This document outlines a breakfast seminar on systems thinking and how it can be used to deliver more with less. It introduces systems thinking concepts like defining a system, and compares it to more traditional analytical thinking. Key systems thinking techniques are explained like understanding current performance, customer demand, and flow. A case study from Edinburgh is presented that shows how applying these techniques led to fixing pot holes faster while staying within budget. The document concludes with further reading suggestions and contact details.

1. Delivering More for Less
The Systems Thinking Approach
Leeds, Wednesday 26th August 2010
Breakfast Seminar

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Presentation Outline
• An immediate vote of thanks
• Words of wisdom
• What is a “system”?
• Systems thinking versus analysis
• Key systems thinking concepts
• Case study
• Further Reading
• Contact Details
• Questions and answers

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An Immediate Vote of Thanks
To Professor John Seddon and Vanguard Consulting:
www.systemsthinking.co.uk
www.thesystemsthinkingreview.co.uk

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Words of Wisdom
“We cannot solve our problems
with the same thinking that we
used to create them.”
“We associate truth with
convenience.”

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What is a “System”?
“A system is an entity that maintains its existence
through the mutual interactions of its parts.”
(Ludwig van Bertanlaffy)
The Human Body Collection of Body Parts

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Systems Thinking versus Analysis
Systems Thinking
Ideal for “complex
problems” where:
• There is no definitive
definition of the problem
• There is no definite
ending to a problem
• There are no “right” or
“wrong” answers
• There is no ultimate test
of a solution (just “waves
of consequences over
time”)
• There are several ways
to explain a problem
Analytical Thinking
Ideal for “tame
problems” where:
• Problems can
clearly be defined
• Information is
gathered
• A solution can be
worked towards
• It is clear when the
solution is reached

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Systems Thinking versus Analysis
Systems Thinking Analytical (Command and Control)
Outside-in Perspective Top down
Demand, value, flow Design Functional specialisation
Integrated with work Decision making Separated from work
Designed against purpose,
demonstrate variation
Measurement Budget, targets, standards, activity,
productivity
Intrinsic Motivation Extrinsic
Act on the system Management ethic Manage budgets and people
What matters? Attitude to
customers
Contractual
Partnering and co-operation Attitude to
suppliers
Contractual
Adaptive, integral Approach to
change
By project / initiative

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Systems Thinking versus Analysis
Systems Thinking Techniques
(solutions are in the work)
• What and why of current performance
• Nature and variation of customer demand
• Failure Demand and Waste
• Purpose
• Flow
• Capability Measures
Typical Analysis Solutions
• Levels of service
• Front / back office split
• Information technology
• Shared services
• Procurement

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Systems Thinking Techniques
What and Why of Current Performance
WHAT?
WHY?

10. 18/09/2023 Delivering More for Less
Systems Thinking Techniques
What and Why of Current Performance
WHY?

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Systems Thinking Techniques
Nature and Variation of Customer Demand
WHAT?
WHY?

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Systems Thinking Techniques
Purpose
• Must be defined in customer terms
• e.g. “An efficient, safe and accessible highway network that
is value for money”
• De facto purpose – “meet the budget”; “meet the targets”;
“adhere to levels of service” drives the wrong kind of
behaviour

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Systems Thinking Techniques
Flow
• Understanding the precise path that work takes through an
organisation
• Too much functionalisation can result in convoluted
processes with multiple handovers (“I was passed from pillar
to post…”)
• Service costs are in flow and not scale
• Tracking the work often reveals unnecessary stages and
delays

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Systems Thinking Techniques
Failure Demand and Waste
• Demand caused by failure to do something or do something
right for the customer
• Between 20-70% of demand in service organisations is
failure demand
• Reducing failure demand reduces costs and improves
service
• Any activity that does not add value to the customer
• Not a reflection on the hard work people put in!
• Needs to be either designed out or separated from the value
work

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Systems Thinking Techniques
Capability
• Measures of performance from the customer’s point of view
• Examples:
o “End to end” time to fulfil request
o On time performance as required by the customer
o Percentage customer demand fulfilled at first point of
contact

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Case Study (City of Edinburgh)
• The “what and why” of current performance revealed:
o 3 day target to attend a pot hole once reported was
achieved 97% of the time
o Actual length of time to fix a pot hole was up to 333 days!
o Attendance at the site was reported as achieving the
target
o The target had led to an inappropriate quick fix that
required continuing return visits (totalling up to 7 returns
in some instances). Some repairs did not last the day.
o Problem was reacting to problems, and never focusing
upon what was important to residents of Edinburgh
o Gangs were chasing pot holes all over the city and not
focussing on their local area (only available 45% of the
time on their own patch)

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Case Study (City of Edinburgh)
• A service re-design was necessary:
o The purpose from a customer perspective was: “…to
permanently and systematically fix pot holes right first
time.”
o A contractor became 100% dedicated to a defined local
area
o Gangs deployed based on an empirical study of pot hole
demand
o Workmen were empowered to decide on the right repair
for the job; and given the time to do it properly

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Case Study (City of Edinburgh)
Capability Measure Before After (2 months later)
Maximum time to fix a pot hole
(days)
333 39
Number of jobs (per day) 60 150
• Budget – stayed the same
• A simple database record actual costs
• Accidents and claims payouts have fallen

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Key Messages
• A need to think differently about both the problems and
solutions
• The current spending crisis is an opportunity to test service
re-design
• A lack of money should not prevent thinking about a better
way
• Local solutions need to be found to local problems; but the
case study illustrates what can be done with the same
money
• The solutions cannot be imposed from outside or above:
they are within the control of the people “in the work”

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Further Reading
Books
• Middleton (ed.), Delivering Public Services That Work, Triarchy Press, Axminster, 2010
• Seddon, John, Freedom from Command and Control: a better way to make the work,
Vanguard Education, Buckingham, 2nd edition, 2005
• Seddon, John,
• Ackhoff, Russell, Systems Thinking for Curious Managers, Triarchy Press, 2010
• Senge, Peter, The Fifth Discipline, Random House, 2006
• Druve, Chetan, Why Your Boss is Programmed to be a Dictator, Cyan Books, 2007

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Contact
James Llewellyn
Local Authority Advisor
Atkins Transport Planning and Management
Rock House
Llanddewi
Llandrindod Wells
Powys
LD1 6SD
Tel: 07713 644798
E-mail: james.llewellyn@atkinsglobal.com
Blog: http://thescepticalmanager.blogspot.com/