How Does Systems Thinking Improve Organizational Agility?

Systems Thinking offers simplicity, and therefore the possibility for agility both in the development and the implementation of strategies. Looking at an organization as a group of systems within a series of external systems is clearly a good start for creating agile strategies.

Further, applying a practiced evaluation of the organization by identifying INPUTS-THROUGHPUTS-OUTPUTS with a FEEDBACK LOOP, we can speed up the process of strategy development, and the creation of specific actions to implement the strategies.

Developing strategies and implementing them has been a focus of businesses for many decades and improving the processes is an ongoing conversation. In recent years, applying Agile concepts and techniques is getting more and more attention. It has even been questioned as to whether applying Agile techniques is even worthwhile. This has even been discussed on forums on startups with divergent conclusions on how effective this might be.

Using Agile techniques means that those strategies are more likely to be able to be adjusted quickly and effectively through their implementation. Systems Thinking brings a simple, reliable and repeatable rigor to strategy creation and implementation thereby offering a higher level of agility, admittedly a desirable attribute for reaching an organization’s desired outcomes more quickly and completely.

If Agility means getting things done faster, being more flexible in adjusting to changes, then Systems Thinking can help make these things occur. “Begin with the end in mind” as Stephen Covey said, is one key element both in Systems Thinking and in ensuring we are more easily able to keep focused on the long term while we adjust to the short term. This simple concept makes a huge difference to ensure we actually reach our objectives.

Fleshing out how Systems Thinking increases an organization’s strategic agility, we can consider the external environment, a natural factor in any system. The value of conducting a rigorous scan of the FUTURE environment of the organization lies largely in the relatively quick and easy identification of Opportunities and Threats. This effort results in intelligence that greatly enhances an organizations anticipation of what to capitalize on and what to prepare to overcome. Being more prepared certainly improves the organization’s Agility.

Agile Strategic Thinking Template

Using Systems Thinking, this template improves agile strategy creation and implementation

A tool we use for creating strategies is the framework “Agile Strategic Thinking Template” adapted from the Haines Centre for Strategic Management’s Systems Thinking Template  http://bit.ly/2aySbMD.

Managing the structures and processes created by the strategic initiatives is a challenge that grows in correlation to the size of the organization. Larger firms will naturally seek software to help with this and there are some out there.

Another tool we use for implementing and managing strategic initiatives is the Agile Strategy Manager SaaS at https://www.agilestrategymanager.com/strategy-framework.html .

Please share your thoughts and reasoning about why and how Systems Thinking improves the Agility of organizations in developing and executing strategic initiatives. Also, will you share with us any Systems Thinking tools you use that make organizations more Agile?

This entry was posted in Agile, Strategic Planning, Strategic Thinking, Strategy Execution, Systems Thinking and tagged , , by Eric Denniston. Bookmark the permalink.

About Eric Denniston

Eric Denniston has proven experience with strategic business planning and financial management systems and processes. Working with non-profit and for-profit organizations, he has worked with leaders on corporate governance, leadership development, business planning, and strategic management challenges. He has also trained sales development and technical teams. His business planning activities include global businesses, resort, hotel and residential development and international healthcare projects. Eric has native fluency in Spanish and English and is also highly fluent in French. He has a masters in international management from Thunderbird School of Global Management in Glendale, AZ.