by Michael Ballé

What is the relationship between systems thinking and lean? That's a fascinating question, one not so easily answered, because we're talking about two very different approaches, one a philosophy as well as a set of tools, the other, a practice. In its broadest sense, systems thinking is a framework that takes into account the interconnected nature of systems. It is also a thinking tool, which helps us look at the impact of feedback loops on how a system behaves; analyze specific situations to explain otherwise puzzling behaviors; and design interventions with an eye for potential unintended consequences.

Lean, on the other hand, is strictly a practice, not a philosophy. It is based on hands-on know how about how to teach people to improve their own processes in terms of both customer satisfaction and cost management by eliminating waste. As a practice-oriented movement, lean is by and large wary of abstract thinking and generalizations.

Nonetheless, although systems thinking and lean operate at these two different levels, I have learned from personal experience that they are complementary and are based on similar insights. An understanding of system thinking dramatically improves the learning curve of lean techniques. Having worked with systems thinking concepts and system dynamics simulations for years before studying lean practices in detail, I immediately saw the purpose (if not the application) of lean, which wasn't the case for my colleagues without a systems thinking background.

Conversely, at the time, I was part of a group tasked with figuring out ways to practically apply systems thinking concepts in day-to-day operations. Although we experimented, we generally floundered. What we did find was that the lean techniques offered a hands-on way to apply systems thinking concepts. Because lean practices have been developed over several decades, an entire field of experience exists in terms of how to make them work.

Systems Thinking in Action:
Fueling New Cycles of Success
November 8-10, 2010
Boston Marriott Copley Hotel
Boston, Massachusetts

For 20 years, the Systems Thinking in Action® Conference has been the place to hear leading-edge speakers in the fields of systems thinking, organizational learning, and related disciplines. So even more people and organizations can benefit from the insights offered by our stellar line-up, for the first time, we're hosting live webcasts of our five keynote presentations.

On Monday, November 8-Wednesday, November 10, you will have access to more than 7 hours of programming
--without incurring travel costs or days away from the office. You will also have access to the recorded version following the event.

From your own computer or through a web connection in your conference room, you and your colleagues will hear:

• Daniel H. Kim on the Third Generation Leadership (3G) Challenge (Monday, November 8, 8:15-9:45 am EST)
• Dayna Baumeister on Learning from Nature Through Biomimicry (Monday, November 8, 1:15-2:45 pm EST)
• Andy Hargreaves on Performing Beyond Expectations (Tuesday, November 9, 8:15-9:45 am EST)
• Frances Moore Lappé on Creating Spirals of Empowerment (Tuesday, November 9, 1:15-2:45 pm EST)
• Peter Senge on What Is Possible Now That Wasn't 20 Years Ago (Wednesday, November 10, 10:45 am-12:15 pm EST)

By LeAnne Grillo

Several years ago at a Systems Thinking in Action Conference, Nick Pudar from General Motors told a story about a time when his boss called him into his office. Clearly agitated, this executive asked Nick for ideas about what the division could do to prevent the poor quarterly results they were anticipating later in the month. He hoped that, because Nick was the "systems thinking guy," he could suggest some kind of systemic action to help mitigate the problem.

Nick took a deep breath and told him that they couldn't do anything now to change those results, as the decisions that had created them had been made years earlier. He said that they could do things now that would ultimately help in the future, but there was nothing that could provide the immediate relief that his boss was looking for.

When we make decisions, how often do we really think about the impact they will have several years later? Even if we do anticipate the effect, how can we prepare ourselves for what could happen that is out of our control? After all, who ever thought that home values would plummet, making real estate a less-than-reliable investment? Didn't everyone always tell you that you couldn't go wrong buying a house?