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Systems Thinking Third Edition

Managing Chaos and Complexity: A Platform for Designing Business Architecture

By: Jamshid Gharajedaghi

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Paperback | 29 June 2011 | Edition Number 3

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Paperback
376 Pages

Edition Type
Revised

Dimensions(cm)
4.5 x 16.8 x 26.7

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In a global market economy, a viable business cannot be locked into a single form or function anymore. Rather, success is contingent upon a self-renewing capacity to spontaneously create structures, functions, and processes responsive to a fluctuating business landscape. Now in its third edition, Systems Thinking synthesizes systems theory and interactive design, providing an operational methodology for defining problems and designing solutions in an environment increasingly characterized by chaos and complexity.

The current edition has been updated to include all new chapters on self-organizing systems, Holistic, Operational, and Design thinking. Gharajedaghi covers recent crises in financial systems and job markets, the housing bubble, and environment, assessing their impact on systems thinking. A companion website to accompany the book is available at www.interactdesign.com.

Four NEW chapters on self-organizing systems, holistic thinking, operational thinking, and design thinking

Covers the recent crises in financial systems and job markets globally, the housing bubble, and the environment, assessing their impact on systems thinking

Companion website to accompany the book is available at interactdesign.com

Industry Reviews

"Einstein once wrote, "Without changing our pattern of thought, we will not be able to solve the problems we created with our current patterns of thought." Jamshid develops a pattern of thought that will yield solutions to those problems." --Russell Ackoff, Professor Emeritus, The Wharton School, University of Pennsylvania "Gharajedaghi challenged us to think backwards from an ideal competitive position instead of forwards from our existing position with all its constraints. The result was bolder thinking about change. Jamshid forces a realistic assessment of a company's strengths and weaknesses, an idealistic view of what it could be, and creates the path from point A to point B." --Bill Tiefel, President, Marriott Lodging "Gharajedaghi was perfect! He had passion and brilliance. He could challenge our traditional thinking and make us see our actions and opportunities from a different perspective." --William G. Poist, President and CEO, Commonwealth Energy System "This volume on business management explores the development of complex systems and advocates for iterative design principles as a foundational philosophy for dealing with complex, chaotic systems. The volume discusses system theory and changes to traditional paradigms in light of emerging technologies and business methodologies and explores case studies from industry leaders that showcase these systems philosophies." --SciTech Book News

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Non-Fiction Mathematics Applied Mathematics Chaos Theory Reference, Information & Interdisciplinary Subjects Research & Information Information theory Cybernetics & Systems Theory Business & Management Management & Management Techniques Business Mathematics & Systems Computing & I.T.

Computer Science Business Applications Enterprise Software

Foreword to the Third Edition	p. xi
Foreword to the Second Edition	p. xvii
Preface	p. xix
Acknowledgment	p. xxi
System Philosophy: The Name of the Devil
How the Game Is Evolving	p. 3
Imitation	p. 4
Inertia	p. 5
Suboptimization	p. 6
Change of the Game	p. 6
Shift of Paradigm	p. 8
Interdependency and Choice	p. 9
On the Nature of Organization: The First Paradigm Shift	p. 9
On the Nature of Inquiry	p. 13
The Second Paradigm Shift	p. 13
The Competitive Games	p. 17
Mass Production ? Interchangeably of Parts and Labor	p. 17
Divisional Structure ? Managing Growth and Diversity	p. 18
Participative Management	p. 20
Operations Research ? Joint Optimization	p. 20
Lean Production System ? Flexibility and Control	p. 21
Interactive Management ? Design Approach	p. 22
Systems Theory: The Nature of the Beast
Systems Principles	p. 29
Openness	p. 29
Purposefulness	p. 33
Recap	p. 37
Multidimensionality	p. 38
Plurality of Function, Structure, and Process	p. 42
Recap	p. 44
Emergent Property	p. 45
Recap	p. 47
Counterintuitive Behavior	p. 48
Recap	p. 54
Sociocultural System	p. 57
Self-Organization: Movement Toward a Predefined Order	p. 57
Information-Bonded Systems	p. 59
Culture	p. 60
Social Learning	p. 62
Culture as an Operating System	p. 64
Development	p. 69
Schematic View of Theoretical Traditions	p. 70
Systems View of Development	p. 73
Obstruction to Development	p. 77
Alienation	p. 78
Polarization	p. 79
Corruption	p. 81
Terrorism	p. 82
Recap	p. 85
Systems Methodology: The Logic of the Madness
Holistic Thinking	p. 89
Iterative Process of Inquiry	p. 89
Systems Dimensions	p. 93
Generation and Dissemination of Wealth	p. 96
Generation and Dissemination of Power(Centralization and Decentralization Happen at the Same Time)	p. 97
Generation and Dissemination of Beauty: social Integration	p. 101
Generation and Dissemination of Knowledge	p. 103
Generation and Dissemination of the Value: Conflict Management	p. 104
Operational Thinking	p. 109
Complexity	p. 110
Open Loop or Closed Loop Systems	p. 111
Linear or Nonlinear systems	p. 111
Operational Thinking, the iThink Language	p. 119
Connectors	p. 120
Modeling Interdependency	p. 121
Dynamics of Throughput Systems	p. 124
Critical Properties of the Process	p. 126
Model of the Process	p. 126
Measurement and Learning	p. 130
Design Thinking	p. 133
Design Thinking, as the Systems Methodology	p. 134
Operating Principles of Design Thinking	p. 137
Modular Design	p. 138
Design and Process of Social Change	p. 141
Interactive Design	p. 142
Idealization	p. 144
Realization ? Successive Approximation	p. 147
Dissolving the second-Order Machine	p. 150
Critical Design Elements	p. 150
Measurement and Reward System (A Social Calculus)	p. 150
Vertical Compatibility	p. 151
Horizontal Compatibility	p. 153
Temporal Compatibility	p. 155
Target Costing	p. 156
Formulating the Mess	p. 159
Searching	p. 160
Systems Analysis	p. 161
Obstruction Analysis	p. 161
System Dynamics	p. 161
Mapping the Mess	p. 163
Telling the Story	p. 166
Formulating the Mess: A Case Review (Story of Utility Industry)	p. 166
Success Changes the Game, Lack of Explicit Vision	p. 169
Monopolistic, Cost Plus, Regulated Environment	p. 170
The Non-Competitive Culture	p. 171
The Input-Based Personnel Policy	p. 172
Mediocrity, Tolerance of Incompetence	p. 173
Structural Incompatibility	p. 174
Uncertainty About the Future	p. 176
The Present Mess	p. 177
Drivers Defining the Behavior of the Present State of the Economy	p. 177
How the Game Is Evolving	p. 177
Current Crisis and Future Challenges	p. 178
Business Architecture	p. 181
The System's Boundary and Business Environment	p. 182
Purpose	p. 184
Functions	p. 189
Structure	p. 190
Output Dimension	p. 192
Input Dimension	p. 194
Market Dimension	p. 196
Internal Market Economy	p. 197
Processes	p. 201
Planning, Learning, and Control System	p. 202
Measurement System	p. 202
Recap	p. 207
Systems Practice: The Gutsy Few
The Oneida Nation	p. 211
Desired Specifications	p. 211
Systems Architecture	p. 213
Governance	p. 214
Governing Body	p. 215
Chief of Staff	p. 215
Planning, Learning, and Control System	p. 216
Planning, Learning, and Control Board	p. 217
Membership Systems	p. 218
Empowerment	p. 218
The Tie That Bonds	p. 219
Membership Network	p. 220
Consensus-Building Process	p. 221
Back to the Future	p. 224
Performance Criteria and Measures	p. 225
Learning Systems	p. 226
Learning to Learn (Formal Education)	p. 227
Learning to Be (Cultural Education)	p. 228
Learning to Do (Professional Education)	p. 229
Support Functions	p. 229
Advocacy Functions	p. 230
Oneida Multiversity	p. 230
Performance Criteria and Measures	p. 232
Business Systems	p. 233
Services Sector	p. 234
Industry Sector	p. 235
Leisure Sector	p. 235
Land and Agriculture Sector	p. 235
Marketing Sector	p. 236
Governance and Intersystem Relationships	p. 236
Core Services	p. 237
Government Services Division	p. 237
Infrastructure Development Division	p. 238
Ordinance Division	p. 238
Performance Criteria and Measures	p. 238
Governance and Oversight	p. 238
External Environment	p. 239
Judicial System	p. 240
Contextual Analysis	p. 240
Contextual Challenge	p. 241
Democratic Challenge	p. 242
Butterworth Health System	p. 245
Issues, Concerns, and Expectations	p. 246
Design Specifications	p. 248
The Architecture	p. 249
Market Dimension	p. 250
Market Access	p. 250
Care System	p. 251
Contextual Background	p. 251
Desired Specifications	p. 252
Common Features	p. 253
Preventive Care	p. 255
Interventional Care	p. 256
Viability Care	p. 257
Terminal Care	p. 258
Output Dimension	p. 258
Alternative One: Traditional Functional Structure	p. 259
Alternative Two: Modular Structure	p. 259
Health Delivery System Design: The Makeup	p. 261
Community-Based Health Delivery System	p. 261
Specialized Health Delivery System	p. 263
Shared Services	p. 264
Core Knowledge	p. 265
Shared Services	p. 270
Meed for Centralization	p. 270
Control Versus Service	p. 271
Customer Orientation	p. 272
Health Delivery System, Core Knowledge, and Care System Interactions	p. 273
The Executive Office	p. 277
Recap	p. 278
The Marriott Corporation	p. 281
The Environment: How the Game Is Evolving	p. 282
Bases for Competition	p. 282
Purpose	p. 282
Principles and Desired Characteristics	p. 282
Mission	p. 283
The Architecture	p. 283
Product/Market Mix	p. 285
Region/Market Operation	p. 285
Brand Management	p. 286
Core Components	p. 287
Core Knowledge	p. 287
Critical Processes	p. 288
Recap	p. 289
Commonwealth Energy System	p. 291
Stakeholders' Expectations	p. 292
Shareholders' Expectations	p. 292
Regulators' Expectations	p. 293
Employees' Expectations	p. 293
Customers' Expectations	p. 293
Suppliers' Expectations	p. 294
Public's Expectations	p. 294
Business Environment	p. 294
The Changing Game: The Energy Industry	p. 294
The Changing Game: COM/Energy	p. 296
Design	p. 296
Purpose and Strategic Intent	p. 297
Core Values and Desired Specifications	p. 298
General Architecture	p. 299
Core Business Units: Gas and Electricity Distribution	p. 301
Customer-Oriented Business Units: Energy Supply Systems and Management Services	p. 302
Cogeneration and Packages of Energy Supply(Industrial and Commercial)	p. 302
Energy Efficiency and Electrotechnologies(ResidentiaI a nd CommerciaI)	p. 304
Technology/Supply- Oriented Business Units: Energy Generation and Supply	p. 305
Energy Generation (Canal)	p. 306
Gas Storage (LNG)	p. 307
Steam Services	p. 307
Energy Brokerage and International Operations	p. 307
Energy Brokerage	p. 308
International Operations	p. 308
Shared Services (Performance Centers)	p. 309
Service Company	p. 310
Financial Systems	p. 311
Executive Office	p. 311
Core Knowledge Pool	p. 312
Learning and Control System	p. 313
Carrier Corporation	p. 317
Expectations, Assumptions, and Specifications	p. 318
The Changing Game: In General	p. 318
The Changing Game: The HVAC Industry	p. 319
Drivers for Change	p. 319
Bases for Competition	p. 319
Core Values	p. 319
Products and Services	p. 320
Core Technology and Know-How	p. 321
Sales and Distribution System	p. 322
Systems Architecture	p. 323
Desired Characteristics	p. 323
A Multidimensional Framework	p. 323
Markets	p. 324
Regional Units	p. 324
Area Units	p. 326
Output Units	p. 326
Components	p. 327
Inputs	p. 328
The Technology	p. 328
Operational Support (Process Design)	p. 329
Management Support Services	p. 330
Business Processes	p. 330
Decision System	p. 330
Performance Measurement and Reward System	p. 331
Target Costing and Variable Budgeting System	p. 331
Author Biography	p. 333
Conclusion	p. 335
Referencesp339
Index	p. 343
Table of Contents provided by Ingram. All Rights Reserved.

Systems Thinking Third Edition

Managing Chaos and Complexity: A Platform for Designing Business Architecture

At a Glance

Paperback

Industry Reviews

Shipping

How to return your order

Defective items

You Can Find This Book In

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