Organisations don’t operate in a vacuum.
Challenges rarely show up as simple, isolated problems – they’re part of a messy web of connections between people, teams, processes, and external pressures. Tackling these issues requires more than surface-level fixes. It takes a deeper understanding of how the parts influence the whole. That’s where systems theory comes in.
This post kicks off a series where we’re breaking down complex ideas that are too often buried under layers of academic jargon. We’re here to show how these concepts, when put to use, can transform the way leaders, teams, and organisations work towards their goals.
What is Systems Theory?
Systems Theory is a framework that views organisations as dynamic, open systems interacting with their environments. These systems consist of interrelated and interdependent components (or subsystems) that work together as part of a unified whole.
Developed after World War II, Systems Theory shifted the perspective from viewing organisations as self-contained entities to recognising their dependence on external inputs (e.g., resources, information, and capital) and their impact on external outputs (e.g., goods, services, and societal contributions).
Key characteristics of a systems approach include:
- Interdependence: Subsystems are interconnected; changes in one area ripple across the whole organisation.
- Feedback loops: Continuous feedback shapes how organisations adapt and evolve.
- Environment interaction: Organisations draw inputs from – and contribute outputs to – their external environment.
The primary task
In the hectic, deadline-driven world of organisational life, it can often feel like we are juggling an endless array of priorities. Meetings, deadlines, projects, and competing demands can blur the focus on what’s most critical.
The concept of the primary task offers a way to cut through the noise.
The primary task is the activity or goal that is most essential for the organisation’s survival at any given time.
For private sector organisations, this is often straightforward: the primary task is to generate profit. However, for not-for-profit organisations or those with broader mandates, identifying the primary task can be more complex, often requiring careful analysis and negotiation of competing organisational priorities.
By clarifying the primary task, organisations can align behaviour, decision-making, and resource allocation with what truly matters. It provides a simple yet effective lens for determining what actions are “on task” and which are distractions.
Why is systems thinking important for organisations?
- Understanding complexity
Organisations are complex systems. Every decision, process, or interaction can influence others in unexpected ways. Systems thinking provides a holistic view, helping leaders understand these connections and anticipate unintended consequences. - Fostering collaboration
In a systems framework, silos are barriers to success. Recognising how different teams, functions, and processes interact encourages collaboration and alignment across the organisation. - Driving adaptability
Change is constant, and systems thinking helps organisations remain agile by identifying leverage points—areas where small, intentional changes can create significant impact. - Maintaining focus on the primary task
Systems thinking complements the concept of the primary task by ensuring the organisation remains focused on its core purpose. By understanding how various components interact, leaders can identify behaviours or processes that deviate from the primary task and realign efforts. - Avoiding tunnel vision
A systems approach prevents leaders from focusing too narrowly on individual components. Instead, it emphasises the importance of optimising the whole system rather than maximising the performance of individual parts.
Why we add psychology to the mix
While Systems Theory is a powerful tool for examining processes, structures, and relationships, it doesn’t fully account for the human element – emotions, behaviours, and cultural dynamics. At ig, we integrate organisational psychology into our systems approach, enabling us to address challenges on multiple levels:
- The Individual: Understanding personal motivations, biases, and behaviours.
- The Role: Examining how individuals function within their specific responsibilities.
- The Organisation: Exploring broader dynamics, culture, and systemic issues.
By combining Systems Theory with psychological insights, we help organisations create sustainable, people-centred solutions.
A practical example
Imagine a team struggling with productivity. A systems thinker might map out the factors influencing this issue – workflows, team dynamics, communication tools, and external pressures. Without considering the human element (e.g., burnout, trust, or leadership style), the solution may fall short. By layering psychological insight onto systems thinking, we uncover deeper issues and develop solutions that address both the technical and human dimensions.
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Systems Theory provides a vital lens for understanding the complexities of organisational life.
It’s not just about identifying problems but seeing the bigger picture – how everything is connected, and how small changes can create meaningful impact. By integrating systems thinking with organisational psychology and maintaining a clear focus on the primary task, we help leaders navigate the complexities of modern organisations with clarity and purpose.
Find out more about our approach here.