Nadav Spiegelman

Thinking in Systems

Donella H. Meadows
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A system is a set of things—people, cells, molecules, or whatever—interconnected in such a way that they produce their own pattern of behavior over time.
The real choice in the management of a nonrenewable resource is whether to get rich very fast or to get less rich but stay that way longer.
Why do systems work so well? Consider the properties of highly functional systems—machines or human communities or ecosystems—which are familiar to you. Chances are good that you may have observed one of three characteristics: resilience, self-organization, or hierarchy.
In a policy-resistant system with actors pulling in different directions, everyone has to put great effort into keeping the system where no one wants it to be.
The structure of a commons system makes selfish behavior much more convenient and profitable than behavior that is responsible to the whole community and to the future.
Rule beating is usually a response of the lower levels in a hierarchy to overrigid, deleterious, unworkable, or ill-defined rules from above.
These examples confuse effort with result, one of the most common mistakes in designing systems around the wrong goal.
You have the problem of wrong goals when you find something stupid happening “because it’s the rule.” You have the problem of rule beating when you find something stupid happening because it’s the way around the rule. Both of these system perversions can be going on at the same time with regard to the same rule.
Leverage points frequently are not intuitive. Or if they are, we too often use them backward, systematically worsening whatever problems we are trying to solve.
Missing information flows is one of the most common causes of system malfunction. Adding or restoring information can be a powerful intervention, usually much easier and cheaper than rebuilding physical infrastructure.
If you want to understand the deepest malfunctions of systems, pay attention to the rules and to who has power over them.
Social systems are the external manifestations of cultural thinking patterns and of profound human needs, emotions, strengths, and weaknesses. Changing them is not as simple as saying “now all change,” or of trusting that he who knows the good shall do the good.
A society that talks incessantly about “productivity” but that hardly understands, much less uses, the word “resilience” is going to become productive and not resilient. A society that doesn’t understand or use the term “carrying capacity” will exceed its carrying capacity. A society that talks about “creating jobs” as if that’s something only companies can do will not inspire the great majority of its people to create jobs, for themselves or anyone else. Nor will it appreciate its workers for their role in “creating profits.”
Remember that hierarchies exist to serve the bottom layers, not the top. Don’t maximize parts of systems or subsystems while ignoring the whole. Don’t, as Kenneth Boulding once said, go to great trouble to optimize something that never should be done at all.
Is there anything that is not a system? Yes—a conglomeration without any particular interconnections or function. Sand scattered on a road by happenstance is not, itself, a system. You can add sand or take away sand and you still have just sand on the road.
Purposes are deduced from behavior, not from rhetoric or stated goals.
Keeping sub-purposes and overall system purposes in harmony is an essential function of successful systems.
A system generally goes on being itself, changing only slowly if at all, even with complete substitutions of its elements—as long as its interconnections and purposes remain intact.
A stock takes time to change, because flows take time to flow. That’s a vital point, a key to understanding why systems behave as they do. Stocks usually change slowly. They can act as delays, lags, buffers, ballast,
The presence of stocks allows inflows and outflows to be independent of each other and temporarily out of balance with each other.
A feedback loop is formed when changes in a stock affect the flows into or out of that same stock.
A balancing feedback loop opposes whatever direction of change is imposed on the system. If you push a stock too far up, a balancing loop will try to pull it back down. If you shove it too far down, a balancing loop will try to bring it back up.
Reinforcing loops are found wherever a system element has the ability to reproduce itself or to grow as a constant fraction of itself.
The time it takes for an exponentially growing stock to double in size, the “doubling time,” equals approximately 70 divided by the growth rate (expressed as a percentage). Example: If you put $100 in the bank at 7% interest per year, you will double your money in 10 years (70 ÷ 7 = 10). If you get only 5% interest, your money will take 14 years to double.
Seeing the Forest for the Trees:
The information delivered by a feedback loop can only affect future behavior; it can’t deliver the information, and so can’t have an impact fast enough to correct behavior that drove the current feedback. A person in the system who makes a decision based on the feedback can’t change the behavior of the system that drove the current feedback; the decisions he or she makes will affect only future behavior.
systems with similar feedback structures produce similar dynamic behaviors, even if the outward appearance of these systems is completely dissimilar.
Resilience arises from a rich structure of many feedback loops that can work in different ways to restore a system even after a large perturbation. A single balancing loop brings a system stock back to its desired state. Resilience is provided by several such loops, operating through different mechanisms, at different time scales, and with redundancy—one kicking in if another one fails.
A set of feedback loops that can restore or rebuild feedback loops is resilience at a still higher level—meta-resilience, if you will.
Because resilience may not be obvious without a whole-system view, people often sacrifice resilience for stability, or for productivity, or for some other more immediately recognizable system property.
This capacity of a system to make its own structure more complex is called self-organization
Like resilience, self-organization is often sacrificed for purposes of short-term productivity and stability. Productivity and stability are the usual excuses for turning creative human beings into mechanical adjuncts to production processes.
Complex systems can evolve from simple systems only if there are stable intermediate forms. The resulting complex forms will naturally be hierarchic.
Hierarchies are brilliant systems inventions, not only because they give a system stability and resilience, but also because they reduce the amount of information that any part of the system has to keep track of.
When a subsystem’s goals dominate at the expense of the total system’s goals, the resulting behavior is called suboptimization.
You can’t navigate well in an interconnected, feedback-dominated world unless you take your eyes off short-term events and look for long-term behavior and structure; unless you are aware of false boundaries and bounded rationality; unless you take into account limiting factors, nonlinearities and delays. You are likely to mistreat, misdesign, or misread systems if you don’t respect their properties of resilience, self-organization, and hierarchy.
Systems thinking goes back and forth constantly between structure (diagrams of stocks, flows, and feedback) and behavior (time graphs).
Bounded rationality means that people make quite reasonable decisions based on the information they have. But they don’t have perfect information, especially about more distant parts of the system. Fishermen don’t know how many fish there are, much less how many fish will be caught by other fishermen that same day.
Taking out one individual from a position of bounded rationality and putting in another person is not likely to make much difference. Blaming the individual rarely helps create a more desirable outcome.