System Dynamics and Organizational Learning

Abstract

Glossary Causal loops Causal loops (model) are visual maps that connect a group of variables with known or hypothesized cause and effect relationships. A causal loop can be open or closed. Causal loops can be used for complex problem solving/decision-making, consensus building, conflict resolution, priority setting, and group learning. Delay Cause and effect relationships are often not close in time or space. The lapse time between a cause and its effect is called a systems delay or simply delay. Because some delays in physical, natural, and social systems are rather long, they mask the underlying or earlier causes when effects become evident. This provides confusion and unintended consequences , especially in social systems, such as economics, education, immigration, judicial systems. Feedback In a cause and effect chain (system), feedback is a signal from the effect/s to cause/s as to its/their influence on downstream effect/s. Feedback can be information, decision, or action. For example, if X causes or changes Y, Y in turn could influence or change X directly or through other intervening variables. This creates a closed "causal loop" with either a positive or amplifying feedback (reinforcing-R) or a negative feedback with damping, counteracting, or (balancing-B) effect. Flow Flow or rate represents change or movement in a stock, such as buying assets, building inventories, adding capacity, losing reputation or morale. Flow is measured as "per unit of time" like hiring rate (employees hired per year, production rate (units made per day), or rainfall (inches of rain per month). Leverage Leverage refers to decisions and actions for change and intervention which have the highest likelihood of lasting and sustainable outcomes. Leverage decisions are best reached by open discussion after the group develops a deep understanding of system dynamics through a causal loop or stock and flow modeling process. Microworld Microworlds are simulation models of real systems such as a firm, a hospital, a market, or a production system. They provide a "virtual" world where decision-makers can test and experiment their policies and strategies in a laboratory environment before implementation. Microworlds are constructed using system dynamics software with user-friendly interfaces. Reference Mode Reference mode is the actual/ observed pattern of a key variable of interest to decision-makers or policy analysts. It represents the actual behavior of a variable over time which is used to compare with the simulated pattern of the same variable generated by a simulation model to validate the accuracy of the model. Simulation A computer tool and methodology for modeling complex situations and challenging problems where mathematical tools fail to operate. Stock In system dynamics stock is a concept representing accumulation and the state of a variable, such as assets, inventory, capacity, 417 reputation, morale. Stock can be measured at any point of time. In mathematical terms, stock is the sum over time (integral) of one or more flows. Systems thinking Systems thinking is a paradigm for viewing reality based on the primacy of the whole and relationships. Systems thinking is one of the key capabilities (disciplines) for organizational learning which consists of a series of conceptual and modeling tools such as behavior over time, causal loop diagrams, and systems archetypes. These tools reveal cause and effect dynamics over time and assist understanding of complex, nonlinear, and counterin-tuitive behaviors in all systems-physical, natural, and social.