natural systems thinking
Systems Thinking is a way of understanding the world that focuses on relationships, patterns, and interdependencies. Rather than breaking down problems into isolated parts [which is a valid approach if we want to zoom in but doesn’t allow us to see the hidden part of the iceberg], we recognize that components of any given system - whether in Nature, organizations, or social structures - interact in complex ways that cannot be fully understood in isolation and cannot be fully predicted, and that a system is more than a sum of its parts. In other words, whenever we create something in collaboration or put something together, that something gains a life of its own and we don’t get to control it fully anymore [unless we operate in a fully permissioned environment, but that’s not how most systems work].
In business, systems thinking encourages leaders to look beyond immediate outcomes and consider the broader implications of their decisions. This includes, for example, understanding how various departments within an organization interact [and whether this serves or hinders], how a company fits into the larger market ecosystem [big fish, small fish, something else], and how external factors such as economic shifts, environmental changes, and social trends might impact operations. Incidentally, this is something that all executives and non-executive directors of a company actually have an obligation to do.
Similar to systems thinking, but with a different origin story, permaculture is a design philosophy rooted in observing and mimicking natural ecosystems. The term "permaculture" combines "permanent" and "agriculture," but its principles extend beyond farming to include sustainable design in all areas of human activity. Based on several key principles, such as understanding the environment before making any changes, leveraging natural processes rather than forcing outcomes, designing systems that can self-correct over time, and creating systems where elements support one another, permaculture can become the secret of a business’ success, as aligning an organization with natural processes creates more resilient and adaptive structures. As the world moves towards more open systems [permissionless rather than permissioned], using permaculture principles in our systems thinking becomes more and more important. In a way, this is similar to biomimicry, which is the practice of applying lessons from Nature to the invention of healthier, more sustainable technologies (see also our Hygeia-tech project for more on that).
We align with Nature by:
Moving from “efforting” to “flow”. We use "efforting" to refer to wasting energy or resources. In business, this can manifest as overcomplication [complicated is not the same as complex], micromanagement, or resistance to change. Natural systems thinking helps organizations avoid waste by emphasizing efficiency through alignment with natural flows and cycles.
Correcting dysfunctions. When there is a disconnect between different parts of the organization or between the organization and its environment, we start to see communication breakdowns, misaligned goals, or a lack of adaptability. We solve this by promoting integration and feedback loops. This could involve cross-departmental teams, regular strategy reviews, and a culture of open communication.
Becoming more resilient. One of the core tenets of natural systems thinking is the idea of resilience—designing systems that can withstand shocks and adapt to change. In Nature, resilience is achieved through diversity, redundancy, and the ability to self-regulate. Businesses can incorporate these principles by diversifying their teams and strategy and creating backup plans, encouraging innovation at all levels of the organization and also empowering people who are in the best position to act, to do so, even if they are not “executives” or if their actions have not been approved by a committee. One of the important ways of achieving this is creating simpler rules and guidelines and then encouraging personal agency and measured risk-taking, as long as the organization is learning and growing from it.
Long-term gain mindsets. Natural systems evolve over time, often in lengthy cycles. In contrast, today’s organizations are often driven by short-term goals such as quarterly earnings, popularity and market sentiment. Natural systems thinking encourages a shift towards a long-term perspective, where decisions are made with an eye on sustainability and future impact. For example, an organization may decide to foster a corporate culture that values employee well-being and development over immediate profits, or change its business ownership to incentivize employees for the long haul. By aligning with natural rhythms and cycles, businesses can create lasting value and avoid burnout and high turnover rates.