Systems thinking removes fear, improves culture, attracts talent

We’ve heard many interpretations of the job market during the past two years. While terms like the “Great Resignation,” “Great Exploration,” and “Great Renegotiation” all present different perspectives, the narrative remains the same: During the pandemic’s abrupt upheaval of normalcy, job seekers gained notable leverage in the job market and are using that leverage to be more intentional and selective about what they do next.  

This dynamic shift is challenging employers to consider how they attract new talent, retain the talent they have, and build a thriving culture that inspires employees. In a 2022 survey of family businesses from Family Enterprise USA, respondents indicated the availability of labor as one of their business risks, and that recruiting and talent retention is their greatest impediment to business growth in 2022/2023.

Thankfully, employers also have the luxury of choice – the choice to respond to this cultural shift and changing employee needs through intentional, sustainable organizational transformation. Adopting a culture of systems thinking is a powerful and effective strategy to achieve that aim. Systems thinking is the belief that everything in a business is connected to everything else, and this interconnectedness directly impacts an organization and its outcomes for the better. When businesses acknowledge and manage this interconnectedness, they empower their teams to operate with more intention and control, and the organization yields incredible results.

Dr. W. Edwards Deming, an American engineer and management expert, estimated that 94 percent of the problems in a business are created by systems that aren’t functioning as needed. It’s not the fault of an individual employee – it’s reflective of a system that needs attention. “A bad system,” Dr. Deming said, “will beat a good person every time.”  

A system is a network of processes, structures, patterns, and cycles that work together to accomplish a goal. In a business, a well-functioning system provides standards and order for teams and gives the organization a visible path forward. When all the components of a system work together efficiently, the organization flourishes. Employees view themselves as integral to a greater whole, teams do their best work, and the culture is rooted in empowerment and satisfaction.

Linear thinking exists in stark contrast to systems thinking. Instead of working from a network of well-supported components, linear thinking breeds frustration, stress, and chaos. Efficient processes don’t serve the organization (or don’t exist at all), communication is confusing, measures of success are hidden, and the same problems persist. Most urgently, change feels particularly alarming (if not impossible) with linear thinking. 

To be sure, businesses experience transformation all the time, whether it’s a global event like the pandemic, or a transition of leadership and management. Yet the same result continues: It’s far more challenging to weather transformation when your organization operates with linear thinking. Lack of transparency and order fuels confusion, exacerbates uncertainty, and makes recruitment and retention extremely difficult.

Systems thinking supports the proliferation of a “we” culture, instead of a “me” culture. In organizations that have adopted this approach, employees feel valued and supported (and more committed to their role). They look to the system for refinement, instead of finding a person or department to blame for poor performance. The network that buoys them up can sustain change, makes room for growth, and views failure as the precursor to innovation. In short, systems thinking allows people to thrive.

The “Great Resignation” presents a rare opportunity for employers to consider the biggest questions affecting their business and the teams who make it work. As an organization, are you running on isolation or interconnectedness? How is the system manifesting within workplace culture? Do you lead with “me,” or with “we?” 

Employers have a small window of time to maximize the potential of this “big shift.” To attract, retain, empower, and develop the best people with the strongest skills, look to the system of your organization.