Successful Leaders Employ Systems Thinking

A system is “a combination of related elements organized into a complex whole” (Encarta World English Dictionary). Systems exist at every level: our planet lives within a galactic system, every country and its natural resources live within planet earth’s system, all organizations live within their country’s political and social system, and all employees live within their organizations’ cultural system. What makes systems both fascinating and of significant consequence is that they are inherently interconnected.

More than ever before, managers who wish to lead with integrity must develop the ability to recognize and understand the systems in which they operate and how to affect change within them; ignoring these interdependencies can lead to immoral behavior, sometimes in the extreme, often without awareness or intent. 

To thrive in the 21^st century, Peter Senge, author of The Necessary Revolution, proposes that leaders must recognize the four factors that shape all situations: events, patterns, systemic structures and the mental models that shape those patterns and structures (2008, p. 174). Easiest to recognize are events, as they are visible to all; the key question at this level is “what just happened?” The next step is to consider the trends behind that event, or to ask “Have we been here before?”  From there, the leader must go yet further to determine what forces are at play that caused these patterns to occur. Finally, the leader must consider the assumptions behind the trends that allow this reality to persist  (Senge, 2008, p. 173-176). 

Recognizing systems and how they impact reality is a critical skill to develop. Equally importantly is prioritizing the time required for teams to assess the systems at play in their world. Doing these two things will lead to an increased level of leadership integrity, and undoubtedly a greater level of financial success.

Comments

[Heidi Marmen]

I can't help but to think of the tragedy in the Gulf. I just saw a Rachel Maddow segment in which the same eruption occured 31 years ago off the coast of Mexico, and Transocean was at the helm. The exact same 4 methods that BP has used to stop the geysers of oil were used 31 years ago. And 31 years ago, they too all failed. One method was even called "The Sombrero." (I couldn't make this up.) It is unfortunate that BP has not read Senge.

[Adele Hughes]

I agree that it is important to look at systems and to think broadly about a problem. I am reading Leadership and the New Science, by Margaret Wheatley and she posits that we will find answers in patterns more than planning, in systems and relationships. Its an interesting approach that makes sense to me. I have heard of Senger before, would love to hear more about his work.