How to apply systems thinking to business leadership
Systems thinking is all about looking at interactions between different elements of a system, rather than each element in isolation. This holistic approach can be especially effective when applied to certain areas of business leadership when you’re looking to make organizational improvements.
By looking at how the parts of the whole function together, leaders can uncover hidden relationships, anticipate unintended consequences and develop more sustainable solutions for their organizations. Below, 16 Forbes Coaches Council members share different areas of business that can greatly benefit from leadership leaning into a systems thinking mindset and how.
1. Delegating Tasks
Use systems thinking for delegating tasks to a team. First, identify the key participants. Communicate the goal, and ensure they have a full understanding of the “what” and the “why.” Actively include and engage them in the design of the approach—the “how.” Finally, discuss the impact and effects their actions will have on other departments, and proactively communicate with them to ensure a smooth rollout occurs. – Jeffrey Deckman, Capability Accelerators
2. Considering All Perspectives
Every one of us works in a system, whether it’s by yourself or with thousands of others. Systemic thinking considers both the heard voices in the room and the unheard voices that aren’t in the room. What impact will our decision have on our team, our clients, our organization, our industry, the environment and on future generations? Each voice plays an important role in the system we are working within. – Dennis Kight, it works! LLC
3. Addressing Ecological Divides
One area where systems thinking can have a significant impact is in addressing the ecological divide within organizations. Drawing from Theory U and holistic leadership, breaking down silos and fostering interconnectedness is vital. Applying systems thinking principles cultivates collaboration and sustainability, enhancing resilience and promoting environmental and social responsibility. – Michele Damone, Nature Motivation
4. Coaching Leadership Teams
It’s useful to apply systems thinking in coaching leadership teams. These teams shape organizational direction and culture within complex systems, with far-reaching impacts. Often viewed as isolated entities, leadership teams overlook their interconnectedness within the larger organizational system. By facilitating systemic team dialogues, coaches can foster collaboration and alignment. – Sheila Goldgrab, Goldgrab Leadership Coaching
5. Navigating Cross-Functional Collaborations
One area where a systems thinking approach is important is in complex matrix structures involving cross-functional collaborations or projects. These structures introduce complexity due to multiple reporting lines and overlapping responsibilities. It is important to take a systemic view, recognize the interconnectedness of various components and understand how they influence each other. – Charles Dormer, APEX STP, LLC
6. Facilitating Change Management
When implementing changes within a business or organization, understanding the systemic implications is crucial. Systems thinking helps leaders anticipate ripple effects and unintended consequences, which facilitates smoother change management processes. This area is important because it is an ongoing process. Systems thinking encourages a mindset of continuous improvement. – Dr. Sharon H. Porter, Vision & Purpose LifeStyle Magazine and Media
7. Celebrating Wins
Applying systems thinking to the affirmation, acknowledging and celebrating of wins brings unexpected rewards across the organization. By adding this component to each vertical layer of management and vendor processes, you naturally build in a positive approach and expectations of good. Most leadership processes skip this step and forfeit tons of momentum, engagement and culture benefits. – Carry Metkowski, Carry Metkowski
8. Strategic Planning
While I recommend systems thinking overall, I believe it is most effectively applied in strategic planning, especially for annual strategies and continuity of operations plans. Whatever strategies, goals and objectives are set annually, using systems thinking at the earliest stages of planning ensures that input from all affected areas, and how they operate and intersect, is incorporated. – Barbara Anne Gardenhire-Mills, Purpose-Filled Solutions & Evolutions
9. Understanding The Broader Impact Of Small Tweaks
In our ever-changing world, small behind-the-scenes tweaks can impact the whole company. For instance, a company that addresses cybersecurity vulnerabilities associated with remote work by enhancing protocols for employees using personal devices at home and in the office might be safer, but the digital employee experience might also be compromised. This could lead to increased turnover without a systems thinking approach. – Ira Wolfe, Poised for the Future Company
10. Streamlining The Integration Of Technology
In my experience, the most critical area calling for a systems thinking approach is technology. Too often, departments and programs in large organizations identify technological solutions for their specific needs without considering how they will integrate with other organizational technologies. It is essential to have a common systems committee to streamline integration and save money. – Joanne Valli-Meredith, PhD, BeyondAdmissions, Inc.
11. Improving Company Culture
Company culture is a system driven by values demonstrated through behaviors. Systems thinking helps leaders discover which behaviors need to be strengthened, which values are missing and which employee needs must be fulfilled to have a successful company. Then, leaders can improve those areas through their own behavioral examples and lead people toward the new culture that their company system desires. – Dominik Szot, MIA
12. Minimizing Disruption In Operations Shifts
Operations is a key area where systems thinking shows its importance and necessity. Often, operation shifts have impacts that are far wider than how narrowly defined they are in project scopes. Adopting a systems thinking approach minimizes disruption, manages costs and timelines better, creates a shared thinking space for solutions to be derived and implemented and builds institutional memory of knowledge. – Arthi Rabikrisson, Prerna Advisory
13. Managing Complexity
A systems thinking approach can be effectively applied in managing complexity. Organizational leaders, more than ever, need deeper insights into their organization’s complexities to develop effective strategies for long-term success. Systems thinking equips leaders to manage complexity by breaking any task or process into more manageable components so that they can then understand how the components interact. – Curtis Odom, Prescient Strategists
14. Driving Operational Excellence
A systems thinking approach is required to drive operational excellence, as every organization is a system of people, processes and technology. Each leader should apply systems thinking to understand how their work or department fits into the overall organization and how the work can be optimized across multiple departments that all participate in delivering products and/or services to the customer. – Martina Kuhlmeyer, Martina Kuhlmeyer Coaching and Consulting
15. Decision-Making In Open-Ended Cycles
Systems thinking is necessary for business strategy and other open-ended cycles. Closed-loop decisions are the optimization of known variables, whereas open-ended systems have a multitude of possible variations. Systems thinking helps in uncovering multiple potential outcomes and determining the best choices. – Gideon Malherbe, Virtual Consulting
16. Hiring And Building A Cohesive Team
Hiring and building a cohesive team is where a systems approach can be applied with great success. When an organizational chart is used as a blueprint, and you ensure each role is interconnected, operational effectiveness is part of the culture. In my organization, I strive to hire individuals with the necessary skill set and whose individual purpose aligns with the company’s mission and values. – Lisa Marie Platske, Upside Thinking, Inc.
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