Systemic thinking or a quick fix: A managerial dilemma
Supervision
Burlington
Jul 2001  

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Authors: Michael E Smith
Authors: Jerry Kinard
Volume: 62
Issue: 7
Pagination: 3-5
ISSN: 00395854
Subject Terms: Managerial skills
Cognition & reasoning
Supervision
 
Classification Codes: 9190:  United States
2200:  Managerial skills
 
Geographic Names: United States
US
 

Abstract:
Clearly, systems thinking involves developing a broad understanding of systems. It comprises elements and processes that cross the traditional disciplinary boundaries of a "modern" world deeply fragmented by the passion for expertise. Thus, managers might conclude systems thinking looks for the common in things, and serves as the antidote to the frequent lament people have come to know more and more about less and less. Systemic thinking represent a dramatic departure from the traditional business approach.

Copyright National Research Bureau Jul 2001

Full Text:
Since the publication of, P. Senge's The Fifth Discipline in 1990, business academicians and practitioners alike have urged managers to thirik systemically in their quest solutions to business problems. Many, including Senge (1990); H.T. Johnson (1992); Senge, C. Roberts, R. Ross, B.J. Smith and A. Kleiner (1994); F. Capra (1996); and A.P. DeGeus (1997) have suggested a change to systemic thinking is necessary for sustainable success in today's business environment.

Systemic Thinking Defined

Senge argues systems thinking is a conceptual framework consisting of knowledge and tools that make patterns of whole phenomena observable, and point toward ways to effectively change the phenomena. Senge and Kleiner say systems thinking ... encompasses ia large and fairly amorphous body of methods, tools and principles, all oriented to looking at the interrelatedness of forces, and seeing them as part of a common process. The field includes cyber. netics and chaos theory; gestalt therapy; the work of Gregory Bateson, Russell Ackoff, Eric Trist, Ludwig von Bertallanfy, and the Sante Fe Institute; and dozens or so practical techniques for "process mapping" flows of activity at work. All of these diverse approaches have one guiding idea in common: behavior of all systems follows certain common principles, the nature of which ale being discovered and articulated.

Clearly, systems thinking involves developing a broad understanding of systems. It comprises elements and processes that cross the traditional disciplinary boundaries of a "modern" world deeply fragmented by our passion for expertise. Thus, we might conclude systems thinking looks for the common in things, and serves as the antidote to the frequent lament people have come to know more and more about less and less.

Systems thinking involves developing the ability to see the parts and the whole, and understand how they are related. Systems thinking seeks to understand how emergent properties arise in the whole through relationships among the parts. It also defines the meaning of the parts through the whole. Such thinking requires the ability to take multiple perspectives when looking at any situation, and then to integrate the knowledge gained from these perspectives in understanding how complex interrelationships give rise to the observed behavior of the system.

Thinking in a very broad sense is the ability to unravel novel situations - those for which pre-programmed instincts do not provide adequate resolution. An individual engaged in systems thinking must constantly be integrating multiple perspectives. This entails obtaining, refining, understanding and testing what is observed. In other words, thinking in this sense is learning.

Old Style Thinking Vs. Systemic Thinking

Capra and D. Steindl-Rast identified a number of changes one experiences in shifting from the classical Newtonian scientific paradigm to the systemic thinking paradigm. One change is a shift from part to whole, such that what has been called the part is seen as a manifestation of a pattern that underlies and shapes an inseparable web of relationships. Another change is a shift in focus from the structure of things to the process that manifests the structure. A view of business based upon these two features of systems thinking focuses not on optimizing small portions of the overall business, and assuming the sum of the optimized parts will represent the optimal whole, but instead, focuses on patterns which connect processes by which the business accomplishes its work. The new systemic view of managing does not focus on outcome, but on learning about the relationships that produce patterns of observed outcomes.

Johnson, as refined in personal communication in 1996, has proposed a number of criteria that contrast the changes in thinking between old-style businesses and those operating under the new paradigm. These criteria are presented in Table 1. (See page 6).

Systems thinking is about taking a wider view of phenomena. Systemic thinking arises when we change our view of the business organization from the perspective of a machine to the perspective of a living entity in itself. A systemic approach views the organization as a life system interacting with the rest of the ecosphere. From that perspective, sustainability requires thinking about the organization as a web of interconnected wholes in a co-evolving web that includes all living beings. This extension makes us aware the only meaningful unit of survival is not the organization itself, but includes the organization and its environment. Meaningful portrayals of systems thinking are increasingly recognizing that only when people and organizations concede the biosphere is necessary to survival can real sustainability be achieved.

Table 2 (see page 6) shows how our thinking changes when we shift from the mechanistic view of business to this view of a life system that coexists with natural processes.

The ecological perspective illustrated in Table 2 reflects a view increasingly incorporated into descriptions of systems thinking. The ecological view of business supports organizational activities that provide for true long-term sustainability by embodying the basic principles of ecology, including interdependence, recycling, partnership, flexibility, diversity and sustainability. A broader view of systems thinking considers human beings and their organizations as participants in the web of life. Such thinking views the organization as a living system.

Why Managers Fail To Think Systemically

Business managers are generally interested in any tool that will help them solve immediate business problems and guarantee future success. A belief that such a universal tool can be found is based on the assumption the future is predictable and solutions will be durable. Unfortunately, in our complex, rapidly changing world, chaos appears to be more the rule than the exception. The future often is not predictable and solutions must be regarded as temporary at best.

Systems thinking, as the term implies, is intended to change management behavior by changing how problems are perceived, and changing the cognitive processes involved in seeking solutions to problems. Systems thinking should invite us to think about how we think, not just to think about how we solve a particular problem. Thus, approaches that foster systemic management should have broad application across many different systems. That is, to claim to foster systemic management, an approach must deal with regularities of system behavior, independent of the specific "stuff" (i.e., materials, products, outputs, etc.) of the system. Systems approaches are about recognizing patterns that cut across systems, and from these regularities deriving useful understanding of "epistemological errors," errors in how we know, think and decide, that lurk in nonsystemic thought. If one accepts these requirements for an approach to systemic management thinking, then it follows one's interest! must focus on changing thinking, not just on informing decisions.

Managers frequently fail to engage in systemic management thinking because our culture values action more than reflection. Among the many features of systemic thinking is the recognition there are many interconnections in complex systems, and action should be based on understanding mhe system and its potential for producing unintended effects from any action we take. Thus, systemic thinking requires reflection on what is observed, as opposed to immediate management action. Nevertheless, managers often feel they must "do something" rather than "think reflectively" because appearance is of central importance. Unfortunately, the thing done is likely to focus on symptom relief. In contrast, fundamental solutions require time for observation, understanding, design and implementation.

Since business organizations are microcosms of the broader culture, we would expect to see the results of cultural priorities at work in business operations. Thus, managers are often viewed as being responsible for leading an organization out of trouble. A bias toward taking action to promote the appearance of everything being "under control" can cause a manager to be seen as a hero. Such bias toward action is frequently crucial to the success of a manager. Many current managers have been promoted due to a history of prompt action. Since this is a common justification for promotion, managers may feel compelled to "fight fires" rather than focus on longerterm solutions to problems.

Summary

Systemic thinking involves developing a thorough understanding of the functioning of systems and the ability to see and understand the interrelationships of the parts and the whole. Such thinking requires the ability to take multiple perspectives when observing a situation and to apply the integrated knowledge gleaned from those perspectives to the selection and solution of problems.

Systemic thinking represents a dramatic departure from the traditional business approach. Its application in management seeks to promote effective relationships among the organizational units as opposed to the time-honored optimization of individual business functions. Further, rather than viewing a business organization as an isolated entity, a systemic appreach views the organization as a life system interacting with the rest of the ecosphere. This ecological view of business supports organizational activities that provide for long-term sustainability.

Unfortunately, business managers generally do not adopt systemic thinking in their workplaces because a systemic approach places a premium on "reflective thinking" rather than "doing."

Since our culture demands immediate action for any and all perceived problems, managers often take action (i.e., do something) when inaction is warranted. This tendency to act, rather than think, is all too often the impetus for recognition and reward in our industrial society, leading to short-term gain at the expense of sustained organizational performance.


[IMAGE TABLE] Captioned as: Table 1
Captioned as: Table 2
Michael E. Smith, Ph.D., is Assistant Professor of Management at Western Carolina University.

Jerry Kinard, D.B.A., is Professor and Head, Department of Management at Western Carolina University.
 
 

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