So, what is ‘systems thinking’ and why should CEOs view it as their next competitive edge for years to come?
System dynamics is an approach to understanding the behaviour of complex systems over time. It deals with internal feedback loops and time delays that affect the behaviour of the entire system.What makes using system dynamics different from other approaches to studying complex systems is the use of feedback loops and stocks and flows. These elements help describe how even seemingly simple systems display baffling nonlinearity.
Companies often make a conscious decision to not innovate. Why do companies choose to do this? Why is it so hard for their employees to innovate?
Why failure? Because they are the unforgiving anchors around which society changes directions.
In the U.S. we are now witnessing a record number of failures taking place. Just look around. Failed businesses, failed systems, failed jobs, and failed marriages.
Some failures are easily predicted, where a known problem looms larger and larger until a solution is found. Most, however, are not so easy. In many respects, failures are nature’s own system for checks and balances.