Hat tip to Mark Gandy, host of CFO Bookshelf, for turning me on to this book, and for his interview of the author. Systems thinking is critical in business, but few people truly understand it. If you’ve read any of the literature, it can be quite turgid and complicated. William Donaldson has provided the antidote, A Management Book for the Rest of Us, as his subtitle reads. It is an excellent 185 page work that has many fantastic examples, along with the theory, of systems thinking. Here is how he describes it:
“Systems thinking derives its power from the philosophic concept of holism. The theory of holism states the parts cannot exist independent of the whole. you cannot understand the parts without understanding the whole and must understand that the whole is greater than the sum of the parts. You must combat the reductionist tendency to look at your enterprise as a set of discrete parts to be optimized.”
As Donaldson says, “Your corporate culture is an emergent property of your system. Culture is a component of your system, one that you cannot address directly, because it emerges from the system.”
Finally he quotes Peter Senge, one of leaders in systems thinking:
Senge said the fifth discipline is systems thinking because “it is the discipline that integrates the disciplines.” “Perhaps the single greatest liability of management teams is that they confront these complex, dynamic realities [in their enterprises] with a language designed for simple, static problems.”
Donaldson sums up:
“I hope you can see that the complexity comes from an enormous number of simple elements, which interact on purpose. I hope you now behold the system in all of its Simple_Complexity. Life is too short to live in or be warden to a psychic prison. Build a system of shared purpose, vision, values, and commitment. Grant people clear, inspiring areas of freedom where they can grow and prosper.
“You’d best start believing in systems, you’re in one!”
I highly recommend this book.