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SYSTEMS THINKING: Lessons From The Fifth Discipline Fieldbook by Senge, Kleiker, Roberts, Ross and Smith
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SYSTEMS THINKING: Lessons From The Fifth Discipline Fieldbook by Senge, Kleiker, Roberts, Ross and Smith
1.
Systems Thinking Lessons From
The Fifth Discipline Fieldbook by Senge, Kleiker, Roberts, Ross and Smith Presentation by Joanna Beltowska @jbeltowska Amy Rae @elucidateamy ©2 011 JOAN N A B ELTO WSK A AN D AMY RAE.
2.
Oh hai again! ©2
011 JOAN N A B ELTO WSK A AN D AMY RAE. 2
3.
All of these
things are systems. ©2 011 JOAN N A B ELTO WSK A AN D AMY RAE. 3
4.
Are you looking
at a system or a bunch of stuff? Can you identify the individual parts? 1 Do the parts affect each other? 2 Do the parts together produce an effect that is 3 different from the effect of each part on its own? Does the effect persist in a variety of 4 circumstances? x ©2 011 JOAN N A B ELTO WSK A AN D AMY RAE. 4
5.
Ping pong is
a system. IT HAS IDENTIFIABLE INDIVIDUAL PARTS. PART 2 PART 1 PART 3 PART 4 ©2 011 JOAN N A B ELTO WSK A AN D AMY RAE. 5
6.
Ping pong is
a system. THE PARTS AFFECT EACH OTHER. LAWS OF PHYSICS RULES OF THE GAME LAWS OF PHYSICS ©2 011 JOAN N A B ELTO WSK A AN D AMY RAE. 6
7.
Ping pong is
a system. TOGETHER, THESE PARTS CREATE A UNIQUE EFFECT. LAWS OF PHYSICS RULES OF THE GAME LAWS OF PHYSICS ©2 011 JOAN N A B ELTO WSK A AN D AMY RAE. 7
8.
Ping pong is
a system. THIS EFFECT CAN BE REPLICATED IN MULTIPLE SITUATIONS. LAWS OF PHYSICS RULES OF THE GAME LAWS OF PHYSICS ©2 011 JOAN N A B ELTO WSK A AN D AMY RAE. X 1, X 2, X 3... 8
9.
Finding and analyzing
systems is difficult work. The following pages will introduce systems thinking, a set of tools and methods to help you along the way. ©2 011 JOAN N A B ELTO WSK A AN D AMY RAE. 9
10.
WARNING:
Systems always surprise us. Don’t fret! This way for the three main reasons why. ©2 011 JOAN N A B ELTO WSK A AN D AMY RAE. 10
11.
rs
inke h rt ea o n - linea r We are lin in a n wo r l d. ©2 011 JOAN N A B ELTO WSK A AN D AMY RAE. 11
12.
In a nonlinear
relationship, the cause does not produce a proportional effect. is range represents the optimal amount of fertilizer to apply, and if too much is applied, the yield might even go down. Crops Yield Fertilizer Application ©2 011 JOAN N A B ELTO WSK A AN D AMY RAE. 12
13.
Reality is made
up of circles, but we see straight lines. Herein lies the beginnings of our limitation as systems thinkers. Peter Senge ©2 011 JOAN N A B ELTO WSK A AN D AMY RAE. 13
14.
The Linearity Double
Dunk Formal education rewards Language shapes perception. linear thinking. Research with young children Western languages are biased indicates that we have towards a linear world view latent skills as systems because of their thinkers that are subject-to-verb undeveloped, even object structure. This repressed, by formal structure trains our education. brains to link together thoughts in the same way. ©2 011 JOAN N A B ELTO WSK A AN D AMY RAE. 14
15.
In the real
world, boundaries don’t exist. There are only boundaries of thought, perception and social agreement. ©2 011 JOAN N A B ELTO WSK A AN D AMY RAE. 15
16.
BOUNDED RATIONALITY In decision
making, rationality of individuals is limited by the information they have. Fishermen are not aware of the total number of fish in the ocean or how many fish others harvest. This is a typical example of a dilemma referred to as “The Tragedy of the Commons” - a situation in which a group of individuals act rationally in their own self-interest and deplete a shared limited resource. ©2 011 JOAN N A B ELTO WSK A AN D AMY RAE. 16
17.
E xp li
ci t kn ow le dg e MENTAL MODELS Individuals are also inhibited by their mental models - the images, assumptions, and stories which we carry in our minds of ourselves, other people, institutions, and every aspect of the world. Taci t know ledge ©2 011 JOAN N A B ELTO WSK A AN D AMY RAE. 17
18.
Systems fool us
by presenting themselves as a single event. The stock market crashed in 1929, making headlines. This single event was overemphasized, and other, more important, events influencing the Great Depression were less salient, like the 200,000 factory workers being replaced by machines and farmland value falling by 40%. ©2 011 JOAN N A B ELTO WSK A AN D AMY RAE. 18
19.
Events accumulate into
dynamic patterns of behavior. e Great Depression begins Wheat prices per bushel in dollars 3 2.5 2 1.5 1 0.5 0 1900 1910 1920 1930 ©2 011 JOAN N A B ELTO WSK A AN D AMY RAE. 19
20.
Long-term behavior provides
clues to the underlying system structure. System structures are created by the choices people make consciously or unconsciously over time. In systems thinking, structure is the pattern of interrelationships among the key components of the system. That might include hierarchy and process, but it also includes attitudes and perceptions, the quality of products, the ways in which decisions are made, etc. e winter of 1929 was a so called “long wave” winter. Long wave theory, a subset of systems thinking, says that economic crisis come and go in cycles. ©2 011 JOAN N A B ELTO WSK A AN D AMY RAE. 20
21.
Researchers at MIT
came up with ways to understand and categorize different types of systems. ©2 011 JOAN N A B ELTO WSK A AN D AMY RAE. 21
22.
With practice, these
tools can help you unpack complex problems in a flash. Think of these tools as your diagnostic repertoire. ©2 011 JOAN N A B ELTO WSK A AN D AMY RAE. 22
23.
Links and Loops T
H E F O UND A T I O N O F SYST E M S M O D E L I NG A LINK: Links are arrows that represent influence between elements in a system. NUMBER OF TIME SPENT LOLCATS ON THE SITE Loops are combinations of links that that reveal Cause Eect interdependencies; In a loop, every element is both the cause and the effect. A LOOP: Example: The more lolcat pictures on icanhazcheeseburger.com, the more time people spend there, commenting on lolcat pictures, and becoming inspired to create more. (Because we all know lolcats are awesomely hilarious!) NO. OF TIME SPENT LOLCATS ON THE SITE ©2 011 JOAN N A B ELTO WSK A AN D AMY RAE. 23
24.
Balancing and Reinforcing
Loops T W O T YPE S O F L O O PS T H A T O CCUR F RE Q UE NT L Y Balancing loops occur in systems that are self-regulating. US ARMS The system has an inherent goal, and when that goal isn’t met, intense pressure is applied to reach it. (R) NEED TO BUILD THREAT TO US ARMS SOVIET UNION Example: Your refrigerator’s goal is to keep food at a chilly 35 degrees. When a half-eaten pizza enters, the refrigerator decreases the temperature to cool the warm pizza, bringing THREAT NEED TO BUILD the refrigerator back to equilibrium. TO US SOVIET ARMS Reinforcing loops occur in systems that steadily grow SOVIET ARMS and/or collapse over time. Example: The Nuclear Arms Race between the US and the NUCLEAR STOCKPILES 1945 - 2005 Soviet Union during the cold war is a typical example of a Exponential growth reinforcing loop. The US created the first atomic bomb in 45,000 SOVIET USA 40,000 1945. The Soviet Union followed in 1949. By the 1950s both 35,000 sides had enough nuclear power to obliterate each other. 30,000 25,000 The system then declined when both stockpiles decreased in 20,000 the 1990s. 15,000 10,000 5,000 Sources: Natural Resources Defense Council (1946-2002 data), 0 Bulletin of the Atomic Scientists (2003-2006 data) 1945 1955 1965 1975 1985 1995 2005 ©2 011 JOAN N A B ELTO WSK A AN D AMY RAE. 24
25.
Balancing and Reinforcing
Loops: Templates A D A PT E D F RO M T H E F I F T H D I SCI PL I NE B Y PE T E R M . S E NGE . US E T H E S E T E M PL A T E S A S A S T A RT I NG PL A CE F O R S YS T E M A NA L YS I S . REINFORCING LOOP TEMPLATE BALANCING LOOP TEMPLATE Optional intermediate element (might Target or goal be a consequence of performance) Actual performance (desired performance, either (that you measure or known or unknown to you) Actual performance observe; often a problem (that you measure or symptom) observe, which you can see growing or declining) Growing action (R) (what you do, or someone else does, to generate growth or decline) (B) Optional Gap (discrepancy between intermediate desired and actual element (might be a performance, either visible to Optional intermediate element driver of performance) you as a shortfall, evident as (might be a driver of performance and/or a consequence of action) a need, or felt as a pressure) Corrective action (can be a quick x or a driver of your performance) ©2 011 JOAN N A B ELTO WSK A AN D AMY RAE. 25
26.
Causal Loop Diagrams H
E L PI NG YO U T E L L A M O RE RO B UST ST O RY Causal loop diagrams combine multiple loops and reveal - WEAK OR more detail about the system. A “plus” indicates that the + UNCERTAIN PERCEIVED ECONOMIC elements change in the same direction while a “minus” - SOLVENCY OF BANK CONDITIONS indicates that the elements change in opposite directions. - + Example: The bank panic during the Great Depression was SOLVENCY (+) (+) FEAR OF OF BANK BANK FAILURE caused by a public fear of bank failure. This caused people to withdraw their personal savings, reducing bank solvency, + which in turn drove private withdrawals of funds further in a + TENDENCY TO BANK RESERVES WITHDRAW spiraling, reinforcing, loop. ON HAND PERSONAL SAVINGS - Casual loop diagram describing the bank panic during the Great Depression (adapted from Beyond Training Wheels by John Sterman). ©2 011 JOAN N A B ELTO WSK A AN D AMY RAE. 26
27.
System Archetypes A PE
RI O D I C T A B L E O F T H E M O ST CO M M O N SYST E M B E H A VI O RS If we think of each system as a story, system archetypes are the classic stories that we keep seeing over and over again. By measuring our systems against these classics, we Problem CURRENT STAFFING Fix symptom PROFITS CUTS can quickly identify the dominating behavioral patterns. For example, “Fixes That Backfire”: A company is struggling with profitability (the problem symptom) and decides to let some people go to reduce costs (the fix). Profitability initially improves, but the loss of experienced employees as well as a drop in morale impact productivity negatively (the PRODUCTIVITY unintended consequence). Unintended consequences PROBLEM SYMPTOM “Fix” applied Original threshold of tolerance ©2 011 JOAN N A B ELTO WSK A AN D AMY RAE. 27
28.
Archetypes: Comparison Chart A
D A PT E D F RO M T H E F I F T H D I SCI PL I NE B Y PE T E R M . S E NGE BALANCING LOOP REINFORCING LOOP “FIXES THAT BACKFIRE” There is a movement toward a target (without An important variable accelerates up (or down), A problem symptom alternately improves (the delay), or else oscillation, hovering around a single with exponential growth or collapse. problem variable goes down) and deteriorates target (with delay). (the problem goes up, worse than before). “LIMITS TO GROWTH” “SHIFTING THE BURDEN” “TRAGEDY OF THE COMMONS” There is a growth (sometimes dramatic growth), The reliance of the short-term fix grows stronger, Total activity grows, but the gains from individual leveling off or falling into decline. while efforts to fundamentally correct the real activities are dropping. problem grow weaker. The problem symptom alternately improves and deteriorates. “ACCIDENTAL ADVERSARIES” Each side’s performance either declines or stays level and low, while enmity or competitiveness increases over time. ©2 011 JOAN N A B ELTO WSK A AN D AMY RAE. 28
29.
Stocks And Flows A
D A PT E D F RO M T H I NK I NG I N SYST E M S B Y D O NE L L A M E A D O W S Stock and flow diagrams are another way to analyze systems. Stocks are tangible and measurable, and they Inow change over time through the actions of flows. Stocks act as buffers, delays or shock absorbers in systems. Example: Imagine you’ve decided to take a bath. You begin Stock to fill your bathtub with hot water and go read while you’re waiting for the tub to fill. When you come back, the water is a bit too hot for your liking. To get the temperature down quickly, you open up the drain and turn the cold water faucet on. Your bathtub is now a simple system with one stock (the water in the tub), one inflow (the cold water) and one outflow (the water that is leaving through the drain). WATER IN BATH TUB COLD WATER DRAINED WATER Inow Stock Outow ©2 011 JOAN N A B ELTO WSK A AN D AMY RAE. 29
30.
Systems Analysis Guidelines T
H E SYST E M S T O O L K I T I N A CT I O N All models are simplifications of the real world. It’s up to you to decide how much detail to illustrate. There are no right answers. Mapping out a system will reveal a set of potential actions you may take. As you become more a more proficient systems thinker, you’ll begin to recognize the consequences of different interventions. Cause and effect will not be closely related in time and space. Don't look for leverage near the symptoms of your problem. Good results in a complex system depend on bringing in as many perspectives as possible. Consider who else you can bring in to make your system model more informed. Use your intuition when you work with archetypes. It's not critical that you pick the right archetype - as long as it rings true with your story, it's good enough as a starting point. ©2 011 JOAN N A B ELTO WSK A AN D AMY RAE. 30
31.
A good systems
thinker avoids traps by looking for multiple levels operating simultaneously. LEVERAGE FOR LASTING CHANGE MENTAL MODELS SYSTEMS PATTERNS OF BEHAVIOR EVENTS ADAPTED FROM THE FIFTH DISCIPLINE FIELDBOOK BY PETER M. SENGE ©2 011 JOAN N A B ELTO WSK A AN D AMY RAE. 31
32.
Good Systems Thinkers
Make Good Strategists A ST O RY O F H O W ST RA T E GY D E F E A T E D 1: 2 5 O D D S On October 26, 1597, the Korean admiral Yi Sun-sin famously defeated the Japanese fleet of 333 units with only Admiral Yi: a badass 13 ships at his disposal. systems thinker. Yi strategically chose the Myeongnyang Strait as the arena for his last stand with the Japanese based on its strong currents, narrowness, rough tides and surrounding shadowy hillsides. By reading the environment as a system, admiral Yi used it to his advantage. No other naval battle involving fleets of this size, has resulted in a victory for such a proportionately small force, also making it one of the greatest military achievements in world history. ©2 011 JOAN N A B ELTO WSK A AN D AMY RAE. 32
33.
Cancer (?)
The challenges society faces are growing. Measles (1963) Smallpox (1796) ©2 011 JOAN N A B ELTO WSK A AN D AMY RAE. 33
34.
In order to
meet those challenges, we need to explore new ways of thinking. Systems thinking is the cornerstone of how adaptive organizations think about their world. ©2 011 JOAN N A B ELTO WSK A AN D AMY RAE. 34
35.
Designing a Systems
Workshop PUT T I NG SYST EMS T H I NK I NG I NT O PRA CT I CE Tackling a huge problem? Systems analysis will help elucidate multiple sides of the issue and identify areas of opportunity. Workshops or brainstorms are great forums for this type of analysis. Below is a (very) general overview of a good workshop: Study up: Learn your links, loops and archetypes. For practice, sketch out systems diagrams of popular problems, like Global Warming or Poverty. Event Prep: Invite stakeholders from all levels of the organization; Unique perspectives will make the analysis more robust. Choose a room with a white board and bring your markers! Facilitation: In general, spend 1/4 of the time introducing the concept and creating a safe space for open discussion. Spend 1/2 of the time analyzing the problem on the white Darth suggests you use the “Five Whys” to help the group discover deeper board with the Systems Toolkit, and spend the remaining 1/4 interactions between elements. looking for possible interventions in your diagram. ©2 011 JOAN N A B ELTO WSK A AN D AMY RAE. 35
36.
“It’s like the
old expression, ‘You are what you eat’. If you start thinking differently, you see things differently. And all your actions start to change.” - Pat Walls, FedEx Are you ready to switch to a loops-based diet? ©2 011 JOAN N A B ELTO WSK A AN D AMY RAE. 36
37.
Special thanks to
our mentors and friends at
38.
Systems Thinking Lessons From
The Fifth Discipline Fieldbook by Senge, Kleiker, Roberts, Ross and Smith Presentation by Joanna Beltowska @jbeltowska Amy Rae @elucidateamy ©2 011 JOAN N A B ELTO WSK A AN D AMY RAE.
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