What is system thinking? Some have described and defined systems thinking within specific contexts such as business, education, and government. Others have focused on the use of specific processes and tools as defining elements of systems thinking. One common thread in defining systems thinking seems to be a focus on a holistic, ‘big picture’ view of how systems function, seeing beyond the details of individual trees to the forest as a whole.

What is a System?
Very simply, a system is a collection of parts (or sub-systems) integrated to accomplish an overall goal (a system of people is an organisation). Systems have input processes, outputs and outcomes, with ongoing feedback among these various parts. If one part of the system is removed, the nature of the system is changed.
Systems range from very simple to very complex. There are numerous types of systems. For example, there are biological systems (the heart, etc.), mechanical systems (thermostat, etc.), human/mechanical systems (riding a bicycle, etc.), ecological systems (predator/prey, etc.), and social systems (groups, supply and demand, friendship, etc.).
Complex systems, such as social systems, are comprised of numerous sub-systems, as well. These sub-systems are arranged in hierarchies, and integrated to accomplish the overall goal of the overall system. Each sub-system has its own boundaries of sorts, and includes various inputs, processes, outputs and outcomes geared to accomplish an overall goal for the sub-system.
A pile of sand is not a system. If one removes a sand particle, you've still got a pile of sand. However, a functioning car is a system. Remove the carburetor and you've no longer got a working car.
Why is it Important to Look at Organisations as Systems?
The effect of this systems theory in management is that writers, educators, consultants, etc. are helping managers to look at organisations from a broader perspective. Systems theory has brought a new perspective for managers to interpret patterns and events in their organisations. In the past, managers typically took one part and focused on that. Then they moved all attention to another part. The problem was that an organisation could, e.g., have wonderful departments that operate well by themselves but don't integrate well together. Consequently, the organisation suffers as a whole.
Now, more managers are recognising the various parts of the organisation, and, in particular, the inter-relations of the parts, e.g., the coordination of central offices with other departments, Managers now focus more attention on matters of ongoing organisation and feedback. Managers now diagnose problems, not by examining what appear to be separate pieces of the organisation, but by recognising larger patterns of inter-actions. Managers maintain perspective by focusing on the outcomes they want from their organisations. Now managers, focus on structures that provoke behaviours that determine events -- rather than reacting to events as was always done in the past.
Systems Theory, Systems Analysis and Systems Thinking
One of the major breakthroughs in understanding the complex world of systems is systems theory. The application of this theory is called systems analysis. One of the tools of systems analysis is systems thinking. Very basically, system thinking is a way of helping a person to view the world, including its organisations, from a broad perspective that includes structures, patterns and events, rather than just the events themselves. This broad view helps one to identify the real causes of issues and know where to work to address them.
Systems Principles -- Some Examples
Systems theory has identified numerous principles that are common to systems, many of which help us to better understand organisations. One of the best descriptions of systems principles is in the booklet- “Systems 1: An Introduction to Systems Thinking” by Draper L. Kauffman, Jr.
The system's overall behaviour depends on its entire structure (not the sum of its various parts). The structure determines the various behaviours, which determine the various events. Too often, we only see and respond to the events. That's why, especially in the early parts of our lives, we can be so short-sighted and reactionary in our lives and in our work. We miss the broader scheme of things.
Too often in organisations (and in management training programmes), we think we can break up the system and only have to deal with its parts or with various topics apart from other topics. Systems theory reminds us that if you break up an elephant, you don't have a bunch of little elephants.
There is an optimum size for a system. If we try to make the system any larger, it'll try to break itself up in order to achieve more stability. Too often in our organisations, we continually strive to keep on growing - until the reality of the system intervenes. At this point, we again only see the events, not the behaviours or the structures that cause them. So we embark on short-sighted strategies to fix events, often only causing more problems for ourselves and others.
There are numerous other systems principles, e.g.,
- Systems tend to seek balance with their environments
- Systems that do not interact with their environment (e.g., get feedback from
customers) tend to reach limits
A circular relationship exists between the overall system and its parts.
Ever notice how an organisation seems to experience the same kind of problems over and over again? The problems seem to cycle through the organisation. Over time, members of the organisation come to recognise the pattern of events in the cycle, rather than the cycle itself. Parents notice this as they mature as parents. Over time, they recognise the various phases their children go through and consider these phases when dealing with the specific behaviours of their children.
There is a critical difference between doing things right and doing the right thing. Much of the effort in programmes of change is given to doing things right: there is not much questioning whether these are the right things to do. Perhaps the labels are the first line of defence against such programmes being questioned.
Studying failure is a good way to learn how to understand an organisation as a system. A system is a whole made up of parts. Each part of the system can effect the way a system works. Managing for improvement starts with understanding the relationship between parts.
When the organisation is understood as a system, the inappropriateness of such practices becomes stark. It is a major source of motivation for action. Action means ‘doing the right thing’, putting in place the right ‘system conditions’ to ensure that performance is managed from a strong base of understanding.
Characteristics of a System
–         Components
–         Interrelated Components
–         Boundary
–         Purpose
–         Environment
–         Interfaces
–         Input
–         Output
–         Constraints
Systems have several defining characteristics:
·         Every system has a purpose within a larger system.
·         All of a system's parts must be present for the system to carry out its purpose optimally.
·         A system's parts must be arranged in a specific way for the system to carry out its purpose
·         Systems change in response to feedback.
·         Systems maintain their stability by making adjustments based on feedback.
Why Is Systems Thinking Important?
Why is system thinking valuable? Because it can help you design smart, enduring solutions to problems. In its simplest sense, systems thinking give you a more accurate picture of reality, so that you can work with a system's natural forces in order to achieve the results you desire. It also encourages you to think about problems and solutions with an eye toward the long view—for example, how might a particular solution you're considering play out over the long run? And what unintended consequences might it have? Finally, system thinking is founded on some basic, universal principles that you would begin to detect in all arenas of life once you learn to recognise them.
Change means changing the system:-
Change for improved performance means changing the system. When features of a traditional management system are left in place, they undermine (or, minimally, compete with) quality principles and practices. If change doesn’t change the system, the system doesn’t change.
Fostering understanding of dynamic systems in a complex world