Systems thinking helps one adopt a holistic approach toward solving problems. It stems from the fact that any system is composed of different parts, and these different parts act in tandem to produce the function of the system.
When any part of the system is isolated from the whole, it acts differently and can damage the system. For a system to work well, there must be consistent interaction and linkages among all the components of the system.
Systems thinking is important because it encourages one to consider the interactions between parts as well as the parts themselves. This additional consideration improves one’s understanding of the system’s realized function and its evolution over time while uncovering hidden processes within.
System thinking is connected to system linkage and it cut across almost everything. Whether it is a human organization, business organization, or any kind of organization, understand system thinking and linkage is indispensable in the day-to-day management of that kind of organization.
If you are in the top management of any organization, the first thing to do is to understand the different parts or components of the organization. There is a need to understand the synergy existing among the various components.
Business managers, as well as entrepreneurs and others involved in any kind of management, understand the importance of system thinking, it also cut across many fields such as academics, cybernetics, biology, and so on. System perspective is very useful in understanding how any technique can work.
Any management that wants to be proactive in moving any organization forward must pay serious attention to system thinking. It is important that to know that any system can be likened to the human body with different components such as hands, legs, head, and so on.
These human components must work together for the good of humans. If one part malfunctions, it sends ripple effects to the other components of the body. The same thing applies to any system.
It is important to understand how the system works and how you can make that system to be proactive. It does not matter the field of endeavor involved, systems thinking applies to all forms of organizations.
Systems thinking is the collection of various interconnected and interdependent parts.
These are the various parts that form the whole. For the whole to be stable the parts have to be interacting. It takes a holistic approach. Every system has a different element and if you find out how the different components of the elements can work together, then one can become a good manager.
There is the need to reinforce and balance the system. If the processes are not always balanced, then the possibility of collapse is always there. Because of that, the reinforcing process has to balance the system at every point in time.
The best way to understand how the system works is to check the feedback you get. From the feedback, a good manager would know how the best works and when it is out of equilibrium, you take good action to reinforce the system again.
Reasons Why Systems Thinking Is Important
The following subsections address a variety of ways that systems thinking can improve one’s understanding of complex problems.
Helps in taking the correct business decisions
If you are involved in any kind of business, you need to be well educated about systems thinking. It makes it easy for you to take the correct business decision for the smooth running of the organization. When you are confronted with an issue, you have to analyze the business according to the systemic consequences it is confronted with.
It helps to avoid waste
The major benefit of systems thinking is that it can help you to prevent waste such as waste of money and waste of resources. The reason is simple, a systemic approach sees an organization as a composition of interrelated parts which work together. Even within the departments or parts, there are also subsystems. If the organization is to achieve the desired goals, there is the need for all the subparts and parts to work at the optimal level. If not, any investment would amount to a waste. To avoid that waste the principle of systems thinking has to apply.
It helps in making organization stable and productive
Systems thinking aims to integrate the various parts. When the parts are integrated then it is possible to achieve the desired goals. This means that it can make the organization become more productive and profitable. For them to be productive, there must be what is known as a balance and equilibrium within the organization and the management can succeed when there is that balance and equilibrium. This works well when the top management understands the concept of systems thinking.
Prevents crisis within an organization
Because of the way systems thinking works, it makes it easier to understand the current state and future condition of the organization. When there is the need to change, the top management would understand that and they will change in response to the external and internal factors. There is the need to understand the market environment and adapting to such changes is not going to be a difficult thing because the systems thinking principles make that easy and attainable.
Helps to adapt to the business environment
The business environment keeps changing and that is because of the competitive environment. An organization that depends on systems thinking can adapt to the changing business environment. The effective decisions put in place will ensure that the different components of the organization will work at the best level. When there is an improvement in the relationship that exists between the various parts, the organization would be better for it.
It makes the workplace to be more efficient
One of the major challenges top managers encounter in day-to-day administration is the conflict between the component’s parts. Systems thinking makes it easy for them to understand the benefit of working together as a whole. Since there is a holistic view of any decision that is taking, the workplace is going to be efficient and peaceful. This will translate to more productivity. It is going to save the company a lot of resources.
It reduces an organizations risk of failure
One of the things that systems thinking tries to avoid is the issue of failure. When the manager views the system as a whole, he discovers problems and prospects and will deal with them holistically. Even if there is a failure, this system makes it easier to find out the remedy. Failure makes it easier to study the problem and formulate an effective way of dealing with the problem to move the organization forward and prevent failure in the future.
Correct decisions are good both for the present and the future. Systems thinking makes it easy for correct decisions to be reached at any point in time.
It makes for optimization
Optimization is the key to the success of any organization. Before you start, you must do some critical thinking. It has to do with what you need on the ground to build a formidable business. Furthermore, you have to think of what you need to do to improve the worker’s conditions and to improve the workplace. Most importantly, you must understand that you are not the only one in that competition and you must work out ways of beating your competitors. You need to optimize all these factors right from the onset. Systems thinking is the tool you need to do that because you have taken care of everything the business needs to take off and withstand the harsh environment and beat the competitors.
It leads to a 3D perspective in business
Systems thinking is helpful because it makes it easier for businesses to have a holistic view of the company. Reasoning narrowly is one of the reasons that can cause business failure. Systems thinking actually brings out a 3D environment. This is because there is a holistic focus to solve all issues hindering the organization.
This makes it easier to have a complete review of the whole ecosystem and have a transdisciplinary approach to the company. When you do it this way, it is easier to achieve the desired goals you set for the organization right from the beginning.
Makes it easier to discover the interconnectivity that exists
Conflicts occur in an organization because top management does not observe the interconnectivity that exists in that company. When there is a lopsidedness, then there is bound to be a problem. If there is the discovery of the interconnectivity, it would lead to communications and interdepartmental communications is very important.
It requires a manager that understands the need for such interdepartmental communications to succeed. When an unusual problem arises, then there is the need to evolve an unusual solution to deal with that problem. One good thing with systems thinking is a clear understanding that everything is dynamically interrelated. Each department and the whole departments require the services of their co-workers before they can achieve success and achieve organizational goals.
Evolve love for problems
Systems thinking now makes it easy for top managers to understand that problem will come and when such a problem occurs, there is the need to discover the root of that problem and provide solutions for that problem. With time tools would be evolved which helps to bring about interconnectivity as well as creativity in solving problems. It brings about teamwork. Whenever intricate problems arise, they would be solved or nipped in the bud.
With knowledge of the system, it is clear to management that they cannot avoid complexity. It can help to evolve creativity and bring about better ways of solving problems.
It does not matter the size of your organization, systems thinking is very important. Whether it is a small or a large organization, the concept is very important. You must address all the problems to have lasting peace in the organization. If you solve only one part of the problem, the problem might go for a short term, but within the long term, you would get the problem solved permanently.
System thinking is a perfect way of revolutionizing the workplace. If you put the system into work, it is going to solve the problem completely.
System thinking can expand the range of choices available to top management
Another great benefit is that system thinking can expand the range of choices available to top management in providing solutions to the problems of the organization. It makes it easier to articulate solutions because many heads would be involved in diagnosing the problems of the organization.
The system makes it easier to articulate organizational problems in different ways. Even those problems one may not be aware was existing can be discovered through this approach. It also helps managers understand that there are no perfect solutions to any problem and that different approaches can always work. Most importantly, it makes it easier to have an informed choice.
Helps to take a bold decision for the survival of the organization
This kind of thinking makes it easier for top management to treat issues as they are. First, they understand that every aspect of the organization is important. They can understand when the problem has reached a chronic condition.
When you start to address any issue in a complex organization, every department must be taken into consideration. The best thing that managers can do at such a time is to avoid assigning blame. Instead of assigning blames, it is better to assign responsibilities to get the problem solved forever.
Needed for complex organizations
Systems thinking is the perfect way of solving solutions for complex organizations. It is also effective in dealing with the problems of small organizations. There is no other better way of finding out organizational problems and diagnosing the problems than applying the principles enumerated here. if you apply this concept, it provides you with enough insights, and with that, you would be in a position to tackle all the organizational challenges. It is not only in businesses that this concept is important. If you apply this principle, you would have a better view of the world around you. You can change the way you think about things around you for the better. Moreover, you would have a better understanding of issues, and you will always take a better and balanced judgment about issues that are around you.
The whole is greater than the sum of its parts
It helps us to explore all aspects of an organization which include the inter-relationship in its context and its connections. Furthermore, it leads to a better perspective. It involves different actors and each of these actors comes with their perspective of the situation on the ground. Using the concept, it is easier to draw boundaries and limits as well as cohesion and cooperation within the organization. It makes it easier for the actors to agree on the scale, scope as well as work out measures for improvement in the organization. When it comes to addressing complex problem situations between humans, business organizations, and even human organizations it fosters ways of dealing with the problem. A complex system requires more than one action since the situation is the interplay of actions.
Novel understandings of problems
To solve problems, you need to think of more than one solution. Different solutions and approaches can deal with that problem. Complex situations would continue to evolve and thinking in the system way will always help to understand and find solutions to that problem.
System thinking is more towards organizational and social learning. It also has to do with adaptive management. In the complex world, we are living today, humans keep encountering situation which is really bad and messy. To understand the situation and evolve ways of dealing with that kind of situation, system thinking is the right way to go. There is a need to understand complex problems systematically. There are always big pictures and when you consider it systematically, it is now easier to see the big pictures. It involves different elements in play and this thinking helps in discovering the connectivity between the various elements and forces in play. This means that one must look for joint action.
Conclusion
Systems thinking offers the complete framework for thinking about all kinds of systems. In the decision-making cycle, it is the best way to provide solutions to problems that seem insurmountable. It provides the facilities which are needed to bring about collective understanding and collective decision-making. Collaborative decisions and collaborative actions are needed to deal with most of the challenges that confront organizations and humanity.
The lesson you derive here is clear. It means that problems confronting organizations and humans are caused by different factors. System thinking now makes it easier for you to understand the various interplaying factors to cause the problem. It also helps in formulation a multilateral decision to solve the problem. System thinking is needed in different kinds of situations. Whether it is in a business organization, governmental activities, human organizations, in the workplace, and any other situations that you can think of, system thinking is very important because it can offer solutions to the problem.