Systems Theory and Organizational Change

While reading for a course in applied industrial/organizational psychology, I came across some helpful insights regarding the application of systems theory in the context of organizational change initiatives.

In her recent TEDx video, Anna Justice cited Karen Higgins’ definition of systems thinking as, “… an integrative way to view a large and complex issue as part of a group or system of elements that function together as a whole,” (Justice, A., 2022, June 13). Ho elaborates on this definition stating that systems theory is, “… a diagnostic tool that can help you to assess problems before taking action,” (Ho, L., 2022, August 26). Ho further states, “The first task is to know what [the] system is all about and identify the leverage points or feedbacks that influence its functioning. This is what will help in adjusting the system,” (Ibid.).

In the context of an enterprise, Enterprise Design Labs notes, “… systems theory likens the enterprise to an organism with interdependent parts, each with its own specific function and interrelated responsibilities,” (Enterprise Design Labs, 2022). Valase breaks this process down into a simple schematic of inputs plus processing equals outputs where, in the enterprise context, the inputs are the resources (e.g. employees, money, etc.), the processes are the managerial functions, and the outputs are the objectives of the enterprise, such as producing goods or services for maximum stakeholder value (Valase, K. G., 2022, May 14). 

As a former communications executive, the notion of finding points in the systems that can be leveraged to achieve different outcomes resonates with my theoretical approach and experience. In issues advocacy, activists target the moveable middle with salient messages and achievable calls to action. In the workplace, change agents amplify leadership’s messages and model the desired behavior for increased adoption.

The concept rests on finding the right points in the systems with maximum influence to produce the desired change outcomes.

In more academic speak, Ruben and Gigliotti observe, “A systems perspective captures the macro-level view of social organization and organizations, and the interaction through which they are created, sustained and evolve,” whereas, “Communication systems theory provides a foundation for an expanded view of… helping to explain the interdependent relationship between leaders and followers,” (Ruben, B. D., & Gigliotti, R. A., 2021).

For anyone in the throes of an organizational change management situation, Smits and Bowden’s article is a helpful go-to reference using systems thinking as its framework. Particularly helpful for me was the refresher on the Life Cycle model of change and its use as a diagnostic framework for leadership/structure mismatch, such as the growth of an entrepreneurial organization growing into an operating organization (Smits, S. J., & Bowden, D. E., 2015).

A common organizational change involves leadership changes. According to the Conference Executive Board, 50% to 70% of executives fail within the first 18 months  of promotion into an executive role, either from within  or coming from outside the organization. In such situations, leadership coaching for organizational performance can help ensure that the leader is equipped and supported for the change, while a systems approach to organizational change management that uses some of tools described above can help ensure that the changes the leader makes to her organization stick.