6Systems ThinkingSystems thinking is a discipline for seeing wholes. It is a framework for seeing interrelationships rather than things, for seeing patterns of change rather than static “snapshots.” … And systems thinking is a sensibility — for the subtle interconnectedness that gives living systems their unique character.Peter SengeThere is no software in existence today that actually “does” architecting
7Contrast with Analytic Thinking Separate the “whole” into its component elementsAddress the components separatelyIntegrate your understanding of the components back into the “whole”Whirlpool Galaxy by HubbleHow often do we practice “analytic” thinking?How much “systems” thinking are we practicing?
8Problem-Solving Approaches Systems EngineeringI understand the problem and I know a solution that will address it. My goal is to engineer that solution and control how we go about doing so (focus is on “how”).Systems Engineering is systematic: relating to or consisting of a system; presented or formulated as a coherent body of ideas or principles; methodical in procedure or plan; marked by thoroughness and regularity (Reference: Merriam-Webster On Line, m-w.com)Systems ThinkingI can’t yet define what the problem is. I want to explore the possibilities. I’m willing to be open and adapt my approaches.Systems Thinking is systemic: of, relating to, or common to a system (Reference: Merriam-Webster On Line, m-w.com)- Classic SE is very “goal” driven…assumes a “control” paradigm…prescient design.Whether anyone wants to admit it or not, Deep Water asked the contractors to solve an unbounded problem = SSM; can say the same thing about Intelligence Community, TSA, etc.SSM demands that you be willing to make feasible changes: avoids problem of “malicious compliance”
9When Systems Thinking Is Absent Law of Unintended Consequences:Actions always have effects that are unanticipated or unintended.Examples:Credit Card Accountability Responsibility and Disclosure Act of made it harder for many people to obtain a credit cardPatient Protection and Affordable Care Act of 2010 limited many part time employees to working < 30 hours/weekU.S. government quotas on imported steel protected U.S. steel companies and steelworkers, but caused U.S. automakers to pay more for steel than their foreign competitors.
10Thinking about System-Level Behavior: Emergence Macro-level behaviors (patterns) that cannot be predicted from studying the micro level behaviors in isolation.Systemic behavior that is only observable as a consequence of system element interactions.All systems display emergent characteristics.Emergent behavior is often non-linear.The output is not necessarily proportional to the inputs.Emergent properties can be anticipated by creating patterns that have previously produced similar results.
11Characteristics of Emergence System-level properties exist only at the system level as the system functions.Properties are not observable at the constituent element or subsystem levels.They cannot be understood, explained, or inferred from the structure or behavior of constituent elements or their local properties.Cause and effect relationships can only be established through retrospection.Reductionist analytic techniques are incapable of useful predictions of emergent, system-level behavior.Implication: traditional systems engineering may not be sufficient for addressing SoS challenges.
12Examples of Emergence Biological Systems Examples Consciousness is an emergent property of the human brain.Crickets tend to synchronize their mating calls - calling all at once at the same speed.Engineered System ExampleGeosynchronicity is an emergent property of a particular satellite orbit at a precise altitude and inclination.Social System ExampleOur way of life in the United States of America is an emergent property of the cultures of people who settled here, the U.S. Constitution, and legal and political governance mechanismsThe U.S. Constitution was ratified in 1789
13Organizational Culture is an Emergent Property AttitudesBehaviorCulture influences attitudes that drive behaviors; attitudes and behaviors then shape the cultureAreas of influence: Risk philosophy; Task accomplishment; CommunicationHow does culture affect your organization?
14The System of Systems (SoS) “A set or arrangement of systems that results when independent and useful systems are integrated into a larger systems that delivers unique capabilities.”U.S. DoD Systems Engineering Guide for Systems of Systems (Version 1.0)“…a collection of task-oriented or dedicated systems that pool their resources and capabilities together to create a new, more complex system which offers more functionality and performance than simply the sum of the constituent systems.”Wikipedia (February 2012)“…a set of collaboratively integrated systems that possess two additional properties: operational independence of the components and managerial independence of the components.”Maier (1998)
15SoS ObservationsMost systems today are part of an SoS whether or not explicitly recognizedMost systems are created and evolve without explicit SE at the SoS levelThe SoS comes into existence when something occurs to trigger recognition of the SoSAn organization may be identified as responsible for the SoS along with definition of the objective of the SoSDoes not include changes in ownership of the component systems in the SoS
16The Extended Enterprise is a System of Systems DefinitionAn extended enterprise is a loosely coupled, self-organizing network of firms that combine their economic output to provide products and services offerings to the market.Firms in the extended enterprise may operate independently, for example, through market mechanisms, or cooperatively through agreements and contracts.Example: "McDonald's” includes not only McDonald's Corporation, but also franchisees and joint venture partners of McDonald's Corporation, the third party logistics providers that provide food and materials to McDonald's restaurants, the advertising agencies that produce and distribute McDonald's advertising, the suppliers of McDonald's food ingredients, kitchen equipment, building services, utilities, and other goods and services, the designers of Happy Meal toys, and others.Reference: Wikipedia
17The Systems Diagram: A Tool for Understanding Enterprises A technique to help you understand complex systems interactionsFosters systems thinking about the problemHelps keep you focused on original intentEnables you to analyze systems boundariesIllustrates how a change in one factor may have an impact elsewhereHelps you understand the factors and relationships that are importantHelps you see aspects suggested by “the whole” that might not be obvious from the parts
18ExampleBased on a talk by General Jumper, former chief of staff of the air forceNetwork-Centric, Peer-based, System of Systems with Networks + Sensors + C2 Nodes + BMC2Provides decision- quality information exchange environmentCan take documents and abstract them or build diagrams directly from discussion and experts
19Could you diagram your extended enterprise? Actors:nouns or noun phrasesInteractions:Verbs or verb phrases
20Scenario: An Extended Enterprise A state judged blocked New York City's planned ban on the sale of large sugary drinks, calling them "arbitrary and capricious.”The law would have restricted sale of sugary drinks to 16 oz. or less.The law would have exempted a variety of retailers -- including 7-Eleven. "The effect would be a person is unable to buy a drink larger than 16 ounces at one establishment but may be able to buy it at another establishment that may be located right next door," Tingling wrote.The lawsuit was brought by a group of business associations -- including the American Beverage Association, the National Association of Theatre Owners of New York State and the New York Korean-American Grocers Association.The mayor's office quickly vowed to appeal the decision. City officials believe the health department has the legal authority to use the ban to fight an "obesity epidemic," according to a tweet from Bloomberg's office.Nearly 60% of New York City adults and 40% of city schoolchildren are overweight or obese, according to the decision.Critics have decried the rules as a sign of the growing "nanny-state" and an unfair intrusion on personal freedom.Reported by CNN, 11 March 2013
21Applied Systems Thinking: A Systems View of the Organization
22Attributes of Successful Organizations A future-focused strategy based on realityRecognition that the organization is a systemBroad and deep understanding of the interactions within organizational system and the larger enterprise system of which it is a part.Clear, unambiguous governanceExplicit objectives, roles and responsibilities, resources, methods of accountability and measurement of progressLeaders commit adequate time and resourcesLeaders devote the necessary time to think and act strategically, as well manage the daily in-box transactions.
23A Generalized Systems View of the Organization System BoundaryMEASUREMENT, ANALYSIS & KNOWLEDGE MANAGEMENTLEADERSHIPCUSTOMER &MISSIONFOCUSSTRATEGICPLANNINGRESULTSEnvironment, Relationships, Strategic SituationOPERATIONSWORKFORCESystems thinking should address both the larger systems (super systems) and what really makes up my system beyond what I am focused on. If I want to change a process then I need to examine the other elements of the system.Reference: Criteria for Performance Excellence,
24Good strategy is coherent action backed up by an argument. What is “Strategy?”“unified, comprehensive, and integrated plan that relates the strategic advantages of the firm to the challenges of the environment.”Jauch & Glueck, 1988Etymology:derived from the Greek strategos– a military commander.Q - What is the product or desired outcome of strategic planning?A - Every MBA knows the answer to this one, we all had a required policy and strategy course and in that course somewhere was a definition of strategy“It is designed to ensure that the basic objectives of the enterprise are achieved through proper execution by the organization” (Jauch and Glueck, 1988, p. 11).Richard Rumelt is a UCLA academicGood strategy is coherent action backed up by an argument.Richard Rumelt
25Levels of Strategic Thinking EnterpriseOperationalLevelPrograms Divisions GroupsTacticalLevelProjectsWork CentersStrategic: vision and overall goals for the Enterprise.Operational: translation of strategic initiatives into objectives that can be assigned to a specific operating entity or entities.Tactical: tangible, specific objectives assigned to an individual or a group
26Manage Systemically and Systematically gov·ern·ance Origin: 1325–75…the system of management and controls exercised in the stewardship of your organization.Criteria for Performance Excellence
27Systems Thinking is Critical Changes in our environment are driving us to think differently about governanceCan’t effectively legislate behavior with new generation workersInformation explosion—more accessible knowledgeWorld is smaller—everything is connectedCommunication is more complex
28Thinking Systemically about Governance CultureReward structure must facilitate behavior changeRoles and ResponsibilitiesAligning objectives and expectationsCommunicationSufficiency, context, contentMeasuresHow do you measure the value of intangibles?
29Tracking ProgressEstablish a few, carefully chosen measures which provide useful informationToo many measures can obscure informationFocus on trends, not snapshotsMeasurements taken over a period of timeBalanced perspectiveProduct and Process OutcomesCustomer-Focused OutcomesWorkforce-Focused OutcomesLeadership and Governance OutcomesFinancial and Market OutcomesCustomerSatisfactionSupplierPerformance