1.5 - About University

To illustrate systems thinking, we use the example of a car as a system. If you consult anautomobile repair manual, a car is composed of dozens of subsystems—motor, electrical system,transmission, sound system, steering system, braking system—and hundreds of parts—radio, CD or DVD, speakers, and wiring (also part of the electrical system).The car-as-a-system example➠ A system—the car—is much more than the sum ofits parts. One could put all the parts of a car into agarage and not have a car. Often, with thebreakdown of a single part, the whole system breaksdown.➠ Each system is a subsystem of a larger system. A carwould not be a useful system without a system ofroads and fueling stations. For example, onedifficulty with electrical cars is the lack of rechargingstations.➠ Each subsystem of a great car is actuallysuboptimized! For example, the world’s besttransmission would be too big, too heavy, or tooexpensive for the world’s best car. The trick is to suboptimizeeach subsystem to optimize the wholesystem.➠ To change one subsystem of a car—for example, tochange from two-wheel to all-wheel drive—requires anumber of changes in other systems, includingtransmission, wheel assembly, brakes, and so on.Some implications for leaders✔ The whole organizational system is greater than thesum of its parts. The interrelations and interdependenciesare as important as the parts (the subsystems).A single poorly integrated subsystem weakensthe whole organization. (People systems are morerobust than mechanical systems, because people canand will work around poor systems).✔ As leader of a subsystem, remember that you arealways part of the larger system, which also includesexternal systems of suppliers, customers, clients,competitors, consultants, governments, and society.✔ The need for suboptimized subsystems is at the heartof many leadership problems. Each leader has to suboptimizehis or her subsystem if the whole organizationis to be optimal. As Peter Senge puts it, “… insystems … in order for you to succeed, others mustsucceed as well.”✔ Any major change requires changes in many otherinteracting systems to make it work. Change moreoften sputters or fails because it conflicts with existingsystems set up to support another result![☛ 4.1 Organizational Design]A typical organizational system can be illustrated, at a high level, as:PurposeA system is drivenby its purposeand goals. (A cardesigned for fuelefficency wouldneed quitedifferent systemthinking thanwould a racingcar.)➟ ➟ ➟ ➟InputsEvery systemdepends onquality inputs—suppliers, services,and raw materialsfrom other systems.Value-AddingProcessesAn organization,team, or businessunit must have itsinternal systemsfine-tuned to addvalue to theinputs andproduce results.ResultsResults aremeasured againsttargets, customeracceptance,quality standards,competitors, andso on.Benefits toStakeholdersStakeholders caninclude clients,customers,employees,investors, thecommunity,the country, andso on.SECTION 2 TOOLS FOR BIG-PICTURE THINKING 41