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Running head: SYSTEMS THINKING APPROACH TO INFORMATION NEEDS Systems Thinking Approach to Information Needs September 9, 2009 Systems Thinking Approach to Information Needs Introduction Although there are close to unlimited number of business management trends nowadays, the concept of incorporating systems frameworks into organizations is still very popular. Unlike other approaches, systems thinking is, obviously, the most important element that makes the difference between organizational success and organizational failure. The essay examines the concept of systems thinking, and explains how an overall strategy of information will support each of the major roles of the business, namely, business processes and operations, business decision making, and competitive advantage. This information will be useful for the companys employees to gain better understanding on why a systemic approach to information is needed and how such an approach will enable the success of our company. Systems Thinking Systems thinking is a very popular macro scientific theory and heavily research methodology.
It roots back to the universal laws of living systems and is completely different from traditional analysis. Systems thinking is usually compared and contrasted with structured thinking or deterministic thinking. Deterministic thinking can be simplified to if A occurs, then B will follow. (Jackson, 2000) At the same time, structured thinking can be characterized by approaching problems and decomposing large elements into smaller elements. At the same time, system implies the process of interaction between many interacting elements and, in this sense it is more than the sum of the whole.
Forrester's Industrial Dynamics (1961) was the first practical and extensive description of systems thinking approach applied to commercial organizations. For Forrester industrial dynamics [was considered] the study of the information-feedback characteristics of industrial activity to show how organizational structure, amplification (in policies), and time delays (in decisions and actions) interact to influence the success of the enterprise. It treats the interactions between the flows of information, money, orders, materials, personnel, and capital equipment in a company, an industry, or a national economy. (Forrester, 1961, p. 13) (Tansey, 2002) According to Forrester, the role of information was very important, as it provided the feedback in a system that is a crucial element of the interaction between system components. Forrester extended his concept of systems thinking beyond industry and had fundamental impact on systems thinking theory. Prior to his works, cybernetics and general systems theory were considered part of the discipline of systems thinking. The use of cybernetics was initiated by Norbert Wiener, who defined cybernetics as the science of the control and communication in the animal and the machine.
Later Stafford Beer introduced the new term, managerial cybernetics, the practical application of which was mostly focused on the concept of a viable system that implied an organizational unit with some sense of robust viability in its environment. In such a way, the practical system was a collection of components interacting with each other, pursuing one or more purposes and structured to have a meaningful sense of viability in its environment. (Tansey, 2002) While traditional approach emphasizes on separating of the individual components of what is being examined (analysis = breaking into constituent parts), system thinking is focused on how the thing or subject being examined interacts with other components of the system. In other words, systems thinking approach expands its view to take into consideration larger number of components constituting an integral whole. Systems thinking can be applied to all forms of social structure, embracing socioeconomic and socio-political focuses. Systems thinking has a flexibility and a permanence that allows it to be easily applied to all the complexities and variations of the organizational environment that changes dynamically. It is difficult to provide a short and concise definition of this concept, but in short, it is a so-called old / new orientation to the life.
Systems thinking is a holistic, more natural and better view of living systems, such as organizations, teams and individuals, as they live and operate in dynamically changing environment. Then it moves backwards to gain understanding on how each component of that whole can work in relation to the entire systems goals and objectives and only then core strategies can be formulated. In such a way, systems thinking is a completely unique concept that gives a new way to think. In order to use systems thinking in our organization, it is important to think about the environment (and opportunities), the outcomes (and results), the future (and direction), the feedback (and learning), the goals (and measures), the whole organization, the relationships (and patterns).
An overall strategy of information will support each of the major roles of our business, namely, business processes and operations, business decision making, and competitive advantage. Systems thinking is a way of thinking in a more efficient way about our IT company, its purposes, components and environment. When applied to our organization, systems thinking develops a new way to make sense of the complexities, since all things would be treated as systems. Thus, it is a method to learn new things easier, because the basic rules remain the same irrespective of the system. Systems thinking is a good framework for analyzing, diagnosing, problem solving and decision making.
It will allow to gain better understanding of the processes in the organization, as complex processes easy to understand. It is also an effective way to manage in the relatively complex systems age, as it allows to focus on the whole, the elements and the interrelationship of these elements. In such a way, systems thinking is a better, more effective way to integrate new ideas within the systems context. Systems thinking will make our organization more effective, as it is a view of the short-term and long-term consequences and a method to see the big picture and the details. Adopting systems thinking approach will allow to create more effective strategies and to solve problems, keeping the vision and outcome goals in mind, uncovering points of leverage for changes that could be possibly ignored.
There are few areas of management that will obviously derive benefit from a systems thinking approach. First, systems thinking leads to problem solving methods that are more effective and feasible than before. To a certain extent this can be explained by the fact that systems analysis enables identifying the real causes of problems. When adopting systems thinking, quick fix methods are avoided, and instead, the managers try to understand the entire picture and to get to the roots of what has caused the problem.
When systems thinking is utilized, the leadership is also improved. The explanation is that in case the manager does not know how the organization operates and works, he would not be able to understand how to solve problems. The leader has to learn and understand how to plan effectively. It means that he would need knowledge to employees matters (for example, whether the employees are unhappy because of the organizations policies and rules, or whether they have difficulties in relationships or at home, etc) instead of focusing on organizational routine. With systems thinking, communication in the organization also becomes more effective. This holds true for any system, whether it is a commercial company or a small non-profit organization or a team.
As it was already mentioned, systems thinking offers a unique way to make organization more effective. While analytical planning model is focused on plan content, systems thinking approach considers leadership development and team building to be integral part of the system (Checkland, 1981). Systems thinking implies plan-to-plan and team building first to build in and develop success up front organize and educate, while traditional analytical approach prefers preset steps and actions. Analytical model implies total community participation and emphasizes on todays problems, while systems thinking treats ideal future vision as the place to start (e.
g. vision mission values). Systems thinking foresees involvement and participation of many stakeholders throughout the use of a parallel process (e. g. , people support what they help to create). Systems thinking focuses business with priority setting, such as mission, outcome measures, driving force, core strategies, etc, uses strategic budgeting, links strategic planning with functional / department plans, business unit plans, individual goal setting and rewards, to mention a few. Taking into consideration strengths of systems thinking approach, it becomes obvious that the traditional analysis model that implies analysing and solving one issue at a time should be replaced by a newer approach that can withstand the complexities of organizational dynamics and continuous changes (Jackson, 2000).
It is obvious that competitive advantage, successful strategic management and long-term success can be achieved only with a systems thinking approach. Systems thinking is also a key driver for information technology. In such a way, in order to be successful, the organizations need to be learning organizations. Their ability to learn faster and to learn more than competitors is the key element for sustaining strategic competitiveness. The major disciplines of learning organization include systems thinking, mental models, building shared vision, personal mastery, and team learning.
Personal mastery is the basis for the learning organization that needs a commitment to lifelong learning. Building shared vision is very important in society, as individuals need to bind together around a common identity (Jackson, 2000). At the same time, system thinking is crucial to achieving the vision of the organization, as it provides a framework for visualization of interrelationships rather than snapshots and static events. Systems thinking facilitates the changes that are crucial to any learning organization. In such a way, this approach provides motivation for achieving shared vision through individual performance and teamwork.
Without systems thinking approach, the organization will fail, as only adopting a broad systems perspective the companies are able to see a true picture of a problem, thus increasing the changes to become a successful learning organization able to sustain competitive advantages. References Checkland, P. (1981). Systems Thinking, Systems Practice. Chichester: Wiley. Jackson, M. (2000). Systems Approaches to Management.
New York: Kluwer/Plenum. Tansey, S. (2002). Business, Information Technology and Society. Taylor & Francis, Inc.
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Research essay sample on Running Head Systems Thinking Approach To Information Needs
