From the course, systems thinking is defined as an integrated approach founded on the belief that the individual parts of a system act differently from the system’s environment when in isolation from the other parts. Peter gives an example of a family to illustrate this point. He notes that young boys or even adults may make decisions that do not yield the family's desired outcome. These decisions have consequences that may not be favorable but will still affect the family because the linkages and interactions between the members comprise the whole system. In his speech, Peter notes that in the world, no one would want to make a species extinct or destroy the ecosystem, but this happens nevertheless. This occurs because the larger systems we have created produce those outcomes.
In practice, systems thinking inspires individuals to embrace positive inter-relationships and perspectives and boundaries because each person has their distinct discernment of the situation at hand. They must be focused on the scope and scale to do whatever it takes to improve the outcomes. At the workplace, systems thinking is a critical organizational concept that is suitable for addressing complex situations. These scenarios or problems cannot be solved by one person and cannot be understood from one perspective, so it needs different actors' cooperation. These adaptive systems also continually evolve, and as such, the people in an organization must also be dynamic thinkers, adaptive managers, and social learners.
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Systems thinking helps institutions see the bigger picture whenever they are encountered with an intricate situation. As the speaker notes, it enables individuals to identify the leverage points that can be utilized to get an insight on what they may be able to do differently for constructive results. As Daniel Kim notes, people need not see the tip of the iceberg, but rather the systemic structures that generate patterns because these form the basis of the decision-making cycle for a strong foundation. As a teacher, the concept can be used to produce better performance records for students.