A systems thinking framework for problem solving and design

8/7/2019 A systems thinking framework for problem solving and design

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A systems thinking

framework for problem

solving and design in

worker co-ops

2008 AGM & Conference of the

Canadian Worker Co-op

Federation

Ikiene

15th November 2008


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Why systems thinking?

The name of the real devil

The name of the real devil is sub-optimization:Finding out the best way to do somethingwhich should not be done at all

Boulding, EK. 1970. Fun and games with the

Gross National Product. In The Role ofMisleading Indicators in Social Policy.


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Why systems thinking?

The name of the real devil

Sub-optimisation is like putting the ladder against the wrong wallfor where you want to go

When the marketing department pushes the organisation toproduce a greater variety of products and services than can be

handled cost-effectively, the higher cost of production can be tothe detriment of the organisation as a whole.

Many organisations have experienced this kind of sub-optimisation, pushing for the efficiency of parts of theorganisation at the expense of the whole.

More generally sub-optimisation is like solving the wrongproblem, or adopting a false solution due to a partialunderstanding of the problem

The aim of systems thinking is to understand the functioning ofthe organisation as a whole, the big picture. Its wholistic thinking


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Presentation Outline

An introduction to systems thinking

A systems thinking framework for problem solving

The Ideal design approach to problem solving

The potential role of the co-operative system in Sub-

Sahara Africa

Time for questions and discussion


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An introduction

to

systems thinking


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What is a system? A systems is a discernible whole (Dostal, E. Et al)

A system is an organised whole (Dostal, E., Et al)

A system is anything that has a name (Vickers, 1983)

Examples of systems are: a person, a car, a co-op, acompany, a country

Lets think of our co-op as the system being referred tofor the rest of this presentation


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What is systems thinking? A body of thought that describes the organisation and functioning of

systems

Systems thinking is based on a very specific view the world: namely that the world is made of systems which relate to and interact with

each other, and that each such system is part of one or more largersystems, and in turn consisting of smaller systems or sub-systems.

A co-op might have a production department, a marketing department and afinance department, which are sub-systems within the co-op. At the sametime, it forms part of an industry, a province, a country, etc.

Other terms that are often interchangeably used for this body of thoughtare systems approach, systems theory, and systems model.

Practically, systems thinking is applied or used for problem solving andfor systems design and can be remembered as such.


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Core principles of systems thinking

that set it apart from other paradigms

The whole is more than the sum of its parts

Means that new properties /characteristics or

qualities emerge at the level of the system from

the interaction of the parts, which are not inherent

in the parts.

E.g. Water is wet despite fact that hydrogen and

oxygen that form it are not wet. Marriage is

another example

Systems co-produce each other,

meaning that there is never a single cause to any

problem situation


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The significance of systems thinking

from a historical perspective

Different conceptions or views of the world have prevailed at differentstages in history

The magical worldview dominated the agricultural or pre-industrial era.It is characterised by the belief that life is determined by outside forces,and that the individual has no control over these forces.

The mechanistic worldview dominated the industrial age. It ischaracterised by the idea that the universe is like a machine, whichfunctions in a predetermined manner according to predetermineduniversal laws. According to this worldview, knowledge of a thing isderived from an analysis of its parts. Current science and technology islargely based on this worldview.

Growing awareness of the fact that an understanding of the parts was

not enough to predict the functioning of the whole meant that there wasa need for a new paradigm to understand the functioning of systems atthe level of the whole. Systems thinking came into being in the 50s toaddress this need.


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When do we need to use systems

thinking?

To solve a problem in a system such as a car following amechanical approach, the system is taken apart, the faulty partidentified, fixed and placed back in its appropriate place

This type of problem solving works well in mechanical systems

due to the fact that the functioning of such systems and of theirparts are predetermined. A car doesnt have a choice but tofunction as it was designed to do when all its parts are in goodworking order and properly assembled.

But mechanical problem solving fails when social systems areinvolved. Social systems are systems involving human beings.Due to the free will of the people in this type of systems, theirfunctioning is unpredictable as it is influenced by the choices ofthese people. Such systems are termed complex systems for thisreason.

For this type of systems, systems thinking is more appropriate.


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The Biomatrix systems theory

There are different schools of systems

approaches.

The Biomatrix systems theory is the one Iknow best.

And what I have shared in this presentation

and will continue to share for the rest of it is

primarily based on the Biomatrix systemstheory, developed by Dostal, E., Clote, A. and

Jaros, G. 2003.


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Summary

Why systems thinking? To produce an

understanding of the system as a whole, or

the big picture.

What is systems thinking? Its an approach to

problem solving and for systems design

When do we need to use systems thinking?

When dealing with social systems, systemsinvolving human beings.


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ASystems Thinking Framework for

Problem Solving


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The seven systems aspects

According tothe Biomatrixsystemstheory, eachorganisation,such as a co-op, displaysevendifferentaspects, justlike a coin ismade up oftwo sidesand a dice ismade up ofsix sides.

Governance

Ethos

Aims

ProcessStructure

Resources

Governance

Environment


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The seven systems aspects cont

The practical meaning of the seven systemsaspects framework is that the seven aspectsof an organisation must be understood for it

to be understood as a whole It also means that these seven aspects are

the STRATEGIC LEVERS or PLACESTOINTERVENE for the transformation of theorganisation.

Any shift in any one of these seven aspectscan produce big changes in the wholeorganisation.


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The meaning and importance of ethos

Ethos of a system refers to the ideas, beliefs, values, theoriesthat lie at the core of that system.

In the business context, ethos refer to the organisational culture,the mindset within the organisation, which is responsible for theunfolding of the organisation.

Ethos are often unstated. And understanding them or theorganisational culture therefore goes far beyond the list of statedvalues

The more fundamental or drastic the change in ethos, the moredrastic or radical will be the change in the system. E.g. Religiousconversion, which is nothing but the result of a change ofreligious beliefs

Sooner or later, the ideas contained in the ethos get activatedand are put into form. What the system believes and values, itwill manifest and become, as in the famous expression: As youthink, so you will become (Dostal,E. et al)

For this reason it has been correctly said that ethos is destiny


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The meaning and importance of the

aims aspect

The aims of a system refer to the results that that system want toachieve

In the context of a business organisation, a co-op or another formof organisation, the aims correspond that organisations vision,

goals, strategies. Living intentionally: Without visions, representations, there is no

actions, only reactions (De Jouvenel)

Aims create focus.

As soon as a clear purpose has been formulated, opportunities

begin to arrive seemingly in miraculous ways.T

here is howeverno other miracle than that of day-to-day happenings becomingmeaningful. It is the miracle of focused attention (Dostal,E. et al.2003)

Co-ops or other organisations that fail to define aims cannot siftinformation in a purposeful, thus missing many opportunities.


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process aspect

The process describes the activities of thesystem

In the business context, the process refers toproduction activities, or the activities involvedin the delivery of services to the customers.

The process must be analysed to identifyinefficiencies and also to ensure maximalutilisation of resources though wastereduction and utilisation of by-products

Processes must also be designed to achieve

more with less. E.g.S

haring of infrastructures


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structure aspect

In the context of business organisations, the structure aspectrefers to the organogram

Just like the arrangement of the furniture in the room regulates

the flow of traffic through the room, organograms acts like achannel within which the activities of an organisation take place E.g. The flow of planning and decision making activities is regulated

by the organisational structure

Organograms also create the stability and continuity of theorganisation in an otherwise changing environment. Structuresoutlive people and perpetrate the organisational culture.

But this also means that structures play a role in maintaining thestatus quo. If old structures persist while new aims andprocesses are being pursued, the chance of success is limited(E.Dostal)


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governance aspect

The function of governance in an organisation is toset aims and to regulate the movement of theorganisation towards the attainment of these aims

Setting the aims of the organisation is to decide for itwhat to aim for, e.g. the monthly volume ofproduction

And regulation relates to the planning of the courseof activities

Governance influences all the other aspects of thesystem and was drawn in the middle of the sevensystems aspects for this reason.


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resources aspect

The resources aspect refer to the resources of

the organisation, such as its capital

equipments, financial resources, intellectual

property, etc.

Setting the aims of the organisation is to

decide for it what to aim for, e.g. the monthly

volume of production And regulation relates to the planning of the

course of activities


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environment aspect

The environment of an organisation consists of its transactionalenvironment, which is the environment which the organisation isdirectly connected

And the contextual environment, which is the part of theenvironment over which the organisation has no control over butmust adapt to

But even adapting to the contextual environment requires anunderstanding of it, how it is likely to change and how this couldimpact the organisation

A organisation can widen its influence and extend itstransactional environment by aligning with stakeholders todeliberately extend their influence

E.g. a co-op cannot influence legislation, but a a lobby of coops

such as the CWCF can.


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Summary

The seven systems aspects provide a

framework for a wholistic understanding of

business organisations or problem situations

within these organisations.

These seven aspects are also strategic

levers or places to intervene for thetransformation of an organisation


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TheIdeal Design Approach

to

Problem Solving


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What does the Ideal Design approach

to problem solving consists of? The ideal design approach consists in

dissolving the problems that exist in ansystem by creating a better system

It is a case of Dissolving rather than Solvingbecause the problems inherent in the existingsituation disappear with the replacement ofthat situation, and are replaced with the newrealities of the new situation.


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Why is the Ideal Design approach to

problem solving a correct approach?

OrWhat is the rationale behind it? The ideal design approach is based on the fact that the logic of a problem is not

the logic of the solution. By solving a problem , one stays in the logic thatcreated the problem. E.g. solving the problem of disease is focused on getting rid of the disease through

medication. But a focus on health as an ideal inspires a different logic, healthproducing strategies such as nutrition and exercise, which eventually dissolve thedisease.

Eliminating a problem does not necessarily lead to the ideal situation. E.g. Punishments are designed to eliminate specific undesirable behaviours. But an

ideal behaviour must be inspired by ideals values and rewarded. It will never becreated by punishments alone.

So the point is to focus on creating the desirable, the ideal, rather than on

getting rid of the undesirable. The logic of the ideal is a higher order logic.

E.g. By researching disease, one will not find the attributes of health. By researching achilds addiction to drugs, one will never find the attributes of a disciplined child. Suchdiscipline belongs to a higher level than the addiction.

The values of the cooperative system cannot be found by researching capitalism

The attributes of a co-op will never be found in a capitalist system


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How is the Ideal Design approach to

problem solving applied in practice? Experience shows that people find it difficult to imagine ideals. It

seems far easier for people to say what is wrong in their life andorganisation than to imagine the ideal situation

For this reason, a practical method developed by the Biomatrixgroup (Dostal, E.et al ) for the formulation of ideals is to start by

brainstorming the problems. These problems are then used as stepping stones for creativity.

These problems will point to the areas in which there is a lack ofideals.

Ideals are thus brainstormed to replace the current problemsituation

The brainstormed ideals are then integrated into a coherentdesign, using the seven systems framework, to ensure that youhave a complete, wholistic design, that does not miss importantparts or aspects of the organisation.


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What must be done after ideals have

been formulated? Once ideals have been formulated, strategies must be formulated and

implemented to bridge the gap between the current and ideal situations.This process is referred to as

BACK CASTING.

Current

situation

Ideal,

imagined

future

Projected

futures

Projections of current

situation and its trends

Back casting

TimeCourtesy of Dostal, E. et al, 2003


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Summary

When solving a problem, do not focus on the

problem itself. Focus on the ideal, what should be

rather than what should not be.

As you replace the current situation with the idealsituation, the problems that were inherent in the

existing situation will disappear of their own accord.

To formulate ideals, use an understanding of the

current problems as stepping stones for creativity.

Once ideals have been formulated, strategies that

are required to attain or approximate these ideals

are formulated and implemented.


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The

Potential Role

of

the Co-op Systemin

sub-Saharan Africa


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The problem of exploitation in Africa?

Africa and sub-Sahara Africa in particular are characterised by:

Widespread and abject Poverty of its people, to an extent thatmost are deprived of the most basic necessities: food,healthcare, education, etc.

Very rich natural resources, including above ground andunderground resources, ranging from a very arable soil,natural hydroelectric potential of its rivers, to abundantreserves of mineral resources,.

How can such widespread poverty co-exist side by side with soabundant mineral wealth and other natural wealth?

The answer lies in the Exploitation of its people and its naturalresources through various forms of profit driven investorsactivities.


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The spirit, or core values of the co-op

system and its potential role in sub-

Sahara Africa?

Collective/group approach

Collective strength,financially and otherwise,capable of helping peopleto help themselves

Stronger and morecapable of resisting

exploitation in unity, usingthe strength of thecollective

Promotes commoncollective interests

Individual approach

Limited individualcapacity, financially and

otherwise, powerless

individuals who are

unable to help

themselves

Weaker more likely to

succumb to exploitation

Promotes selfish

interests

Core values of a

Co-operative system

Core values of the

capitalist system


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Sahara Africa?

Local, decentralised

control of resources Economic and social

liberation for all

Economic democracy

Creates local long term

&sustainabledevelopment

Core values of a

Co-operative system

Core values of the

capitalist system

Centralised control of

resources to maximise

profit

Maximum profit in the

hands of a few

Centralised wealth,

creating the Haves &Have-nots, the

exploiters & the

exploited

Drainage of local

wealth


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Sahara Africa?

Democratic

Empowering

Equality

Responsibility

Core values of a

Co-operative system

Core values of the

capitalist system

Undemocratic

Suppression

Oppression


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Summary

The co-operative system can bring a

fundamental structural or systemic change,

not just some improvement or mitigation to

the negative impacts of the capitalist system.


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HowThe Co-op system

is already making a difference in

Kenya and South Africa?


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The Co-op movement in

South Africa

The first coop in South Africa was formed in 1892

The National Cooperative Association ofSouth Africa (NCASA)was formed in 1997, to serve as the Apex structure or umbrellabody for sectoral affiliates of all cooperatives in the country.

NCASA was very instrumental in creating a legal and policy

framework for the development of the cooperative movement andalso in facilitating the formation of sectoral bodies. A key funderfor the formation of this umbrella body was the CanadianCooperative Association


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The Co-op movement in

South Africa (continued)

Today, the picture of the co-op movement appears as follows: There are three national policy pillars for the development the co-operative

movement,

including the cooperative development policy forSouth Africa,

a cooperative Act (2005), and

a national strategy on co-operatives still at a draft stage

The following sectoral bodies

South Africa Housing Cooperatives Association (SAHCA), which has 50housing cooperatives affiliated to it, and 12,500 members

The Savings and Credit Cooperative League (SACCOL) ofSouth Africa, whichhas 40 SACCOs affiliated to it and 50,000 members.

The Federation of Burial Societies

Attempts are being made for the formation of a sectoral body for workercooperatives

16,994 registered stand alone co-operatives. Growth and concentration of cooperatives are mainly in two provinces in which

there is a high concentration of poor rural populations: Kwazulu Natal (40%)andEastern Cape (19%)

Agricultural sector tops the list with 27%, followed by multipurpose co-ops (25%).

125 worker co-ops, just under 1%.


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The Co-op movement

in Kenya In Kenya, there is

A ministry of cooperatives

a national apex organisation of co-operatives, the Kenya Federationof Co-operatives, and

8 sectoral organisations.

Over 11,000 registered co-operatives in 2007

A co-operative tribunal which has handled over 2000 disputes sinceits inception in 2000

A co-operatives ethics commission was established in 2003 to focuson issues of good governance and ethics in the movement

A cooperative college since 1952: the Co-ops College of Kenya

Kenyan co-operatives account for 45% of the GDP

In 2007, 31% of the gross national savings was mobilisedthrough co-ops

250,000 people are directly employed by co-ops

Membership of over 6 million

About 63% of the Kenyan population directly or indirectlydepends on the co-op activities


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Stories ofselected successful

co-operatives in sub-Sahara

Africa


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Oromia Coffee Farmers Co-operative

union, Oromia province, Ethiopia Was formed after study tours to different parts of the world by key members of

Oromia cooperatives

The union is responsible for ensuring certification standards, packaging,marketing and distribution, and farmer development programs

129 coffee co-operative societies representing 128,361 farmers in 2007

Individual cooperatives found it difficult to access international markets

The union assisted in getting fair trade and organic certification

With the fair trade labelling organisations (FLO) premiums, the co-ops get anextra 10 US cents per kilogram

The FLO premiums go directly to the co-ops societies for grassroots socialservices (clinics, schools, electrification, potable water)

Out of 236,482 hectares under cultivation, over 70,000 hectares are organiccertified

Also, by taking over the marketing and distribution processes, the co-op unionhas eliminated two to three middlemen. Coffee goes from the farmers to the

farmers cooperatives to the coo-op union and then directly to the markets. The coop is further expanding its role by building a processing plant

The union and its members own 70 warehouses, 55 pulperies, and 15 hulleries

Success attributed to high managerial capacity, bottom up development andwidespread support from inception, learning from experiences,


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Co-operative Insurance Company of

Kenya

The 8th (out of 43) largest insurance enterprise in

Kenya

Entirely owned by co-operatives

Ensures loans forSACCOs against death and

disability, and the traditional range of insurance

products for co-operatives and co-operative

members including home, automobile,

commercial, individual and group life products

Had 12 branches and relationship managers forco-operatives across the country in 2007


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Sodla-Sonke Cleaning Co-operative

South Africa Was founded by 13 unemployed residents who all had to pay R300 (about 100

Canadian dollars)

Members were willing to forego their salaries to buy their first truck

There is a flat structure, with no hierarchy among the members and they paythemselves a flat rate

Each member is supervisor of one of the co-op functions (e.g. truck, streetsweeping, litter picking etc.) And each member is responsible for

Below the members are the 28 employees of the cooperative, and temporarystaff employed on a two-months contract basis

The primary activity of this coop is waste management, including refusecollection, street sweeping, litter pick up, and collection of illegal dumping

They have divided their area of work into 5 districts, and dedicated each districtto a particular day of the week.

Also involved in environmental awareness through lessons in schools,meetings with community, visits to churches, and in pubs and other

recreational areas It has even organised clean the park days with the local schools

It has also sponsored community events such as a massive tree plantinginitiative programs in the community, with the slogan ofcleaning andgreening

Has provided permanent employment to 28 people and temporary employmentto an additional 10.


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Khayamandi

Women in Development, South Africa

A brick-making co-operative initiated by

unemployed women in 2000

Started with 20 members

The co-operative has managed to pay somewages every month,

Has not managed to be awarded

government tenders but work as sub-

contractors

Have now diversified to include poultry to sell

chickens and eggs to the local community


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Closing

The co-operative movement which is

gradually gaining ground in our economic

life, because it represents the highest truth ofman, the truth of his unity, is also the true

wealth of the people

Rabindranath Tagore, August 20th, 1939

A systems thinking framework for problem solving and design

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