EM 760 lec 10 - 08 - student slides

EM 760 lec 10 - 08 - student slides - Engineering...

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1 Engineering Management Organization Structure and Systems Lecture 10 March 11, 2008 A Shift of Mind Toward Systems Thinking • Discipline for seeing the whole • Systems thinking is a sensibility • Doing the obvious thing does not produce the obvious desired outcome Complexity • Detail Complexity – where there are many variables • Dynamic complexity – where cause and effect are subtle, where effects over time are not obvious • Real leverage comes from understanding dynamic complexity
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2 Low Profit Problem Current view Low Profits Æ Cost Cuts Æ Layoffs Layoffs Æ Overworked Emp Æ Missed Delivery Missed Delivery Æ Unsatisfied Customers The Essence of the Discipline of Systems Thinking • Seeing interrelationships rather than linear cause-effect chains • Seeing processes of change rather than snapshots Water Glass Example Faucet Position Water Flow Water Level Perceived Gap DESIRED WATER LEVEL
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3 Circles of Causality • Feedback: good news or bad news? • Feedback process – reciprocal flow of information • Every influence is both cause and effect • Anthropocentrism – seeing yourself as the center of activities • Everyone shares responsibility for problems Language of Systems Thinking • Systems Diagram – tells a story, pattern of behavior • Arrows – represent influence • Reinforcing – a pattern of amplification • Balancing – goal-oriented behavior • Delays – interruptions in the flow of influence Reinforcing Feedback • Blind to how small actions can grow into large consequences •Ove r co r rec
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4 The Structure: Circle Diagram PROFIT LEVEL
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EM 760 lec 10 - 08 - student slides - Engineering...

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