1. General Introduction to Systems Thinking
Sustainable Development Online Course
General Introduction to Systems Thinking
The Green Changemakers July 2007

2. Outline I. The Systems View of Life
II. A Need for Paradigm Shift in Thinking
III. Systems Thinking Skills
IV. Wisdom for Sustainability
References
"How we think is how we act, is how we are, and determines the results we get".

3. The Systems View of Life
Life itself is made up of complex and interdependent systems.
When one key element of a system in our lives changes, it simultaneously affects many other elements in our lives.
"Reductionism and holism, analysis and synthesis, are complementary approaches that, used in proper balance, help us obtain a deeper knowledge of life". - Fritjof Capra
UNITY through DIVERSITY
Everywhere we look, we can see living, breathing examples of systems in our lives, in organizations, on our Earth, and floating in the vast universe. The material universe is seen as a dynamic web of interrelated events.
In a Systems Thinking view of the world, human beings are simultaneously the creators of systems, systems ourselves, and parts of larger systems. We exist as part of many interdependent systems.
We are merely a strand in the web of life. Whatever we do to the web, we do to ourselves. Picture source:

4. Systems within systems
Each system interrelates and reacts to other living systems at higher and lower levels (subsystems), in addition to other systems at its own level.
Living systems are organized as “holarchies” or “natural” hierarchies.
Each system level is nested within other systems, exists in relationship with every other system, and affects every other system. Each one is unique and distinct, yet includes all the same characteristics of each other system—just the size is different.
Picture source:

5. 12 Characteristics of Living Systems
The first six of these characteristics apply to the living system as a whole, while the last six describe the inner workings of a living system.
The Whole System: Living Systems Characteristics 1–6
(1) Holism: Living systems are whole entities with unique characteristics. A system is a collection of related parts that interact in an organized way for a purpose.
(2) Living systems have defined boundaries.
(3) Living systems are open systems.
Holism is the principle that says the whole is not just the sum of the parts and, conversely, that a system can be explained only as a totality.
(2) All systems have boundaries that separate them from their environments. Relatively closed systems have rigid, impenetrable boundaries, whereas relatively open systems have more permeable boundaries between themselves and a broader suprasystem.
(3) Open systems exchange information, energy, or material with their environments. Biological and social systems are inherently open systems; mechanical systems may be open or closed. Open systems can more easily integrate and collaborate with their environments. Closed boundaries tend to lead to fragmentation and separation.

6. 12 Characteristics of Living Systems
(4) Living systems transform inputs into outputs Industrial Agriculture = simple linear machine
Ecological Agriculture = complex cyclic organism
(5) Living systems require feedback to continue living. Ex: evolution.
(6) Living systems pursue multiple outcomes.
(4) Open systems are transformational in nature. That is, living and open systems receive inputs from the environment, transform these inputs in some way via throughput and processes, and then send outputs back into the environment.
This produces feedback and begins the loop of new inputs one more time.
At the most basic level, for example, the system we call the “animal kingdom” takes inputs (food and water) and transforms them into energy to sustain life. The animals’ throughputs and outputs in turn pollinate plants, affect populations of other animals, fertilize soil, serve as food for other species, and, after death, return vital nutrients to the earth itself. This web of inputs, throughputs, and outputs constantly changes one kind of matter or energy into another.
(5) Information about outputs of the system in turn feeds back as inputs into the system, leading to changes in the transformation process and achieving more effective future outputs. Evolution is an expression of this characteristic in action. Feedback helps improving effectiveness and maintaining a desired steady. Feedback is key to stimulating change. There is no “bad” feedback. Bad news, in fact, can help guide leaders to find root-underlying causes of problems in the organization.
(6) Action toward multiple outcomes or goals is a characteristic of all living systems.
Pictures adapted from John M. Gerber, 2007

7. 12 Characteristics of Living Systems
The Inner Working of Systems: Living Systems Characteristics 7–12
(7) Living systems display equifinality (the principle that the same results can be achievedvwith different initial conditions and through different ways).
(8) Living systems are subject to entropy (gradually breakdown). However, entropy can be arrested in open systems.
(9) Living systems are hierachical.
(7) Equifinality offers a basis for flexibility, agility, and empowerment, because it suggests many roads can lead to the same destination. Equifinality recognizes there are many ways to the same ends.
(8) Entropy is the natural tendency for all living systems to run down over time. Entropy is a natural characteristic of all open (living) systems. They slowly break down, deteriorate, lose organization, and eventually die. The good news is that entropy can be arrested in open systems. Entropy may even be transformed into negative entropy—a process through which social and organizational systems can become more organized and enhance their ability to transform themselves through new inputs, energy, and resources from the environment. Entropy is what leads to a system’s obsolescence, rigidity, decline, and death. Addressing and reversing entropy is one of the primary processes of Systems Thinking Approach.
(9) Any given system is composed of subsystems (lower-order systems) and is, itself, part of a suprasystem (higher-order system). The secret to successful Systems Thinking Approach is to simplify and flatten the hierarchy as much as possible and go with the flow of life in a self-organizing, natural way, without the imposition of rigid, complex, and artificial structures.

8. 12 Characteristics of Living Systems
(10) Living systems have interrelated parts.
(11) Living systems tend toward dynamic equilibrium (a natural state of balance and stability).
(12) Living systems produce internal elaboration that leads naturally to greater complexity.
(10) Systems working optimally have their elements coordinated to maximize the power of the whole. If we maximize the elements of a system, by contrast, we usually inadvertently damage the whole. Consider the practice of “doping” in sports. An athlete who attempts to artificially maximize just one element—muscles—through steroid use ends up doing serious long-term damage to the larger system (his or her body).
(11) The concept of dynamic equilibrium within a steady state is closely related to entropy. Closed systems eventually attain an equilibrium state with maximum entropy (death or disorganization). In contrast, open systems may attain a state in which a continuous inflow of materials, energy, information, and feedback produce a dynamic yet steady state.
(12) Internal elaboration leads naturally to greater complexity. Open systems tend to move in the direction of greater differentiation, complexity, and higher levels of potential effectiveness.

9. Outline I. The Systems View of Life
II. A Need for Paradigm Shift in Thinking
III. Systems Thinking Skills
IV. Wisdom for Sustainability
References

10. Why is systems thinking valuable?
Systems thinking is founded on some basic, universal principles.
It can help you design smart, enduring solutions to problems.
It gives you a more accurate picture of reality.
It also encourages you to think about problems and solutions with an eye toward the long-term and bigger view.
Systems thinking is founded on some basic, universal principles that you will begin to detect in all arenas of life once you learn to recognize them.
It can help you design smart, enduring solutions to problems.
In its simplest sense, systems thinking gives you a more accurate picture of reality, so that you can work with a system's natural forces in order to achieve the results you desire.
It also encourages you to think about problems and solutions with an eye toward the long view—for example, how might a particular solution you're considering play out over the long run? And what unintended consequences might it have?

11. We sometimes fix on our part of the system, and miss the whole.
Two halves of an elephant is not an elephant!
Slide adapted from John M. Gerber, 2007

12. The solution of one problem may cause another problem (unintended results)
Ex: The ”Green Revolution” agricultural technologies were introduced into Asia in the late 1960s as a solution for food insecurity. Decades later, they have proved detrimental in terms of biodiversity loss, increased use of agro-chemical based pest and weed control, water logging, salinization and land degradation.
Artist Gary Larson
Slide adapted from LEAD International and Sustainability Institute

13. In complex systems, cause and effect are often distant in time and space
We may act to produce short-term benefits and long-term costs.
Slide adapted from John M. Gerber, 2007

14. Then, systems thinking help us...
to see “cause and effect” over long periods of time and far away in space, (avoid actions that are favorable now and harmful later).
to recognise solutions that will cause more problems.
to see the ”whole”.
to find the powerful leverage points for systemic change.
Picture source:

15. Systems Thinking is...
Environment or ”contextual” thinking: thinking in terms of connectedness, relationships and context.
Network thinking: emphasizes on the relationships among objects more than separate objects themselves. Small catalytic events can cause large change in a system.  Systems thinking promotes organizational communication at all levels.
Process thinking: focuses on processes more than outcomes as a way of managing. Every structure is seen as the manifestation of underlying processes.  If we want to change the results, we must first change the process that led to the results.
Systems thinking is environment thinking: (according to Cartesian science, that in any complex system the behavior of the whole could be analyzed in terms of the properties of its parts). In the shift from mechanistic thinking to systems thinking, the relationship between the parts and the wholes has been reversed. Systems science shows that living systems cannot be understood by analysis. The properties of the parts can be understood only within the context of the larger whole. Thus, systems thinking is “contextual” thinking. And since explaining things in terms of their context means explaining them in terms of their environment, we can also say that all systems thinking is environment thinking.
Systems thinking is network thinking, emphasizes on relationships among objects more than separate objects themselves. The shift from the parts to the whole can also be seen as the shift from objects to relationships. In the systems view, we realize that the objects themselves are networks of relationships, embedded in larger networks.
Systems thinking is process thinking: "If we want to change the result, we must first change the process that led to the result". - Systems thinking focuses on processes more than outcomes as a way of managing. Systems thinking associates with interaction, and unifying of opposites through oscillation. In systems science, every structure (event) is seen as the manifestation of underlying processes.

16. Systems thinking is a tool to begin finding root cause!
The “iceberg” model of systemic relationships is a simple tool to begin to unravel complexity and discover root cause of behavior. Lets look at it…..
Slide adapted from John M. Gerber, 2007

17. The Iceberg Events Patterns of Behavior Systemic Structure
Mental Models
Slide adapted from John M. Gerber, 2007

18. Systems Thinking...
 Moves the focus away from events and patterns of behavior (which are symptoms of problems) and toward systemic structure and the underlying mental models
Holistic thinking: widens the circle of understanding to comprehend connections that exist between all things.
 A strategy for handling complexity.
Backward thinking: involves testing assumptions and asking many questions to get to the root of the problem.
 A core of where to start in systems thinking.
In summary, systems thinking is holistic thinking. Holistic thinking is the essential of problem solving. Holistic thinking is a way of thinking that attempts to widen the circle of understanding in order to comprehend the connections that exist between all things. It reminds us that all things are connected. Holistic thinking strives for clarity and simplicity but it does so by embracing diversity and sometimes seeming chaos in order to uncover a closer approximation of truth.
Backward thinking involves testing assumptions and asking many questions in order to get to the root of the problem.

19. Outline I. The Systems View of Life
II. A Need for Paradigm Shift in Thinking
III. Systems Thinking Skills
IV. Wisdom for Sustainability
References

20. DESIGN The organizing principle in Systems Thinking.
Design the organization based on its ideal desired future vision.
First focus on outcomes, and then to think and work backwards to identify numerous potential pathways to reach the desied outcomes.
→ Easier to find solutions that best fit and optimize all the parts and relationships within the system.
Systems Thinking is about design. Design is the organizing principle in Systems Thinking. It is about how to design the organization based on its ideal desired future vision (purpose, positioning, and values).
Systems Thinking allows complex problems to be approached through elegant simplicity by allowing leaders to first focus on outcomes, and then to think and work backwards to identify numerous potential pathways to reach the desired outcomes.
In turn, exploring many alternatives makes it easier to find solutions that best fit and optimize all of the parts and relationships within the system toward achieving these outcomes.

21. 5 strategic questions underlie the Systems Thinking Approach
The questions begin with the future environment and the end in mind and work backwards from there to trace possible paths to those desired outcomes.
Phase A: Where do we want to be?
Phase B: How will we know when we get there?
Phase C: Where are we now?
Phase D: How do we get there?
Phase E: What other factors could change in the future environment that we need to consider?
Systems are circular, so is the Systems Thinking Approach. After phase E, we come back around to phase A.

22. The Simplicity of Systems Thinking
From the diagram, we can see that five strategic questions underlie the Systems Thinking approach to Change. The questions begin with the future environment and the end in mind and work backwards from there to trace possible paths to those desired outcomes:
• Phase A: Where do we want to be? The first systems question must answer the desired outcomes of the target system, within its context, environment, and the other levels of systems that surround it.
• Phase B: How will we know when we get there? Phase B identifies what signs and mechanisms in the feedback loop can indicate that the desired outcomes have been achieved. How will we measure our results? This phase often reveals that additional work is required on the first question. Goals may be too broadly defined and may need redefinition.
• Phase C: Where are we now? This question defines the gap between the present state and the desired future.
• Phase D: How do we get there? Phase D uses Systems Thinking to define and implement strategies and tactics that will integrate all of the processes, activities, relationships, and changes needed to close the gap and create the desired outcomes identified through Phase A.
• Phase E: What other factors could change in the future environment that we need to consider? The last (but really ongoing) question is one of the most important (and often missed) components of change. Failure to adapt to a changing environment is one of the greatest reasons for the decline and death of organizations.
From an ongoing change perspective, this A-B-C-D-E Simplicity of Systems Thinking framework is circular, as it occurs over and over again as cycles and cycles of change.
Backward Thinking Diagram
Picture adapted from Stephen G. Haines, Gail Aller-Stead, and James McKinlay, 2005

23. The Systems Thinking diagram…
…provides an elegantly simple way to reduce complexity by focusing attention on:
The system as a whole
Its outputs/outcomes
Feedback within the environment
Its inputs
Its throughput

24. Steps in the Systems Thinking Method
Picture adapted from ”The Thinking in Systems Thinking”

25. Table adapted from ”The Thinking in Systems Thinking”

26. Systems Thinking and the 7 Skills
Picture adapted from ”The Thinking in Systems Thinking”

27. Guiding Principles
Systems are multiple-goal-seeking organisms.  What are the desired outcomes?
Be flexible and adaptive (the Feedback Loop)  How will we know we’ve achieved our goals?
The Whole is more important than the Parts.  What is the relationship of X to Y?
Focus and strengthen the system of organizations (Holism).  Are we dealing with means or ends?  What is the purpose of each level of the system and how does it relate to the system as a whole?
Systems Are Multiple-Goal-Seeking Organisms Develop clarity and agreement on this principle before beginning any actions.
Other words for outcomes include vision, ends, goals, objectives, mission, and purpose (the what).
Without agreement on ends, our actions will never have a chance of succeeding. Once the purpose (or the “what”) is clear, there are many ways to achieve the same end (the how) through empowerment.
Be Flexible and Adaptive (The Feedback Loop) In today’s complex and fast-changing world, the ability to come up with initial solutions is not nearly as important as the ability to generate reliable and constant feedback and to adapt in order to achieve our desired outcomes. The ability to be flexible and adaptive (for example, to learn, grow, change, and adapt to changes in the environment) is crucial. This principle relates to Systems Question 2: How will we know we’ve achieved our goals?
The Whole Is More Important Than the Parts The relationships and processes are key (holism and subsystems). The synthesis of how the parts fit and link together in an integrated process in support of the whole outcome is the most important assessment.
Effectiveness is determined only in the context of relationships between the parts and the processes that lead to the whole. Always remember that a system cannot be subdivided into independent parts. Achange in one part affects the whole and the other interdependent parts or processes.
This relates to Systems Question: What is the relationship of X to Y? (And how do they contribute to the overall objective of the whole system and its desired outcomes?)
Focus and Strengthen the Systems of Organizations (Holism) This relates to Systems Question: Are we dealing with means or ends? What is the purpose of each level of the system and how does it relate to the system as a whole?

28. Guiding Principles
There are many different ways to achieve the same desired outcomes: involvement of the right people in planning and implementing the solutions and actions is key (Equifinality).
 What do we need to do to ensure staying, and perseverance over time (to reverse the entropy)?
Systems within systems within systems are too complex to fully understand and manage centrally.  What do we centralize (mostly ends) and what should we decentralize (mostly how’s and means)?
People Support What They Help Create; There Are Many Different Ways to Achieve the Same Desired Outcomes; Involvement of the Right People in Planning and Implementing the Solutions and Actions Is Key (Equifinality). Decision making should be as close to the actions as possible. People have a natural desire to be involved and provide input into decisions that affect them before the decision is made. For leaders, this is called participatory management. This relates to Systems Question: What do we need to do to staying, and perseverance over time (to reverse the entropy)?
Systems Within Systems Within Systems Are Too Complex to Fully Understand and Manage Centrally (Internal Elaboration, Complexity) Liberation from regulation, shaping corporate bureaucracies into smaller units, privatization, and free market economies are generally more efficient and effective than government or big business can ever be in understanding the complexities of systems. Thousands of little decisions we all make each day in our businesses are what shape and meet market needs, not central government regulations. Big government and big corporations have roles to play in today’s society, just not allencompassing ones. This relates to Systems Question: What do we centralize (mostly ends) and what should we decentralize (mostly how’s and means)?

29. Guiding Principles
Root causes and effects are usually not linked closely in Time and Space.  What are the root causes? Caution: Dig deep, and dig again. The root causes are rarely obvious.
Problems can’t be solved at the level at which they were created: go to the next higher systems level and its desired outcome in order to succeed.
 What is our common superordinate goal here?
Root Causes and Effects Are Usually Not Linked Closely in Time and Space
Simplistic cause-effect analyses and the desire for quick fixes often create more problems than solutions. Because our world is composed of levels of complex and interdependent systems, multiple causes with multiple effects are reality, as are circles of causality-effects.
This relates to Systems Question : What are the root causes? Caution: Dig deep, and dig again. The root causes are rarely obvious.
Problems Can’t Be Solved at the Level at Which They Were Created (Albert Einstein) In many of your change projects, you will need to go to the next higher systems level and its desired outcome in order to succeed.
This relates to the Ultimate Systems Tool and System Question: What is our common superordinate goal here? For example: If you are having differences and conflict as a group, can you get the team to agree on a higher-level goal—get them up in a higher view?

30. Outline I. The Systems View of Life
II. A Need for Paradigm Shift in Thinking
III. Systems Thinking Skills
IV. Wisdom for Sustainability
References

31. Dancing with Systems
Expand the boundary of caring. The real system is interconnected. No part of the human race is separate either from other human beings or from the global ecosystem.
Celebrate complexity and respect diversity.
At the system level, the overwhelming force in nature is cooperation, not competition.
Living successfully in a world of complex systems means expanding not only time horizons and thought horizons; above all it means expanding the horizons of caring. The real system is interconnected. No part of the human race is separate either from other human beings or from the global ecosystem.
Celebrate complexity. Let's face it, the universe is messy. It is nonlinear, turbulent and chaotic. It is dynamic. It spends its time in transient behavior on its way to somewhere else, not in mathematically neat equilibria. It self-organizes and evolves. It creates diversity, not uniformity. That's what makes the world interesting, that's what makes it beautiful, and that's what makes it work.
At the system level, the overwhelming force in nature is cooperation, not competition. In a healthy system, such as a forest or human body, the parts cooperate. When they don’t, as with cancer, the system dies.

32. Systems Intelligence in Everyday Life
A philosophy of life, a way out of egocentricity.
→ Systems approach starts when you see the world through the eyes of another person.
* Appreciation * No judgements * Interest * Humor * Listening * Thanking * Encouragement * Friendliness
→ Systems Intelligence is about the betterment and improvement of human life.

33. Wisdom in effect is systems thinking
Think from the perspective of the whole system rather than the individual.
Caring for the whole mostly means caring for future generations – for our children.
See the big picture – to understand and act upon the interconnectedness of all things – to operate in harmony with others and with nature. → live a more satisfying and effective life. → better able to deal with the growing complexity of modern society.
Systems thinking will be needed to evolve our systems into a sustainable form. Systems thinking involves putting the well-being of the whole ahead of the individual, because the individual cannot survive apart from the whole. In reality, everything on the Earth is part of one interconnected system.
Caring for the whole mostly means caring for future generations – for our children.
To survive on this planet, human society must abide by the laws of nature. In effect, this means we must model our systems after nature. The technologies and systems of nature are almost infinitely more sophisticated and complex than human technologies and systems. Fortunately, we are part of nature.
To achieve sustainability, human thinking must rise to a higher level – systems thinking (cooperation). In many ways, humanity has become arrogant. We often make the mistake of thinking human thought is the highest form of intelligence on Earth. Yet it is obvious we are surrounded by vastly superior intelligence, including in our own bodies. Humanity needs much greater humility. Humility comes from wisdom.
Wisdom is defined here as the ability to see the big picture – to understand and act upon the interconnectedness of all things – to operate in harmony with others and with nature. A person acting in this manner is placed in harmony with others and the overall system. As a result, they live a more satisfying and effective life and are better able to deal with the growing complexity of modern society.

34. Together, we build!
Picture source:

35. References Dancing With Systems, Donella Meadows, 2001.
System Change, Frank Dixon, 2006.
Systems Intelligence, Raimo P. Hämäläinen and Esa Saarinen.
Systems Thinking Introduction, presentation by John M. Gerber, 2007
The Turning Point (1982), The Web of Life (1996) by Fritjof Capra,
The "Thinking" in Systems Thinking, Barry Richmond