Systems thinking means recognising that a business is a complete, interconnected socio-technical system and being able to discern its constituent parts, figure out the internal relations and dynamics and what the highest leverage variables are, so as to be able to intervene intelligently.
And it means doing this through positive engagement with others, since other actors not only affect the different aspects of the system, but are also a crucial aspect of the system.
Part of this is recognising that to improve any aspect of performance (quality, delivery performance or cost), every part of the organisation needs to be aware of, and accountable for, the impact it has on that metric, and be open to improvement.
There are two dimensions to this. The first is horizontal, optimising the performance of the entire value chain as it runs end-to-end through various front-line functions. The second is vertical, recognising that the operational processes will only be as effective as the management system they are embedded within. This highlights the importance of a properly designed and managed strategic management system, operational management system and process management. They need to be sound in themselves and integrated, aligned and coordinated vertically.
