Systems Design and Business Dynamics Course Overview Starting Point: What is a system? Focus: Why dynamics? Thinking and Analysis: What is the nature of a structural hypothesis? End Point: Why design?

Systems Design and Business Dynamics: Why should you be here? You will gain a basic understanding and working knowledge of systems thinking fundamentals: performance patterns thinking, causal loop diagramming, archetype stories and stock-flow mapping. You will gain an appreciation and insight into putting systems thinking into personal and organizational action to pinpointing leverage points and design improved system performance. Bottom line: You will be better prepared to contribute to your future organization’s ability to see into complexity and offer meaningful facilitation and conversational skills to help others understand systems structure effective systems redesign policies Few MBAs have this elective content available

Systems Design and Business Dynamics: Studying Complex Problems Closed-loop thinking: feedback loops (Classes 1-3) Two Basic Feedback Loops Causal Loop Diagram Systems Archetypes Operational Thinking; stocks & flows mapping (Classes 4-7) How does the system really work? System as Cause & Examining decision policies ”ithink” software: mapping and simulation Systems Design Applications Analyses and Simulations (Cls 3-15) Practice analysis and design skills involving dynamic behavior, why it occurs, and how we can find high leverage changes and new systems designs to understand and improve Business growth dynamics management Improvement management Consulting practice dynamics Managing out of addiction Turnaround Strategy Design and Implementation Performance metrics design Natural resources sustainability

Systems Design and Business Dynamics: Announcements ithink software: See Course Description Web Site & isee systems memo Use DISCOUNT CODE UVA2011 Need ithink for preparations of Class #3 October 21 A good deal; required for the course and very useful elsewhere Please have on your laptop ithink download ready by Thursday, Class #2 (10/20/11); we will briefly examine the software. GBUS8430 web site and course folder Will be used to deliver some course materials (In-class assignments and software models)

Systems Design and Business Dynamics: Running Rules for the Sessions Be here for all sessions and workshops Sit in same seats or near same seats; sign in each day Minimize disruptions cell phones off, leaving the room, arriving after class starts using laptop for non-SD & BD learning activities Absences—prior notification, if possible; know the grade consequences of absences Mutual professional respect (students, faculty, guests)

Systems Design and Business Dynamics: Course Grading Class Contribution: 50% of grade Attendance: no more than 2 un-excused in our 15 sessions; otherwise Low Performance (max grade) in class participation. Daily: we will record attendance and observe contributions An announced individual assignment (s) relative to class preparations Course Comprehensive Assignment: 50% of grade Four (tbd-confirmed) person group; systems thinking assignment; calling upon the major frameworks, thinking skills and tools of the course Group Formation Process---look for an on Friday 10/21/11

Systems Design and Business Dynamics Planning Ahead Requests Individual and Group Deliverables for Several Class Workshops and the Course Project Required, Individual Turn–in Assignment: Nov 3 100% Attendance Required on Nov 3; see me if a problem Group preparations prior to Nov 9 Required, Individual Turn–in Assignment: December 6 100% Attendance Required on Dec 6 and 7; see me if a problem

Systems Thinking Perspective - A Shift of Mind Dynamic thinking: Seeing time-based patterns of change rather than snap-shots/events. Closed loop thinking: looking for circles of causality rather than linear cause-effect chains to develop and communicate a mental model of causality structure (a feedback structure) System as Cause thinking: What is generating the performance pattern? (boundary of causes) Operational thinking: How does the system really work? Uses stock-flow maps to operationalize (make explicit) one’s mental model and highlight information flows, delays and decision policies.