This is the last of a sequel of three articles that explore the crucial role of System Thinking for the success of an Agile Transformation. If you haven’t seen the first parts yet, start here and have fun getting inspired: Why Agile Transformations Require System Thinking
Have you ever wondered why some organisations seem to deliver slowly, cost a fortune, and leave customers feeling less than delighted? While there can be different reasons, what we often see is that the complex interactions between organisational units can create delays and feedback loops that are difficult to oversee, making it a daunting task to understand why you are not getting the results expected.
Systems Thinking supports you with a holistic approach to problem-solving that seeks to understand the entire system, instead of simply addressing its individual parts. By recognising the intricate relationships between different components, it becomes easier to grasp how changes to one part of the system can impact the entire operation. So, if you want to improve globally by designing a system that truly delights your customers, it’s time to take a step back and see the bigger picture with the Systems Thinking glasses.
The Key: Feedback Loop Gaps and Delays Impede Learning!
One of the key principles of Systems Thinking is the recognition of action’s feedback loops. These interconnections between different elements within a system create a reciprocal relationship. Changes in one unit of an organisation can affect the performance of other units, which in turn can impact the original unit back. Or, as Isaac Newton said, “for every action (force) in nature there is an equal and opposite reaction”.
To illustrate this, imagine that the sales department closes many sales contracts to meet its targets. In doing so it closes more sales contracts than the development unit can deliver. This in turn makes the development unit deliver with delays. Customer confidence drops, which in turn makes it harder for the sales to close new contracts. The development unit might also introduce extra rules and process steps to meet its own goals, slowing the entire process down even further. Pressure from sales goals might force the development unit to take on new work, while already overloaded. Now imagine what that does to the relationship between the sales and the delivery teams.
Frequently, the feedback of decisions within organisations is impeded or significantly slowed down due to a disrupted feedback loop. In consequence, learning at the system level is problematic. Peter M. Senge, an American systems scientist and the author of the seminal book Fifth Discipline, speaks about a limited “decision horizon,” where people have a narrow horizon to observe the effects of their decisions. In such cases, people tend to end up fixing problems locally and, at the same time, degrade the situation for their colleagues. And even worse, they are often unable to learn from their mistakes.
Consider a scenario where a team is solely responsible for developing a specific component of a product. In such cases, it can be challenging for them to comprehend the impact of their decisions on other teams. This holds true for technical teams, as well as non-technical teams (like business analysts). Despite their best intentions, their decisions might be doing more harm than good for the organisation.
By recognising these feedback loops, organisations can design and change systems that are self-correcting and adaptive. This can lead to a more resilient and flexible organisation that is better equipped to respond to ever-changing circumstances.
At Wemanity, we are very proud of our Transformation approach, which helps organisations go through changes or even (the ultimate goal) autonomously become adaptable in a permanent way. Systems thinking play a crucial role in making this model so successful. Send us a message if you want to know more about our Transformation framework or the role of System Thinking in it!
See Also
Part 1: Why Agile Transformations require System Thinking
Part 2: How Systems Thinking enables organisational improvements
Summing Up
By recognising feedback loops, organisations can design and change systems that are self-correcting and adaptive. Create an environment where tools, rituals and interactions allow a clear flow of learnings about the impact of decisions. Make sure people can clearly see those impacts in a holistic manner. And that they know how to make choices having in mind their value for the organisation as a whole.
Changes in one unit of an organisation can affect the performance of other units, which in turn can impact the original unit back. Or, as Isaac Newton said, “for every action (force) in nature there is an equal and opposite reaction”.
Feedback loop gaps and delays impede learning. Frequently, the feedback of decisions within organisations is impeded or significantly slowed down due to a disrupted feedback loop.
Systems Thinking supports you with a holistic approach to problem-solving that seeks to understand the entire system, instead of simply addressing its individual parts. By recognising the intricate relationships between different components, it becomes easier to grasp how changes to one part of the system can impact the entire operation.
