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Systems Thinking in Organizational Change

Businesses pursuing success in today’s complex, interconnected world face many challenges. It’s very easy to view issues and challenges in a siloed approach rather than as an organization. In order to navigate change, growth and learning, organizations need to understand and implement systems thinking. Success comes from understanding the interconnectedness within a broader business ecosystem.

Components in a system don’t exist in isolation. Traditional hierarchical and linear leadership styles involve command and control. Optimizing individual processes was the norm until it was discovered that aligning processes into a unified whole resulted in a fundamental shift in thinking about complex systems.

Eastern Washington University (EWU) offers a fully online Master of Science – Organizational Leadership, Change Leadership Concentration program that provides the tools to lead change, align teams and drive transformation. This specialized curriculum focuses on organizational leadership and change management that will help you develop the mindset, knowledge and strategies needed to guide people and organizations through change with confidence.

Courses like Leading Change, and Systems Thinking for Leading Change focus on effective change leadership, a systems view of change and design thinking for change. You will learn how to apply the concepts used in systems thinking to specific systems, and how systems thinking can be an effective tool for leadership in organizational and social change.

What is Systems Thinking and Why Does It Matter for Change Leaders?

According to the Institute of Organizational Development, systems thinking is a “way of understanding and analyzing complex systems by examining the interconnections and relationships among their components. It involves looking beyond individual parts and considering the entire system as a whole.” Systems leadership acknowledges that leading in complex systems requires a different mindset, skill set and toolkit than traditional leadership approaches.

Systems leadership is focused on collaboration, cultivating and empowering networks and teams. It’s the interconnectedness that is important in systems leadership, as opposed to siloed teams with individual leaders.

Change, problems and challenges in an organization are rarely linear, and managing them requires leaders to be agile, adaptable and innovative. When participants are viewed as parts of a larger ecosystem with multiple stakeholders, the opportunity for creativity and innovation increases along with the inclusion and consideration of diverse needs and perspectives.

How Do Feedback Loops Shape Organizational Change?

Actions in one area of an organization can have ripple effects across the entire system. In 1961, a scientist studying the Earth’s atmosphere, Edward Lorenz, first dubbed this “the butterfly effect.” This question became the groundwork for what would later become chaos theory and is today applied to systems thinking and the interconnectedness of organizations. The actions of one part of an organization will have an impact overall, whether intended or not.

Feedback loops, in which the outputs of a system are fed back into the system as inputs, can help organizations learn from outcomes and make improvements. Feedback loops can be reinforcing (positive), or balancing (negative). Leveraging positive feedback and mitigating negative feedback helps avoid unintended consequences.

In an organization, pilot projects, prototypes and iterative approaches help promote experimentation and learning. Based on feedback from these efforts, individuals and teams learn from failures and adapt their approaches.

For example, a company that is making an organizational change, like rolling out a new internal tool, sends out a survey after the tool is launched and discovers that the training materials were unclear. Responding quickly to that feedback and communicating the action taken to remediate the problem results in happier employees and a better implementation of the new tool.

What Role Do Mental Models Play in Leading Change?

Mental models are the assumptions, beliefs and perspectives that individuals hold, shaping their behavior and decision-making. Encouraging individuals to consider and challenge their own mental models helps foster a culture of openness and continuous learning.

Often these mental models are closely tied to doing things the way they have always been done, typically in a linear fashion, which can blind organizations to deeper systemic complexity. Recognizing and questioning these assumptions is the first step toward unlocking more adaptive, systems-oriented approaches to leadership and change.

How Can Leaders Apply Systems Thinking to Guide Transformation?

Systems thinking is a way for systems leaders to enhance their leadership abilities. Gaining a deeper understanding of complex systems and examining the underlying assumptions helps them to make more informed and effective strategic choices.

Using tools like pattern recognition, boundary management, leverage point identification and reading patterns helps a systems leader allocate resources effectively, and intervene in a timely manner when needed. Uncovering root causes helps to avoid simply addressing symptoms.

Promoting cross-functional collaboration and breaking down silos allows for a broader perspective and fosters creative problem-solving. Experimentation and testing new ideas help drive continuous improvement.

Get Started on Becoming a Change Leader

The flexible and affordable MS Organizational Leadership – Change Leadership online program from EWU consists of 44 credit hours and can be completed in as few as 10 months. The program’s streamlined structure means motivated professionals can build expertise in change leadership and systems thinking without a prolonged time commitment.

In-state and out-of-state students pay the same tuition on a pay-by-the-course basis, eliminating the financial barriers that can prevent qualified candidates from pursuing an advanced degree. With seven start dates a year, EWU makes it easy to take the next step when the time is right for you.

Learn more about Eastern Washington University’s MS — Organizational Leadership, Change Leadership online program.

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