THE WHATIS.COM WORD-OF-THE-DAY   
January 14, 2003

systems thinking 
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TODAY'S WORD: systems thinking 

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Systems thinking is a holistic approach to analysis that focuses on
the way that a system's constituent parts interrelate and how systems
work over time and within the context of larger systems. The systems
thinking approach contrasts with traditional analysis, which studies
systems by breaking them down into their separate elements. Systems
thinking can be used in any area of research and has been applied to
the study of medical, environmental, political, economic, human
resources, and educational systems, among many others. 

According to systems thinking, system behavior results from the
effects of reinforcing and balancing processes. A reinforcing process
leads to the increase of some system component. If reinforcement is
unchecked by a balancing process, it eventually leads to collapse. A
balancing process is one that tends to maintain equilibrium in a
particular system. 

Attention to feedback is an essential component of system thinking.
For example, in project management, prevailing wisdom may prescribe
the addition of workers to a project that is lagging. However, in
practice, that tactic might have actually slowed development in the
past. Attention to that relevant feedback can allow management to
look for other solutions rather than wasting resources on an approach
that has been demonstrated to be counterproductive. 

Systems thinking uses computer simulation and a variety of diagrams
and graphs to model, illustrate, and predict system behavior. Among
the systems thinking tools are: the behavior over time (BOT) graph,
which indicates the actions of one or more variables over a period of
time; the causal loop diagram (CLD), which illustrates the
relationships between system elements; the management flight
simulator, which uses an interactive program to simulate the effects
of management decisions; and the simulation model, which simulates
the interaction of system elements over time. 

Systems thinking originated in 1956, when Professor Jay Forrester
founded the Systems Dynamic Group at MIT's Sloan School of
Management. 

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The Thinking Page maintains pages devoted to "Systems Thinking."
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