Abstract
In this paper we summarize the research on Systems Thinking for business management and explore several examples of business failures due to a lack of application of Systems Thinking, with an ultimate goal of offering a Systems Thinking approach that is useful to all levels of management. Although there is significant literature aimed at facilitating Systems Thinking in organizational management, there remains a lack of adoption of Systems Thinking in mainstream business practice. This is perhaps because the literature does not reduce high-level Systems Thinking principles to hands-on, practical protocols that are accessible for typical managers, thus limiting the working application of Systems Thinking concepts to researchers and consultants who specialize in the field. The goal of this work is to not only elaborate on the high-level ideals of System Thinking, but also to articulate a more precise and practical hands-on approach that is useful to all levels of business managers.
Highlights
Systems Thinking has been characterized as a perspective, a language, and a set of tools that can be useful in solving complex problems that are typically not amenable to conventional reductionist thinking
We focus on the application of Systems Thinking to business
We summarize the research on Systems Thinking for organizational management, explore several examples of business failures due to a lack of application of Systems Thinking principles, and conclude with a practical, hands-on protocol that facilitates the application of Systems Thinking to business decisions
Summary
Systems Thinking has been characterized as a perspective, a language, and a set of tools that can be useful in solving complex problems that are typically not amenable to conventional reductionist thinking. We focus on the application of Systems Thinking to business. We summarize the research on Systems Thinking for organizational management, explore several examples of business failures due to a lack of application of Systems Thinking principles, and conclude with a practical, hands-on protocol that facilitates the application of Systems Thinking to business decisions. In light of the increasingly complex climate within which business managers operate, this paper highlights the need for and benefits of a practical discipline of Systems Thinking in business. There is a significant body of literature (spanning a century of research) aimed at facilitating Systems
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