Module

1
Basic Concepts of
Systems Thinking

SMC4
Principl
es of
System
s
Thinkin
g to your first
module!

This module is a
combination of
synchronous &
asynchronous
learning
and will last for
one week
Pretest will be
given via
Google Form in
asynchronous
test
C_Overview

Arlene F. Musones
Course Coach

No part of this module may be

reproduced in any form without
prior permission in writing from
the Instructor.

February 20,
2023
Date Initiated
March 10, 2023
Date of Completion
 Basic Concepts of Systems Thinking
MODULE 1
TABLE OF CONTENTS

MODULE OUTLINE

Overview 3
Module Duration 3
Learning Objectives 3
Input Information 3
Learning Activities 3
Assessment/Evaluation 4
Assignment 4
Learning Resources 4

MODULE PROPER

Unit 1: Introduction to Systems Thinking

Systems Thinking 5
Types of Thinking 7
Why is thinking in systems useful? 9

Unit 2: Principles of Multi-finality

How to Shift from Linear Thinking Patterns to Systems Thinking 12

Problem or a Symptom 12
Ten Enemies of Systems Thinking 13
Laws of Systems Thinking 13
Systems Thinking Strategies 13

Basic Concepts of Systems Thinking

MODULE 1 OUTLINE

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OVERVIEW

This module will give a brief overview of Systems Thinking. It will start with the discussion about what a System is, its components
and characteristics. It will show pictures that describe mental models and thinking in systems. The eleven (11) Laws of Systems
Thinking will be discussed with the collaboration with the views of the student. Some samples of Systems Thinking situations will be
presented for open discussion.

MODULE DURATION
i. February 20 to March 10, 2022 Synchronous Meeting and Asynchronous Learning
ii. For asynchronous learning inquiries, you may reach me through messenger group/personal message every Tuesday and
Thursday 8:30am - 10:00am.

LEARNING OBJECTIVES

After completing this module, you are expected to:

i. identify the basic concepts of Systems Thinking;
ii. understand the different laws in Systems Thinking;
iii. apply Systems Thinking in solving problems and acquiring opportunities .

INPUT INFORMATION
Module 1 Basic Concepts of Systems Thinking

LEARNING ACTIVITIES

Group discussion during Face to Face meeting:

This activity:
Figures 3, 4, 5, 6 and 7

Based on the pictures presented, students will answer the following questions:
1. What type or types of thinking applicable to the situation presented in the picture?
2. Explain each type or types of thinking chosen based on the picture.
3. Discuss your possible conclusion about the picture.

Deadline: To be announced in our GC.

ASSESSMENT/EVALUATION

I. Test with time limit.

Long test link will be provided through our group chat. This is a synchronous test with a time limit.

ASSIGNMENT

Group Assignment:
11 Principles of Systems Thinking based on the present worldwide problem.

Requirements:
1. Explain each law of Systems Thinking.
2. In each law, cite a situation that our country is experiencing today and how can you solve it using this law.
Give your answer in not more than 100 words.

Individual Assignment: Your life as a system. (see below)

Deadline: To be announced in the GC.

1. Read Module 2 – Application of Ladder of Inference

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 LEARNING RESOURCES

:
1. The Art of Thinking in Systems by Steve Schuster; Copyright © 2018 by Steven Schuster.
2. Systems Thinking: Managing Chaos and Complexity by Jamshid Gharajedaghi; © 2011 Elsevier, Inc. All rights
reserved.

Introduction

Everything in the world around us is part of a system. A system is a combination of both physical and abstract things, and how those
things interact in relation to one another. Systems thinking is being able to examine and analyze ourselves and the things around us
with the express purpose of being able to improve upon them. It requires us to be more observant and aware of the things that impact
us, in both big and small ways, and then be willing to take the necessary steps to change the obstacles in our path.

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Your whole life is a system. It is made up of a lot of parts that interact with one another. First, you have physical components like your
body and the things around you that you can touch: your house, car, clothes, cell phone, books, etc. Then we add in the abstract
pieces to the puzzle: your beliefs, convictions, ideas, and values — everything that defines your core sense of self and makes you who
you are on the inside. Finally, we incorporate the things in your life which you do not have complete control over, like your relationships,
your health, and your finances. All of these things work together to make up the system of your life.
In systems thinking, it is often helpful to make diagrams so that we can visualize and better understand how things influence one
another and work together within the whole system. It is only then that we really begin to be able to break down and analyze our
systems so that we can improve them. Systems thinking is not something that will happen overnight and immediately come easily. It is
a way of looking at the world that will take time to develop.

PART 1 – INTRODUCTION TO SYSTEMS THINKING

I. Systems Thinking
The term “systems thinking” was coined by Barry Richmond in 1987. According to Richmond, “Systems thinking is the art and
science of making reliable inferences about behavior by developing an increasingly deep understanding of underlying structure.”

In The Fifth Discipline Fieldbook, author Peter Senge states, “Systems thinking [is] a way of thinking about, and a language for
describing and understanding, the forces and interrelationships that shape the behavior of systems. This discipline helps us to see how
to change systems more effectively, and to act more in tune with the natural processes of the natural and economic world.

What is a System?
A SYSTEM is a group of things that are interconnected and demonstrate their own behavior pattern over time.
Systems are usually the cause of their own behavior. Even when outside forces act on a system, it reacts in a way that is consistent
with the character of the system. If the same outside forces were to act on a different system, there would likely be a different outcome.

What are the parts of a System?

Systems are made up of three parts: elements, interconnections, and a function or a purpose. The word “function” is used when
talking about a non-human system, and the word “purpose” is used for human systems.
Example:
I. Circulatory System
A. Elements – heart, lungs, blood, blood vessels and veins.
B. Interconnections – physical flow of blood, oxygen, and other vital nutrients through your body.
C. Function - is to allow blood, oxygen and other gases, nutrients, and hormones to flow through the body to reach
all of your cells.
II. Basketball Team
A. Elements – players, coaches, the ball, hoops and the court.
B. Interconnections – rules for playing the games, the plays draw up by the coach, the talking and signals between
the players, Newton’s Laws of motion that dictate how the ball and players move.
C. Purpose - to win games, earn scholarships or a paycheck, get exercise, or just have fun.
III. A School System
A. Elements - teachers, students, principals, custodians, secretaries, bus drivers, cooks, parents, and counselors.
B. Interconnections - the relationships between the elements, the school rules, the schedule, and the
communications between all of the people in the school.
C. Purpose - to prepare the students for a successful future and to help them reach their full potential.

What is NOT a system?

Anything that is only a collection of items without the interconnections or a function is not a system.

Example:
1. Taking shells that have been deposited on the beach and making them a group doesn’t make them a system.
The shells are just there, left behind as the waves deposited them on the sand. They are simply there, randomly
and without any unifying purpose.
2. Think of the businesses in your community. The ones that have been established make up a system. They have
relationships with clients and other businesses that unite them in a common purpose and make them an
interconnected part of the community. When a new business comes in and opens up, it takes time for them to
establish those same connections and relationships. They don’t instantly realize their role in fulfilling the purpose
of the group. It will take time and effort for them to become an integral part of the system.

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The most important part of a system
Perhaps the easiest way to examine how a system’s elements, interconnections, and purposes compare in terms of
importance within a system is to speculate how the system would be impacted if each component was changed one at a time.

The least impact on a system is usually felt when its elements are changed.
While certain elements may be very important to the system, by and large, if the
elements are changed, the system can still continue to exist in a similar form and
work to achieve its purpose or function.

Figure 1.1: A Sample System

Figure1. 2: A Sample of Environment, systems, subsystems and components

II. Types of Thinking

There are many different types of thinking. No one type of thinking is better than the others. They are all useful in certain
situations. We shouldn’t only use one type of thinking to the exclusion of all others.
Linear Thinking

Linear thinking is the way we were typically taught to think throughout our lives. It involves looking for a link between a cause
and an effect. This type of thinking believes that one cause has one effect. Linear thinking tells us that there is a cause and
an effect, a problem and a solution, and a beginning and an ending. This model of thinking looks for a simple one-to-one
connection.
Linear thinking also comes with its drawbacks. It doesn’t look at things as complex systems and chooses only to focus on one
small piece of a much larger puzzle. There is often much more to any given situation than linear thinking allows us to examine.

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 When we focus on just one small part without taking into account how it is connected to a larger system, it is possible that our
solutions may create unintended consequences that are not always beneficial.

Event Oriented Thinking

Event-oriented thinking does view the world as being more complex than linear thinking typically does, but it thinks of life as
being made up of a series of events and not as a system. In this thinking model, an event is something that happened or is
going to happen. Every event is believed to have a cause, and if we change the cause, the event will also be changed.

Event-oriented thinking is ineffective in dealing with complex problems or systems. As our society has changed over time,
event-oriented thinking has not evolved along with it. The problems we are faced with today often require a deeper
understanding than event-oriented thinking allows. Events can have more than one cause, and each cause can have multiple
causes as well. If we don’t take these more complex relationships into account, we can also mistakenly miss the unintended
consequences that may result when we begin to alter systems. That is beyond the scope of event-oriented thinking.
Lateral Thinking

Lateral thinking involves more creative thinking that isn’t immediately obvious to those who rely heavily upon traditional
step-by-step, logical thinking to reach conclusions. Lateral thinking was invented by Edward De Bono in 1967. He developed
techniques for creative thinking to counteract the natural tendency of the human brain to want to lock in our thinking until it
becomes an automatic, subconscious habit.

Lateral thinking strives to generate new and innovative ideas in a way that we can easily repeat over time. Lateral thinking is
beneficial when you are trying to get beyond thinking of problems as having one set solution and want to expand your thinking
beyond the patterns you have typically thought in. It is particularly helpful in brainstorming sessions and when the desired
outcome is invention or innovation.
Critical Thinking

Critical thinking involves analyzing facts in an objective manner so that a judgment can be reached. It also often entails
thinking about your thinking and reflecting on the way you are reaching decisions in order to overcome any biases and
improve the quality and efficiency of your cognition.
Critical thinking is effective when you are trying to find logical connections between ideas. Critical thinkers don’t accept things
at face value; they dig deeper to be sure that there is rational thought and solid reasoning behind any information they are
presented with before they accept it as true. It is highly beneficial when a systematic approach to solving a problem is needed.

Systems Thinking

Systems thinking is the study and analysis of systems. A system is a group of interconnected parts that work together
toward a common purpose or function. Systems exhibit certain identifiable characteristics and consistent patterns of behavior.
When one part of a system is changed, all other components of the system are impacted as well. Systems thinking requires
an understanding of the elements, interconnections, and purpose or function of a system. The goal is to take that
understanding and analysis and be able to apply it to other systems at any level and in any field.
There are different levels of systems thinking maturity:
Level 0 — Unawareness
Operating at a level 0 of systems thinking means you are totally unaware of the systems thinking concept.

Level 1 – Shallow Awareness

This level of systems thinking means that you are aware of the concept of systems thinking, but you do not
exhibit any depth of understanding. You may feel like you are a systems thinker because you are comfortable
speaking using the terminology that accompanies systems thinking, but you have not exhibited success in being able
to distinguish between a good systems analysis and a bad one. Many people get stuck in this level of systems
thinking maturity.
Level 2 – Deep Awareness
You are completely aware of the key concepts of systems thinking and feedback loops are at this level, and you can
see why the forces that you understand how important this type of thinking is and what can be achieved at its full
potential.

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 Level 3 - Novice
Operating at this level of maturity means that you have a deep awareness of systems thinking, and you are even
starting to dig into the black box that assesses why a system behaves in the manner it does. You can now create
your own causal flow diagrams and can use them to help you solve some easy and moderately difficult problems. A
really good novice would also be able to read simulation models well.
Level 4 – Expert
If you are at the expert level, you are now able to use system dynamics to create your own simulation models.
You are able to solve difficult and complex social system problems. Organizations who are working on complicated
sustainability problems would be well-served to have at least one expert leading their team through the analysis,
along with many novice level participants.
Level 5 – Guru
This level of systems thinking maturity is rarely achieved. If you are a guru, you can teach other people to become
experts, and you are able to offer significant input in solving the most challenging of social system problems.

Based from the figures shown below, identify what type of thinking is useful to solve the situation

Figure1.3: Mental Model 1

Figure 1.4: Mental Model 2

Figure1. 5: Mental Model 3 Figure 1.6: Mental Model 4

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III. Why is thinking in systems useful?
Systems thinking helps us look at the world in a new way because it encourages us to look at events and patterns by focusing
on the connection and relationship between a system’s parts, instead of only looking at the individual parts in isolation.
Systems thinking leads us away from trying to come up with a quick fix to a problem, which we too often do, in favor of
considering the long-term consequences our actions may cause. It supports a deeper level of understanding than we typically
take the time to seek.
Systems thinking is a paradigm shift from our more traditional thinking patterns because we have been taught to look at things
rationally, and to try to look for clear cause and effect connections. We are now used to trying to study things in small,
digestible pieces, and to attempting to solve problems as quickly as possible by taking control of situations around us. Quite
often, we focus on external sources as the cause of all of our problems instead of looking internally at our systems to see what
improvements can be made.
Western culture tends to look for a problem’s cause as coming from outside of our systems, instead of within. There are times
throughout our history when this worldview has proven very effective. Many big problems have been solved by looking
outward, like finding cures and vaccines for deadly diseases, finding ways to produce enough food to feed the people of the
world, and developing mass transportation systems. The problem is that when we fail to take the time to examine our internal
systems as well, sometimes our solutions create new problems. These problems can be significant, serious, and very hard to
overcome, if they are really ingrained in the structure of a system.
While that traditional method of analysis may be helpful at times, it can’t help us to solve every problem we face despite all of
our best efforts. War, harm caused to our environment, people suffering from drug addiction, people who are unemployed or
living in poverty, and many life-threatening diseases are all examples of problems that remain despite years of analysis and
technological advances. These problems persist because they are system problems. No one wants to create them and
everyone wants them to be solved, but they won’t be until we take a good, hard look at the structures of the systems they are
part of. Instead of looking to assign blame as to what caused the problem, we need to roll up our sleeves and dive deeper to
find a solution. The solutions are within our reach if we are willing to do what is necessary to find them. We need to be willing
to look at things from a whole new perspective.
That’s why systems thinking is so vitally important. Some problems are systems problems. No matter what we do, these
problems simply won’t go away though linear or event oriented thinking. After all, it has been said the definition of insanity is
doing the same thing over and over again and expecting different results. There is nothing wrong with linear thinking. There is
a time and a place for it, for sure. It has served us well on countless occasions throughout human history. Thinking in systems
just gives us a more complex and complete picture of events.
Systems thinking allows us to reclaim our instinct about whole systems while we strengthen our abilities to understand their
parts and how they are interconnected. Thinking in systems enables us to ask “what-if” questions about the behaviors we may
see in the future, and gives us license to be bold enough to unleash our creativity when it comes to redesigning our systems.
We begin to come up with solutions that would never have crossed our minds before.
Systems thinking gives us a complete picture by allowing us to examine the interconnected relationships between the
system’s components instead of only looking at them as independent individual parts.
No one thinking method is better than the others. There are times and places to use them all. Systems thinking is not better
than linear thinking. They are both necessary for us to see and appreciate the world around us completely and in all its
complexity. Trying to only use one way of thinking is like going through the world with one eye closed. It distorts our perception
and limits what we can accomplish. All ways of thinking are necessary in order for us to get the whole picture.
What can you say about quotes from Albert Einstein?

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 Figure 1.7 Thinking in Systems

INDIVIDUAL ASSIGNMENT: (Your life as a system.)

Let’s start by thinking of your life as a system. When you begin to diagram, map, or list the components of your life as a system, begin
by thinking of the people you encounter and the things you do nearly every day, as those will have a great impact on your life system.
Your list may begin to take shape like this:

Unit II – PRINCIPLES OF MULTI- FINALITY

While you would be off to a good start, the list of your life as a system would be nowhere near complete (although that is all many
outside observers may assume your list includes). You would need to add many more components to it, such as:

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Now the combination of the two lists would be much closer to an accurate representation of a life system, but it is by no
means an exhaustive list. Everyone’s life system will be unique.

Once you have drawn, written, or mapped out your list, you are now ready to start analyzing it. The beauty now is that you are more
aware of the things that are impacting the system of your life. You are tuned in to how you are spending your time, and whether there
are improvements that can be made to increase your productivity and help you achieve your goals. You can be more cognizant of the
ways in which the parts of your life system interact with one another and impact your life. You can begin to make the kinds of positive
changes that you would perhaps never even have realized you needed without shifting the way you look at the world to systems
thinking.

Systems thinking is, at its heart, looking at problems in a way we haven’t before. It is a realization that everything is interconnected, and
we should look at things as a whole rather than just a group of independent parts. Systems thinking means looking at the big picture
first, then digging in deeper to examine its parts and focusing on the relationships between them. It is a supportive framework that helps
you develop habits in your mind. Those habits give you feelings of strength and power that make you understand you have the ability to
tackle even the most complex problems and affect positive change.

Anytime we can create habits in our minds, we save time, because we can do things without having to consciously think about them,
and thus our brains are free to think about other things. Making an investment by taking some time at the beginning to solve a problem,
either by changing a system that isn’t working or creating a new system, will save so much more time in the long run. This holds true
whether you are working toward a personal or professional goal. Adopting even just a little bit of systems thinking into your life can help
you to improve countless areas.

In this book, we will explore the basics of systems thinking. We will examine its elements and see how it works. We will develop the
tools you need to help you apply systems thinking to your daily life and relationships.

Along with a powerful paradigm shift in the way you look at the world and the problems you may encounter in it comes the opportunity
for making mistakes. We will study three of the many possible errors that may arise in systems and help you to avoid or overcome
them.

PART 2 – Principles of Multi-finality

How to Shift from Linear Thinking Patterns to Systems Thinking

Problem or a Symptom
The first step in moving away from linear thinking to systems thinking is to decide if something is actually the problem or
simply a symptom of something deeper. Linear thinking is usually concerned with focusing on symptoms. It tends to stay on
the surface to examine behaviors instead of digging deeper to find the true problem before correcting the symptoms
Example:
Think of it like when you go to visit the doctor because you are not feeling well. If the doctor just works to eliminate your
symptoms without finding out the real cause of your illness, your problem won’t ever get solved.
In fact, correcting the symptoms without getting to the root of the problem may end up making things worse, because
unintended side-effects may arise.
How can you tell if something is the real problem or just a symptom of something bigger?
Here are eight clues, based on the work of Jim Ollhoff and Michael Walcheski:
1. The size of the problem doesn’t fit the amount of time and energy you are spending on it. If the issue seems smaller
than the effort you are putting into addressing it, chances are it is simply a symptom and not the true problem.
2. People have the power to solve the problem, but choose not to. If they would rather spend their time complaining as
opposed to fixing the situation, you are likely dealing with a symptom of a bigger problem.
3. You have tried to solve the problem repeatedly and haven’t been successful — if you keep trying to solve problem,
but it changes into a related issue or keeps turning up again like a bad penny — the odds are good that you haven’t
uncovered the real problem yet.
4. There is an emotional barrier that stands in the way of solving the problem. If there are some things that people in
an organization seem unwilling to address or even talk about, they are acting as an obstacle to imagination and
innovation, and won’t get solved until you break through the true problem.
5. If the problem has a pattern and seems to be predictable, it is probably a symptom of something more.

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 6. If a problem is kept around, an organization may subconsciously like it, and it may give them some comfort in being able
to focus on it instead of getting to the real problem and fixing it permanently.
7. If an organization seems stressed out and anxious, it is quite likely that only symptoms are being focused on and the
real problems are not being addressed. People may be afraid to speak their minds about the true nature of their concerns.
8. Just as you “solve” one problem, another one pops up in its place. If an organization is more focused on finding a
cause and effect connection and fixing it quickly as in linear thinking, you may find that it becomes like playing whacka-
mole. New related issues will keep popping up as symptoms until the deeper problem is addressed.

Ten Enemies of Systems Thinking

According to Ollhoff and Walcheski, there are ten statements — red flags — that linear thinking may cause and which act as obstacles
to systems thinking.
1. “Let’s fix it quick!” There is nothing inherently wrong with wanting to get a problem fixed as soon as possible, and systems
thinking doesn’t require you to be slow in responding to problems, but jumping into a “solution” without fully understanding the
problem is never positive in systems thinking.
2. “Just put a Band-Aid on it and we’ll come back to it later.” The problem with putting a Band-Aid on a problem is that it may
serve to mask the symptoms while the problem continues to infect the organization.
3. “We need the budget finalized before the end of the year!” When budgets are involved, linear thinking is usually at work.
Budgets cause us to make choices based on money rather than whether an idea is actually the best one. Once we add a fixed
deadline into the mix, we couldn’t be farther away from systems thinking.
4. “We must respond right away!” Panicking and trying to come up with an immediate solution causes us to rely on linear
thinking, as we are in a rush. Calmly analyzing the situation would be a more systematic way of thinking.
5. “Who cares?” Being apathetic instead of being curious, creative, and imaginative in searching for solutions often means an
organization is stuck in a rut and won’t be able to break through and effectively solve problems.
6. “We need more information. ”This may sound like it fits with systems thinking, and there are times when it does for sure, but
if an organization thinks gathering more data will solve the problem by itself, then linear thinking is more at work. The people
have to be willing to examine the data and then be willing to act on it.
7. “You are overthinking things.” This means that we are trying to take a complex problem and break it down into small pieces.
If someone accuses you of overthinking things, it probably means that you are disagreeing with their point of view. Systems
thinking requires us to stretch outside of our comfort zone, and not everyone welcomes that.
8. “Forget the rest of the organization, we have to take care of ourselves.” Linear thinkers often come up with win-lose
solutions in order to be certain their needs are met. This is kind of the dinner table mentality. If you want you want seconds of
dessert, you might hurry to eat so that you can go back for more before someone else eats it all. It also happens in schools
when teachers know there is limited money to spend on supplies in the school budget, so they rush to get their requests in
first, hoping that the money will be spent on their classrooms instead of others’. Systems thinking would try to find win-win
solutions instead.
9. “We don’t want any conflict.” Some people would rather keep the peace at all costs, even if it is a hindrance to getting to the
root of real problems and concerns. This reminds me of my extended family coming over for a Thanksgiving or Christmas
meal. We avoid discussing politics at all costs because we know it will cause tensions to rise. Luckily, in our case, we aren’t
avoiding solving problems over the dinner table like some organizations do when they avoid conflict. We are simply trying to
ensure that everyone will get up from the table still speaking to one another.
10. “We will do it this way.” Often, people in positions of authority rely on this linear way of thinking by imposing their individual
will on the entire organization. This can stymie creativity and innovative thinking, as well as a collaborative effort to solving
problems. This reminds me of times when I was asked to complete a survey or evaluation, or serve on a committee to study a
problem in my teaching career. I would put in the time to give my thoughtful comments and reflective analysis, only to find that
those in administrative positions would go against the recommendations of the majority in favor of doing what they had
intended to do all along. I found myself wishing if that was going to be their approach, they would just do it without asking the
rest of us to waste our time giving input in an exercise in futility

The LAWS OF SYSTEMS THINKING

1) Today’s problems come from yesterday’s solutions.

2) The harder you push, the harder the system pushes back.
3) Behavior grows better before it grows worse.
4) The easy way out usually leads back in.
5) The cure can be worse than the disease.
6) Faster is many times slower.
7) Cause and effect are not closely related in time and space.
8) Small changes can produce big results—but the areas of highest leverage are often the least obvious.
9) You can have your cake and eat it too, but not at the same time.
10) Dividing the elephant in half does not produce two small elephants.
11) There is no blame.

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SYSTEMS THINKING STRATEGIES
1. VISUAL
2. LISTENING & SPEAKING
3. KINESTHETIC
VISUAL
1. Ladder of inference
2. Behavior-over-time (BOT) graphs
3. Stock/flow diagrams
4. An iceberg visual
5. Causal loop diagrams
LISTENING AND SPEAKING Figure 1.8 Building Systems Thinking Capacity
 Development of common vocabulary & use of different communication techniques
KINESTHETIC
 Engage the body along with the mind to study how and why a system function as it does.

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