Holistic or Systems Thinking for Organizational Growth

Holistic or systems thinking is based on system dynamics and provides ways of understanding practical business issues (example B2B business); it looks at systems in terms of particular types of cycles (archetypes); and it includes explicit system modeling of complex issues. It’s a philosophical approach that shapes the outcome of system design.

System thinking simplifies life by helping us to see the deeper patterns lying behind the events and the details. The essence of the discipline of systems thinking lies in a shift of mind:

• seeing interrelationships rather than linear cause-effect chains, and
• seeing processes of change rather than snapshots

Initially, systems were viewed as machines or closed-loop systems whose rigid structure defined their function. Analytical thinking fits this model well. Systems are simply the sum of their parts, assembled in defined ways to create specific behaviors. In the next stage, systems were viewed as biological creations. The biological model views systems as an open loop with single-minded, purposeful behavior. The system responds to instability in the open-loop environment by adjusting its actions to meet its defined goal. A thermostat provides a simple mechanical example of this type of system. The third stage views systems as social entities. The social model views systems as being composed of a voluntary association of purposeful entities that have their own choice of goals and the means to achieve them. But purposeful is not the same as goal seeking. Goal seeking means that you have alternate means of achieving a single goal. Purposeful means you can change the goal as well as the means. In the social model, integration is a continual process. This process requires filling the purpose of the individual entities and aligning their fulfillment with that of the whole. Members are held together by common objectives and agreed upon ways of pursuing them. (example: Cohorts in in a business or project envioronment). Consensus is essential to alignment.

Openness: In his book, Systems Thinking: Managing Chaos and Complexity, Jamshid Gharajedaghi (1999), defined five system principles:

• Openness
• Purposefulness
• Multi-dimensionality
• Emergent property
• Counter-intuitiveness

Openness means the behavior of a system can only be understood in the context of its environment. Open systems are guided by a code of conduct, whether that is DNA or culture. When left alone, open systems tend to reproduce themselves. Typically, we evaluate a system’s environment and identify variables that can be controlled and those that cannot. As we look at more open systems we might identify environmental variables that can at least be influenced if not controlled.

Why openness is important: We need to look at business as an open system with different variables. And, the inter-relationship of these variables can be influenced, if not controlled. This is where the openness becomes relevant for the business context. Business undergoes constant changes and that requires more sophisticated systems to meet constantly changing business needs.
Customer relationship context: The openness is very crucial in customer relationship context. Let me explain this with an analogy. Chaos theory states that the fluttering of a butterfly in far away in Asia can influence the weather in America. What this shows the importance of the influence of a smallest event on the final outcome. Customer is a key environment variable in system thinking and can definitely influence the outcome of business.

My organization has an open approach that encourages innovation, creativity, and system thinking. The organization spends substantial sum of money for constantly re-invent itself and system thinking is one of the key aspects of this approach.

References:

Jamshid, G. (1999), Systems Thinking, Managing Chaos and Complexity: A Platform for
Designing Business Architecture. Butterworth-heinemann, ISBN: 0750671637
System thinking, (2005). Retrieved on October 19, 2007 from:
http://www.adtmag.com/article.asp?id=2718
The Fifth Discipline (2005). Retrieved on October 19, 2007 from:
http://www.rtis.com/nat/user/jfullerton/review/learning.htm#SystemsThinking

Organizational Dynamic Models

There are many models that provide an understanding of characteristics and dynamics of specific organizational disciplines (Rigsby, 2003). The Organization Dynamic Model presented in Rigsby links the many individual models together; so that one may understand how independent disciplines interrelate within an organization.

This model has three core drivers that must be aligned with each other in order for organizations to succeed in business. The first driver is organizational strategy, which is the blueprint of the organization. This answers questions such as what the business is doing now, and what it should be doing. The second driver is organizational design, which Rigsby states: “is the infrastructure imposed by management that employees must contend with in order to do their jobs”, (p.132). The third driver is organizational culture, which is a feeling at the company. Rigsby states: “culture is the outcome of the total set of beliefs, protocols, and practices that an organization maintains for prolonged periods of time” (p. 212).Organizations are made up of people with different thoughts and ideas, and with varying degree of potential and ability to work in individual and team environment. These individuals bring their own perceptions into the formal and informal groups within an organization. This can be beneficial in that individuals inject new ideas into the groups. However, problems can arise when assumptions clash and individuals are not managed correctly.

Organizations are made up of people with different thoughts and ideas, and with varying degree of potential and ability to work in individual and team environment. These individuals bring their own perceptions into the formal and informal groups within an organization. This can be beneficial in that individuals inject new ideas into the groups. However, problems can arise when assumptions clash and individuals are not managed correctly. This can cause a misalignment of the three core drivers.

Reference: Rigsby, J., & Greco, G. (2003). Mastering strategy. (1st.ed.). New York, NY: McGraw-Hill.

Risk Management Strategies in the Global Environment

Today more than ever before, business professionals and leaders are challenged with increasingly difficult and diverse responsibilities, including understanding and employing decisions based on intense and complex business theories. Leaders also face a myriad of internal and external factors driving success or failure in enterprise business. In the age of dynamics and diverse global business enterprise, business professionals need to expand their existing base of knowledge related to various risk management strategies to be successful in the marketplace. Risk management process involves assessing, or evaluating risk and developing management strategies to mitigate them. These strategies include risk transfer, risk avoidance, and accepting some or all the risk. Financial risk management strategies focus on risk managed through financial instruments.

To achieve sustainable competitive advantage, the organizations have to be creative with innovation and adaptable to dynamic risk management strategies. Today more than ever, the premium comes from the fusion of invention and insight into how to transform how things are done. In addition, the spread of shared technologies and business standards is creating an unprecedented opportunity for global integration, not just within each sector of society, but across them all. As the boundaries between the traditional "estates" become more porous, new businesses can contribute new forms of commerce, learning, and good governance.

Here is the core message fon risk management and mitigation: “Nothing splendid has ever been achieved except those who dared believe that something inside of them was superior to circumstance.” – Bruce Barton. Stay positive and balance the risk issues.

Are Leaders Change Agents?

Leaders are change agents. Leaders should be responsible for building empowered organizations where individuals have the knowledge, skill, desire, and opportunity to personally succeed in a way that leads to collective organizational success. To succeed internationally, leaders should know why they are selling globally, how their product compares with competitors’ products, what transactions are involved in selling globally, and who they can consult, contract, or hire to provide needed specialized expertise.

To succeed internationally, business leaders should know why they are selling internationally, how their product compares with competitors’ products, what transactions are involved in selling internationally, and who they can consult, contract, or hire to provide needed specialized expertise.

“We must become the change we want to see.” - Mahatma Gandhi

On God, faith, and Immortality

The core of religious faith is that mystic feeling that unites man with God. It is only in relation to the Creator, and the purpose which that Creator has fixed for His creatures, that human existence has any meaning. This state of spiritual communion can be brought about and maintained by means of meditation and prayer. And this is the reason why various religions have so much stressed the importance of worship. In reality, there is only one religion, the religion of God. The purpose of God in creating man has been, and will ever be, to enable him to know his Creator and to attain His Presence.

Many people live their lives without ever reflecting on life itself or its meaning for them. Their lives may be full of activities. They may marry, have children, run a business, or become scientists or musicians, without ever obtaining any degree of understanding of why they do these things. Their lives have no overall purpose to give meaning to separate events, and they may have no clear idea of their own nature or identity, of who they really are.

The ultimate aim in life of every human soul should be to attain moral and spiritual excellence--to align one's inner being and outward behavior with the will of an all-loving Creator. That each individual has been bestowed with a unique destiny by God--a destiny which unfolds in accordance with the free exercise of the choices and opportunities presented in life. In particular, it is through the moral exercise of our divinely conferred free will that opportunities are provided for spiritual advancement.

Create the Life You Want!

Is balancing work, life, and family a priority for you and how stay motivated? Susan M. Heathfield provides some insightful responses in this area. She recommends what is called Guided Thinking Exercises. Try these exercises to focus your career planning and life thinking – yes, you have to do the work to get to your goal.

1. Write down your ten favorite activities, the ones without which your life would feel bereft. No career choice is suitable unless you get to do your favorite activities at least weekly, and preferably, daily.
2. Write down the top five goals you want to accomplish in your life and career. (Think money, fame, impact, contribution and more.) Your selected career must enable you to reach these goals.
3. List everything you’d like to do in your lifetime. These lists can run several hundred items. Your chosen career must allow the accomplishment of these dreams.