Day 4 of “7 Days to Systems-Thinking”: System Behaviour and Change
A link to the complete 7-day series on systems thinking is here …
Systems Thinking 101: The Magic of Systems Thinking
The skills you are building through this blog series are enabling you to look at the world in different ways. One of the advantages of systems-thinking is that it helps us ask better questions, because we are able to focus in on the whole system rather than one specific part of it.
Systems still have a tendency to surprise us, however, since when we attempt to “fix” one part of the system now, there is tendency for that “fix” to affect other parts of the system in some way later. Slashing your prices for one your products, for example, may increase sales in the short-term but may drive away premium customers who were attracted by the luxury nature of your brand, thus decreasing overall sales revenue in the future.
When we examine the behaviour of systems, and how those systems change over time, there are specific characteristics that begin to emerge. We’ll explore a few of these characteristics further in this post …
Dynamic Systems
Most complex systems are “dynamic” … that is they have multiple parts or elements of the system that are changing, whilst the system itself remains distinctive, recognisable and retains its overall nature. Sometimes it is the process of change itself that keeps the system functioning.
The system of a bicycle and rider, for example, has two main sub-systems with each sub-system having many moving elements and both sub-systems heavily influencing the other. When moving, the bike and rider together create sufficient forward momentum (through energy expended by the rider) that the bike and rider are able to stay upright. Dynamic systems (or systems in constant movement) can therefore reach a state of stability, without any external intervention.
This is known as self-organisation, and is possible because of the flow of energy that connects the system with its environment. A flock of birds appears as a single entity because each bird within the flock is able to respond to the currents of air surrounding them created on a moment-by-moment basis by the changes in position of neighbouring birds. It is this energy – constantly flowing through the system from the environment – that allows the system to remain in its stable state. Hence, when both bike and rider come to a standstill, there is insufficient energy to keep them both upright … and they will both fall over.
Bike and RIder
Open Systems
Self-organising systems all exchange energy with their environments in this way, and are therefore all characterised as “open systems”. Hence, if you are managing a complex system and you want that system to operate effectively, maintain order and stability, then it is essential for the system to remain open. A variety of tools, methodologies and models, allow system-thinkers to examine closely the nature of this energy interchange with a system’s environment. The Viable System Model (VSM), for example, has a specific model component (known as “System 4”) that explores the system’s relationship with its environment. VSM practitioners are able to examine various aspects of an organisation’s structure, information flow, processes etc. and make diagnostic assessments of the organisation’s viability based on its fit with the VSM model principles.
The exchange of energy with the environment, and the dissemination of this energy though the system is an important point. It is the role of leadership to “pump” this energy through the system so that in the case of a sales team, for example, a state of high-performance can emerge. Systems-thinking provides the practitioner with a whole set of principles and guidelines for creating and managing high-performing teams.
Flock of Birds
However, in order create and maintain a high-performing team, it is sometimes necessary to constrain the action and behaviour of the individual for the benefit of the team (or system) as a whole. For example, in the same high-performing sales team, we might establish geographic territories in order to restrict the operation of individual salespeople to each territory that is assigned to them, so that we avoid the likelihood of more than one salesperson contacting the same client. In order for the team to operate successfully, feedback will also need to exist, so that each team member can share information about important changes and opportunities across territories.
Self- Correction
The behaviour of the system may also be impacted by external interventions or external “perturbations”. In these circumstances the dynamic system may be able to react to the external intervention and correct itself accordingly. For example, using the example of driving again, when a pedestrian steps into the road the driver is able to swerve out of the way. Shortly after this event, a set of principles (such as the rules of the road, usual speed limits etc.) all act to encourage the system to stabilise. Car and driver return to normal operation, and (adhering to the rules of the road) arrive back at their usual position in the road to gradually resume normal speed. Hence, the system is able to react to this small external perturbation, and resume normal functioning very quickly.
If, on the other hand, another car comes out of a side road unexpectedly and crashes into the first car, the energy of this larger external perturbation is too great for the system to handle and both car and driver come to an abrupt halt. Hence, when an external perturbation acts on a dynamic systems outside of the limits it can handle, the system as a whole will return to a static state.
The ability for dynamic systems to self-correct, is similar to the process of homeostasis that operates in the human body to ensure our temperature stays close to 36.9 degrees centigrade. When we get too cold, we naturally begin to shiver so the body is able to generate heat. When we get too hot, the body produces sweat which has a cooling effect. However, there are limits to this. If we get too cold for too long, hyperthermia will set in. If we get too hot for too long, we get heat stroke. Hence, whilst we are usually able to cope with feedback from the external feedback, there are usually limits within which the system must operate to remain stable. In other words, there needs to be a balance in the feedback loops that exist within the system.
Finding Balance
Finding balance within complex systems such as organisations is not always easy. Whether we notice them or not, limits are always present. The world appears to have a surfeit of managers who deliver results at great expense to those around them. A surprising number of individuals appear to achieve seniority by focussing on short-term delivery, them moving on and leaving others to deal with their mess. A great many issues (including corporate scandals, high staff turnover, unsustainable growth etc.), tend to follow the attitude of short-termism. Systems-thinkers are very wary of short-term thinking … and for good reason. Systems that operate at (or beyond) limits for any length of time, don’t survive for very long.
Native American tribes, on the other hand, considered the impact of their key decisions on “seven generations hence”. The corporate world as a whole, it seems, is yet to learn the wisdom of this philosophy and find the balance that is required. The move away from short-termism is, however, already beginning.
At Watt Works (and hopefully you’ll forgive the shameless plug here), our philosophy and approach is built on delivering sustainable performance improvement. Systems-thinkers have a variety of tools at their disposal to tease apart the relationships and dynamics that exist within a system to really understand what is going on – often revealing unique insights as to the nature of the system and what interventions are required to bring the system back into balance.
Are you able to find the balance required to ensure your organisation is able to create and sustain a high-level of performance?
See-Saw
Finding this balance is about much more than not straining the system to its limits – it requires understanding the inflows, outflows and dynamics happening in each area of the system in order to highlight interventions that are likely to improve things for the long-term …. not just the short-term.
As you are already more than half-way through this series, as a budding systems-thinker you should be beginning to gain glimpses of the value that a systems-thinking focus could add to your business.
Tomorrow, we’ll explore some more of the difficulties that arise when we attempt to intervene in the functioning of systems.
Day 5 of this 7-day series is here … http://www.watt-works.com/systems-thinking/day-5-of-7-days-to-systems-thinking-oscillations/
Tags: balance, Change, dynamic, feedback, flock, high-performance, homeostasis, intervention, Leadership, limits, open systems, perturbation, self-organising, seven generations, short-termism, sustainable, System 4, Systems Thinking, Viable System Model, VSM, Watt Works
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