Lean Systems Thinking Management is an approach to reduce waste in the implementation using a Peter Senge systems thinking methodology to business management. This systems thinking approach bridges system thinking theory to practice where day-to-day and strategic decisions can be made when thinking in systems.
A 9-step Integrated Enterprise Excellence (IEE) system will provide the means to accomplish lean systems thinking management. With the described ″thinking in systems″ approach, performance measurements will be readily available in a format that encourages system thinking when making decision. With this lean systems thinking management approach, waste will be avoided since silo thinking is discouraged, and the big picture will be enhanced through this decision making methodology.
Lean Systems Thinking Management and the Fifth Discipline
Peter Senge wrote the book, The Fifth Discipline: The Art and Practice of the Learning Organization, which was published in 1990. This book gives focus to the utilization of systems thinking for group problem solving. The described critical systems thinking methodology can create a learning organization in a company. Learning organization embraces the core capabilities of fostering aspiration, developing reflective conversation, and complexity understanding. The five disciplines of a learning organization according to Peter Senge are:
- Personal mastery highlights clarification and a depth evaluation of one’s personal vision so that energy focus leads to patience and the objective observation of reality.
- Effective action is taken through the utilization of mental models that incorporate assumptions, generalization, and images, which influence a worldly understanding.
- Construction of a common vision, which involves picture building of the future that leads to authentic enrollment and commitment instead of simple compliance.
- Creation of collective team thinking which initiates from team learning that originates from dialog with the suspension of assumptions.
- Integration of the above four for the creation of systems thinking; i.e., the fifth discipline.
In his Fifth Discipline book, Senge highlights:
- Mental models that give focus to uncovering shortcomings and the creation of openness.
- Team learning so that individuals better examine the larger picture
- Mastery of oneself so that there is motivation to continually learn
Achievement of Lean Systems Thinking Management
Much can be gained through systems thinking. However, to be effective in creating a learning organization, a system is needed which bridges system thinking theory to provide a structured methodology for Lean Systems Thinking Management. A methodology to accomplish this is called Integrated Enterprise Excellence (IEE).
The IEE Lean Systems Thinking Management methodology provides the following, which are needed to create an effective learning organization:
- Readily available scorecards in a format so that the enterprise is viewed as a system of processes and the performance metrics associated with these processes have a predictive format for reporting. This is accomplished through a clickable IEE value chain that has automatically updated metrics.
- The creation of systemic thinking where analytics can be utilized in a team environment so that improvement opportunities are identified, and the enterprise as a whole benefits from process enhancement work.
Lean Systems Thinking Management and Integrated Enterprise Excellence
Whole systems thinking of Peter Senge is accomplished through IEE Lean Systems Thinking Management, which consists of nine steps
Step number two of this system is the creation of an IEE value chain, which describes what an organization does and how it measures its performance so that the reported metrics can incorporate a predictive statement. An example value chain is the following, where the rectangular shapes can provide a drill down of organizational processes and the oblong shapes can provide current metric performance:
More Information about Lean Systems Thinking Management
How to achieve a Lean Systems Thinking Management structure through an IEE system is provided in the following article and recorded webinar:
- An article: “Positive Metric Performance & Poor Business Performance – How Does This Happen?”
- A recorded webinar: “From Business Chaos to Competitive Advantage”
For system thinking training options and information about how to create predictive performance metrics, call +1 512.918.0280.