Seeing the Big Picture The Ten Principles of Systems Thinking

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Seeing the Big PictureThe Ten Principles

ofSystems Thinking

C. James [email protected]

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Agenda (CIIT/BCS Dorset Branch Wed. 14 Nov. 2012

1. A quick & preliminary look at the Ten Principles: A Framework for Systems Thinking.

2. Where the story begins: book-in-progress on “Joining Up Business-IT: A Systemic Solution”.

3. Why the book: (1) Make IT-in-Organisations understandable. (2) IT fails most of the time.

4. The book’s JUMP Model - based on Systems Thinking: A Framework for IT-in-Organisations.

5. Back to the Ten Principles (its another book).

6. A basic cause of (IT) failure: Parochial Thinking - The Queen’s Question and other examples

7. Agile/Lean Development: it’s the way to go but – the Parochial Thinking Risk is greater.

8. The first two principles: (1) See the Big Picture, (2) Everything is a system.

9. Systems Thinking Techniques – How to do Systems Thinking.

10. Soft Systems Methodology.

11. The Synergy Principle – how to join up Business and IT.

12. The Upside & Downside of Systems Thinking.

13. Why You should think Systemically.

14. Discussion

15. If there is time – more detail.

Seeing Everything as a Holistic System

is Systems Thinking

A system is anything made upof intra-dependent partswhich act together for a purpose

with some form of input, processand output

and which must, as a whole,intra-act effectively and

inter-act & adapt continuouslywith its external/contextual environment

to remain viable. An Open System

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The Earth; the Universe.

A school; a university.

A supermarket; shopping at.

The roads in/around a town.

Some Types of System A business/govt. organisation.

A bus./govt. department

A football team; a football club

A tree; a forest.

A plant; a flower.

Rainfall & rivers.

A computer information system.

A business process.

An accounting system.

The global financial markets.

A human being (body/mind/spirit).

You might say that my laptop and Iare two parts of a system.If it does what I need andif I do what it needs,- then we’re cookin’! - We’ve got synergy!

But I guess there areother parts in our system,like software, data, - and maybe people!

And I guess we’re part ofa bigger system as well!

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See the Big Picture:the holistic & systemic whole.

Everything is a system and every system has its purpose or purposes.

First look to the idealised design.Synthesis before Analysis.

Every system has an optimum min/max size.

Each part of a system is dependent uponand needs to work well with the other parts.

Optimal efficiency of a part in itself detracts from overall effectiveness.

Synergy results from the actualisationof idealised intra-relationships

Every system must continuously inter-relate with and adapt to its context or external environment to remain viable.

A human organisational system must have effective communication and dialogue in working well and in adapting to internal and external change.

The Ten Systems Thinking Principles: A Framework for Systems Thinking

ReceivedInformation

Mind & Memory (short/long-term)

Processing

The External: People/Things/the World

SensesPerception

Structure/Structuring

Analysis/Synthesis

Awareness & Feelings

The Importance of Structure in/for Understanding, Learning, and Knowledge

Understanding Learning Knowledge

Thinking(fast/slow)

Daniel Kahneman

A Systemic Approximation of Knowledge Formation

Experience (verb/noun)Observing/Doing(passive/active)

Action

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Waste of people potential

Wasted time

Frustration, stress and ill health

Higher taxes

Poor public health/social services Ineffective government

Loss of life

Socio-Economic Impact – of Business-IT Failure

Job losses

Poor collaboration, innovation, knowledge growth

Impact on privacy

& valuePoor customer service

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The JUMP Model

ITProfessionals

Information & Communications

Technology(ICT)

System& NetworkOperationsData

P h y s i c al I n f r a s t r u c t u r e

IT MOMSManagement Organisation

Methodsand Skills

- - -

Systems Development

& Support

B u s i n e s s P r o c e s s e s The (virtual) - Governance & Guidance

Strategy & Structure

Leadership & Culture

- Business Organisation

Man

agem

ent &

Mgt

. Pro

cess

esInformationSystems (IS) & Applications (Apps)

- In

clud

ing

C

y b

e r s

p a

c e

- Including C y b e r s p a c e

IT Customers

IT Customers

InformationValue

The External Customer and -

- Socio-Economic Environment

Based on:

1. Systems Thinking

2. A research method known as the Constant Comparative Method of Grounded Theory (Glaser & Strauss).

3. A global Delphic survey of 50 senior academics and many business managers.

4. Pursuit of the Null Hypothesis Principle with audiences and thought leaders in attempts to disprove the validity of the model.

5. Iteration & refinement.

ASystemic Framework

for ITin Organisations

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- In

clud

ing

C

y b

e r s

p a

c e

- Including C y b e r s p a c eThe JUMP 12-Part Model (part 1):

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The JUMP Model (part 2)

The (virtual) - Governance & Guidance




Man

agem

ent &

Mgt

. Pro

cess

es-

Incl

udin

g

C y

b e

r s p

a c

e




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The JUMP Model (3 and 4)





Man

agem

ent &

Mgt

. Pro

cess

es-

Incl

udin

g

C y

b e

r s p

a c

e




P h y s i c a l ICT I n f r a s t r u c t u r e

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ITProfessionals


Methodsand Skills

- - -

Systems Development

& Support





Man

agem

ent &

Mgt

. Pro

cess

es-

Incl

udin

g

C y

b e

r s p

a c

e






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ITProfessionals


Technology(ICT)

System& NetworkOperations


Methodsand Skills

- - -

Systems Development

& Support





Man

agem

ent &

Mgt

. Pro

cess

es-

Incl

udin

g

C y

b e

r s p

a c

e






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ITProfessionals


Technology(ICT)



Methodsand Skills

- - -

Systems Development

& Support





Man

agem

ent &

Mgt

. Pro

cess


- In

clud

ing

C

y b

e r s

p a

c e






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ITProfessionals


Technology(ICT)



Methodsand Skills

- - -

Systems Development

& Support





Man

agem

ent &

Mgt

. Pro

cess


- In

clud

ing

C

y b

e r s

p a

c e


IT Customers

IT Customers



The JUMP Model (11)


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The JUMP Model – part 12

ITProfessionals


Technology(ICT)



Methodsand Skills

- - -

Systems Development

& Support





Man

agem

ent &

Mgt

. Pro

cess


- In

clud

ing

C

y b

e r s

p a

c e


IT Customers

IT Customers

InformationValue



ASystemic Framework

for ITin Organisations


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Perception& Experience

Background& Context

“I don’t understand IT, and don’t have the time or need to understand it”.

“I don’t see that IT makes a difference to business performance”.

“My experience with IT has not been good”.

“Why don’t the IT people just get on and do it?”

“IT doesn’t make my job any easier”.

“IT people don’t understand the business”.

“IT just costs time & money”.

Never been exposed to Systems Thinking; a Parochial Thinker.

Not aware of IT needin business strategy.

Needs education on theinter-connections in Bus.–IT.

Not in a joined-up culture.

Doesn’t see IT leadershipor example in senior mgt.

Not aware of external or evencross-organisational impacts.

What d'ya want from me;computers are not my thingand I don’t have the time!

Doesn’t see the vital role ofthe Bus.-IT savvy IT Customer.

The Agile/Lean Challenge:the IT Customer/User

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• That doesn’t affect me.

• Forget about the general stuff; let’s get on with the job at hand!

• We know what we need; it’s obvious!

• My job, My skill, My department, My agenda.

• Tick the boxes – job done!

• The problem is obvious; it’s in the numbers!

• Us v. Them.

• What’s in it for me?

• I can’t help them; it will stop me meeting my target!

• You don’t understand me.

• That’s not my job.

• You should know what I need; just do it!

• Just tell me what you want; that’s all I need to know.

• That’s my specialisation; that’s what I do.

The Risk in Agile/Lean Development:A Parochial Thinking Perspective

Boxed-In Thinking

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Silo/Stovepipe Thinking – and IT

We naturally think parochially (in silos):- My job, My skill, My department, My agenda, My needs, My

box.

And this translates into the common problemfor IT in Organisations of -

doing things in silos:

- hardware requirements- patches

- enhancements- project management

- systems audit- data analysis

- development projects,- user requirements

- spread sheets- cost v. benefit

Withunintended

yetpotentiallydisastrous

and/or expensive

consequences

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The Parochial Thinking Perspective:Example

Birmingham City Council's Computerised Phone SystemBaffled By Brummie Accent . Nov. 2012.

An automated phone system was flummoxed by the local Brummie accent.

The service featureda female voice witha Geordie accent.

The system cost £11 m.

The system wasde-commissioned.

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Lean + Systems Thinking= Cost-Effectiveness

The Metropolitan PoliceDirectorate of Information

Systems Thinking Principles: Looked at Purpose. Idealised design. Synthesis before analysis.

Compelling Reasons: Forced to cut costs by 25% over three years. Decided Lean was the only way.

Lean Principles: Senior Management active support. People Buy-In. Customer Value & Value Streams. Eliminate waste. Customer-IT empowered teams.

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The Ten Systems Thinking Principles – Some Techniques (1)

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First Synthesise then Analyse: e.g. Looking at a Dept./Function as a System

4. Identify Related systems/functions with which the Subject System inter-relates.

1. Identify & agree the Subject System with which we’re concerned as a systemic whole, in its Boundaries and Sub-Systems.

5. Analyse the Subject system in termsof its Sub-Systems ,their intra-relationships,and their inter-relationships withthe Contextual system. & Supra System.

2. Describe the Contextual System within which the Subject System exists, which is the next system up, in this case the Organisation.

3. Appreciate the Supra system within which the Contextual organisational system exists, which in this case is the External Customer & Socio-Economic Environment.

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Systems Thinking and IT:The Seven Hats Perspective

Management Accountant

IT Professional:Systems & Technology

Sales & Marketing: External Customer

CEO:Top/Overall View

Sociologist (HR?):People: What they do (and need to do),

Why they do it, How they work,and How they interact

Operations:Business Process

& Internal Customer

Who wears this hat?Information Value

Subject:A dept., function,

system, process, etc in the organisational

context.

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Rich Picture: Mortgage Brokers Sales Dept. Present Context

How can IT systemshelp us to be more

competitive?Change! Flexibility!Fast response tonew rules, new ways,new categories!

AssociateFirm

MortgageSeeker

MortgageAgent

MortgageRep

SupportStaffer

We have to compete! Ourcustomer service and bus. processesneed to be efficient and cost-effective!

Mortgage BrokersSalesDept

Help! costsare growingtoo fast!

InternalSales

How do we automateour business rules?

I just cannot handleall the paperwork!

Sales & Mktg.Director

It makes it verydifficult to do yourjob without the rightinformation!

FirmDirector

CompetitorBrokers

…I’m fed-up withthese guys,

they never getour commissions

right!

Accounting

Commissionsare a problem!

Finance

- Accounts- Budgets-Commissions

They blame us for badinformation, but its

not our fault! Ombudsman

Research- Markets- Providers- Investments

MortgageRegulator

We’re separateFrom the restof the Business

I can getindependent adviceand the best deal

Senior Management

MortgageProvider

SSM

Customer Service

Admin. &Regulatory- Data Admin.- Guidance- HR

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Number ofRoads

TrafficCongestion

EnvironmentalPollution

Dependenceon Cars

Cost ofPublic Transport

Reliability ofPublic Transport

GovernmentSubsidies

Cost ofPetrol

Road TrafficDeaths Independence

in/of travel

Causal Loop Diagramme (Simple Format):A Systemic View of Issues:

Proposed New Road Around the Town

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1. Purpose:To make people well and/or recover, and sustain human life within a contextof patient care, dignity, and clinical excellence.

2. Ownership: The trustees, the funding authority, and the public as taxpayers.

3. Process: (1) GP referral, (2) initial assessment, (3) intake, (4) appropriate & effective procedures and care, (5) recovery, (6) exit (7) follow-up, (8) GP care.

4. Customers: The patients.

5. Stakeholders: Patients’ families, staff, trustees, the general public, the funding authority, and the government.

6. Actors/Doers: Front-line caring staff, support staff, senior staff (surgeons and specialists), and admin./mgt. staff.

7. Constraints: Funding levels, staffing levels, administrative overhead, government & regulatory requirements, hygiene & safety requirements.

8. External Context: The Department as a whole, other wards and interfacing departments,the Hospital as a whole, and the community and general public.

Business Root Definition: A Hospital Ward SSM

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Mind-MappingSee the Big Picture:

the holistic & systemic whole

Everything is a system and every system

has its purpose or purposes

Each part of a system is dependent upon

and needs to work well with the other parts

Every system must continuously inter-relate with and adapt

to its context or external environment to remain viable.

A human organisational system must have effective

communication and dialogue in working well and in

adapting to internal and external change

Synthesis before Analysis

How can we apply the tenSystems Thinking Principlesto Agile/Lean Development?

First look to the idealised design

Synergy results from the

actualisation of idealised

intra-relationshipEvery system has an optimum

min/max size.

Optimal efficiency of a part in itself

detracts from overall effectiveness

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The Soft Systems Methodology (SSM) ApproachPeter Checkland

7. Action to improve the problem situation.

1. Statement of situation or issue considered problematic.

6. Changes that are systemically desirable and culturally feasible.

2. Problem situation expressed using Rich Pictures and other means.

3. Business Root Definition of subject system.

4. Idealised, conceptual model of system, based on root definition, and represented in the form of simple Business Activity/Process Models.

5. Comparison of idealised, conceptual model with the real world.

Systems Thinkingaboutthe Real World

The Real World

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The Synergy Principle

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Remind me: what is Synergy?

When the combined effect of the different parts of a system exceeds the sum of their individual effects.

The product of the relationships in a system, particularly a human organisation system.

The added-value effect in effective collaboration or combination.

2 + 2 = 7

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Business-IT Synergy Theory

3. Based on the Idealised/Synergistic Expression, find Possible Actions that might enhance Synergy in the relationship.

2. Include this Purpose in an Idealised/Synergistic Expression of the relationship.

1. Determine the Purpose of the relationship.

5. So as to Actualise the Idealised/Synergistic Expression.4. Using the Possible Actions,

dialogue for Payback Actions.

How can we enhance Synergy in the intra-relationshipsbetween the basic/intrinsic, intra-dependent areasof IT in Organisations?

- If there is Synergy between the basic/intrinsic intra-dependent areas of IT-in-Organisations

- as in the JUMP Model then there is Joined-Up Business-IT !

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Systems Thinkingas Double-Edged Sword - The Upside - the Downside

Being different from most other people.

Getting too much information,and taking too much time in getting it.

Not having sufficient power/authority to do much with it (Systems Thinking).

Gaining in Performance.

Gaining in Innovation.

Gaining in Wisdom.

So what to do about these things?

Seeing significant issues that wouldnot otherwise be seen.

Asking important questions that wouldnot otherwise be asked.

Solving if not avoiding problems that wouldnot otherwise be seen or solved.

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TO Think Systemically

YOU

YOUR COUNTRY NEEDS YOU

And if you can think Systemically

Then you have

The ability to see the Big Picture and see where

others do not see

and to help if not lead others

with this wisdom

Seeing the Big Picture The Ten Principles of Systems Thinking

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