Systems thinking and the pragmatic thinker

I recently presented my case for becoming a thinking generalist. However, I’d like to modify that title a bit and rename this person a Pragmatic Thinker.

As stated last time, Pragmatic Thinkers incorporate the essentials of five schools of thought into their daily lives.

• Critical thinking – because we must evaluate evidence and arguments.
• Skepticism – because we shouldn’t believe everything we hear, see, or read.
• Systems thinking – because we need to find the leverage points in large, complex systems.
• Design thinking – because we need sustainable solutions to complex challenges.
• Future thinking — because we must anticipate potential opportunities and risks in the larger environment.

Let’s start with systems thinking.

Systems Thinking – some background

This discipline was popularized for business around 1990 with Peter Senge’s book The Fifth Discipline. His proposition was that systems thinking integrated four other managerial disciplines:  personal mastery, mental models, shared vision, and team learning.

However, he was not the originator of systems thinking. He built on the work of earlier thinkers in biology, ecology, social sciences, and engineering. All of these disciplines need an approach to understanding, analyzing, and resolving complex systems challenges.

Systems Thinking – three things to know

1. Systems thinking deals with complexity: It involves looking at a problem or situation as a whole, rather than breaking it down into isolated parts. This involves understanding the interrelationships and dependencies between different parts of the system, and how they affect each other.

2. Systems thinking is a way of thinking, not just a tool: It’s a way of approaching problems and situations, rather than a specific tool or technique. It involves a mindset of curiosity, inquiry, and open-mindedness, and a willingness to explore complex and dynamic systems.

3. Systems thinking is a generalist’s skill: It can be applied to a wide range of fields, including business, healthcare, education, and social systems. By applying it to complex problems, you can gain a deeper understanding of the underlying causes and identify potential solutions that address the root causes rather than just the symptoms.

Systems Thinking – three questions to ask

1. How are the different parts of the system interconnected? When applying systems thinking to a problem or situation, it’s important to understand how different parts of the system are interconnected and how they affect each other.

2. What are the underlying causes of the problem? Systems thinking involves identifying the underlying causes of a problem, rather than just addressing the symptoms.

3. What are the potential unintended consequences of a solution? When proposing solutions to a complex problem, it’s important to consider the potential unintended consequences that may arise.

Systems Thinking – archetypes

In addition to analyzing and resolving the challenges of complex systems, systems thinking can help leaders deal with future challenges because some of these challenges are reoccurring. In other words, we can intercept the future because we have experienced the past.

Here are four archetypes that appear again and again. There are more.

1. Limits to Growth: A retail chain expanding rapidly but eventually running out of suitable locations to open new stores.

2. Shifting the Burden: A manufacturing company consistently relying on overtime to meet production targets instead of addressing underlying issues with inefficient processes.

4. Fixes that Fail: A marketing team implements aggressive advertising campaigns to boost short-term sales but alienates long-time customers in the process.

5. Escalation: A pricing war erupts between competitors in an industry, leading to continuous price cuts that erode profit margins for all players.

Next

I’ll continue this “mini course” on the thinking disciplines of a Pragmatic Business Thinker with a brief exploration of skepticism. Why skepticism? Because “they” are trying to deceive you!

Care to get on the list?

We will pilot a new course focused on improving the skills of a Pragmatic Thinker in the fall. The pilot will be run at a significant discount and the participants will help us with co-creation of the final course.  If you’re interested in the pilot, you can learn more HERE.

Cheers,

Bill