How Systems Thinking Can Be Applied To Agile Transformations

Applying systems thinking views a system as a set of interconnected and interdependent components defined by its limits and more than the sum of their parts (subsystems). When one component of a system is altered, the effects frequently spread across the entire system. While the precise impact may not be foreseeable in and of itself, many behavioral patterns are impactful.

Systematic discovery of the system's dynamics, limitations, conditions, and illuminating principles (purpose, measure, methods, tools, etc.) are the main objectives of systems thinking. This information allows improvements to be proposed and tested, knowing that seemingly straightforward modifications frequently have unintended side effects. Agile Management training will help you improve your agile knowledge and learning. 

What is a System?

A system can be defined as a group of interacting, interrelated or interdependent parts that forms a unified whole and has a specific purpose. Let us examine this definition closely and identify the characteristics of a system. These characteristics help in identifying the system:

• All systems have purpose
• All parts of a system must be present for a system to carry out its purpose optimally
• The order in which the parts are arranged, affects the performance of a system
• Systems attempt to maintain stability through feedback
• Whole is more than the sum of its parts
• “Whole” and “Part” are relative abstractions
• A system is always subject to redefinition by changing the perspective

Collection or System

Sometimes, we may tend to get confused between a system and a collection. When in doubt, always look for the interrelatedness, interdependence and purpose. If any of this is missing, you are more likely dealing with a collection rather than a system. This may also change based on the assumptions we are making and the perspective of observation. The assumptions define the boundary of the system under consideration.

Let us take an example: multiple types of fruits kept together in a basket is obviously a collection, as there is no interrelation or interdependence between the fruits, neither is there a goal of the fruit basket. However, let us change the perspective  and look at the fruit basket at a microscopic level. In this case, it becomes a system, as certain fruits interact with each other at a molecular level. This intermolecular interaction either aggravates or slow down the decay of certain fruits kept together. This is an example of how a system is always subject to redefinition by changing the perspective.

System Diversity

To simplify our understanding of the system, the system can be classified based on two factors: Structure (capability to understand) and Behavior (Capability to predict). In terms of structure, a system can be either simple or complicated, and in terms of behavior, a system can be either ordered, complex or chaotic.

We generally refer to the system as a combination of two factors, like Simple-Ordered, Simple-Complex, Complicated-ordered etc. An organization can typically be classified as a ‘Simple-Complex’ system. This means that while the structure of the organization can be easily understood (simple), yet its behavior is moderately difficult to predict, primarily because of the presence of human interaction (complex).

System Thinking

This picture summarizes what could go wrong if we are not system aware. When we focus on local optimization and ignore the global impact, we create more problems for the future. It is said that ‘today’s problems are yesterday’s solutions.’ This is mainly the result of quick fixes we create without considering the overall system.
Reality can be seen through the following levels of perspectives: Events, patterns and systemic structures. This can be represented as an Iceberg to put the system in context.

• Events are occurrences we encounter on a day-to-day basis.
• Patterns are the accumulated memories of the event. When viewed together as a series over time, they reveal recurring trends.
• Systemic structures are the ways in which the part of the system are organized. The events and patterns are usually generated by these structures.

We live in an event-oriented world, and our language and actions are heavily rooted at the event level. Our decisions are majorly guided by events. In reality events are the results of deeper patterns and systemic structures. But these are not easily visible. Understanding where to act leads to a higher leverage action. A leverage point is a point where small change can yield large improvements in the system. As we go from events to patterns to systemic structures, the leverage increases.

How To Apply Systems Thinking?

Applying systems thinking is a holistic approach to problem-solving that looks at the interconnectedness of different parts of a system and how they interact. It is based on the idea that everything is connected and that changes in one part of a system will affect the entire system.

In contrast to traditional problem-solving approaches, which focus on isolated parts of a system, systems thinking takes a holistic view of the problem and the system as a whole. It allows organizations to identify the underlying causes of problems and develop more effective solutions. Regarding agile transformations, systems thinking is applied in several ways to help organizations achieve their goals.

Identifying Interdependencies

One of the critical benefits of applying systems thinking is that it helps organizations identify the interdependencies between different parts of a system. In the context of an Agile transformation, this means identifying how different teams and departments are connected and how changes in one area will affect the entire organization.

Understanding the Impact of Change

Another critical benefit of systems thinking is that it helps organizations understand the impact of change on the entire system. In the context of an Agile transformation, this means understanding how changes to processes and workflows will affect the entire organization, including teams, departments, and stakeholders.

Focusing on Long-term Goals 

Another critical aspect of applying systems thinking is that it helps organizations focus on long-term goals. In the context of an Agile transformation, this means looking beyond the immediate benefits of the transformation and considering how the changes will help the organization achieve its long-term goals.

Building a Culture of Continuous Improvement

Finally, systems thinking can help organizations build a culture of continuous improvement. In the context of an Agile transformation, this means encouraging teams and individuals to continuously look for ways to improve their work and the organization. 

Individual Practice

Learn to Experience Time Differently 

You can obtain a deeper understanding of the system and create more efficient solutions by concentrating on its long-term behavior and comprehending how delays, feedback loops, and behavioral patterns affect it over time. 

Ask Different Questions 

Applying a systems thinking approach when defining and solving problems involves being mindful of the questions you ask. It can include inquiring about the structural relationships and patterns of behavior over time, identifying delays, balancing and reinforcing processes and potential unintended consequences, and understanding how different time intervals and perspectives affect the problem at hand. By asking these questions, you can gain a more systemic perspective, leading to more effective problem-solving.

Notice the Systems Around You

Determine the subsystems, including corporate divisions like accounting or human resources. Think about the various components within these subsystems, such as the people, technology, and physical environment. To see if your system design correctly forecasts the outcomes of past behavior, compare it to historical data.

Draw a Loop-a-Day 

Using the loop-a-day system A straightforward but practical approach for comprehending a system's feedback loops is visualization. It entails sketching out a loop that symbolizes the movement of inputs, outputs, and feedback in a system, thinking about it for a day, and then sketching out another loop the next day.

Collaborative Learning

Find a Coach or Mentor

We all require direction as it helps to have an outside perspective, especially when we're faced with tackling some of the most challenging situations. You can provide your employees with individualized support to solve complex issues. A coach can assist your team members in discovering aspects of themselves that they were previously unaware of. It will enhance the efficiency of your organization.

Start a Book Group

Starting a book group focused on systems thinking can be a great way to learn more about this approach and how to apply it in different contexts. Pick a book or collection of readings with systems thinking themes. Donella Meadows' "Thinking in Systems," David Peter Stroh's "Systems Thinking for Social Change," and Peter Senge's "The Fifth Discipline" are a few of the best-selling works on the topic.

Learning Communities

A learning community is a group of individuals who come together to learn and grow. In a learning community, members share knowledge, skills, and experiences and work collaboratively to achieve common goals.

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Why is Systems Thinking Important?

• Better decisions on the addition or modification of services or the applications based on how they affect the overall system and business.
• Understand what is important to the business based on the system.

Tools to Constitute the Interactions

System thinking uses some tools like feedback loops and behavior over time graphs to represent the interactions in the system. These can be thought of as the rules of grammar for the language.

Application of systems thinking in Agile transformation can help us map the organization as a system using the reinforcing and balancing loops and identify the right leverage points to act. The following points should be considered:

• Take a systemic view→ draw the system diagram
• Identify the central subject that needs attention. As a group, ideate on the different variables affecting the central theme or getting affected by it. Draw the causal loop diagram to identify whether it is a reinforcing loop or a balancing loop.
• Look out for leverage points→, an area where a small change can yield large improvement in the system
• Typically a leverage point at a pattern level will be high in impact than at event level, and the one at the systemic structure level will have greater impact than at the pattern level
• Look at the organization as a system and identify the system archetype
• Drawing the systemic structure helps in identifying the system archetype. Since structure influences behavior therefore, this knowledge is key to understanding the system behavior and, thus, the right leverage points.
• Look for (and address) causes, not the symptoms.
• Although we live in a event driven world, yet as system thinkers, our focus should be on identifying the patterns and systemic structures and act thereon. Today’s problems come from yesterday’s solutions hence localized solutions merely shift the problem from one part of the system to the other.

The following table gives a mapping between the level of perspective, and the action modes. The leverage decreases as we move from top to bottom in the table.

Levels of perspective	Action mode
Systemic structures	Creative
Patterns	Adaptive
Events	Reactive

Principles of System Thinking

A system is;

• Created by the nature or human beings
• Physical, abstract, or human
• A whole separated from its environment by a border

How is Systems Thinking Used Today?

One system thinking application is used in business to improve the efficiency and effectiveness of organizational processes. Systems thinking examples in management are used to identify interdependencies between different departments and teams and to understand how changes in one business area will impact the entire organization. It can help companies develop more comprehensive plans for implementing changes and improving overall performance.

Example of System Thinking

System thinking examples in the workplace are: Marticek uses a true story from Borneo in the 1950s to illustrate his point to his students. The populace visited the World Health Organization because of a malaria outbreak (WHO). It was decided to use pesticide spraying to contain the malaria outbreak.

It eliminated mosquitoes that spread malaria but also eliminated wasps, which managed a worm population. Worms ate the thatch roofs, and many of them fell. Other insects also consumed the insecticides, which fed neighborhood lizards and neighborhood cats. Rat populations eventually exploded due to the pesticide poisoning that wiped out cats. One infestation was eventually exchanged for another.

According to Marticek, "believing one thing would fix the problem produced multiple problems along the road." Before making a choice, systems thinking considers the potential consequences of an idea.

Conclusion

Applying systems thinking can be a valuable tool for businesses aiming to change into Agile. You can find several systems thinking examples in business, such as adopting a systemic perspective and being aware of the connections between the many components of the organization.

Organizations can ensure that the changes made are beneficial in meeting the organization's long-term goals by using systems thinking for Agile transformations. Taking KnowledgeHut CSM certification training will prove helpful in achieving experiential learning.

FAQs (Frequently Asked Questions)

How can system thinking be applied in our daily lives? 

There are many different systems thinking application today that have an impact on daily living. Transport systems, telephones, the Dewey Decimal System, weapons, ecological, space systems, etc., are some of the few examples.

Why are systems thinking essential?  

The systems approach does provide a lot of benefits, though. This method allows you to take a comprehensive approach and improve workplace efficiency. In addition, by streamlining your workforce requirements and business procedures, this strategy can save your firm money over time.

Where can we apply systems thinking? 

Systems thinking is applied in a wide range of fields and industries, including:

1. Business and management 

2. Engineering and design 

3. Environmental science 

4. Healthcare 

5. Education

How applying systems thinking makes you a smarter person? 

Systems thinking can make you more intelligent by helping you develop several critical cognitive skills, such as a more nuanced, holistic, and adaptive understanding of the world around you. It makes you a more effective problem-solver and decision-maker.