8 - Systems Thinking for Leaders: Designing Change That Lasts
- Jennifer Diamond
- Apr 28
- 4 min read
Updated: Aug 8
How to See the Big Picture, Spot Hidden Patterns, and Lead More Effectively
Introduction: The Leadership Superpower You Can’t Afford to Overlook
Some leadership skills are obvious—strategic vision, communication, decision-making.
Others are less talked about but just as critical—like the ability to see beyond individual problems and recognize the underlying system that creates them.
This is systems thinking.
It’s the difference between:
Solving a problem temporarily vs. understanding why the problem keeps happening in the first place.
Launching an initiative vs. designing an ecosystem where success sustains itself.
Managing change as a one-time event vs. embedding adaptability into the organization’s DNA.
For leaders navigating complex challenges, competing priorities, and constant transformation, systems thinking isn’t optional—it’s a leadership superpower.
But how do you develop it? And more importantly—how do you use it?
Step 1: Recognizing That Everything Is Connected (Even When It Doesn’t Seem Like It)
A systems thinker doesn’t just see individual events—they look at how those events are connected.
Most organizations focus on surface-level problems:
Employees are disengaged.
A new process isn’t working.
Customers aren’t responding to a product the way they expected.
But a systems thinker looks deeper:
Is disengagement coming from unclear priorities, misaligned incentives, or leadership behaviors?
Is the new process failing because it’s flawed—or because people weren’t given time to adjust?
Is customer hesitation about the product—or about how it fits into their existing habits?
Example: The Case of the “Fix That Made Things Worse”
A company struggling with low productivity decided to implement a new performance tracking system.
The goal? Improve efficiency.
The result?
Employees started spending more time inputting data than doing actual work.
Teams became more focused on looking busy than solving real problems.
Morale dropped—because the system felt like surveillance, not support.
The real issue wasn’t productivity tracking. It was unclear priorities and a culture that equated activity with achievement.
Leadership Insight: Before launching a solution, ask: Are we solving the real problem—or just responding to symptoms?
Step 2: Identifying Patterns Instead of Treating Issues in Isolation
Leaders who don’t use systems thinking often feel like they’re playing whack-a-mole—fixing one issue, only for another to pop up.
That’s because problems don’t happen in isolation—they happen within a larger system.
A systems thinker asks:
What’s the pattern here? (Have we seen this issue in different forms before?)
Where is the hidden leverage? (What small change could have a big impact?)
Are we unintentionally reinforcing the problem we’re trying to solve?
Example: The “Endless Turnover” CycleA growing organization had a retention problem—employees were leaving faster than they could be replaced.
Leadership tried everything:
Higher salaries.
More perks.
Better onboarding programs.
But nothing changed.
When they stepped back and looked at the system, they saw a pattern:
The company was hiring fast but not thoughtfully—focusing on filling roles instead of culture fit.
New hires weren’t staying long enough to develop relationships—so engagement stayed low.
Managers were so focused on hiring that they weren’t developing existing employees—leading to burnout and more departures.
Leadership Insight: A systems thinker doesn’t just ask, “How do we fix turnover?”—they ask, “What system is producing high turnover?”
Step 3: Moving from Linear Thinking to Circular Thinking
Most leaders are taught to think linearly:
We have a problem.
We apply a solution.
The problem goes away.
But systems are rarely linear—they’re circular.
The decisions we make today create the conditions we deal with tomorrow.
Success in one area can create unintended challenges in another.
Sometimes the best way to “fix” a problem is to change the system that created it.
Example: The “Innovation Freeze” TrapA company wanted to encourage faster innovation.
Leadership pushed for:
More aggressive deadlines.
Stronger performance incentives.
A results-driven culture.
What happened?
Employees stopped taking creative risks—because faster deadlines meant no time to experiment.
Teams avoided innovative ideas—because failure was punished more than learning was rewarded.
The result? Less innovation, not more.
Leadership Insight: Systems thinking means looking at the full loop—not just the starting action.
Step 4: Seeing the System Means Seeing the People
At its core, every system is made up of people—their habits, incentives, and unspoken rules.
A systems thinker asks:
What behaviors are we unintentionally rewarding?
Are people resisting change because they don’t agree with it—or because the system is making it hard?
Is there a culture of learning—or just reacting?
Example: The “Compliance vs. Commitment” Dilemma
A healthcare organization was struggling with staff following new safety protocols.
The response? More rules, reminders, and mandatory training sessions.
But compliance still lagged.
Why? Because the system didn’t reinforce the desired behavior:
Nurses were understaffed—so they cut training schedules to meet patient demands.
Leaders prioritized speed over accuracy—sending a conflicting message.
There was no built-in reinforcement—no team check-ins, no peer accountability.
Leadership Insight: People don’t resist change—they resist systems that make change feel unnatural, unsustainable, or unimportant.
Final Thought: The Leadership Skill That Changes Everything
The best leaders don’t just respond to problems—they understand the systems that create them.
Next time you’re facing a challenge, step back and ask:
Are we solving the root issue—or just reacting to symptoms?
Where have we seen this pattern before?
How does this decision shape the next challenge we’ll have to solve?
Because the real power of systems thinking isn’t just understanding complexity—it’s shaping it for better outcomes.
This post is part of Maypop Grove’s Leadership Evolution Series—a collection of in-depth reflections on leadership, influence, and strategy. Designed for leaders navigating complexity, this series explores how to drive change, build resilient teams, and lead with confidence.
©2025 Maypop Grove, LLC. All rights reserved.
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