Systems Thinking has been described as an approach to problem solving where "problems" are viewed as symptoms of an underlying system. If the underlying cause of a system problem is not addressed, problems can repeat and grow and cause unexpected consequences. This blog introduces a System Thinking Maturity Model, an ST Maturity Model, to help assess the underlying cause of problems and select a Systems Thinking Approach to resolve them.

1. Using Systems Thinking to
improve organisations
Abstract
Systems Thinking has been described as an approach to solving problems where "problems"
are viewed as symptoms of an underlying system. If the underlying cause of a system
problem is not addressed, problems can repeat and grow and cause unexpected
consequences. This blog introduces a System Thinking Maturity Model, an ST Maturity
Model, to help consider the underlying cause of problems and select a Systems Thinking
Approach to resolve them.
David Alman
Version 2
February 2014
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2. Using Systems Thinking to improve organisations
The ability to lead and manage is sometimes compared to team sports like basketball and
football. Often the abilities of sports captains, players, and teams are exampled as to what
makes a great performance.
Yet coaches understand that a team’s performance depends on a range of supporting
systems: A system of playing on the field that optimises players and team capability and
opponent weaknesses; a system of selecting, training, and developing players; a system that
engages and commits players to do their best, and so on.
While leaders and managers understand their organisations similarly perform, learn, and
improve based on underpinning systems, a conscious approach to managing change and
achieving high performance through systems – a Systems Thinking (ST) approach - seems
less discussed.
A system can be described as having a purpose and made up of various interrelated or
interdependent factors, such as activities and interactions. The arrangement and
performance of these system’s factors affect the performance of the overall system, as does
its ability to receive and use feedback.
Systems Thinking (ST) Approaches describe how organisational systems perform and ways
to improve them.
There are three approaches to organisational systems, some you may recognise
immediately and others you may not:
1. Functional Systems Approach
Functional systems have an end-to-be achieved, where the system is
designed to achieve that objective.
Functional systems are found everywhere in organisations, and
provide the basis for developing standards of repeatable best
practice and outcomes.
They include “management systems” with policies, procedures, and
plans such as within manufacturing systems production systems;
project management; financial management systems; information management systems;
employee performance management systems; and corporate performance management
systems.
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3. Sometimes these are built into even bigger systems – frameworks- such as IT Enterprise
Architectures involving Portfolio and Project Management (PPM), Information Technical
Infrastructure Library (ITIL) and ISO Standards.
Functional systems provide consistency through standards of service delivery, and means of
improving that service delivery. They are rational and events based systems. These systems
are often process level focused though can also include issues at an organisational, role, and
employee levels. In addition such systems can consider both social and technical
relationship issues in hierarchical and network terms.
Methodologies to improve functional systems include:
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System audits e.g. ISO Standards audited by second or third parties. Sample
explanation at http://bit.ly/fFgCQ
Process activity “waste” reduction e.g. “Lean” and Six Sigma in services (e.g. 30% to
50% of the cost in service organisations relates to slow speed or rework). Sample
explanation at http://bit.ly/u4PnhM
Customer relationship health & satisfaction e.g. Service Blueprinting. Sample
explanation at http://bit.ly/u2RTak
Enterprise Health (organisation, process, and job level) e.g. Human Performance
Systems of Rummler & Brach, IPSI. Sample explanation at http://slidesha.re/vrfI8Z
Integrated process improvement models e.g. Capability Maturity Models such as
CMMI, P3M3. Sample explanation at http://bit.ly/uLckCn
Social Value Networks identifying patterns in employee and group value
contribution (e.g. Value Network Analysis). Sample explanation at
http://bit.ly/hJkntF
2. Structural Systems Approach
Structural systems can be used to plan improvements in decision
making within the organisation. Such systems look beneath and beyond
the surface events that, for example, Functional Systems look at.
Such systems use analysis in a way that highlights underlying patterns in
relationships. Structural system relationships show up as “links” and
“loops” that, in a “non linear” way, result in predictable cause and
effects.
For example, repeating patterns where “quick fixes” continually back fire causing delay and
distress, yet remain repeated by management; where the obvious (repeated) “fix” results in
subsequent unintended severe consequences due to unforeseen circumstances; where
there is entrenched deep conflict between individuals or their issues; where crucial and
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4. important advice in decision making is continually left out; and where organisations remain
in continual crisis and don’t improve because key elements underpinning and affecting their
viability remain overlooked and not understood.
Methodologies to improve management decision making and planning include:
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“Archetypal” behaviour in decision patterns based on System Dynamics. Sample
explanation at http://bit.ly/MryV0E
System Dynamics (SD) involve system diagrams based on feedback loops and
circular causality. Sample explanation at
http://en.wikipedia.org/wiki/System_dynamics
Viable System Model (VSM) based on the way an organisation needs to be designed
to survive in a changing environment. Sample explanation at http://bit.ly/s4efwx
3. Interpretive Systems Approach
Interpretive Systems model "reality" is built from differing views
(pluristic perspectives) of the system's stakeholders, as opposed to
objective, tangible, and observable characteristics of a system taken
from a single view (unitary perspective), such as that of management,
as is found in Functional and Structural system approaches.
Interpretive systems can handle complex, or “messy”, problems or
situations and look at both human designed systems (such as systems of
work) and social systems (such as workplace relationships).
In doing so they can include characteristics of, for example, Functional systems but also,
equally, include characteristics from the organisation’s social systems, like prevailing
management and employee attitudes & behaviour.
In the process of developing such preferred Interpretive systems, the (subjective) views of
the stakeholders and their issues in relationships with others and the “objective”
organisational issues (such as problems with work systems) draw in full stakeholder
involvement, and develop outcomes that resolve differences affecting performance.
This is an “emergent” process addressing system contradictions and participant
expectations.
Methodologies to handle complex or "messy" problems include:
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Strategic Options Development and Analysis (SODA) for improved resolution of
planning and policy issues. Sample explanation at http://bit.ly/SZiv3g
Interactive Planning Methodology (Ackoff). Sample explanation at
http://bit.ly/sZeFHi
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Social Systems Design (Churchman). Sample explanation at http://bit.ly/vYmSIS
Soft Systems Methodology (SSM) of Peter Checkland. Sample explanation at
http://bit.ly/umInEq
Human Activity Systems (HAS). Human Activity System (HAS) modelling can be
applied to a wide range of organisational performance issues. Sample explanation at
http://slidesha.re/1g5HReB
4. A Systems Thinking Maturity Model
The three Systems Thinking Approaches described above may also be compared in other
ways, refer to Figure 1 below.
In Figure 1 the vertical axis reflects different ways cause and effect (causal relationships) can
be viewed:
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Simple refers to observable direct cause and effect relationships.
Complicated refers to predictable but indirect cause and effect relationships; and
Complex refers to unpredictable cause and effects, where causal relationships can
only be seen retrospectively.
Chaotic refers to where no system operates, resulting in crisis management and ad
hoc decisions.
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6. The vertical axis reflects a hierarchy where characteristics of a lower level system's approach
can be found in a higher system approach. Where the different system approaches fold in
within each other. For example, Functional system approach characteristics can be
contained within Structural system approach characteristics, and these in turn can both be
contained within Interactive system approach characteristics.
The horizontal axis reflects the underlying Unitary or Pluristic perspectives applied within
the three Systems Thinking approaches. Both Functional and Structural system approaches
take a single common - unitary- perspective to problems (e.g. a management view).
Interpretive systems consider and address the differing and sometimes conflicting multiplepluristic views of stakeholders.
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7. References:
This blog draws mainly on an article by Professor Mike Jackson Fifty years of systems
thinking for management found at http://bit.ly/rrLDBp
In terms of the vertical axis in the Systems Thinking Maturity Model the terms Simple,
Complicated, and Complex (and Chaotic) are drawn from Dave Snowden’s Cynefin Domains
Framework found at http://en.wikipedia.org/wiki/Cynefin , and these terms are viewed as
approximate in causal relationships with those in the Systems Thinking Approaches. In
addition, in terms of the vertical axis however, the Fifty years of systems thinking for
management article refers to Boulding’s “hierarchy of complexity” where characteristics of
lower level hierarchical systems can be also be found in higher level systems.
An earlier and more detailed relevant supporting book published by Professor Mike Jackson
is Systems Approaches to Management found at http://amzn.to/w5hpez
Labels: Boulding's hierarchy of complexity, Human Activity Systems, Professor Mike Jackson,
ST Maturity Model, Systems Thinking, Systems Thinking Approaches, Systems Thinking
Maturity Model
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