Systems Thinking Report: Analyzing Company Problems and Solutions

This report focuses on applying systems thinking to address operational problems within a company, specifically XYZ. The introduction defines systems thinking as a holistic approach that considers the interconnectedness of different parts within a system. The discussion section analyzes the impact of the company's poor performance on stakeholders, including customers, employees, and shareholders. The report then proposes solutions using a systems thinking approach, such as implementing an incentive system to regain customers and improve operational efficiency. The application of systems theory is highlighted, emphasizing the importance of understanding the relationships between system components to achieve synergy and solve complex problems. The conclusion reiterates the value of systems thinking in identifying and addressing organizational issues by viewing the system as a whole. References to supporting literature are included.

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Name of Student
Name of the University
Author Note

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Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Impact on the stakeholders..........................................................................................................2
How to solve the problems using systems thinking.....................................................................3
Conclusion.......................................................................................................................................3

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Introduction
Systems thinking refers to the approach that focuses on the different parts that are
interrelated with each other for the systems operations. In this respect it is important to
understand the systems theory (Haines, 2016). This holistic approach can help in solving the
organizational problems by looking at things as a whole rather than seeing them in individuality.
XYZ is a company that is presently losing its customers to its competitors due to various reasons.
The main aim of the paper is to help the company in solving the problems that is being faced by
it by making use of the systems theory.
Discussion
Impact on the stakeholders
The company XYZ is losing customers to its competitors due to poor operations of the
company and the various scandals that the company has engaged in. The company is engaged in
providing various financial services to its customers, mortgages, loans and various other
services. By making use of systems thinking to day operations the operational inefficiencies
could have been avoided by the company. The poor operational performance of the company has
an impact on different stakeholders of the company. The organizational stakeholders are the
customers, the employees, the shareholders of the company and others (Williams et al., 2017).
The customers were directly affected because due to the poor performance of the company the
company lost them to their competitors and the company also their goodwill among many of its
loyal customers. The employees of the company are also questioning the organizational practises
adopted by the company. The shareholders are losing their trust on the company due to its poor
performance.

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How to solve the problems using systems thinking
In order to solve these problems being faced by the company, the company has decided to
adopt an incentive system through which the company can not only gain back its customers and
its market share but also help to engage its customers. The company will be giving incentives to
the employees who can bring customers for the company (Berry et al., 2018). The company has
decided to adopt the systems thinking approach in order to improve its operations. Systems
thinking makes use of the systems theory which includes various parts and sub-parts and systems
thinking involves making an attempt to understand the relationship between all the parts of
systems. A system has boundary and the goals of the parts needs to be aligned to the systems
goals in order to achieve synergy. Therefore a system comprises of different parts that are
continuously interacting with each other in order to achieve a common purpose. Systems
thinking involve understanding the complex problems in a better way in order to provide proper
solutions and therefore help in taking better decisions. In order to ensure the proper operations of
the new incentive system, the company will apply systems thinking to understand the problems
that will arise with the adoption of the new system in the organization.

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Figure 1: System Theory
Source: (Arnold & Wade, 2015)
Conclusion
From the above discussion it can be concluded, that systems thinking helps in seeing the
different parts of the organizational system as a whole and therefore helps in identifying the
problems in a better way and providing solution accordingly.

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References
Arnold, R. D., & Wade, J. P. (2015). A definition of systems thinking: a systems
approach. Procedia Computer Science, 44, 669-678.
Berry, H. L., Waite, T. D., Dear, K. B., Capon, A. G., & Murray, V. (2018). The case for systems
thinking about climate change and mental health. Nature Climate Change, 8(4), 282.
Haines, S. (2016). The systems thinking approach to strategic planning and management. CRC
Press.
Williams, A., Kennedy, S., Philipp, F., & Whiteman, G. (2017). Systems thinking: A review of
sustainability management research. Journal of Cleaner Production, 148, 866-881.