Systems Thinking Archetypes (Generic Structures)

1 Systems Thinking Archetypes ( generic Structures) recognize that balancingloops regulate the systemto provide stability and, onthe other hand, resistchange Heating or cooling sys-tem; setting thermostatto regulate roomtemperature Economic growth;Federal Reserve modi-fying interest rates tomeet growth target goal seeking regulates sys-tem behavior opposes sys-tem changefrom set targetor goalBalancingLoop recognize that reinforcingfeedback creates exponen-tial growth that can bring onpressures to retard growth they are two-edged swordsthat can work for us oragainst us Population growth ordecline Sales growth ordecline Microphone feedback growth or decline of the state of thesystem ReinforcingLoopPolicy AdviceExamplesBehaviorArchetypeSystems Thinking Archetypes 2003 Continuous Improvement Associates page 1state ofsystem1netincreaserateSSRR einforcingLoopstate ofsystem2gapgoalcorrectiveaction2 OSSSBB alancing Looppopulationbirth rateSSRR einforcing Loop(population growth)

2 Actualtemperaturetemp gapthermostatsettingfurnaceoperationOSSS BB alancing Loop(heating) recognize that nothing growsforever be aware of future limits and thepressures they will cause leverage for growth is often inlooking for ways to reduce orremove the limits, rather than bypushing harder on the growth loop Sales limited by serv-ice quality World populationgrowth limited byresources Initial growth inthe state of thesystem iseventually lim-ited or falls offdue to aresource con-straint affectingor due to a"side effect" ofthe toGrowth(at right aretwo formsof thisstructure)Policy AdviceExamplesBehaviorArchetypeSystems Thinking Archetypes 2003 Continuous Improvement Associates page 2 Bgrowingactionstate ofsystemlimitingactionSSOS limitingconstraintlimiting"sideeffect"SO SRL imits to GrowthRactionconstraintOstate ofsystem3netincreaserate3resourceadequac ycarryingcapacityfractional netincreaseSSOSSSRBL imits to Growthrabbitpopulationrabbit birthrateresourcesper rabbitresourcesavailableto rabbitsresourceeffect onfertilitySSOSSSRBL imits to Growth(rabbit population)practicingtennistennisability improvementpotentialSSOS physicalabiltylimittenniselbowSOSRBL imits to GrowthRelbowuselimitO(tennis ability) same as for Fixes That Fail addictive drugs wear off and a per-son needs more.

3 They damage bodyand mind expediting deliveries negativelyimpacts other products which mustalso be expedited and they interferewith normal working of the produc-tion & distribution system city growth and development with-out impact fees leads to infrastruc-ture backlogs and the need formore growth & development occurs when theshort term solutionhas to be taken againand again becausethe effect wears off the need to takerecurring action actsto drive the FixesThat Fail dynamic exacerbates theeffects of the FixesThat Fail dynamicAddiction look for unintendedconsequences ofactions to relieve pain-ful symptoms look for root causesthat are responsiblefor the symptoms when addressingsymptoms, look forways to reduce nega-tive impacts take action to bothrelieve immediate painand work on long-termroot causes taking drugs (whether narcotics orpain-relievers) may make a personfeel better immediately, but doesnot address root causes and makesone feel worse in the long run corporate downsizing reduces costsimmediately, but impairs the organi-zation s ability to perform in thefuture road-building relieves traffic con-gestion in the near-term, butattracts more growth to again buildup congestion.

4 The larger area alsomakes existing public transportationinadequate actions produce thedesired correction inthe short-term, buthave make the prob-lem worse in thelong-term typically a result ofaddressing problemsymptoms ratherthan root causesFixes That FailPolicy AdviceExamplesBehaviorArchetypeSystems Thinking Archetypes 2003 Continuous Improvement Associates page 3state ofsystem4gap4goal4correctiveaction4 OSSSB unintendedconsequenceOSRF ixes That Failaction basedon short-termsolutionperceivedstate of thesystemstate of thesystemeffect ofshort-termsolutiondecay ofeffect ofshort-termsolutionOSSOSOSBRBA ddictionexpendituresoverspendingbudgetsp ending onmaintenanceSOOSB equipmentbreakdownsSORF ixes That Fail(maintenance budget)approvedevelopment &promote growthperceivedinfrastructurebacklogactu alinfrastructurebacklogdevelopmentdevelo pmentscompletedOSSSSSSBRBA ddictiontaxes frominitialdevelopmentlong-terminfrastru ctureneedsSO(growth) same as for Fixes That Fail taking drugs makes a personfeel better but reduces ability toimprove life skills giving a man a fish vs.

5 Teach-ing a man to fish promotesdependency corporate downsizing reducescosts immediately, but reducesthe ability to develop newproducts HR deals with a manager sproblem with low employeeperformance, rather thanassisting and training manager government insures bankdeposits and bails out banksrather than requiring soundbanking practices actions taken to reducesymptoms reduce theability to take action forthe long term. can be either shifting theburden to short-term,rather than long-term,solutions or shifting theburden to an intervenor,rather than to buildingsystem capability not only exacerbates theeffects of the FixesThat Fail dynamic, alsoit reduces the ability totake action for the longterm and escape symp-tomatic solutionsShifting theBurdenPolicy AdviceExamplesBehaviorArchetypeSystems Thinking Archetypes 2003 Continuous Improvement Associates page 4externalinterventionperceivedstate of thesystem2effect ofexternalinterventionSOSB internalsolutioneffect ofinternalsolutionOSability topursueinternalsolutionOSSBRS hifting the Burden(to an externalintervention solution)

6 Action basedon short-term,symptomaticsolutionperceiveds tate of thesystem1effect ofshort-termsolution1 SOSB action basedon long-term,fundamentalsolutioneffect oflong-termsolutionOSability to actbased onlong-termsolutionOSSBRS hifting the Burden(to the short term,symptomatic solution)man acceptsa fishhungermanhasfoodSSOBman learnsto fishman haslong-termsource offoodSSmotivationto providefor oneselfOSOBRS hifting the Burden(charity external interventionvs. teaching self-reliance)takedrugsperceivedquality of lifedrughighSOSB improve lifeskillsactualqualityof lifeOSusedisciplineto improvelife skillsOSSBRS hifting the Burden(drugs to treat theshort-term symptom) when performance is declining,examine whether it could bebecause goals are being relaxed make goals clearly visible examine the way goals are set andwho sets them goals located outside the system areless vulnerable to erosion reward setting stretch goals & don tpenalize if not met, which teachespeople to not set stretch goals.

7 It s easier to lower qual-ity targets than increasequality it s easier to let federalbudget deficits keep ris-ing than to increasetaxes and/or decreasespending it s easier to relax envi-ronmental standardsthan reduce pollution there are two ways toclose the perform-ance gap: improve perform-ance lower the goal also known as the boiled frog syndromeEroding GoalsPolicy AdviceExamplesBehaviorArchetypeSystems Thinking Archetypes 2003 Continuous Improvement Associates page 5performancegapperformancetargetactualpe rformancetakingcorrectiveaction toimproveperformanceloweringthe goalpressureto improvetemptationto lowerthe goalSSSOSOSSBBE roding Goalson-time deliverygoal-actualon-timedelivery goalactual on-timedeliverycorrective action toimprove deliveryperofrmancelowering on-timedelivery goalpressure toimprove on-timedeliverytemptation tolower on-timedelivery goalSSSOSOSSBBE roding Goals(on-time delivery)

8 Quality of lifegapquality of lifegoalactual qualityof life0self-improvement& learninglowering qualityof life goalpressureto improvelife skillstemptation tolower qualityof life goalSSSOSOSSBBE roding Goals(quality of life) understand that this structure requires intervention to pro-duce and maintain a level playing field examine how the system has been set up for winner-take-all competition. find ways for teams to collaborate ratherthan compete the rich get richer .. phenomenon monopolies increasemarket share (butreduce competition) economic clusterformation good student perform-ance over bad student performance home vs. workinvolvement manufacturing improve-ment favored over engi-neering because it sfaster and easier once one entity(person, prod-uct, organiza-tion, company,or country)

9 Getsahead, it s eas-ier to get evenfurther aheadbecause betterperformanceprovides moreresources anda greater abilityto improveperformance a figure 8 is areinforcing loopPath Dependence or Success to theSuccessful Policy AdviceExamplesBehaviorArchetypeSystems Thinking Archetypes 2003 Continuous Improvement Associates page 6A'ssuccessresourcesto AA's accom-plishmentsallocation ofresources to A,rather than to BSSSSR1B'ssuccessB's accom-plishmentsresourcesto BSOR2 SOPath Dependence or "Success to the Successful"Student BSuccessStudent ASuccessperceived benefitfrom investing instudent Ainvestment instudent Asuccess ofstudent Atime spent withstudent A BSSSSR1perceived benefitfrom investing instudent Bsuccess ofstudent Binvestment instudent BSOR2 SOPath Dependence Example:self-fullfilling prophecy for student successCompetitorMarket Sharecompetitorpricecompetitorcumulative productioncompetitorunit costsour market sharevs.

10 Competitormarket shareOSSOR1our priceour unitcostsour cumulativeproductionOOR2 Our MarketShareSSPath Dependence Example:the "experience curve." understand that over-coming this structurerequires cooperationtoward a larger goal thatbenefits competingparties examine how the struc-ture reduces results inthe long run ( , in anarms race there is lesssecurity) examine whether percep-tions of opponent s intent is accurate (perhaps they see themselves as simply responding to your action) examine whether percep-tions of opponents abilityis accurate ( , perhapstheir arms potential is notas great as perceived) arms race increasesweaponry (butdecreases security forall) price wars increasesales and marketshare (but decreaseprofits for all) regions compete onthe basis of low taxes& less regulation for alimited number of jobs(but leads to infra- structure backlogs forall regions)