ACCY304-12%20systems%20thinking - SystemsThinking Session11...

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Systems Thinking Session 11 March 1, 2010 1 Department of Accountancy University of Illinois at Urbana-Champaign
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2 What is a System? A set of resources that work together as a  coordinated whole, interacting with the  environment, to achieve a set of goals (Chandler 2001)  Department of Accountancy University of Illinois at Urbana-Champaign
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3 What is Systems Thinking?  S ystems thinking   – the ability to see the world as a  complex system, in which we understand that “ you can’t  just do one thing ” and that “ everything is connected to  everything else” Actions trigger other actions Cause and effect are not as easy to  infer/detect  as we think   Department of Accountancy University of Illinois at Urbana-Champaign
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4 System Dynamics Dynamic systems are complex because of:   Interrelatedness   Delays   Nonlinearities Department of Accountancy University of Illinois at Urbana-Champaign
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5 Example: Romania 1960 Birth rate was extremely low Considered a problem by Nicolae Ceauşescu National pride Ethnic identity Implementation of policies to stimulate birth rate Importation of contraceptive devices was outlawed Abortion was banned Modest tax incentives for larger families Propaganda campaigns Department of Accountancy University of Illinois at Urbana-Champaign
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6 Example: Romania 1960  Birth rate initially increased but within months it started  to fall again The Romanians found ways around the policy Alternative ways of birth control Smuggling of contraceptive devices Back-alley abortions Other consequences Neonatal deaths rose by more than 300% 20% increase in infant mortality rate Negative health effects of back-alley abortions Department of Accountancy University of Illinois at Urbana-Champaign
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7 Example: Romania 1960 
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ACCY304-12%20systems%20thinking - SystemsThinking Session11...

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