Understanding Systems Thinking

Systems are Fundamental

• Systems exist everywhere, from simple objects to complex organizations
• A system's function comes from the interaction of its components; taking it apart destroys the purpose
• Systems thinking is key to innovation and solving intricate problems by understanding the context

The Nature of Complex Problems

• Climate change, transportation, healthcare, and energy supply are examples of complex, non-linear problems
• Traditional problem-solving often isolates the core issue, which risks unintended consequences
• Problems can't be solved with the same level of thinking that created them (Albert Einstein)

Defining Systems Thinking

• A discipline for understanding connectedness and patterns of change, emphasizing seeing the whole not isolated parts
• Entails breaking down and understanding interdependencies of the system's components and their relationships.
• Systems thinking is a natural approach to complex problems

Addressing Modern Complex Issues

• Urban design, transportation, healthcare, energy, finance are complex issues
• Complex problems are dynamic and demand comprehensive understanding of interconnections

Core Concepts of Systems Thinking

• Interconnectedness of systems through relationships and networks
• Non-linearity: Cause and effect in systems are not always direct
• Cascading Effects: Actions in one part of a system impacting interconnected systems
• Humans better understand linear cause and effect vs. complex system dynamics
• Unintended Consequences: Actions having unforeseen impacts
• Incomplete Knowledge: Assessing complexity and dynamics, aiming to minimize negative outcomes

Exploring Connected Wholes

• Systems thinking looks at interconnected entities like ecosystems, organizations, or supply chains, understanding their influence
• Promotes understanding relationships, seeking root causes
• A powerful, evidence-based method for complex problems and stakeholders
• Encourages a wide perspective, focusing on connections rather than isolated events

Natural Human Behavior

• Systems thinking is an inherent way to approach complexity, using curiosity and questioning connections
• Modern world's complexity requires systems thinking
• There is a growing interest in strengthening systems thinking practices

Defining a System

• Purposeful collection of interrelated components working together for a specific purpose
• Systems can be physical, political, biological, social, economic, technical, ecological
• Systems consists of defined limits identifying components inside and outside
• System definitions can change

Components of a System

• Consist of people like medical staff, and an environment like weather
• Components don't need to be co-located and can interact online

Interactions within a System

• Identifying how system elements interact with one another
• Can model component behavior and simulate system responses

Increasing System Complexity

• Complexity is driven by technological advancements and community demand
• Many complex systems exist
• Mobile phones, internet, transportation, utilities, digital systems are examples

Characteristics of Complex Systems

• Unpredictable behavior that isn't easily foreseeable due to system elements changing over time
• Non-Linearity: Where cause and effect are not often directly proportional or sequential
• Unintended Consequences: Solutions to problems can have unforeseen negative outcomes
• Self-Organizing Systems: Adaptive systems that can organize themselves

Alumni Perspective on Systems

• Components are people and environments
• Components can be remote or mobile
• Connections between components is through human action
• Collaboration with subject matter experts is crucial
• Requires considering interactions between different system areas
• Iterative problem-solving and expanding knowledge scope are key
• Focus on looking beyond immediate process boundaries

Applying Systems Thinking

• Systems thinking is used to solve complex problems
• It's a structured approach to identify the core of the problem

Identifying System Components

• Requires exploring key elements interconnections and system boundaries
• Includes influences acting on the system and different stakeholder perspectives

Define Boundaries

• Requires defining the extent of the system being considered
• Agreeing on how to frame the complex situation and define positive change

Understand Multiple Perspectives

• Requires eliciting stakeholder needs and requirements
• Defining clear needs that are verifiable through individual interviews

Stakeholder Analysis and Mapping

• Stakeholders are individuals or organizations who can affect or be affected by the project
• Questions include: Who cares about the project?

Interconnections

• Interdependencies in economic systems are more subtle than in technical ones
• Emergent behavior and unintended consequences can result from unknown interconnections
• Leverage points are intervention points within complex systems that addresses root causes

Network Visualization

• Diagrams are used to depict connections between stakeholders
• Cycling path networks outlines stakeholder influence level

Influences (Leverage Points)

• Strategic intervention areas in complex systems
• Leverage points are key areas

Design Thinking (Applying Systems Insights)

• This thinking turns systems understanding into a problem solution through:
• Empathizing and Consulting stakeholders
• Defining a problem statement
• Ideating a wide range of solutions
• Prototyping solutions
• Testing and Evaluating the complete product

Utility Hydraulic Models:

• Utilities build simulations of water networks and calibrate model (matching simulation to reality)
• There is a recognition of inefficiencies in the calibration process that can be addressed
• The resulting application improves engineering hours

Risk vs. Reward/Quality

• Risk is ubiquitous in project and businesses
• Risk management is a vital component of project planning
• Increased Importance in Globalization: The rapid pace of globalization has amplified the complexity of risks faced by modern organizations.

Types of Risk

• Technology, communication, operational, resource, market risk
• Sensible risk acceptance allows for the undertaking of more ambitious projects

Disruptive Innovation

• Disrupt existing markets or creates entirely new market segments
• Lower profit margins and higher inherent risks
• Is driven by new technologies and/or business approaches
• Grows gradually before exponential mainstream adoption

Challenging Mainstream Companies

• Exponential growth of the new entrant on the rapid growth phase
• Knowns vs. Unknowns in Risk Management

Categories of Information

• Knowns: Readily available information
• Knowables: Information requiring investigation
• Unknown Unknowns: Complex/Chaos requires knowledge capture for future use
• Sensemaking requires extracting meaning from collective experiences

Technology as a Driver

• Technology is a powerful force behind the development and spread of innovation
• Technology-related risks and challenges must be carefully considered during the design of new systems

Emerging Technologies

• Has inherent uncertainties; could pose security vulnerabilities while demanding high cost

Defining a Systems Thinker

• Highly Desired Skill: Problem-solving is a crucial skill in today's job market
• Holistic Perspective: Skilled at understanding stakeholder needs and requirements.
• Demand for Systems Thinkers in the Future: Innovation is more likely

The Systems Thinking Mindset

• Predicts outcomes and is valuable for system interaction
• Clarifies assumptions over time and reduces errors in understanding

Unintended Consequences

• Includes antibacterial strength and increased traffic congestion

Leverage in Systems

• Goal is to make positive change while minimizing negative consequences

Applying Systems Thinking

• Requires understanding how things work (developing a picture of the system's physics).
• Frame the problem with the widest boundaries
• Have a shared understanding and applying scientific methods

Important Questions

• Considering the trends, the physics and the people impacted
• Recognize the limitations and the goal is to gradually become accurate

Understanding Project Management

• Project management manages tasks with a beginning, middle, and end
• Skills are essential for planning and delivering outcomes in all life stages/sectors

Importance of Project Management

• Brings together/aligns business objectives, timelines, resources, and people.
• Good project managers blend creativity with pragmatism
• Increasing business complexity/globalization demands better, faster, cheaper solutions, necessitating project management.

Defining a Project

• A temporary endeavor undertaken to create a unique product, service, or result, driving and leading change
• Has defined start and end within limitations of time and budget

Challenges for Innovation Projects

• Uncertainty is the key difference, beginning with an idea and requiring innovation be viable

Different Innovation Projects

• Transformational Innovation creates new markets
• Core Innovation improves existing products
• Adjacent Innovation expands into new business

Key Shifts in Project Management (Insights)

• Requires AI Integration and Adapting Processes incorporating human skills

Managed Project Elements

• limitations/constraints must be managed to achieve project objectives
• Constraints: Time (schedule), Scope (work to be done), Budget (cost), and Quality/Performance Requirements.

Three Basic Project Constraints

• Schedule, Budget, and Scope are the primary constraints
• Prioritizing constraints need trade-offs

Balancing System Parameters

• Constrain, Enhance, and Accept parameters

Managing Risks

• Identify early so they don't turn into issues
• Requires Risk Identification, Assessment and Response

Managing Project Information

• Ensure information flow through diverse Expert and teams

Agile Methodology

• Managing tasks and workflow (to-do, in-progress, done) while prioritizing collaborative
• Value Delivery: Aim to deliver value to the business
• Continuous Improvement: Implement action points based on reflections

Traditional to Agile Project Management

• Traditional Projects follows a waterfall implementation
• Agile follows 4 core values and twelve guiding principles, customer focused in mind

Four Agile Vaues

• Individuals and interactions over processes and tools
• Customer collaboration over contract negotiation

Key Successes in Agile Projects

• Ensuring collaboration and clear communication within all stakeholders

Key Stakeholders

• Champion and Customer/Client and Project Team

Innovation Project Managers

• Focus on value creation, market awareness
• Manage Expert Teams while navigating the Fuzzy Front End

Leadership Development

• Leadership is a personal journey where continuous learning and adaptation is key

Major Megatrends Shaping the Future of Work

• Impact technology breakthroughs, demographic shifts, rapid urbanization
• Includes Power Shifting and Resource Scarcity and Climate Change

AI Types and Time

• Assisted, Augmented, and Autonomous Intelligence are progressively being implemented

AI Impact on Future Workforce

• AI progressively replaces jobs requiring lower to higher levels of intelligence
• Scenarios of Total Human Job Replacement by AI (Wongan and Ross)

Humans and Machines Collaboration

• Humans work with AI through the three categories of trainers, explainers and sustainers

Transforming into Digital Technology

• Involves Digital and Blockchain Technology implementing Smart contracts

Shifting Leadership Paradigms

• Commands vs, Distributed Roles involves developing overtime through learning

Key Leadership Capabilities

• Includes Sensemaking and Visioning

Sensemaking

• Tips for Improving Sensemaking: Seek diverse types and sources of data; refrain from applying existing frameworks and judgments prematurely.

Relating

• Leaders advocate while remaining open to alternative views

Change Signature

• How a leader uniquely uses the four capabilities

Creating a Nimble Leader

• Create adaptable adjustment with open communication

Recognizing Different Leadership Development

• Recognizing that it is not a one-size-fits-all approach
• Continuous Learning and Adaptation: Leaders must constantly learn and adapt their approach based on experiences and feedback.
• Must have Impact of Role Models and Importance of Reflection

Evolution of Leadership

• Great men are born vs. Learned
• There are situational and behavioral leadership
• Styles can evolve

Situational Leadership

• Four Leadership Style (Based on Task Guidance and Group Dynamics):
• Telling: High task guidance, low group support.
• Selling: High task guidance, high group support.
• Participating: Low task guidance, high group support.
• Delegating: Low task guidance, low group support.

Effective Adaptation

• emotional intelligence enables effective adaptation of leadership style to circumstances

Six Goldman Leadership Styles

• Adapt and be versatile
• Rooted in emotion
• No need for a singular best style
• Context depends on team, situation and the goals

Understanding Emotional Intelligence

• Ability to manage ourselves and our relationships effectively
• Four Fundamental EI Capabilities
• Self-Awareness and Self-Management, and Socia Awareness and Social Skills

Integrating Leadership Styles and Emotional Intelligence

• Choose and switch between leadership styles as needed

Organizational Culture

• The tested social order of an organization.

Four key Characteristics to culture

• Culture is Shared; Culture is pervasive
• Culture is enduring and implicit in its behaviors

The Eight Styles

• Caring, Purpose, and Learning; Results in the achievement