System Thinking

Systems thinking involves understanding how different components of a system interact over time, focusing on connections and relationships between elements rather than individual components. This approach helps in comprehending complex systems by considering every part's interrelations and their contributions to the system as a whole.

Will Larson on the Lenny's Podcast explains systems thinking with an analogy of fishing in a lake. Stocks are things that accumulate such as the number of fish in a lake, while flows represent the movement from one stock to another, like fish being caught by fishers. This approach helps in understanding how changes in one part of the system impact others, potentially leading to unexpected outcomes 1.

Jeff Immelt shares an instance where systems thinking was applied at General Electric to identify emerging trends like the clean tech revolution by observing patterns across multiple businesses 2.

Orna Guralnik elaborates on using systems thinking in therapy, particularly in couples' counseling. The approach involves attendees adopting roles the system needs, often altering visible during stressed periods like holidays 3.

Tobi Lutke explains how he teaches systems thinking to develop an understanding that transcends cause-and-effect thinking, encouraging the examination of reinforcing systems that perpetuate specific outcomes 4.

For a detailed understanding through these expert insights, refer to the respective episodes on Lenny's Podcast, The Knowledge Project, Armchair Expert, and Invest Like the Best.