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Systems thinking (3rd ed.) : managing chaos and complexity: a platform for designing business architecture
Gharajedaghi J., Morgan Kaufmann Publishers Inc., San Francisco, CA, 2011. 376 pp. Type: Book (978-0-123859-15-0)
Date Reviewed: Mar 22 2012

This book is about systems and how systems thinking can be utilized to gain fresh insights and a better feel of the great game of business [1]. Our knowledge and understanding of effective business organizations is considerable, but typically omits a systems approach [2]. Perhaps no one more than Peter Drucker understood and portrayed the essence of it all--that organizations are systems, and human and organizational behavior is in the system as much as--or even more so than--the person:

There is one fundamental insight underlying all management science. It is that the business enterprise is a system of the highest order: a system the parts of which are human beings contributing voluntarily of their knowledge, skill, and dedication to a joint venture. And one thing characterizes all genuine systems, whether they be mechanical, like the control of a missile, biological like a tree, or social like the business enterprise: it is interdependence. The whole of a system is not necessarily improved if one particular function or part is improved or made more efficient [3].

This updated book by Gharajedaghi takes us further, providing new insights about organizations of all types as systems and utilizing a systems approach to understanding and designing organizations in turbulent times. It is divided into four parts. Part 1 introduces systems philosophy. It consists of one chapter, “How the Game Is Evolving.” Part 2 presents systems theory. It consists of three chapters: “Systems Principles,” “Sociocultural System,” and “Development.” Part 3 covers systems methodology. There are five chapters: “Holistic Thinking,” “Operational Thinking,” “Design Thinking,” “Formulating the Mess,” and “Business Architecture.” “Design Thinking” is new and noteworthy. Gharajedaghi, quoting Russell Ackoff, “the grand old man of systems sciences,” emphasizes that “design is the future of systems methodology and is the vehicle through which choice is manifested.” Part 4, on systems practice, concludes the book. It contains five comprehensive case studies on the Oneida Nation, the Butterworth health system, the Marriott Corporation, the Commonwealth Energy System, and the Carrier Corporation.

After reading this book, non-systems thinkers will begin to see the system; systems thinkers will better understand the system; and systems designers will have fresh insights and tools to better create and change systems. Customers and citizens will appreciate and enjoy the benefits.

Reviewer:  Ernest Hughes Review #: CR139999 (1208-0785)
1) Frederick, J. The great game of business: its rules, its fascincation, its services and rewards. D. Appleton & Co., New York, NY, 1920.
2) Schermerhorn, J., Jr.; Hunt, J.; Osborn, R. Organizational behavior, 9th edition. John Wiley & Sons, New York, NY, 2005.
3) Maciariello, J.; Linkletter, K. Drucker's lost art of management: Peter Drucker's timeless vision for building effective organizations. McGraw-Hill, New York, NY, 2011.
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