1. Useful as a communication tool to deepen common understanding

Last time, I introduced an example by mentioning that one of the merits of learning systems thinking is that we, who live in complex systems such as society and organizations, can grasp the situations and problems from a broad perspective. There are many other benefits to learning systems thinking. This time, let's take a look at the aspect of communication, which is one of the merits.

Systems thinking provides a new common language for a variety of stakeholders with different positions and roles. The words we usually use are not suitable for describing intricately intertwined systems.

However, systems thinking uses simple graphs and charts as tools. These tools are easy to write on a notepad or white board, and are visually easier for anyone to understand.

With these communication tools, you can communicate the causes and connections of problems to people inside and outside your organization in an easy-to-understand manner. Through discussions and facilitation using systems thinking, it is possible to deepen a common understanding inside and outside departments and organizations.

2. The total cost reduction as a result of promoting management, workers, and communication is ...!

In his book, John Sterman introduced examples of how systems thinking is used in communication. DuPont, a major chemical manufacturer, had problems with factory equipment maintenance in the early 1990s. Compared to the best practices in the chemical industry, DuPont factories had 10-30% higher maintenance costs per output, but 10-15% lower equipment uptime ratios.

Many managers attributed external causes such as competition and the economy. However, the manager in charge thought, "Is there a problem inside the system? If it is a problem inside the system, it can be changed!" I requested a diagnosis and prescription.

Systems thinking specialists held many workshops with factory managers and field employees, to understand what assumptions and thoughts are used for factory maintenance, and what are their thoughts. As a result, the root of the problem became clear. Maintenance workers were busy extinguishing the imminent problem of equipment failure on the production line, and could not spend time on regular preventive maintenance. So to speak, the situation is that "I am busy with first aid and cannot start a cure."

It's a common problem, but it wasn't an easy problem to solve. Everyone knew well that "preventive maintenance was important," but they couldn't do it. However, communication using systems thinking was very useful here.

By using systems thinking tools, it became clear that there were actually many factors involved in "why maintenance workers cannot spend time on preventive maintenance." The pressure to reduce costs, such as in a competitive environment, reduces the design and quality of parts and equipment, as well as the quality and productivity of maintenance work, which in turn increases failures. This will reduce the time available for preventive maintenance.

Since preventive maintenance is not performed, the failure rate increases, the equipment utilization rate decreases, and sales decrease due to late delivery. So, reducing the maintenance budget in an attempt to secure profits further accelerates the pressure of cost reduction. And as a result of a vicious cycle with strong cost reduction pressure for more than 20 years, a passive organizational culture has taken root in response to failures, saying that "the important task of maintenance is to fix equipment as soon as it breaks down".

With the help of systems thinking experts, management and maintenance workers who have a complete picture of the problem embarked on a new preventive maintenance program. The key was how to break away from the idea of ​​"cost reduction" in management and on-site. In particular, equipment repair work does not go away immediately, so if you focus on preventive maintenance, the utilization rate will decrease for a while and the cost will increase. That said, if you quit the program there, you won't get results in the long run.

In implementing the program, how will the people involved in each factory recognize the system structure that causes the problem and make a difference between continuing the measures as before and focusing on preventive maintenance? Understanding was the key.

Therefore, in order to encourage such learning, we developed a role-play simulation game and held a two-day workshop for a total of 1,200 people. This is a good example of how systems thinking is also used as a tool to improve an organization's learning ability.

Among all DuPont companies, factories that have adopted systems thinking improvement programs have achieved remarkable results. Costs rose as expected in the first few months, but after that, all indicators are improving. The reliability of the major equipment at the installation plant increased dramatically, reducing maintenance costs at other plants of the same size by an average of 7%, while reducing the cost at the installation plant by an average of 20%. The total cost reduction at the factory that introduced the systems thinking improvement program was more than 40 billion yen annually.

3. Facilitates communication between stakeholders and promotes essential problem solving

Systems thinking indicates that the cause of the problem lies in the structure of the system and never blames "someone" else. If the structure does not change, I think that the same problem will occur no matter who is in that position or what kind of intervention is done. This idea of ​​"not blaming people and approaching the structure of the problem" facilitates communication between stakeholders and promotes essential problem solving.

In this way, systems thinking is also very useful as a communication tool. We often have different premises even if we speak the same language, as it is called "same-bed different dreams", but the common language of systems thinking makes each person's understanding of the current situation and the way of thinking about solutions differently. It could be clarified and mutual understanding deepened.

This process plays an important role in maximizing diversity and increasing organizational creativity. Systems thinking is also very useful in communicating with stakeholders inside and outside the department, management teams, and outside the organization.

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