Systems Thinking For Leadership

At the most basic level, every leader should be able to understand the foundations of the organization he/she wants to lead. Systems thinking helps in doing so.

Simply stated Systems Thinking is watching an organization and explaining its components in terms of the relationships among them. And for that matter most of the organizational systems can be viewed like this:
 

1. Purpose: Every system has a purpose (goal), it’s essential to know that goal.
2. Inputs: Every system depends on the quality of the inputs. The inputs of the systems are all the information, goods or services that needs to operate.
3. Processes: This should be, value adding processes. A system should have its internal systems to add value to the inputs it receives and produce results.
4. Results: The outcomes after the value added processes take place with the input received. The outcome should be compliant with quality standards, market regulations, and so on.
5. Benefits to Stakeholders: A system’s stakeholder can be any of the following: customers, clients, employees, community, and so on. A system should benefit the stakeholders.

The key to good systems thinking is looking at the “big picture” the system offers.

Systems thinking is a key concept in a leadership toolbox. A good system definition can make the difference between success or failure.

The concept is really easy, so move on and try to apply it. The key is to identify all the five components of the systems thinking model.

LEADERSHIP ACTIONS

1. Try to identify the goals, inputs, processes, outputs and stakeholders for the most important system or subsystem you’re related to.
2. Look for improvements in any of the areas you define of the system and share those ideas with the stakeholders.

REFERENCE

The Leadership Encyclopedia.
Hiebert,M; Klatt,B. (2001)
McGraw-Hill