Why is Systems Thinking Important?

Importance of Systems Thinking

What is ‘systems thinking’ exactly, and why is it crucial for individuals and teams in organizations to learn and use it? Systems thinking enables individuals, groups and organizations to think holistically, see the connections across organizational boundaries, and understand the life cycles of a phase, project, or mission. Systems thinking affords for uncertainty and tracks issues from multiple perspectives, while affording the ability to think through scenarios that influence future outcomes and decisions. 

Systems thinking ties together strands of work that often reside in “siloed” parts of an organization. Often, a team composed of individuals working in the department or unit are responsible for their project’s success. This reflects hierarchical organization, meaning, a type of organization where decision and information flows from top management down to middle management and staff, usually organized by functional departments. Hierarchy does not afford the type lateral and networked connections required for complex problem solving or innovative practice. The siloed team does not have the connections to other departments, teams, and individuals that hold critical insights into implementation issues or down-stream problems. The lack of insight stems from both how the organization is designed (i.e., top down, no lateral or networked connections) and the fact that the individuals who hold crucial information or tools are not part of the team’s work. 

Systems Think in Practice

So - what does this look like in practice? You might have already found that your work is connected to other organizational functions - but that expertise is not represented on your team. If you're new to systems thinking the first thing you might ask yourself is:

How are different organizational functions related to our project goals? 

For example, you might be working on a project related to accountability and evaluation. Your team is composed of individuals who focus primarily on that area and work in the accountability department. At the same time, the evaluation system is largely dependent on a data management system that generates an evaluation score of multiple measures. As the evaluation system evolves and responds to mandates, the data management system - owned functionally by the information and technology department - remains unchanged. 

An Example of a Mid-Level Systems Thinking Approach: Cross Functional Teams

One systems-oriented approach is to employ a cross-functional team. Cross functional teams are groups of people who have different functional expertise but are working towards a common goal. They may also represent different functional departments within the organization. Cross functional teams are inherently a systems thinking approach because they cut across organizational units and make important connections to multiple systems related to the project goal. 

In this example, the information and technology director becomes a permanent member of the accountability system team and they are both kept informed about current and upcoming changes, but also provide valuable input and insight into the capabilities of the data management system. 

From there, the team’s membership snowballed to include end users, financial management, media engagement and marketing, and human resources. While attendance was not required for every team meeting, all representatives from the departments were kept informed of the project progress and engaged in decision-making when relevant. This approach ameliorates many future problems due to lack of communication and engagement in key decision making. 

A cross functional team is one type of systems thinking approach, there are a multitude of others that can be used to establish a more relational approach to work. Cross functional teams may be worth considering because completely revamping the structure of an organization is time-intensive and requires upper management support and vision. Establishing cross functional teams is something middle managers and staff can employ to begin to incorporate systems thinking into their work.