A Systems Thinking Approach to Governance
Hello friends!
I recently read Thinking in Systems by Donella Meadows, and let me tell you, it’s life-changing! I learned so much about systems that I’ll be writing my next 5–6 posts based on the book’s takeaways.
What’s this book about?
Donella dives deep into the idea that we are all part of complex systems. Every person we encounter, every organization, every animal, garden, tree, and forest is a complex system. And the same applies to governance.
When we stop thinking about things in a simple cause-and-effect way and instead see them as systems, with elements, interconnections, and purpose, we start noticing patterns and relationships that are usually hidden.
How does this apply to governance?
Governance isn’t just about how many people vote on proposals or who holds decision-making power, it’s much more than that. It functions as a system with three key components. Elements include participants, rules, and incentives that define how governance operates. Interconnections determine how these elements interact through decision-making structures and power dynamics. Purpose represents the system’s overarching goal, whether it’s security, fairness, or efficiency.
Why does this matter?
Governance failures almost always stem from focusing on the wrong level of change. As Donella explains, changing elements is the least effective way to fix a system because the system itself remains intact.
Take leadership changes as an example, electing a new CEO or president rarely leads to meaningful change, and sometimes it even makes things worse. If the underlying governance structure remains the same, swapping leaders is like rearranging deck chairs on a sinking ship.
What has a deeper impact?
According to Donella, changing interconnections, like modifying voting rights, introducing transparency requirements, or restructuring decision-making processes, has a far greater impact because it shifts how the system behaves.
What’s even more powerful is changing the system’s purpose.
For example, shifting governance from short-term profit maximization to long-term sustainability is the most transformative change possible. It fundamentally redefines how decisions are made and what the system prioritizes.
Takeaway
Governance isn’t just about who’s in charge, it’s about how the system is designed. To create real change, don’t just swap leaders. Instead, understand how the system’s interconnections shape its purpose, and then redesign the system itself!
Until the next hash, Abed.
