
means we must model our systems after nature. The technologies and systems of nature are
almost infinitely more sophisticated and complex than human technologies and systems.
Fortunately, we are part of nature. We have the capacity to operate at far higher levels of
complexity and sophistication than that reflected in our current systems.
Competition at the individual level in nature has been used to justify the development of
competitive human systems, such as our current form of capitalism. However, what makes
sense at the micro level does not necessarily make sense at the macro level. At the system
level, the overwhelming force in nature is cooperation, not competition. In a healthy system,
such as a forest or human body, the parts cooperate. When they don’t, as with cancer, the
system dies.
The human mind evolved to serve and protect the individual in a world that was very
competitive at the individual level. As a result, it is understandable that the logic of the
individual (competition) would be scaled up to the system level to develop human systems.
''To achieve sustainability, human thinking must rise to a higher level – systems thinking
(cooperation)''. Through the intuitive function, the level at which nature operates, humans
40
have the ability to operate in harmony with natural systems. The greatest leaps forward in
human knowledge have come from the intuitive.
In many ways, humanity has become arrogant. We often make the mistake of thinking human
thought is the highest form of intelligence on Earth. Yet it is obvious we are surrounded by
vastly superior intelligence, including in our own bodies. Humanity needs much greater
humility. Humility comes from wisdom.
Wisdom is defined here as the ability to see the big picture – to understand and act upon the
interconnectedness of all things – to operate in harmony with others and with nature. This is
the wisdom displayed by nature at the system level.
Older religious beliefs allowed humans to live sustainably on this planet because they saw
nature as the manifestation of the divine. This caused them to revere and respect nature, which
is logical since nature actually is the source of our lives. If there is a divine manifestation on
Earth, it is life and that which gives life – nature. The core of each religion is essentially the
same – to love and respect each other, to care for the poor, to protect the environment. Higher-
level systems thinking in the religious area means we increase cooperation and sustainability
among humanity by emphasizing these core values and de-emphasizing older cultural ideas
that split us apart.
The vast intelligence obviously displayed in nature’s creations is often labeled as divine and
thought to be largely inaccessible to humans. However, through the intuitive, we have access
to this immense wisdom – the wisdom of nature. In effect, we can be infinitely wise. Our
education systems usually teach us to be intellectually smart rather than intuitively wise.
Teaching more people, especially children, to access, discern and utilize intuitive wisdom
through meditation and other techniques is important. It will greatly advance systems
thinking, cooperation and sustainability in society.
Religions have called us to a higher level of consciousness for ages. They say, one’s needs
will be better met by putting others first. Now as quantum physics and common sense show
we are in fact part of one interconnected system, this spiritual wisdom is seen as logical and
practical. As we train our minds to seek and utilize intuitive wisdom, the frontiers of human
knowledge will quickly and vastly expand. Our consciousness will reach a higher level as we
see beyond the illusion of separation (fostered by the five
senses) to the reality of interconnectedness.
The symmetry, order, complexity, sophistication and beauty of natural systems show that very
high intelligence of some type is present. This intelligence is much greater than that normally
occurring in the human mind. Through the evolution of consciousness, our awareness can
move from the individual to the system level. This is ''the function of intuitive wisdom – to be
conscious at the system level – to perceive and actually experience our connection to the
whole''.
''Wisdom in effect is systems thinking.'' It involves thinking from the perspective of the whole
system rather than the individual.
Business and political leaders often must act without full information. Our greatest leaders are
those that seem to know the right thing to do, even when they don’t have full understanding of
a given situation. Intuitive wisdom guides them to make the right decision. True wisdom,
41
leadership and humility involve recognizing that the mind is part of a whole. It cannot
understand everything. The wise mind is one that allows itself to be guided by intuitive
wisdom. A person acting in this manner is placed in harmony with
others and the overall system. As a result, they live a more satisfying and effective life and are
better able to deal with the growing complexity of modern society.
''Doing the Right Thing'': As noted above, systems thinking involves putting the well-being of
the whole ahead of the individual
(because the individual cannot survive apart from the whole). Caring for the whole mostly
means caring for future generations – for our children. In this sense, all children on the planet
are the responsibility of today’s adults. We should be willing to make any sacrifice, short of
our own lives, to ensure the survival of our children.
*Source and Main Reading:

[http://www.globalsystemchange.com/GSC/System%20Change_files/GSC%20System%20Ch
ange%204-8.pdf System Change] by Frank Dixon, 2006.
*[http://www.globalsystemchange.com/GSC/Articles_files/SSI%201-8.pdf Sustainable
Systems Implementation: Building a Sustainable Economy and Society] by Frank Dixon,
2007. (Highly recommended!)
*Further reading:
[http://inspiration.diinoweb.com/files/System_Thinking/A%20complexity%20approach%20to
%20sustainability.pdf A complexity approach to sustainability] by A.Espinosa, R.Harnden,
J.Walker, 2007
== References and Resources for Further Study on Systems Thinking ==
'''Articles:'''
*[http://www.sustainabilityinstitute.org/pubs/Dancing.html Dancing With Systems] by
Donella Meadows, 2001.
*[http://ceres.ca.gov/tcsf/seg/page20.html Systems Thinking - Critical to Sustainability
Education]
*[http://www.newswithviews.com/Stuter/stuter11.htm Systems Thinking - What It Is, What It
Hopes to Accomplish] by Lynn M. Stuter, 2003
*[http://www.globalsystemchange.com/GSC/System%20Change_files/GSC%20System%20C
hange%204-8.pdf System Change] by Frank Dixon, 2006.
*[http://www.globalsystemchange.com/GSC/Articles_files/SSI%201-8.pdf Sustainable
Systems Implementation: Building a Sustainable Economy and Society] by Frank Dixon,
2007. (Highly recommended!)
*[http://inspiration.diinoweb.com/files/System_Thinking/A%20complexity%20approach%20t
o%20sustainability.pdf A complexity approach to sustainability] by A.Espinosa, R.Harnden,
J.Walker, 2007
*Raimo Hämäläinen, Esa Saarinen (2004) [http://www.sal.hut.fi/Publications/pdf-
files/systemsintelligence2004.pdf Systems Intelligence - Discovering a hidden competence in
human action and organizational life] Systems Analysis Laboratory Research Reports
'''Books:'''
*Fritjof Capra, "The Turning Point" (1982), "The Web of Life" (1996).
*Jason F. Mclennan, "The Philosophy of Sustainable Design" (2004).
'''Ebooks:'''
42
*Stephen G. Haines, Gail Aller-Stead, and James McKinlay,

[http://inspiration.diinoweb.com/files/System_Thinking/Management%20-%20Enterprise-
Wide%20Change%20-%20Superior%20Results%20Through%20Systems%20Thinking%20-
%202005.pdf Enterprise-Wide Change, Superior Results Through Systems Thinking] (2005).
*[http://inspiration.diinoweb.com/files/System_Thinking/The%20Thinking%20in%20System
s%20Thinking.pdf The "Thinking" in Systems Thinking.]
*Michael C. Jackson, University of Hull, UK, John Wiley&Sons Ltd,
[http://inspiration.diinoweb.com/files/System_Thinking/Systems%20Thinking%20-
%20Creative%20Holism%20for%20Managers.pdf Systems Thinking - Creative Holism for
Managers] (2003)
*[http://www.systemdynamics.org/DL-IntroSysDyn/index.html Introduction to System
Dynamics] online book was written to introduce system dynamics, a powerful methodology
for framing, understanding, and discussing complex policy issues and problems.
*Stephen Sterling, Doctoral Thesis "[http://www.bath.ac.uk/cree/sterling/sterlingthesis.pdf
Whole Systems Thinking as a Basis for Paradigm Change in Education: Exploring in the
Context of Sustainability]" (2003)
'''Conference presentations:'''
*[http://courses.umass.edu/plnt597s/weekoneintro.ppt Systems Thinking Introduction] -
Workshop presentation
*[http://isss.org/world/conferences/shanghai2002 ISSS Conference 2002]
'''Resource Links and Organizations:'''

*[http://isss.org/world/ International Society for the Systems Sciences (ISSS)]
*[http://regionalcentrebangkok.undp.or.th/practices/cap2015/rlcaw-aylgpw.htm Leadership
Systems Thinking for Transformational Change] - 1st module in Leadership Training Guide
(click on right sidebar to download)
*[http://www.ecoliteracy.org/education/sys-thinking.html Systems Thinking in Ecoliteracy
Resource]
*[http://en.wikipedia.org/wiki/Systems_thinking Systems thinking on Wikipedia]
*[http://www.globalsystemchange.com/GSC/Home.html Global System Change]
*[http://en.wikipedia.org/wiki/Systems_intelligence Systems Intelligence on Wikipedia]
*[http://www.systemsintelligence.tkk.fi/ Systems Intelligence Research Group at Systems
Analysis Laboratory, Helsinki University of Technology]
*[http://www.clexchange.org/ The Creative Learning Exchange]
*[http://www.watersfoundation.org/index.cfm?fuseaction=home.main Systems Thinking in
Schools]
*[http://www.systems-thinking.org/index.htm Systems Thinking Organization]

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Systems Thinking

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1

• 1 Why Conventional (Analytic) Thinking Fail? or Why Do We Need A Holistic

• 5 References and Resources for Further Study on Systems Thinking

Why Conventional (Analytic) Thinking Fail? or Why Do

Analytic Thinking: A Mindset Left Over from the Industrial Age

Analytic Thinking Assumptions: Micro Smart and Macro Dumb

Analytic Thinking Is Becoming Obsolete

• Source: Enterprise-Wide Change Superior Results Through Systems Thinking,

The Systems View of Life - UNITY through DIVERSITY

The Systems View of Life - A talk of Fritjof Capra (video, 10 min)

The Systems View of Life - chapter 8 in "The Turning Point"

• Seven Levels of Living Systems

1. Cells: The basic unit of life

2. Organs: The organic systems within our bodies

3. Organisms: Insects, bacteria, animals, fish, birds, and humans

4. Groups: Families, teams, departments, units, etc.

5. Organizations: Firms, companies, private, public, and not-for-profit organizations

6. Community and/or Society: Microclimates, ecosystems, neighborhoods, communities,

7. Supranational Systems: Eco-regions, continents, Earth

• Systems Within Systems

• Natural and Universal Laws: The Basis of Systems Thinking

• The life cycle

• The food chain on land and in the water

• The sun and the moon (day and night)

• 365 (plus a few hours. . .) days in a year...

• Source: Enterprise-Wide Change Superior Results Through Systems Thinking,

Introduction to Systems Thinking

• Why Is Systems Thinking Important?

• Key characteristics of systems thinking:

Systems thinking is environment thinking: Exploration of living systems-organism,

Systems thinking is network thinking, emphasizes on relationships among objects more

In summary, systems thinking is holistic thinking. Holistic thinking is the essential of

• The Simplicity of Systems Thinking Is Backwards Thinking - Backwards Thinking

Systems Thinking is about design. Design is the organizing principle in Systems

Systems Thinking allows complex problems to be approached through elegant simplicity by

• The system as a whole

• Feedback within the environment

From an ongoing change perspective, this A-B-C-D-E Simplicity of Systems Thinking

- starts with today’s current state, issues, and problems.

- solves each component separately (Phase D).

• Source: Enterprise-Wide Change Superior Results Through Systems Thinking,

Twelve Characteristics of Living Systems

The Whole System: Living Systems Characteristics 1–6

Characteristic 2: Living Systems Are Open SystemsLiving systems can be considered in

Characteristic 5: Living Systems Require Feedback to Continue Living Information about

Characteristic 6: Living Systems Pursue Multiple Outcomes Action toward multiple

Characteristic 9: Living Systems Are Hierarchical All relationships among discrete

Figure: The Inner Workings of a System

Source: Enterprise-Wide Change Superior Results Through Systems Thinking, Stephen G.

Systems Thinking Skills

Figure: Process step and 7 skills

• Dynamic Thinking: Framing a problem in terms of a pattern of behavior over time.

• Systems-as-Cause Thinking: Placing responsibility for a behavior on internal actors

• Operational Thinking: Concentrating on getting at causality and understanding how a

• Closed-Loop Thinking: Viewing causality as an ongoing process, not a one-time

Source and recommended reading: The "Thinking" in Systems Thinking.

Guiding Principles of Systems Thinking for Enterprise Leaders

Principle 1: Systems Are Multiple-Goal-Seeking Organisms Develop clarity and

Principle 2: Feedback Is the Breakfast of Champions; Be Flexible and Adaptive (The

An analysis of each part’s effectiveness cannot be done in a vacuum. Effectiveness is

Principle 5: Focus and Strengthen the Basic Units/Systems of Organizations

Principle 11: Change Is an Individual Act (Seven Levels of Living Systems)Organizational

Principle 13: Paradigm Shift—The World Continually Evolves, Often in Discontinuous