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Systems Thinking - Explained

Written by Jason Gordon

Updated at January 11th, 2021

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What is Systems Thinking?

Traditional thinking assumes that the parts of an organization are independent of the whole. Systems thinking recognizes that organizations are intricate systems of interconnected parts - each of which has an effect and relationship to others. 

Back to: Business Management

There are two types of system:

  • Closed system - Closed systems function independently of the external environment.
  • Open system - Open systems continuously exchange information, material, and resources with the environment.

System openness is generally understood to be a relative state. That is, it can change. This is particularly true within organizations. 

There are also sub-systems within a system that have smaller purposes within a larger system. As such, there are various levels of systems operating independently.

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