"Systems thinking is a discipline for seeing wholes. It is a framework for seeing interrelationships rather than things, for seeing patterns of change rather than static 'snapshots.'"
                                 - Peter Senge, pioneer in the field of systems thinking
 

Most managers can relate to this: Your week is a never-ending game of whack-a-mole. Problems and concerns pop up left and right, and you're constantly putting out fires. We've all been there, frantically dealing with the obvious, in-your-face issues that demand our immediate attention.
 
But what if you had a superpower? A special ability to see beneath the surface, to dig deeper and uncover the real root causes of these pesky problems? Imagine being able to not only fix the immediate issues but also make your entire organization healthier in the process. That would be pretty neat, right? 

The tool you’re after is called “systems thinking,” and it’s the entryway to a higher level of leadership expertise and effectiveness. 


What Is Systems Thinking?
Systems thinking is an approach to problem-solving that takes the view that "problems" are parts of an overall system. It’s about seeing the interrelationships between parts rather than just the parts themselves, and it allows managers to focus on the less obvious root issues rather than on just the linear cause-and-effect symptoms, which allows us to avoid being managers that simply react to specific events.
 
In other words, instead of looking at isolated events or data points, systems thinking encourages us to look at the bigger picture - how different parts of an organization interact with each other, and how these interactions create the outcomes we see.
 
Let's consider a few examples of “systems” out in the world to help us get our heads around this:
 
1. The Ecosystem of a Lake: Imagine you're managing a lake ecosystem with a declining fish population. A non-systems thinker might simply add more fish. However, a systems thinker would look at the entire ecosystem - water quality, plant life, other animal species, and even factors beyond the lake like nearby land use – to diagnose the root causes, then make changes in those areas. (Notice in this example that the “fix” is more complicated and takes longer to realize…but also likely to be more permanent.) 
 
2. A Manufacturing Company: In a manufacturing company, a persistent quality issue might be initially traced back to certain performance issues among production line employees. Warnings and even discipline might result, but with no long-term improvement. A systems thinker would begin to search for root factors and influences, including things like employee training programs, the company's bonus structure, the management skills of foreman and supervisors, and more.
 
3. Healthcare Systems: Research has conclusively shown that in healthcare settings, patient outcomes aren't just about individual doctor-patient interactions. They're influenced by hospital policies, management practices, the workplace culture of the medical facility, insurance systems, societal factors affecting patient health, and even the design of hospital buildings.
 
The Tale of Lila and Rohan
Some years ago, we got a phone call from Lila, the CEO of a small nonprofit organization. She asked us to come in and "fix Rohan." Rohan, one of her mid-level managers, was occasionally combative in staff meetings, had volunteers in tears because of his aggressive manner, and often pushed back against Lila in various ways. At the same time, Rohan had valuable skills and was crucial to the organization’s success.
 
We agreed to coach Rohan, but we also asked Lila if we could dig into how things were going in the organization overall. From a round of employee interviews and an organizational health survey, what we discovered was eye-opening: This organization of 40 people didn't have clear job boundaries. Many team members didn’t really know where their jobs ended and other people’s jobs began.  Lila was still running things the way she did when they had just four employees, with a general attitude of "you're all adults, come to work and look around and see what needs to get done, and take care of it. I trust you."
 
This lack of structure was causing angst, particularly for Rohan. He was a go-getter and was often doing other people's jobs and stepping on toes, creating conflict. At the same time, he was very territorial and tended to get agitated when others impinged on what he saw as his territory. So, Rohan was frequently quite anxious at work. And what do chronically anxious people do? Bottom line: they have trouble bringing their best selves to work.
 
So, we started an initiative to clarify roles and tasks - a structural change. And you know what? It wasn’t rocket-science, it didn’t take very long, and the results were remarkable. Once the roles were re-engineered, communicated, and reinforced through repetition, training, accountability, and support, Rohan began to relax. He didn't become everyone's favorite person, and he still had work to do to strengthen his workplace relationships, but the issues he needed to solve became much easier to solve because we had addressed the issues that were at the core of Rohan’s anxiety. By looking at the organization systemically, we were able to address the root cause of the problem rather than just treating the symptoms.
 
It’s usually easier to fix systems than to fix people. And when you fix systems something wonderful happens: The “fix” tends to trickle down and positively impact people! It impacts people’s behaviors, people’s relationships, and people’s well-being - which, in turn, leads to better system health and overall improved results. 

The Waterline Model: A Tool for Systems Thinking
One practical tool we use at Nash Consulting to help managers apply systems thinking is the Waterline Model. This model helps visualize the different levels of organizational function, from the most powerful for trickle-down change (highest on the model) to the least powerful – and often where the “symptoms” reside (lowest on the model).

1. Structure (The “Rules of the Game”)
2. Group Processes (Day-to-Day Functions)
3. Interpersonal (Work Relationships)
4. Intrapersonal (Individual Behaviors)
 
Each level influences the ones below it, creating a "trickle-down effect." By addressing issues at the higher levels, we can often solve problems that manifest at lower levels.
 
Here are some examples of this powerful “trickle-down effect” – problems at one of the upper two levels of the Waterline and how those issues might show up as symptoms in the levels below:
 
1. Lack of Leadership Training (Structure Level)

• Group Processes: Managers might struggle to facilitate effective meetings, manage projects efficiently, show caring and respect to employees, and skip one-on-ones altogether.

• Interpersonal: Ineffective meetings and general poor communication skills could lead to misunderstandings and conflicts among team members.

• Intrapersonal: Employees might feel unsupported or directionless, leading to stress, conflict, decreased motivation, and failure.

 
2. Ineffective Staff Meetings (Group Processes Level)

• Interpersonal: Lack of clear communication in meetings and meetings that are perceived to be a “waste of time” can lead to misalignment and friction between team members.

• Intrapersonal: Employees might feel their time is squandered, leading to frustration and disengagement. Goals and action items will be unclear, leading to many kinds of “fails,” which then can lead to blame, discipline, low morale and high turnover. 

 
3. Inconsistent Information Distribution (Group Processes Level):

• Interpersonal: Some team members might feel left out or less valued if they consistently receive information later than others, or not at all. Feelings of unfairness can lead to resentment, which can cause passive-aggressive behaviors and interpersonal conflict.

• Intrapersonal: Employees might miss deadlines or produce incomplete work due to a lack of clarity, experience anxiety about missing important updates, and feel less confident in their work due to lack of information, leading to burnout.

 
The Pitfall of Symptom-Focused Management
Many managers fall into the trap of dealing with symptoms rather than root causes, constantly putting out fires instead of preventing them. This reactive approach is exhausting and ultimately ineffective.
 
Let's delve deeper into why this approach is so problematic:
 
1. Recurring Issues: When we only address symptoms, the underlying problems remain. This means the same issues tend to crop up repeatedly, creating a frustrating cycle of firefighting.
 
2. Resource Drain: Constantly dealing with symptoms is time-consuming and energy intensive. It diverts resources from more strategic, forward-looking activities.
 
3. Missed Opportunities: By focusing solely on immediate problems, managers often miss opportunities for systemic improvements that could prevent multiple issues simultaneously.
 
4. Employee Burnout: Teams can become demoralized when they see the same problems recurring despite their efforts to address them.
 
5. Lack of Learning: When we jump from crisis to crisis, we often don't take the time to reflect and learn from our experiences, missing valuable insights.
 
6. Diminished Leadership Credibility: Over time, if managers are seen as always reacting rather than proactively addressing issues, it can erode confidence in their leadership.
 

Practical Steps for Applying Systems Thinking
How can you as a manager start applying systems thinking in your day-to-day work? Here are some practical steps:
 
1. Use the Waterline Model: Take time to visualize your organization or team as a system. This is called “mapping the system.” What are the key components? How do they interact? Use the Waterline Model to plug in the various interrelated parts, functions and people. Then, when faced with a problem, consider which level of the Waterline Model it falls under. Is it possibly a symptom of something higher up the on the model? Look there for potential root causes.
 
2. Look for Patterns: Instead of focusing on isolated events, try to identify recurring patterns of behavior or outcomes. Is it just a coincidence that for three years running, 80% of the employees in your marketing department have become apathetic and uninterested in going the extra mile? Did you inadvertently make a whole bunch of bad hires? Or is this a morale issue? (Note: We know an organization that can come in and help your managers rock at living out The Top 15 Management Skills…www.nashconsulting.com)
 
3. Be patient: Remember that cause and effect are not always closely related in time and space. Look for long-term consequences of actions. Change things, improve things, stay at it, then watch for change over time.
 
4. Seek Multiple Perspectives: This is key! Engage with diverse stakeholders to understand different views of the system. You know the old elephant parable, right? By just using touch, some thought it was like a hose, others thought it was similar to a wall, and still others perceived it to be as floppy as a blanket. Individually, they each had some of the truth…but together they were able to tell the whole story. Play detective by interviewing all the “witnesses.”
 
5. Experiment: Make small changes and observe their effects throughout the system. This can provide valuable insights into how your system works.
 
 
The Human Side of Systems Thinking
While systems thinking might sound technical, it's fundamentally about understanding human behavior in context. It's about recognizing that people don't act in isolation, but as part of larger systems that shape their behavior.
 
As managers, when we adopt a systems thinking approach, we're not just solving problems more effectively. We're creating environments where people can thrive. We're reducing unnecessary stress and conflict. We're building organizations that are more resilient, adaptive, and ultimately more human.
 
Donella Meadows, a pioneering environmental scientist and systems thinker, wrote: "We can't control systems or figure them out. But we can dance with them."
 
Systems thinking isn't about perfect control or prediction. It's about developing a more nuanced, holistic understanding of our organizations and our roles within them. It's about learning to "dance" with the complex systems we're part of, responding with grace and wisdom to the challenges that arise.
 

Systems thinking is a powerful tool for managers. It helps us move beyond simplistic, linear thinking to understand the complex, interconnected nature of our organizations. At Nash Consulting, we've seen time and again how systems thinking can transform organizations and the lives of the people within them. It's not always easy – it requires patience, curiosity, and a willingness to challenge our assumptions. But the rewards – in terms of improved performance, reduced conflict, and increased job satisfaction – are well worth the effort.

If you want to learn more about systems thinking, including multiple case studies and practical applications, along with many more best-practice management skills, check out our twice-yearly Managing with Mind & Heart Online Experience public offering. Or, if you have a large team of managers and supervisors, bring us in-house for comprehensive leader development workshops tailored to your organization!