Business Innovation for Shell, Rolls Royce, ABB and the world.

Many Companies, Universities and Governments ask me about Systems Thinking. What use is it? How will it help my startup business? Or what are the economic benefits for communities?

What most educationalists don’t understand (Education is usually behind what happens in technology and best business practices. by about 10-20 years) is that it is used consistently by the world's most successful businesses and scientists. That includes Tesla, Google and Amazon. My innovation consultancy experience is limited to Shell, Rolls Royce and ABB however, they all follow the same basic principles that I have used to help startups and big businesses. Crucially, systems thinking is an ongoing process that is not static and why many start businesses fail (usually about 70 to 80% in the first year according to Birch) – if they adhere too strictly to their yearly business plans (which are out of date as soon as they are written). Mindset, systems thinking and preparation are key.

 Systems Thinking prepared?

Collecting relevant data, market research and first principles are the first part. However, 9 times out of 10 this is usually where the first problems occur. You cannot deduce what the right questions should be in a ‘systems thinking’ problem with a linear thinking mindset.

The starting point therefore is not the system itself and how you map out the problem, rather it is the prepared mindset you have to develop. We call this Foresight Leadership and we help teams to understand the significance of an Entrepreneurial mindset that learns to anticipate the significance of emergent events in terms of relationship building.

With Shell we didn’t just focus on the business model (oil and gas production) we looked at the potential for renewable energy sources and the technologies that would reduce carbon emissions. We launched and marketed a brand new company because of the investigations and systems thinking we initiated at Shell - (Shell Global Solutions).

Energy transition is a complex challenge that no single entity can evaluate alone, therefore collaboration with competitors would yield interesting results that would be mutually beneficial. This was previously unheard of – collaborating with competitors? Systems Thinking facilitates this 'openness' and it produces amazing results. The greatest advances in technology are through cooperation. In Shell's case this includes green energy, biofuels and energy storage solutions or looking at how waste could be reused as a starting point.

Scenario Planning is one of the creative lessons and exercises and is fun and helps entrepreneurs to imagine a successful future that is not based on the current paradigms. This is all part of the preparation for Innovating in Systems Thinking and will inhibit linear thinking that usually involves quick and erroneous fixes. Gathering data for the sake of will not produce anything worthwhile unless we are asking the right questions. Identifying patterns is not sufficient. The problem with mapping out the information is that priorities can be lost in the noise, imagine we are looking at pebbles on a beach? But we are looking for Gems. Many of the teams can lose sight of strategic forethought - this is where Foresight Leadership has an important role to play. Sometimes it is the unseen dynamics that has the biggest influence on outcomes. however, we need to be in the right frame of mind to see them.

It is worth reproducing the opening diagram - please feel free to ask any questions arising from your read.

We integrated 'systems thinking' into all of the business models for Shell, Rolls Royce and ABB. Likewise for all of the businesses we help – and we have helped hundreds of start-ups as well as corporations. The great thing about using systems thinking in start-ups is that they are more ready to work with bigger companies – because they will have the mindset and the capacity to readily understand the issues those companies will be facing.

A small manufacturing business we helped felt they were unable to expand because they were not big enough to face the clients they would prefer to have. Systems Thinking changed expectations and the same companies now export all over the world. Why? because they understood the bigger more holistic issues that their clients face, see my LinkedIn for the small companies, many were family businesses that got into trouble and we helped rescue them.

 Anyway, if any of this is useful and you would like to receive regular blogs on systems thinking and how innovation works, just let me know. Or you could look up systemicinnovators.org

Alternatively, see moonshotechs.com

Introducing systems thinking and entrepreneurship to children and young people in order to better equip them for the future. To see themselves as part of something bigger, so that they learn to interact with, and respect the sustainable needs of whole communities, across geographic borders and cultures.

Systems Thinking will help with Science Development, Technology, Business, Learning, Education, Health and Wellbeing. It will help to create a society that is both economically vibrant and ready for the future by empowering all of our people. Governments and policymakers take heed, these processes led by powerful businesses will lead us to a better world. We all need to embrace these processes and be a part of the solution and not just leave it to the privileged few.