Systems Thinking for Business: Capitalize on Structures Hidden in Plain Sight

by Rich Jolly

Systems Thinking for Business is a crash course in applied systems science, or complexity science as some call it. Systems thinking can give you an edge in your business and career. Emergent system effects are often driving decisive inflection points. Without proper training, the mechanisms at work may be hidden in plain sight. Using the methods described in the book, the reader can identify unanticipated leverage points and solutions. In these situations, standard business practice may not work or may even produce unexpected and damaging side effects. Systems, or complexity, science is the study of interactions in time and space. The body of scientific work described system dynamics (e.g., feedback loops), aggregation of discrete interactions (e.g., bottom-up decentralized processes such as markets assimilating information or crowd sourcing), game theory (such as the prisoner’s dilemma), networks (e.g., the small world effect and viral spread of information), evolution in business ecosystems (the way structures change over time) and more. Systems Thinking for Business delivers a rich set of systems tools (models) and the proper ways to use them. Important model use considerations in complex systems such as forecasting methods, assessment of causality and managing unpredictability are covered in depth. In addition, the examination of human judgment and decision biases in the mechanism and evaluation of system effects is capably described. The reader will be introduced to important systems simulation methods (dynamic simulation and agent based modeling), and be able to understand the application in their own business issues. Important concepts, such as Black Swans, TOP multiple perspectives, antifragility, system archetypes and many more, are explained in detail. Examples, cases, and thought-provoking questions and discussions are provided throughout the book to aid in assimilation of the ideas. Checklists and practical frameworks are used extensively to make the knowledge actionable. After you have finished the book, the author provides ongoing free support (e.g., blog, newsletter, social media) to help you develop your systems thinking skills. Unlike many books in this field, the application focus is purely on business. Also unlike some other books, Systems Thinking for Business scans the entire field of complexity science and culls out the most important concepts for business analysis. The author has skillfully harmonized the yin and yang of theory and practice. Every business discipline, from marketing to human resources, can use these insights. Look inside to find out more!

Genres: Business, Management, Leadership

321 pages, Kindle Edition

First published January 20, 2015

Reviews

[Regis Hattori · Rating 3 out of 5]

I really liked the subject and how the book tries to bring a lot of aspects about System Thinking applied to Business. But I feel the author did not calibrate the scope well. It seems to me that there were much fewer pages than necessary to cover the scope the book was intent to cover. Or maybe my expectations about the book was too high =)

For example, I am not sure if the references presented are or are not prerequisites to understand the book. By one hand, it seems that it is not, because the book explains the reference's ideas. By the other hand, I feel the explanation about the references were too superficial. Another example is that not all practical models were well explained so the idea of being a practical book is not completely true for me. I finished the book with the feeling that I need to read the references and reread this book to see its entire value.

Even considering the problems pointed before I think the book brings me an overview of the subject and prepared me with some references to dig deep in some parts if I want to. I cannot compare it with other "System Thinking" books because I did not read other before although I have already read three of the books broadly mentioned in this book (Thinking Fast and Slow, Black Swan and Antifragile) and other books that mention System Thinking in some extent (Management 3.0 and Leading Lean Software Development).

The best part is that at the end of each chapter there are "Discussion Questions" that are very valuable to think by ourselves and test our knowledge.

[Sam Motes · Rating 4 out of 5]

A nice summary of the field of Systems Thinking for the business practitioner working to drive value changing results to their business. It covers concepts such as Taleb's Black Swan events, antifragility, game theory and others to understand how complexity impacts the working of a business to give tools and insights on how to tame the madness to make better business decisions. Definitely not the end all read on the vast list of subjects covered but gives good insight and clear pointers to others sources to learn more.

[VENKATRAMAN C K · Rating 4 out of 5]

Excellent reading for any person seeking to develop holistic or higher order thinking.