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Value-creating systems and business models: systems thinking inside

On my quest for management research based on systems theory, I’ve generally been disappointed since the systems foundations are rarely apparent from a superficial reading. Typically, when I read management research, I get a queasy feeling inside, because a lot of the content written is anti-systemic.

In contrast, when I read Johan Wallin‘s 2006 book, Business Orchestration: Strategic Leadership in the Era of Digital Convergence, I felt strangely comfortable. I attribute this to the lineage from which Wallin has come, so that there is “systems thinking inside”. Wallin completed his dissertation in 2000 in association with Rafael Ramirez. Ramirez is a graduate of the Social Systems Science (S3) program1 at the University of Pennsylvania, and now a professor at Oxford. In addition, Wallin worked closely with Richard Normann, immersing him in the Value Constellation model. I suspect that the average reader would be oblivious to the fine distinctions that systems theory makes. For management researchers, however, such foundations enable a strong scientific foundation, rather than simplified metaphors that break down under scrutiny.

Comparative systems analysis at Cal Poly Pomona

I really wish that I had the time to join this course … but I’m trying to stay focused on completing my dissertation over the next few years!

At the Sonoma 2006 meeting of the ISSS in July, Len Troncale, Lynn Rasmussen and Todd Bowers had a workshop describing the study of 80 systems processes. They’re now maintaining a blog with a report of their experiences from fall 2006, and have announced of a new session beginning January 2, 2007.

In my work with the ISSS, one of my concerns is that the systems movement needs to advance and continue to move forward. A lot of people in business come to systems thinking through writers like Russell Ackoff, but I claim that the last significant influential systems writing in management was published by Eric Trist in 1981, for the Ontario Quality of Working Life Centre. (When was the last time you heard about Quality of Work Life?)

The problem that I have with systems theory is that a lot of it is really modernist, and most continuing research streams acknowledge postmodernism, if postmodernism isn’t already a central philosophical foundation. Having systems theory stagnate in the 1980s helps no one, and it’s arrogant to believe that 1980s researchers knew everything.

When David Hawk encouraged me to continue doctoral studies at the Helsinki University of Technology, he said that I really should complete the degree, but the way to do that was to continue to study my natural interests.… Read more (in a new tab)

Metaphors and Models

What is a business?  How can (or should) an expert business practitioner relay his or her knowledge to another interested party?  Trying to understand these questions leads down a path of debating the merits and demerits of understanding through metaphors, and understanding through models.  This eventually ends up with a discussion of roots in philosophy of science.

During the Seiad project in 1977, Ian Simmonds and I had many discussions about understanding business, filling up the whiteboard in his office at the Watson Research Center.1 My studies into business strategy reflected the two primary foundations:  microeconomics  — Michael Porter is a leading proponent of this approach — and organization theory  — with roots in the research of the Tavistock Institute, and the sociotechnical systems thinking from Fred Emery and Eric Trist.  Add onto that my personal bent towards decision support systems — Peter Keen‘s research while at CISR at the Sloan School at MIT was highly influential — and a strategic view of marketing that can be described as Market-Driven Strategy, as described by George Day.  These all represent models of business.

Ian — as I recall, starting from a side discussion with Doug McDavid — brought up an alternative approach to businesses, with the book: Images of Organization, by Gareth Morgan.  I had a visceral response to this work, because it prescribed the use of metaphors to describe business.  The problem that I’ve found with metaphors is that they relay an initial — and possibly superficial — portrayal of business.… Read more (in a new tab)

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    • daviding: “Pre-announcing April 30 Dialogic Drinks session I'm leading …” April 23, 2024
      Pre-announcing April 30 Dialogic Drinks session I'm leading on "#Yinyang and Daojia into #SystemsThinking through Changes", online 18:30 Singapore, 11:30 London, 6:30am Toronto. Repeating May 2, 8:00pm ET. Official #EQLab notifications https://www.eqlab.co/newsletter-signup
    • daviding: “Diachrony (or diachronic shifts) resurrects a word from 1857…” April 10, 2024
      Diachrony (or diachronic shifts) resurrects a word from 1857, better expressing *changes through time*. A social practice publication in 1998 contrasts synchronic with diachronic. https://ingbrief.wordpress.com/2024/04/10/diachronic-diachrony/
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      Hosting multiple Dialogic Drinks on "From Unfreezing-Refreezing, to Systems Changes Learning" online, March 12 (Europe), March 14 (Americas), March 15 (Australia). #Leadership meets #SystemsThinking . Short presentations, longer discussions https://www.eqlab.co/from-unfreezing-refreezing-to-systems-changes-learning-david-ing
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    • The Nature and Application of the Daodejing | Ames and Hall (2003)
      Ames and Hall (2003) provide some tips for those studyng the DaoDeJing.
    • Diachronic, diachrony
      Finding proper words to express system(s) change(s) can be a challenge. One alternative could be diachrony. The Oxford English dictionary provides two definitions for diachronic, the first one most generally related to time. (The second is linguistic method) diachronic ADJECTIVE Oxford English Dictionary, s.v. “diachronic (adj.), sense 1,” July 2023, https://doi.org/10.1093/OED/3691792233. For completeness, prochronic relates “to […]
    • Introduction, “Systems Thinking: Selected Readings, volume 2”, edited by F. E. Emery (1981)
      The selection of readings in the “Introduction” to Systems Thinking: Selected Readings, volume 2, Penguin (1981), edited by Fred E. Emery, reflects a turn from 1969 when a general systems theory was more fully entertained, towards an urgency towards changes in the world that were present in 1981. Systems thinking was again emphasized in contrast […]
    • Introduction, “Systems Thinking: Selected Readings”, edited by F. E. Emery (1969)
      In reviewing the original introduction for Systems Thinking: Selected Readings in the 1969 Penguin paperback, there’s a few threads that I only recognize, many years later. The tables of contents (disambiguating various editions) were previously listed as 1969, 1981 Emery, System Thinking: Selected Readings. — begin paste — Introduction In the selection of papers for this […]
    • Concerns with the way systems thinking is used in evaluation | Michael C. Jackson, OBE | 2023-02-27
      In a recording of the debate between Michael Quinn Patton and Michael C. Jackson on “Systems Concepts in Evaluation”, Patton referenced four concepts published in the “Principles for effective use of systems thinking in evaluation” (2018) by the Systems in Evaluation Topical Interest Group (SETIG) of the American Evaluation Society. The four concepts are: (i) […]
    • Quality Criteria for Action Research | Herr, Anderson (2015)
      How might the quality of an action research initiative be evaluated? — begin paste — We have linked our five validity criteria (outcome, process, democratic, catalytic, and dialogic) to the goals of action research. Most traditions of action research agree on the following goals: (a) the generation of new knowledge, (b) the achievement of action-oriented […]
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    • What to Do When It’s Too Late | David L. Hawk | 2024
      David L. Hawk (American management theorist, architect, and systems scientist) has been hosting a weekly television show broadcast on Bold Brave Tv from the New York area on Wednesdays 6pm ET, remotely from his home in Iowa. Live, callers can join…Read more ›
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