Application of Systems Thinking Tools in Project Management

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Table of Contents
Introduction:...............................................................................................................................................1
General Systems Management:.................................................................................................................2
Risk management and engineering risk:....................................................................................................2
Identification of Risks..............................................................................................................................2
Evaluation of risks....................................................................................................................................2
Risk mitigation.........................................................................................................................................3
Organizational structure, forms and culture:.............................................................................................3
Portfolio alignment:....................................................................................................................................3
Business value:............................................................................................................................................3
Portfolio management process cycle:........................................................................................................4
Organizational Maturity:............................................................................................................................4
Reasons of the incident of BP Deepwater Horizon Oil Spill and Offshore Drilling:...................................5
Conclusion:..................................................................................................................................................6
References:.................................................................................................................................................6
Introduction:
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Systems thinking is a problem-solving tools and techniques that is based on system design and
analysis which helps to find ideal solutions to complex issues and assists to avoid unintentional
consequences (Sherrer, 2010). There are several tools that helps to analyze and provide various
information and understanding when applied in project of any organization. These tools include:
Brain storming tool, dynamic thinking tools, computer-based tools and structural thinking tools.
This paper includes application and relevance of several tools in the management of the
organization by using various ideas and theories like general systems management, portfolio
alignment, risk management system etc.
General Systems Management:
It is a vital concept that helps to develop organization and manage projects on the basis of
several function that are involved in an organization. It also reflects positive outcomes from any
project that is managed with the help of system thinking tools. There are several subsystems of
the general systems management that includes: matrix of the subsystem, goals, project
orientation, transformation, permanence (Kerzner, 2013).
Risk management and engineering risk:
It is very crucial to manage risks of ever project managing risks basically consists of two
important factors that involves risk assessment and strategy of risk mitigation. Risk management
and risk engineering are two important aspects that can regulate function issues and errors within
the organization. According to AS/NZS 15288 Systems engineering – Systems life cycle
processes these two aspects can reduce possible risks and functional issues that occurs during the
project within an organization. Hence the two methods i.e. system development and system
engineering incorporate various security aspects in order to engineer risks and risk management.
Identification of Risks
It is a process in which a checklist is used in order to find risk factors and the probability of
occurrence of these risk factors that has negative impact on the project. Many organizations
develop a checklist of the risks from their past experiences that has damaged their project. It
helps project mangers to identify the risks and to create plans to projects in a way that these risks
can be avoided (Kerzner, 2013). The experts in the organization, past experiences of team
member of project and experience of that project in the company are the valuable resources that
helps to identify potential risks of the articular project. Risks can also be identified on the basis
of the category that includes: technical, schedule, weather, political, financial, client etc.
Evaluation of risks
After the process of identifying risks, these risks are evaluated by project managers or project
team in terms of its probability of occurrence and possible loss it might cause. The critical risks
that have high impact and needs mitigation can be narrowed down on the basis of its high
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