Neil Bentley, 18 May 2012

Systems Thinking has a lot to offer the world of management. That an organisation can be likened to a system—a complex set of interacting components acting as a single entity, with feedback loops and unpredictable, non-linear patterns of behaviour—is a challenging, but in my view compelling, idea. That said, the subject is often perceived as obscure consultant jargon.

When the performance of an organisation seems to deteriorate, managers might hope that a new computer system will solve the problem, or that clearer targets or a better incentives policy will do the trick. However, deep down, they must know that no ‘magic bullet’ will hit every target. What is more, this sort of one-track thinking risks the ‘be careful what you wish for’ effect: over-reliance on technology de-humanises service, targets cause staff to focus on the wrong things (as does setting simple pay-based incentives), and so on.

Systems Thinkers would argue that it is concentrating on only a part of the overall set of interactions that leads us into the above predicaments. Of course a new computer system or a better incentives policy will not solve all our problems, and of course we need to think more widely about the ‘system’ as a whole and how a change in one part will affect other areas. That makes perfect sense. The problem, though, is that it is often difficult to extract from Systems Thinkers any practical, definitive solution beyond their urging us to think more widely. All too often, it seems, they can tell us why we are all wrong, but cannot offer a very clear insight as to how things could be better—at least not in the real world.

That said, the ‘organisation as a system’ analogy can lead to some useful insights, and provide us with some practical guidance.

For example, if you step on a drawing pin with bare feet, you will withdraw your foot pretty quickly, hop a bit, and maybe shout something rude. This, as we all know, is an example of a reflex action; an automatic response that bypasses any conscious decision-making in the brain. Afterwards, you will consciously think about what happened and gingerly extract the offending object from your heel.

In this example, responsiveness at the periphery is vital and, at the risk of outraging any serious biologists, I think this is a good example of how a system (or systems)—the nervous system and musculoskeletal system—have evolved to be able both to react quickly when required and to take time to process information.

Organisations should take heed of this key lesson from Systems Thinking. At AOMi we are becoming concerned about the rising tendency towards centralised decision-making and control that has resulted from an increased use of technology and greater access to data. A colleague once told me that he watched as a team leader stood next to call centre agents tapping his wristwatch to indicate that the agent was taking too long on the call. When asked about this, the team leader explained that the central planning team only allowed five minutes per call. The impression left with the agents must have been: “Never mind customer service, get off the phone and make sure you meet your targets!”

The dangers of over-centralised thinking are all too obvious in this example. AOMi believe that the network of team leaders (and indeed the members within the teams themselves) at the periphery of an organisation should be allowed to behave a little like a reflex action: helping the organisation to prepare for, and respond to, rapid changes quickly and effectively. This is the best way of making sure that the all-important customer experience is satisfactory. Good service is all about responsiveness.

Without proper use, any component of a system is at risk of wasting away and, similarly, if teams and their leaders are not given the chance to use their common sense and experience to serve customers, the people at the centre of the organisation will be left with plenty of time to ponder what went wrong.

 
 
Neil Bentley is joint founder and managing director of AOMi and has been helping organisations to improve their front-line operating performance for over 20 years. Originally qualified in Psychology he went on to work at Lucas Industries in the 1980s, gaining experience in manufacturing production management, before focusing on financial services and the public sector, first with PA Consulting Group, and then as a partner with specialist consultants OCP. He launched AOMi with fellow OCP partner, Richard Jeffery, in 2005. Neil brings with him an understanding of the mix of the human and the technical aspects of performance improvement.