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Systems Thinking for Business Leaders 101: A Refresh

16/2/2012

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Systems Thinking for Business Leaders 101: A Refresh

I admit…. I’m a systems thinker and it gets me into trouble…sometimes.  However what you think about is often what you get, so it has its benefits for me.

It helps me plan and deliver better services, better projects and better business. Yes it involves risk, more communication, effort, engagement, politics, power and money, without it my work systems just don’t work.  My business needs, other business, and their business is needed by other businesses and so on. 

As Einstein observed, "we cannot solve problems using the same level of thinking that created them".

Our "Brave New World" requires a systems approach to solving problems and creating community-wide growth opportunities. Strategic leaders in both private and public sectors must work together to identify interdependencies and the growth levers that will turn the economic doom into an economic zoom.

Our company and other businesses form part of the heartland of the national economy. Other private companies and the people who work for them, pay taxes that fund public service and government agencies. They – both companies and people – also contribute to not-for-profit and community service providers, which help societies in many ways. Without a healthy cash flow in and out, other parts of the national system lose impetus and suffer, or just stop.

Consider this. You are the business supplier to other businesses in the supply chain; if your company slows or fails, your suppliers are negatively affected too. Likewise, a drop in business activity reduces employment and taxes, resulting in less government monies to fund central and local government. It also results in increased unemployment and crime, and places demands on social, educational and health services.  All these have their own costs often paying a national debt of social and disease burden. 

The reality is that if the main engine room goes down, so do all the other parts of the system (individuals, families and other organisations), creating a downward spiral. While not a light bulb moment, this is often not in our conscious minds as we are often concerned about our immediate turf and the immediate impact…. fair enough, but do take some time out...

Wouldn’t it be good if we had a system of government support to grow small and medium enterprises?  What about, minimal taxes during their first five years, help get fledglings off to a good start.  In contrast, large budget cuts, staff layoffs and reductions in outsourcing to the private sector by government departments results in the burden being passed to other parts of the community. Suddenly the private sector heartland is under pressure and the whole system goes into an enormous pressure cooker.

Imagine how influential and productive a group of strategic leaders could be if they took a broader perspective of social wellbeing and broadened their vision to consider every level of society: international, national, community, organisational, family and people. Remember, Mandela showed, it only takes one man to change a nation

Here it is….leadership and management expertise are key to a more innovative, dynamic and sustainable economy for the future. 

  1. How strategic are your visions for uncertain times?
  2. How is your business putting systems thinking action?
  3. What other systems or groups could you belong to be more influential?

Journey well but not alone,
Matt Cartwright

Inspiring People, Inspiring Business, Inspiring Results 
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    “We all want to see change in the world, but first we must change ourselves”

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