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What is Systems Thinking?

Systems thinking is a holistic way to investigate factors and interactions that could contribute to a possible outcome. A mindset more than a prescribed practice, systems thinking provides an understanding of how individuals can work together in different types of teams and through that understanding, create the best possible processes to accomplish just about anything.

A man and a woman using a whiteboard and sticky notes to map a project.

There are systems all around us, if we know where to look.

A family unit is one system, while the community in which we live is another. That community is part of a bigger system of a county or city. All parts of a university make up different systems within the whole. Financial aid, the classroom and the library make up different systems.

By learning to view the world as a series of systems, and by understanding our part within them, we can begin to make better decisions, be better teammates and find infinite ways to be more productive in all areas of our lives.

What is Systems Thinking?

Dr. Jennifer Teague, executive director of business at SNHUAccording to Dr. Jennifer Teague, executive director of business programs at Southern New Hampshire University (SNHU), systems thinking is a way to strategize on a broad scale.

"Systems thinking is a holistic approach to analysis that focuses on the way different parts of a system interact and how they influence one another within a whole," Teague said.

The World Economic Forum said this way of thinking can spur innovation, especially during times of uncertainty. It can also help to make you a better leader.

What is the Main Focus of Systems Thinking?

An icon of five white-outlined people on a teamHolistic thinking is a key characteristic of systems thinking, according to Teague. She noted that other core concepts include:

  • Boundaries
  • Feedback loops
  • Interdependence
  • Open and closed systems

Consider all possible stakeholders who might have insight or who might be affected, positively or negatively, by your proposed change.

A willingness to ask the right questions and consider all possible answers, as well as taking the time to experiment to find the answers rather than guess at the answers ourselves, is crucial, too.

Adopting a systems thinking mindset is never about winning a battle or being right. Systems thinking helps each person manage different perspectives to bring them together in the best possible way. Keeping that in mind can help you effectively solve any problem.

How to Be a Systems Thinker

While it's easy to see how to take things apart, it can be much more challenging to understand how the individual parts interact to make up the big picture.

Before sitting down on your own or with a team to devise a project, make a change, or solve a problem, consider the different systems your ideas could impact.

What are Some Systems Thinking Tools?

There are several tools that encourage systems thinking. For example, Market Watch recommends using a RACI chart.

Considering each of those elements when attempting to solve any problem can help you determine who should be involved throughout the decision-making process.

RACI stands for:

  • Responsible
  • Accountable
  • Consulted
  • Informed

Teague also recommends using tools like:

  • Causal loop diagrams
  • System archetypes
  • Simulation models

She said these tools allow you to visualize and analyze complex interactions within a system. For example, a casual loop diagram can be useful in eliciting discussions and helping to predict outcomes, according to Science Direct.

The World Economic Forum also suggests using the iceberg model, which you may already be familiar with. When applying the iceberg metaphor to any problem, ask these questions:

  • What might be below the surface?
  • What the possible laws, policies, or other pieces of information that affect the problem you're trying to solve?
  • What possible issues or concerns might lead to what you see above the water?

Always start with what you know, but apply the iceberg metaphor as a reminder to ask lots of questions about what might be lurking below.

What is an Example of Systems Thinking?

A blue image with yellow and white gear iconsWhile any team at work or at play is a system, perhaps the biggest system of all is the one with which we’re most familiar: the natural environment.

When one aspect of the ecosystem changes, there is a domino effect on the rest of the system, sometimes in ways we could not have predicted.

Now, apply that thinking to the workplace.

"An example would be a company analyzing its supply chain as a whole rather than focusing solely on individual components," Teague said.

She noted that this type of thinking can enable a company to optimize efficiency and responsiveness.

What are the Benefits of Systems Thinking?

A blue icon and white icon in the shape of the world with arrows and dashes going around it"Systems thinking is crucial in business," Teague said. "It helps in understanding complex problems, improves decision-making and promotes sustainable solutions by considering the interconnections and interdependencies within an organization."

The benefits of systems thinking are wide-ranging, especially if you're working in a management role or within the realm of organizational leadership. Involving the right stakeholders from the beginning saves time, energy and ultimately, money when making any business decision.

The world is complex, so our thinking should be complex as well. By making it a habit to consider and reconsider how our own role might be connected to others, we can mitigate impact and work together to create better solutions.

Can Systems Thinking Be Taught?

You can certainly learn to become a systems thinker, however, learning how to adopt a systems thinking mindset can be a challenge. Including many stakeholders at the start of every project can feel time-consuming and cumbersome. But, if you take the time to consider the systems with which you work up front, any project design will be that much stronger, with a solution that lasts.

By learning how to continuously ask yourself how you fit as a piece into the larger whole of the systems around you, you can work together better as teammates, colleagues and stewards of your environments.

A degree can change your life. Find the SNHU business program that can best help you meet your goals.

A former higher education administrator, Dr. Marie Morganelli is a career educator and writer. She has taught and tutored composition, literature, and writing at all levels from middle school through graduate school. With two graduate degrees in English language and literature, her focus — whether teaching or writing — is in helping to raise the voices of others through the power of storytelling. Connect with her on LinkedIn.

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About Southern New Hampshire University

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SNHU is a nonprofit, accredited university with a mission to make high-quality education more accessible and affordable for everyone.

Founded in 1932, and online since 1995, we’ve helped countless students reach their goals with flexible, career-focused programs. Our 300-acre campus in Manchester, NH is home to over 3,000 students, and we serve over 135,000 students online. Visit our about SNHU page to learn more about our mission, accreditations, leadership team, national recognitions and awards.