How To Apply Systems Thinking To Improve Effectiveness

Date Published

Systems Thinking is how we look at the world, what lens we use to see it and how curious we are asking the questions: "Where am I in the system right now, is it the bigger picture that I see, is there anything beyond? How can I shift my perspective and to learn more..."

The world has changed, and so must the way that organizations function. To stay relevant, and effective, development organizations must embrace a systemic approach. This can be achieved by embedding the following three key shifts into their daily work.


Many organizations focus on plans seeking a false sense of stability, predictability, and confidence. What happens often right after the plan is confirmed? Reality intervenes. Assumptions are challenged. Unexpected obstacles arise. These static plans quickly become obsolete, leading to missed opportunities and wasted resources.

Plans are important and needed for a step-by-step processes, but they falter when faced with complex and unpredictable situations. Instead, organizations must embrace a culture of continuous learning - shifting from rigid, fixed plans to iterative, adaptable strategies.

Uncertainty makes learning vital; we need to discover what works as we go by trying different options, taking experiments, testing hypothesis, monitoring the impact, gathering feedback and adjusting based on what was working well, or was not at all. This approach recognizes that uncertainty is not an obstacle, but an opportunity to learn.


Measurements, metrics, numbers... While metrics offer valuable insights, an over-reliance on numbers can obscure the complexities of systems. As the book How to Measure Anything demonstrates, defining goals, deciding on what to measure and quantifying progress is essential. However, when addressing complex problems, a singular focus on metrics can lead to unintended consequences.

Instead of relying solely on metrics, organizations should adopt a holistic approach and start paying attention (not saying they do, but in fact start doing it) to qualitative assessments - and especially stakeholders - we need your feedback to understand broader system dynamics. Focusing on direction might be even more beneficial and bring more insights for taking good business decisions.


Shared Vision is one the disciplines introduced by Peter M Senge in The Fifth Discipline: this is how the concept of a learning organization appeared.

Shared Vision is vital for the learning organization because it provides the focus and energy for learning. ... generative learning occurs only when people are striving to accomplish something that matters deeply to them.

To truly thrive, organizations must embrace decentralized decision-making. By empowering individuals to contribute to strategic and operational decisions, they promote a culture of ownership and shared responsibility. By creating a shared understanding people are more likely to take decisions and is helpful in achieving the desired changes - crucial for continuous improvement culture.

Top down decisions, one decision maker in the team lead to silence and learned collective helplessness.


What are your experiences with applying systems thinking in your organization - how has your organization navigates the balance between planning and adaptability? Have you successfully moved beyond just metrics to more meaningful insights?

Looking forward to learning about different examples, insights, and inspiration!


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