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3 "Characteristics and usefulness of systems thinking (1)"

2023.06.28

1. Systems thinking that provides the greatest merit "a new perspective"

The systems that surround us such as society and organizations, are constantly changing, with various elements connected and intricately intertwined. When we try to make a difference, we often have unexpected consequences and resistance. So how can we make the desired changes in such a system? Systems thinking was developed to answer this very question.

The biggest advantage of learning systems thinking is that it gives you a new perspective on things in the world. By so doing, it is possible to grasp the situation and problems from a broad perspective, promote common understanding among the parties concerned, and solve problems in a well-balanced manner. Let's separate this into several parts and explain in detail.

2. Why do we need a new perspective?

The "world" we think of is not necessarily the true "world". We see the "world" through each worldview (called a "mental model" in systems thinking) as if each person is wearing their own glasses. As shown in the "senryu", "Seeing the true identity of ghosts and withered flowers," our mental model is greatly influenced by expectations, fears, experiences and knowledge, and prejudices. We regard what we interpret in the mental model as "the world".

For example, in the early 1990s, a large nationwide sales network for used car distribution called "superstores" appeared in the American automobile market. At that time, the big three car makers such as GM thought that it was insignificant become used car dealers. Until then, the used car market was considered to be a market in a completely different segment from the customer base that buys new cars because used cars are old and have low performance.

In other words, in the mental model of automaker owners, the used car market was outside the "world" boundaries for manufacturers and dealers selling new cars. However, that later leads to threats that management did not anticipate. No matter what mental model we construct, the real system can be different.

In 1995, GM's management sought advice from "Systems thinkers" in an attempt to understand the implications of the emergence of superstores. Systems thinkers interviewed management to clarify their mental model and the gap between their thinking and what is happening.

From the diagnosis of systems thinking, in the real world, the lease sales strategy that stimulates replacement demand to promote new car sales was largely linked to the mass supply of new and high-performance "new old cars" to the used car market. In other words, the quicker the replacement of new cars and the more they happened, the better the assortment and quality of used cars, which created a very attractive option for consumers who used to choose only new cars. The major automakers, who overlooked this connection, not only overlooked the subsequent breakthrough of used car superstores, but also continued to take promotional measures to support their growth.

3. Systems thinking that broadens our horizons and reveals our own "beliefs"

In this way, systems thinking tools can reveal our own mental model. By making it visible, it reveals what "boundaries" we unknowingly draw and how we think about the connections between elements. Once your own mental model is revealed, you would be able to compare it with the thoughts of the real "world" and those of others, and you would be able to broaden your horizons.

The way of thinking we have cultivated in school and at work does not provide a suitable mental model for understanding the complexity of systems. Some people will intuitively jump to the solution of the problem at hand. Others would try to address the problem by looking at things in isolation--that is, "analyzing" them individually. It is a useful approach. However, even if you divide the complicated elements into small pieces, cut out some of the causes, countermeasures, and means of the problem and work on it thinking that "the problem is this, and this will solve it", the action is the market and the impact on the organization is not that simple. Unexpected things happen in our mental model.

4. Learn systems thinking and get a big picture

The big advantage of learning systems thinking is that you can learn how to understand complex systems from a broad perspective. From a systems thinking perspective, you can see the big picture and connections of the problem as if you were looking at the terrain below from the top of a hill. There, you can stop first without jumping on the things in front of you. You can recognize the weaknesses of your current mental model and analytic thinking, and more importantly, find opportunities to create effective changes in the situation and the "world".

(Case reference: John Sterman "Business Dynamics--Systems Thinking and Modeling for a Complex World")

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