Systems Thinking: A Path to Sustainable Organizational Excellence

Times are changing fast these days. Not only is life very complex, but the problems we face now in the world are closely connected. To get long-term lasting results, all the different parts of an organization need to work together smoothly toward shared goals. Because of all this, organizations have to use a system approach. This means looking at and handling all their connected parts and processes in a smart way. If they don't, the messy chaos of today's complex world will keep showing up in the messy performance of some organizations. Now, the question is: How can the people who lead an organization become known for doing all this really well, almost perfectly? And how can many organizations become "degree factories" that keep turning out leaders who make "lasting results" happen again and again?

A recent article argues that Systems Thinking is at the center of managing today's complex organizations, and this isn't just because many influential thinkers say so. Actually, what gives Systems Thinking this status is its power to help organizations move toward the sustainable excellence they dream of. The article explains this point in a simple but effective way and mostly uses the inconsistent ideas of authors like another article from 2023 by Rabieh, Pandari, and Amiri. From what I understand, this article says that when organizations use "abstract strategies for systems-oriented governance and management," they "make them part of daily operations in a concrete way." The authors of both articles use another idea from Rabieh et al. (2023). They say that achieving congruity in strategies and practices is mostly because "decision-making and problem-solving are understood as systematic endeavors."

Building on the critical role of Systems Thinking as a lens to simplify complexity and align strategies with sustainable goals, its impact also extends deeply into fostering a culture of innovation and enhancing resilience across organizational frameworks. Ershadi and Eskandari Dehdazzi (2019) underscore that systemic thinking not only clarifies intricate interrelations but also enables organizations to proactively identify opportunities for integrating creativity and vision within established operational paradigms. This integration is crucial for embedding innovative practices that remain coherent with the organization’s larger mission and objectives. By dismantling fragmented silos and encouraging cross-functional collaboration, Systems Thinking creates an environment where new ideas are both welcomed and effectively assimilated, ensuring that innovation does not become disruptive but rather complementary to sustained progress. Moreover, this framework provides leaders with a systematic approach to measure progress against desired outcomes, sharpening their ability to steer decisions that harmonize immediate needs with long-term aspirations. As Ershadi and Eskandari Dehdazzi highlight, this dual emphasis on enablers and results transforms periodic achievements into a cohesive narrative of excellence. Thus, by adopting Systems Thinking not merely as a methodological tool but as a foundational ethos, organizations can reinforce a trajectory toward enduring success while maintaining agility in the face of evolving demands.

We continue talking about how Systems Thinking can make an organization successful for a long time. Systems Thinking shows us the basic idea behind how leaders decide and how organizations become strong. Al-Abbadi and Alsmairat (2024) tell us that when organizations switch to systematic thinking, they make a big change in how they understand decision-making and the strength of their organization. But how does this change happen? How does systematic thinking help organizations improve how they make decisions and deal with problems? In the rest of this article, we will answer these two important questions. Then, we will talk about another related topic: how organizations work for good not just in short, but also in long ways.

In the end, it seems like Systems Thinking is more than just a framework; it's actually changing the way we think about how organizations deal with complex problems and big goals. It offers leaders at all levels an integrated view that helps them understand how all parts of the organization fit together and move in the same direction, even when the problems they face are straightforward (in terms of how many leaders are handling them) and the solutions are often "obvious" if you know the organization's internal and external context well enough.

Of course, this view is layered and not as simple as saying "you need to think systemically," but that's part of the problem we're trying to solve.

Dr. Terry Jackson is Executive Advisor, Thought Leader Marshall Goldsmith 100 Coach, Top 10 Global Mentor, and Change Leadership Architect. Dr. Jackson partners with Executives and Organizations to align Strategy, People and Processes to optimize and sustain Peak Business Performance.

Rabieh, M., Pandari, A. R., Amiri, Z., Esmaeili, M., & Naeini, S. M. (2023). The organizational systems thinking excellence model (OSTEM). Systems Research and Behavioral Science, 40(4), 740-756. Ershadi, M. J., & Eskandari Dehdazzi, R. (2019). Investigating the role of strategic thinking in establishing organizational excellence model: A moderating role of organizational forgetting. The TQM Journal, 31(4), 620-640. Al-Abbadi, L., Alsmairat, M., Alshawabkeh, R., & Rumman, A. (2024). The impact of strategic thinking on organizational excellence: An empirical examination in Jordan’s ICT sector. International Journal of Data and Network Science, 8(2), 1169-1178.