Systems and Systems Thinking

A system (from Latin systēma, in turn from Greek σύστημα systēma) is a set of interacting or interdependent components forming an integrated whole.  A system is a subset of reality that is a focus of analysis.  A system may be formed of subsystems (which, in turn, are formed of their own subsystems).  A system can be a component of a bigger system. 

The key characteristics of a system are:

• Purpose or function: It can be usually deduced by observing system behavior, which involves inputs (information or material or energy), processing, and outputs (information or material or energy).
• Structure: It is defined by components and their composition.  A system involving people has values, principles and people as its components, as well as processes and business workflows.
• Interactions: Various components of a system have functional as well as structural relationships between each other allowing them to interact.  

The systems view focuses on the whole, a synthesis of the components, where the components are seen with respect to how they interact and contribute to the whole. This is in sharp contrast to our traditional mechanistic view where we analyze the system and see the components almost to the exclusion of the whole. From a systems view, it is not as critical to define what components exist in a system as it is to understand how the components interact with each other (the system's structure) and how the system interacts with other systems and its environment. We also find that the behavior of a system is determined largely by the interaction of the components, and not based on the components’ behavior.  In many cases the behavior of the whole cannot be explained in terms of the behavior of the components, i.e., behavior of a system is an emergent phenomenon that emerges out of complex interactions among its subsystems and their components.

This is the reason why agile project management and development so strongly emphasize cross-functional teams, and value interactions and collaboration among stakeholders (customers, product managers, project managers, developers, testers, etc.).

A system must be represented in some form in order to communicate about it and also to analyze it.  A model is used to represent a system.  A model is an abstraction capturing the key aspects of the system it is modeling, just like a map is an abstraction of the geographical territory it represents. 

Systems thinking is a process and an approach to problem solving, as viewing "problems" as parts of an overall system, rather than reacting to present outcomes or events and potentially contributing to exacerbation of the problem or creating unintended consequences. Systems thinking views systems in a holistic manner examining the linkages and interactions between the components that compose the entirety of the system. Some of the major tools of systems thinking include: causal loop diagrams, stocks, flows, feedback loops (balancing type and reinforcing type), and system archetypes (common system structures that produce characteristics patterns of behavior).   Systems thinking is quite different but complementary to analytical thinking, which breaks down a complex system into its simpler subsystems and components for analysis. 

Software-intensive enterprises, software projects, processes and teams that we are interested in studying and improving are not mechanical, linear systems, but are dynamic and nonlinear. This means that we cannot truly understand a system by breaking it into its components and managing these components separately (for example, using the divide-and-conquer strategy).   This requires the use of tools different from those developed to help us understand and change mechanistic systems.

Our current thinking of how to study processes focus on the operational aspects of the system (how things happen) rather than on the dynamic structure of the system of which the process is a component (why things happen). Systems thinking helps us to get beneath the operational process descriptions and really see why the system behaves the way it does.

Cause-and-effect style linear thinking does not always help us solve complex problems in enterprises. Distinguishing between cause and effect is not always easy. We might believe and therefore see that a productivity problem is being caused by low morale, but we may fail to see that management's actions to deal with the productivity problem are further eroding morale.  

Systems thinking is a way for teams to look for changes that will give long-term improvements rather than the quick fix that eventually fails but is reapplied over and over. Systems thinking provides an approach for managing complexity. Systems thinking usually adds value when situations are problematic, longstanding, and resistant to change interventions. Systems thinking is often helpful as a planning resource. In particular, a systems view can help you plan for growth, anticipate limits to growth, predict and avoid actions that can undermine partnerships, and avoid shooting yourself in the foot (by producing a worse situation than the one you already have).

One cannot simply read about systems thinking and "get it." Systems thinking does not come naturally to most of us, as analytical thinking patterns are drilled deep into us as a result of most of our formal education and training. There are conditions and practices in most enterprise that make systems thinking and its practice difficult:

• Divisional and functional managers have little awareness of, and no responsibility for the entire system, only for their individual functional units.

• Divisional and functional managers are often rewarded based on how well they help their own functional units succeed (and not the performance of entire system).

• Planning is usually not done cross-functionally covering the entire system of system of systems. We simply do tasks, and often do not see the system behind the problem we seek to solve.  As a result, today's “solutions” become tomorrow's problem.

• Success is measured not by measures important to the customer and stakeholders, but by measures important to their managers.

• Short-term thinking: looking ahead only to this month or this quarter.  Many organizations go for the quick fix when faced with a problem, and, over time, the fix creates more problems than it sets out to solve.

In short, systems thinking is the art and science of making reliable inferences about system behavior by developing a deep understanding of system structure (interconnection and interrelationship of system components). 

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