Ingredients of Systems Thinking & Its Organisational Application by Corporate Research Forum

Objectives: To introduce the delegates to the criticalness of system theory and its application to the world of work.

To enable the delegates to have working knowledge of the history, definition, core concepts of system thinking.

The Ingredients of System Thinking & Its Organisational Application

To become more confident in their diagnostic and intervention skills based on system thinking. To be able to apply such concepts and theories to support an organisation’s longer term development in working with change and in deciding /implementation of HR policies and practices.

Quality & Equality Ltd Organisation Development, Consultancy and Training Services 10 Stoke Place, Headington, Oxford, OX3 9BX, United Kingdom Tel: +44 (0) 1865-744618 Fax: +44 (0) 1865-744776 E-Mail: info@quality-equality.com Website http://www.quality-equality.com

By Dr L Mee-Yan Cheung-Judge Director, Quality & Equality

Outline of our two days

Design Principles

Continuous default practice

Review core theoretical principles

DAY 1 System Thinking & Use of Self What does a system practitioner look like?

Core language terms, definitions

Systemic Lens in our DNA

1. Practice by doing. 2. All activities are interventions you can use 3. All concepts / terms are triggers for action

What are the System Lenses and Behaviours?

Practices example © Quality & Equality Ltd

Implications on practices

II. Input – System Characteristics, Terms & Concepts: Their Application 3

Introduction & Connection Overview of “Why Theories?”

I. Input – History, Definition, Insights from System Thinking

Mapping Your System Profile 4

Outline of our two days

DAY 1 DAY 2 System Thinking & Use of Self

Workshop Summary, Reflection & Evaluation

Introduction & Connection

Warm up & Connect

DAY 2 What are the System Lenses?

III. Input – More system Insights on Organisations

V. All Other Systemic Issues

Input – History & Definition

Input – Terms / Concept: Apply them

Peer Consultancy Application on Change

System Thinking & HR/OD practice

IV. Input – System & Change

Input

System Thinking & HR/OD practice

Input – System & Change

In behavioural science

• Cognitive mapping of complex and interlocking variables and the nature of their relationship. • Some are normative and some are descriptive • Tend to provide a framework to understand and analyse complex phenomenon • Lend itself for applicability to real life situation.

Write Find Share 3. When you are done, then sit down and take turns to share, your name, your organisation, your role, and the two special gifts you have written down.

Workshop Summary

What is Theory?

Connection Activity

2. When the bell rings, you will go around the room and find those who possess the other pieces of your puzzle and complete the puzzle.

Warm up & Connect

Application on Change

1. Write down 2 areas of gifts (can be experience, knowledge, insights, etc) you have that you can offer to others in the next 2 days.

Mapping Your System

Reflection & Evaluation

Look 4. Following all individual sharing, look at the synergistic gifts the puzzle team has,

Debrief

5. Using the puzzle symbol – brain storm a list of systemic especially in light characteristics of the consulting that govern or situation each has bind the various brought. Give your parts together. team a name

‘‘There is nothing as practical as a good theory’’ Lewin 1943-44:169 9

Psychodynamic

Complexity & Chaos

Appreciative Inquiry

Social Constructionism

Group Dynamics

Action Research

Gestalt

System

Classical Theories of Organizations

Max Weber

Frederick Taylor

Henri Fayol

Psychoanalytical

Contingency Theories 10

Social Discourse

System I, II Daniel Kahneman

Cynefin Framework, ‘Sense making’ © Quality & Equality Ltd

Human Systems Dynamics

Human Relations Approach

Complexity & Chaos Theory • Stacey • Wheatley • Black • Morgan • Snowdon Psychoanalytical Theory • Eric Trist • Fred Emery • Bion • Horney Psychodynamic Theory • Fromm • Tavistock Work • Family Therapy • Freud Action Research • Lewin

Theories shape the way we navigate through this map

Social Constructionism Theory •Berger •Luckmann •Mead •Vygotsky •Fisk

OD Practices

Values Ethics Practice Theories

Appreciative Inquiry •Watkins •Cooperrider Change Theories • Lippit • Likert • Ackerman

Group Dynamics • How groups form and function System Theory • Bales • Ludwig von • Schutz Bertalanffy • Tannenbaum • Katz & Kahn • Argyris • Bennis © Quality & Equality Ltd

‘Big I’ Intervention (Consultant-Client System Interaction) What? Where? When? Who? How? OD Phases

Entry/Contacting Data CollectionData Analysis Feedback

Initial Contract Consultation Define Tasks Problem/Need/Client

Prepare for Data Collection Collect Data

Who, What, When, Where Communicate Listen

Constructing Questions Interviewing

Negotiate

Observation

System Theory Human Systems Dynamics

Gestalt Max Weber Frederick Taylor Henri Fayol Action Research

My consulting situation

Action Planning Action TakingEvaluation Termination

Plan Feedback

Prepare Report/ Summary

Agree on Contract Outcomes

Knowing Concepts & Theories •Group Dynamics •Systems Theory •Change Theory Identifying Themes

Assess Problems/Gaps/ Carry out Action Review Goals Assess Need to Opportunities Plan(s) Continue Produce Feedback Assess Progress Materials Prioritize Opportunities INTERVENTIONS Decide to End I.D New Learnings (SMALL “I”) Do Feedback Plan Actions Phase Out Redirect (as needed) Individual Interpersonal Provide Frameworks Stay Open to be Group Called0 Diagnosis and Planning Intergroup Organization Organization-Env Global Understanding Bringing Managing Conflict Giving and Using Theory Evaluation Managing Diversity Receiving Closure and concepts Managing Resistance Methods Feedback Identifying Training System Managing Transitions Connecting Leverage Points Outcomes and Learning Theory Objectives Knowing Small I Interventions

Summarizing

Use of Self

Awareness

Integration of Mind/Body

Self as Rational/Intuitive Instrument

Diagnosing Organisations with impact © NTL Institute, 2007

Self as Empathic Evocative Provocative

Ethics Authentic Commitment Self Learning Values Nonreactive Presence Risk Insight Multiple Frames

Environment

Pauline Frederick Hicks, Mikki Ritvo, Ted Tschudy, Leroy Wells (1993, rev 5/96, rev 2/98 and 1/04 by Ted Tschudy)

Building blocks of OD practice

Group Dynamics Social Discourse

Analyze Data

Explore Readiness for Change

Competencies

Complexity & Chaos Theory Human Relations Approach Psychodynamic Theory

Action Research Systems Theory Change Theory Supplementary Theories

Core Theories

Masterful Practitioner

System I, II Economic behaviour Appreciative Inquiry Classical Theories of Organization

Tools & techniques technician

OD consultancy cycle

Theoretical grounding theoretician

OD values and ethics

Contingency Theories Cynefin Framework Sense making Psychoanalytical Theory Social Constructionism Theory © Quality & Equality Ltd

Use of Self – Self as Instrument “We need to go ‘within’ ourselves in order to be impactful ‘without’” 15

The development journey of OD practitioners

Master Practitioner

Level four Level three

Level two

Level one

System Theory & System Thinking

Professional Technologist Beginner © Quality & Equality Ltd

Different Categories of Systems

How many “systems” do we have? Endless, but the main types are:

MACRO System Could never be completely mapped nor analysed . .

Political system Economic system Technological system Ecological system

Living System

Social system Natural system Human system Organisation system

Complex System

Simple system Complicated system Complex system Complex adaptive systems

Philadelphia, PA Future Search Focus

Mapping a System’s Interdependence • Chose one of these organisations • Map out all the other systems they are related to (or have interdependence with.) • Look at your final map and share your thoughts.

Youth probation offices

Pharmaceutical Organisation

Retail Organisation

60% of black & ethnic minority males under 18 years old either . . .

Food Retail Organisation

1. 2. 3.

Development Organisation

Mobile / Digital Organisation

have not finished high school are in youth detention camps are victims of homicide

Banking Organisation 21

Ecological Impact

Joint Summit – after 9/11 event

• atmospheric carbon dioxide level rises • higher levels of carbon dioxide stimulate plant growth • more carbon dioxide absorbed by plants • Carbon dioxide level in atmosphere falls © Quality & Equality Ltd

Ecological Impact

Input (Part I) • higher temperature causes more ice to melt • less ice to reflect sun's energy back into space

Evolution of Thoughts

History of System Thinking

Definition

• earth gets warmer

Activity: Systemic insights for Organisation

• temperature rises faster

What is a System?

Organisation as an open system

A system is a collection of parts that interact with each other towards a common purpose A system has “parts/elements” and relationships acting together as a whole that produces results

Origin

System theory by von Bertalanffy, 1976

Input

Organisation is an open system, constantly changing (context is a key reference point)

Output

What the organisation commits to put out in order to stay relevant

Throughput

There are important internal components (goals, tasks, technologies, structures, people, co-ordinating mechanisms, rewards, leadership and culture)

Interaction

Across many levels of system © Quality & Equality Ltd

The organisation is an open system constantly interacting with the environment, influencing it or being influenced by it, which in turn shapes the internal components in order to maintain its ability to produce the required output to stay viable © Quality & Equality Ltd

Basic properties of system

Whole System

System connectivity interdependence

Quality of interface

Natural Diversity

Boundary maintenance

Open System ITO

Most systems are open, but some can behave as closed

Organisation as an Open System

Through put

Output

Feedback

Environment input

Your Organisa -tion

THROUGH PUT

Organisation output

Performance Output

Strategic outputs inform external feedback

Open

Input

Closed

INPUT – THROUGH PUT – OUTPUT

External Environmental factors inform our strategy

Open system

1. Key property of system thinking

What environmental factors affect your organisation?

What output does the world want from your organisation?

Your organisation

What internal alignment work is required?

Nested Human System O O

Which areas does your

O O

organisation need to align

O O

in order to support its

O O

O O O

O O

strategic ambitions?

O OO OO O O O O O

O O O

O O O O O O

O O

OO OO O O OO

O O

OO OO

O O O O O

Helpful Actions HR/OD Practitioners can do – Open System

2. Key Property of System Thinking

Help leaders and staff to have sufficient knowledge of the outside world (economic and political trends, demographic patterns . . . etc.) so that they can make robust strategic decisions. Support them to build practices to keep external environmental knowledge current. Build processes to help them to discuss regularly the impact of external factors on the work they are doing. Make sure you yourself always have sufficient and robust data from other parts of the organisation when making critical decisions. Be a role model on how you as an “enabling function” person can take other system data seriously. When undertaking a decision/action, think of the possible consequences (intended or unintended) the action may have on other systems.

System Connectivity and Interdependence

Connectivity

The Ant Colony

The Bee Colony

Helpful Actions HR/OD Practitioners can do – System Connectivity and Interdependence

3. Key Property of System Thinking

Help the leaders and staff to see what the word “interdependence” means by talking about it, education them, bring a few pictures with you to any meetings.

Grow the awareness that “their” work unit is highly interdependent with other parts of the organisation. Help clients to develop formal relational protocols to build greater alliance with important groups / individuals and use it in any project work.

Actively help clients group to work together with each other and your staff to be collaborative in daily behaviour. Remember to stay practical and always ask “what would collaborative behaviours look like?” Practice them. Ask if you do this, how will that impact on . . .

Quality of interface -Relationship is top work -Impact of parts on system © Quality & Equality Ltd

“WOW” Customer Experience

The Stock Market

Quality of interface and relationship

Impact of parts on whole system

The Imaginary Organisation

The Real Organisation

Patient Care

Marketing

Sales

Quality

Manufacturing

R&D

Martin Büber

They

“I – Thou” © Quality & Equality Ltd

Helpful Actions HR/OD Practitioners can do – Quality of Interface

4. Key Property of System Thinking

Encourage leaders to think how they can do more cross-border work with other parts of the organisation, and to build understanding among themselves – use that as an example to stir others to do the same. Actively promote respect for the role each part of the system plays in the overall success of the organisation. Actively role-model collaboration, trading favours, sharing resources, exchanging knowledge, etc, with other parts we have interdependence with.

Whole-System Lens

Make any change process an “inclusive” one. Help leaders to take relationship as their top work.

Parts by themselves

Whole – when parts join up?

A system is made of many unique and diverse parts © Quality & Equality Ltd

The sum is greater than its parts

Helpful Actions HR/OD Practitioners can do – Whole System Lens

Systemic Mindset is a Critical Asset to Leaders Parochial Map

Encourage leaders to build team’s understanding of the challenges facing different parts of your organisation’s operation. Help them to arrange visits or invite other divisions’ leaders to come to share their work with your team.

Total system

Help leaders to grow our mind-set to support the work of each other – to give a more integrated service to each other.

Discuss with clients how they can help to leverage the scale of their knowledge and resources to work more effectively with others.

One Department/Division One Function One Country

Ask “whose perspectives will we need to embrace when we are making critical decisions?” – to get the “whole system perspective”.

All Departments/Divisions All Functions One Global Company © Quality & Equality Ltd

5. Key Property of System Thinking

Diversity in Nation and Culture

Diversity Gives the System Edge © Quality & Equality Ltd

Diversity of Types

Diversity in Preference

Helpful Actions HR/OD Practitioners can do – Diversity

Diversity in Offerings and Choices

Demonstrate a “constructive way” for leaders to see diversity – in thinking, in approaches, in style, in gender, in culture, in racial/national origin . . . etc. Explore the type of diversity in your unit currently, and make diversity a legitimate topic in any team situation and other occasions. Explore with my team what more you can do to leverage diversity to increase our innovative and agile thinking and behaviour. Working with HR or OD to arrange further development needed to leverage diversity skilfully to build agility and innovation.

6. Key Property of System Thinking

What boundary pattern can you see here?

Boundary Maintenance Tight – Loose

What boundary pattern can you see here?

Helpful Actions HR/OD Practitioners can do – Boundary Maintenance

What boundary pattern can you see here?

Work with client’s team about which outside parts of their system boundary they will need to “get the right balance.” Find a formal way to help them to regularly solicit other’s view of them and treat their feedback with respect. Work with your client’s team to identify the mandates of their unit which will give them their our own professional identity and integrity while humble enough to inquire what they need from another team. Find leaders to take a lead on seeking feedback from outside. Help them to welcome it as a source of their own transformational learning. Encourage their team not to be defensive about external feedback.

Systemic Lens – A Critical Asset to Leader

Quality of Interface

Leader Boundary Maintenance

Whole System Natural Diversity © Quality & Equality Ltd

Key Characteristics of System Theory

System connectivity interdependence

Open System

• Open System

Transformational system as dynamic input is constant & output is required to survive

• Interdependence

System survive through healthy interdependence behaviour

• Relationship is Top Work

Quality of interface impacts system health & performance

• Diversity gives the edge

Learning to harness “sameness” & “difference” optimally are critical

• Agility Adaptive Behaviour

Take dynamic system feedback to adjust without being defensive

Open System Properties / Concept

ITO

Environmental Interdependence

Boundaries

Homeostasis

Systemic Thinking and Change

Steady state and dynamic homeostasis

Entropy

Negative Entropy

Integration

Differentiation

Equifinality

Interdependence

Feedback Loop

2. Systemic thinking and people engagement across subsystems

1. All transformational change comes from the environment? (open-system)

Your organisation

4. Use high leverage methodology to engage diverse groups

3. Systemic thinking on the change journey Boundary Maintenance Whole System Use TIGHT and LOOSE balance accurately: TIGHT -(strong governance structure, nonnegotiable givens (system parameters)

LOOSE -(lots of autonomy, self energised action, equifinality tendency)

Use high leverage methodology to increase energy and passion during implementation. © Quality & Equality Ltd

Be passionate

Dream

Freedom to… Contribute Co-construct

Participate

Research data confirmed that when these freedoms are unleashed in changes, the implementation time for change will be cut in half. 77

5. Use whole system methodology to align diverse subsystems

Stakeholders

Voice Be heard

6. Systemic thinking and systemic alignment

Bring the whole system together to speed up Implementation

Internal

External

What does this mean for leaders?

Complex Adaptive System (CAS)

Be very externally savvy – both input impact on organisation & output requirements from organisation Pay attention to boundary management (keep the system whole) Take feedback seriously & adjust organisation practices / output / relationships accordingly

Definition: a collection of individual agents who have the freedom to act in unpredictable ways whose actions are interconnected such that one agent’s actions changes the context for other agents their actions produce system-wide patterns COMPLEX

• Diverse / Many elements • Many connections • Multi interface

ADAPTIVE

• Capacity to alter or change as a survival approach

SYSTEM

• Multiple agents, levels • Agents are interdependent and connected

Be diligent in “systemic alignment” Engage as many micro units as possible to get engagement as well as robust information Build complex adaptive system – ever changing organisation © Quality & Equality Ltd

Internal Systemic Alignment

Systemic Alignment If you restructure a part of the organisation, what else needs to be aligned?

Organisation Systemic Alignment Framework If we move one piece, what other pieces will we need to align? © Quality & Equality Ltd

Systemic Alignment

Four Frames Model for Change Implementation

If one bit of the organisation is changed, alignment of other bits will need to be done. For example – in restructuring case

Adjust work design process

Adjust human capability and new job role, profile

Revisit the current recruitment and selection processes

Align policies and practices

Adapt operation protocol

Develop a new customer care/patients care approach

Culture

Input

Leadership & People Redefine performance output

Align mind-set and behaviours

If we move one piece, what other pieces will we need to align? 85

External environment

Mission and strategy

Leadership

Structure

Organisation culture

Systems (policies and procedures)

Work unit climate Task requirement and individual skills abilities

Transformational Factors

Motivation Individual and organisational performance

External (environmental) inputs cause systemic changes

Feedback

Management practices

Key summary points on systemic thinking and change

Burke-Litwin Model, 1989, 1992, 2002

Feedback

Output

Individual needs and values

Transactional Factors

A system includes relationships between its many parts (sub-systems) are disturbed

When one part of a system is affected, all parts are affected (some known, some unknown; some impacting performance, some impacting social cohesion)

Systemic alignment is key to restoring as much coherency and congruence as possible 87

©Philip Mix

Possible Organisation Areas to Align

Further application of the Systemic Lens

Strategic planning

1. At your table, identify as many HR areas that you would like to explore further on how to apply systemic thinking.

Restructuring (Organisation Design) Recruitment and retaining staff

2. Each person can go to the flip charts that are of most interest and relevance.

Business development strategy Increasing sales target

3. Share in 5 minutes why you are interested in this area.

Dealing with poor quality of production/service Leverage diversity for results

4. Brain storm for 25 minutes on two areas: a) what are the systemic ISSUES that this area will need to pay attention to? b) as leaders, how best to address these issues?

Process Improvement (e.g. HR, IT, procurement) Change staff reward policy

5. Give a 2 minute report when time is up.

The HR/OD role is to help leaders to build a System Lens and to promote systemic behaviour among their staff.

A system lens is the mental filter that shapes our action

What does a systemic lens look like?

Becoming the coherent whole

SYSTEMIC LENS means you will . . .

Be externally savvy

Build and promote system connectivity

Always focus on patterns in system

Build strong relationships

Promote and leverage current diversity

Pay attention to boundary management

Take feedback seriously

Be diligent in “systemic alignment”

Patterns

The Emergence of Pattern

Definition

Impact of Pattern on organisation & individuals

“Recognisable similarities, differences, and relationships take meaning across space and time.”

Simple Rules – What? How? Their impact? Leadership & Patterns Definition WHY?

“A pattern, once established, becomes the systematic relationship between the various ‘parts’ of a complex system and tend to persist for a period of time.”

A Key Leadership Mandate is to influence pattern.

System thinking leader will by default help to build a humanised work place

Why do leaders need to influence pattern? Observe Understand Analyse

• what patterns emerge where

“Humanize the work place as economic success derives from that.”

• what the pattern is about

• the impact of the pattern on organisation performance

Weisbord

Influence Watch out

• identify and influence emergence of alternative patterns • for the emergence of unpredictable patterns as they are impossible to predict 97

How do I strengthen my systemic mind-set?

Community in the workplace

Chart the interdependence with other parts of the system your unit's work relies on. Revisit and update the "interdependence chart". Build working relationships with individuals within units - using your team’s current existing networks. Look for opportunities to do favours or create good will - especially when you notice other units are dependent on your team to support the completion of their work. Take small steps to practise systemic (collaborative) behaviour. Ask systemic questions when working on substantial projects or making substantial decisions. Observe your own behaviour, build your own systemic checklist

Mutual support to harness energy and productivity beyond imagination through community. Weisbord (2004)

Build the brand of a global citizen - one of the most significant power bases in organisation politics. Have fun using the systemic lens - build the brand of being a good global citizen - one of the most significant power bases. © Quality & Equality Ltd

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HR/OD Practitioners’ key tasks include:

To ensure the organisation’s strategic ambition can be delivered via matched organisation capability / plan

The Use of Self – Implications for HR/OD Practitioners

To ensure that during turbulent change, the organisation capability is maintained, aligned, improved

To ensure organisation health is maintained or further developed through planned change effort

Why is the use of Self so critical? 101

Your preferred life style Your role

Skills Your job history

You Your use of leisure time Your mindset

Your style & approaches 103

Your Knowledge of your profession

Your dreams & vision

Who we are

Actions What we stand for

Being

Your view of people & impact

Doing

Your education & training history

Your social network

102

Your skills & experience in your job

103

104

Potency of Self

Instrumentality People we serve

The use of self as an instrument to achieve vision and results.

Organisation

Self is the intervention (stirring the system to make things happen)

Team Others Self

105

Use of Self

The presence of you (self) is the living embodiment of what to strive for (words and deeds authenticate each other).

External environment

Having an impact

Leadership

Providing a force not presently operating in the system

Management practices

Use of Self

Giving of oneself Work unit climate Motivation

Individual and organisational performance 107

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Climate • The concept of Organisational Climate which emerged from the HBS publication was a ‘psychological state strongly affected by organisational conditions, such as systems, structure and management behaviour’ • Organisational Climate can be used to predict and to control the motivation and performance consequences of staff • The cause and effect was robustly and empirically tested © Quality & Equality Ltd

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What are the “being” characteristics of a change agent that will be effective to promote systemic thinking in the organisation?

What are the “doing” skills of a change agent that will be effective to promote systemic thinking in the organisation?

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Simple Rules that Support CAS Complex Adaptive Increase System our self-

Stay environmentally savvy

renewal capability Stay grounded in ambiguity Embrace agile mental model, adaptive behaviour Work with diversity to give us our edge

SIMPLE RULES Minimise ego, maximise transformational learning

Interdependence is and ought to be as much the ideal of man as selfsufficiency. Man is a social being. Without interrelation with society he cannot realise his oneness with the universe or suppress his egotism. His social interdependence enables him to test his faith and to prove himself on the touchstone of reality.

Adjust inner organisation working to match outer demands

Practice whole system thinking

Mahatma Gandhi, Young India, March 21, 1929, p. 93

Work to make relationship our top work Enable self organisation with clear Ever-changing parameters

Organisation 111

Moreover, I am cognizant of the interrelatedness of all communities and states. I cannot sit idly by in Atlanta and not be concerned about what happens in Birmingham. Injustice anywhere is a threat to justice everywhere. We are caught in an inescapable network of mutuality, tied in a single garment of destiny. Whatever affects one directly, affects all indirectly. Never again can we afford to live with the narrow, provincial “outside agitator” idea. Anyone who lives inside the United States can never be considered an outsider anywhere within its bounds. Martin Luther King Jr., Letter from Birmingham Jail, April 16, 1963

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