Systems Thinking: A Smarter Way to Solve Complex Problems

In today’s organisations, very few challenges are truly simple. Declining engagement, operational inefficiencies, leadership bottlenecks, burnout, missed targets, or slow change rarely have a single cause or a quick fix. Yet many organisations still try to solve complex problems with isolated solutions.

This is where systems thinking becomes invaluable.

Systems thinking is not a new concept, but it is increasingly relevant in a world where work, people, technology, and strategy are deeply interconnected. Used well, it strengthens problem-solving, improves decision-making, and helps leaders avoid unintended consequences.

What Is Systems Thinking?

At its core, systems thinking is a way of understanding problems by looking at how parts of a system interact over time, rather than focusing on individual events or isolated causes.

A system is any set of elements that are connected and influence one another. In organisations, systems include people, structures, processes, incentives, leadership behaviours, culture, and external pressures such as regulation or market forces.

Instead of asking:

• “What went wrong here?”

Systems thinking asks:

• “What patterns are we seeing?”

• “What is reinforcing this outcome?”

• “How might our own actions be contributing to the problem?”

• "What else could be casual to this problem?"

  
  

It shifts thinking from linear cause-and-effect (“A caused B”) to circular causality, where actions create reactions that loop back and shape future behaviour. Instead of thinking in linear reasoning we start applying casual loops, either positive or negative forces on the problems or variables we are dealing with.

What Systems Thinking Is Not

Because the term is often misunderstood, it is just as important to clarify what systems thinking is not.

Systems thinking is not:

• The same as process mapping or operational efficiency alone

• About removing accountability or blaming “the system”

Instead, systems thinking enhances accountability by helping leaders see how decisions, structures, and behaviours interact — and what to leverage for change. It does not replace decisive action. It improves the quality of action.

Why Systems Thinking Improves Problem-Solving

Most organisational problems sit in what psychologists and systems theorists call complex systems. In complex systems:

• Cause and effect are not always obvious

• Small actions can have large downstream effects

• Short-term fixes often create long-term problems

For example:

• Increasing pressure to meet targets may temporarily improve output but eventually reduce wellbeing, increase errors, and drive turnover.

• Adding more controls can reduce risk in the short term but also reduce trust, autonomy, and initiative over time.

Systems thinking helps leaders:

1. Move beyond symptoms: It distinguishes between surface issues (e.g. low engagement) and underlying drivers (e.g. leadership behaviour, role clarity, workload design).

2. Anticipate unintended consequences: It encourages leaders to consider second- and third-order effects before implementing change.

3. Identify leverage points: A leverage point is a place in the system where a small, well-chosen intervention can produce meaningful and sustainable change.

4. Integrate people and structure: It recognises that performance is shaped by both human behaviour and organisational design — not one or the other.

   
   

Key Concepts Explained

To make systems thinking practical, a few core concepts are helpful:

• Feedback loops: These are cycles where actions produce results that feed back into the system.

  • Reinforcing loops amplify behaviour (e.g. stress → errors → more pressure → more stress).

  • Balancing loops stabilise behaviour (e.g. feedback → learning → improved performance).

• Patterns over time: Rather than reacting to single events, systems thinking looks at trends and recurring dynamics.

• Mental models: These are the assumptions and beliefs that shape how people interpret problems and decide what to do. Often, it is the mental model — not the process — that needs to shift.

  
  

Practical Ways to Practise Systems Thinking

Systems thinking does not require complex diagrams or specialist software. It starts with how leaders think, ask questions, and design responses.

Here are practical ways to build it into everyday problem-solving:

1. Slow the Problem Down

Before jumping to solutions, ask:

• What has been happening over time?

• When did this start?

• What has already been tried, and what did it create?

This simple pause often reveals patterns that quick fixes miss.

2. Map Influence, Not Just Process

Instead of only mapping steps in a process, explore:

• Who influences whom?

• What behaviours are rewarded or discouraged?

• Where are people constrained by systems, not capability?

This is particularly useful for people-related challenges such as performance, engagement, or leadership effectiveness.

3. Ask Better Questions

Replace “Who is responsible?” with:

• What conditions made this likely?

• What pressures are people responding to?

• How might we be unintentionally reinforcing this outcome?

These questions reduce defensiveness and increase insight.

4. Look for Leverage Points

Not all actions are equal. Ask:

• If we changed one thing, what would have the biggest ripple effect? Often leverage sits in role clarity, decision rights, feedback quality, or leadership behaviour — not in more rules or policies.

5. Experiment Small and Learn Fast

Because complex systems are unpredictable, treat interventions as experiments:

• Start small

• Observe impact

• Adjust based on learning

This builds adaptability without destabilising the organisation.

A Practical Example:

How to build a causal loop diagram for a blue-collar “no-show, no-notify” problem

Start with a specific operational issue:

Central issue: Workers miss shifts and do not notify the site/shift leader (no-show, no-notify).

This is rarely just “poor attitude.” Systems thinking helps you explore what makes notification difficult or unlikely in that context.

Step 1: Write the outcome as a variable

Put this in the centre: No-show, no-notify incidents (increase/decrease)

Step 2: Identify practical drivers in that environment

For blue-collar shift work, common drivers include:

• Limited airtime, data, or phone battery

• Poor signal coverage on the route or at home

• No personal phone or phone not allowed on site

• Unclear notification process or contact person for shift changes

• Fear of reprimand or disciplinary action if they admit they will be absent

• Transport unreliability, long commutes, or last-minute childcare disruptions

• Low trust that notifying will lead to support rather than punishment

Step 3: Build the loops (what reinforces the problem)

Reinforcing Loop 1: Fear and punishment loop

More no-shows, no-notify → more supervisor frustration and punitive responses → greater fear of contacting the shift leader → less likelihood of notifying → more no-shows, no-notify.

This loop explains why “just communicate” campaigns fail when employees believe communication increases risk.

Reinforcing Loop 2: Access and capability loop

Limited airtime/data + poor signal + low battery → lower ability to notify → more no-shows, no-notify → more strict rules and less flexibility → less willingness to try communicate (or more avoidance) → more no-shows, no-notify.

This loop highlights practical constraints that are invisible if you assume everyone has consistent phone access.

Reinforcing Loop 3: Process ambiguity loop

Unclear rules on who to contact and when → delayed attempts to notify or no attempt → no-shows, no-notify → inconsistent supervisory responses → even less clarity and trust → continued non-notification.

Step 4: Add a balancing loop (what could reduce it)

Now identify what would counteract the issue:

Clear, low-friction notification process + supportive response → higher likelihood of notifying early → fewer no-shows, no-notify → less disruption and frustration → more supportive responses → further reduction.

Step 5: Map it to tangible interventions (leverage points)

Once the loops are visible, interventions become more practical and fair:

• Set a single, simple rule: “Notify the shift leader at least X minutes before shift start via WhatsApp/SMS/missed call.”

• Provide a dedicated, low-cost channel: a site phone number that accepts missed calls or free ‘Please call me’ messages.

• Make expectations explicit: who to contact, by when, and what happens next.

• Separate notification from discipline: acknowledge early notice as responsible even when absence is not ideal.

• Address access barriers: charging points, signal boosters in critical areas, limited data support if feasible.

  
  

Why Systems Thinking Matters for Leaders

In professional services and knowledge-based organisations especially, performance depends on how people think, decide, and interact within systems — not just on individual competence.

Leaders who apply systems thinking:

• Make more sustainable decisions

• Reduce burnout and rework

• Improve trust and engagement

• Create conditions for better performance, not just pressure for results

  
  

Ultimately, systems thinking helps organisations move from reacting to problems to designing environments where better outcomes are more likely.

It is not about having all the answers. It is about seeing the whole — and acting with intention.

Best,

The HumbleHumanologist