Don't Buy The Hype! Systems Thinking Is NOT The Answer!
Posted by Michael Dattilio on Thu, Nov 18, 2010 @ 08:16 AM
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eah, that's right, you read that correctly... I've barricaded myself in the Blog Control Room here at our company headquarters while my colleagues are fervently trying to bust through the door to stop this blasphemy from seeing the light of day!
We work with several clients who have grown significantly and are now experiencing complex business problems or decisions as a result. Somehow they hear about systems thinking and how it is the answer to their complex problems, so they send their Human Resources department in search of suitable training programs that will teach people to think systemically.
Here's the problem - there's a danger that this systems thinking seminar becomes one more training class in a growing list of mandatory leadership development programs that are perceived as taking leaders away from their daily work (and thus making the complex problems worse in their eyes). It's a checkmark on a list and not an answer to what keeps them awake at night.
Systems thinking is a platform that will help you find the answers, but like anything you stand on, you must follow the directions for proper strategic use in order to avoid injury:
1. Your business line executives must have clear answers as to why systems thinking should be introduced. More importantly, they need to lead the way as to HOW it will be used. This includes integrating it into performance reviews, daily lingo, common language and marketing messages.
Quick Tip: Find a senior executive sponsor outside of HR who will commit to using the tools of systems thinking
2. Systems thinking is a strategic tool, use it accordingly. Just like strategic planning, though, it's very easy to forget about something we don't use every day. If you use it for problems with your packaging or employee onboarding, it might be overkill and get a bad rap. But for problems with your strategic partnerships or employee retention, systems thinking can provide a comprehensive picture of the parts and interactions that are contributing to the problem.
Quick Tip: Make systems thinking tool use a requirement for market analysis, business planning and program portfolio management.
3. Find ways to tie systems thinking to business results. Usually, this can be done in comparison to your competitors. In both growing and shrinking markets, you can look at your results relative to your competitors over time. If you identify systems thinking as a core competitive competency, the relevance starts to take shape. You'll never be able to directly link number of people trained to profitability, but those people drive the decisions that make or break the business. The more strategic they are over time, the better your company will do against competitors in the long run.
Quick Tip: Identify and track 3 competitive metrics (market share, time to market, product line growth, third party reviews,...etc.) that link to the ability to make solid complex decisions.
A couple examples of this are Ford and Wells Fargo. While I have no data, I believe that they had people who were looking at decisions systemically and making choices that gained them long-term strength and not short-term gains. Obviously, there's a balance to be struck there. A systemic mindset becomes a great asset when trying to find that balance.
Our sales team is using a cutting torch to breach the door to the Blog Control Room right now, so I have to cut this short...
Systems thinking is not the answer if it simply exists as a workshop in the training department. It does provide key strategic insights that drive and determine the success of the company, but only when strategically integrated, nurtured and rewarded within the lines of business. Results may not be immediate, but strength will emerge as better strategic decisions are made over time.
Good luck!