Competitors rarely cause a company to lose market share. They may be there to scoop up the advantage, but the losing company creates its losses at least in part through its own business policies.
According to the competitive exclusion principle, if a reinforcing feedback loop rewards the winner of a competition with the means to win further competitions, the result will be the elimination of all but a few competitors.
Psychologically and politically we would much rather assume that the cause of a problem is “out there,” rather than “in here.” It’s almost irresistible to blame something or someone else, to shift responsibility away from ourselves, and to look for the control knob, the product, the pill, the technical fix that will make a problem go away.
A system* is an interconnected set of elements that is coherently organized in a way that achieves something. If you look at that definition closely for a minute, you can see that a system must consist of three kinds of things: elements, interconnections, and a function or purpose.
If a government proclaims its interest in protecting the environment but allocates little money or effort toward that goal, environmental protection is not, in fact, the government’s purpose. Purposes are deduced from behavior, not from rhetoric or stated goals.
A system generally goes on being itself, changing only slowly if at all, even with complete substitutions of its elements—as long as its interconnections and purposes remain intact.
A change in purpose changes a system profoundly, even if every element and interconnection remains the same.
A stock is the foundation of any system. Stocks are the elements of the system that you can see, feel, count, or measure at any given time. A system stock is just what it sounds like: a store, a quantity, an accumulation of material or information that has built up over time.
Stocks change over time through the actions of a flow. Flows are filling and draining, births and deaths, purchases and sales, growth and decay, deposits and withdrawals, successes and failures. A stock, then, is the present memory of the history of changing flows within the system.
A stock takes time to change, because flows take time to flow. That’s a vital point, a key to understanding why systems behave as they do. Stocks usually change slowly. They can act as delays, lags, buffers, ballast, and sources of momentum in a system. Stocks, especially large ones, respond to change, even sudden change, only by gradual filling or emptying.
Stocks allow inflows and outflows to be decoupled and to be independent and temporarily out of balance with each other.
if you see a behavior that persists over time, there is likely a mechanism creating that consistent behavior. That mechanism operates through a feedback loop. It is the consistent behavior pattern over a long period of time that is the first hint of the existence of a feedback loop.
Reinforcing feedback loops are self-enhancing, leading to exponential growth or to runaway collapses over time. They are found whenever a stock has the capacity to reinforce or reproduce itself.
One good way to learn something new is through specific examples rather than abstractions and generalities,
One of the central insights of systems theory, as central as the observation that systems largely cause their own behavior, is that systems with similar feedback structures produce similar dynamic behaviors, even if the outward appearance of these systems is completely dissimilar. A population is nothing like an industrial economy, except that both can reproduce themselves out of themselves and thus grow exponentially. And both age and die.
We can’t begin to understand the dynamic behavior of systems unless we know where and how long the delays are. And we are aware that some delays can be powerful policy levers. Lengthening or shortening them can produce major changes in the behavior of systems.
Resilience is not the same thing as being static or constant over time. Resilient systems can be very dynamic. Short-term oscillations, or periodic outbreaks, or long cycles of succession, climax, and collapse may in fact be the normal condition, which resilience acts to restore! And, conversely, systems that are constant over time can be unresilient. This distinction between static stability and resilience is important. Static stability is something you can see; it’s measured by variation in the condition of a system week by week or year by year. Resilience is something that may be very hard to see, unless you exceed its limits, overwhelm and damage the balancing loops, and the system structure breaks down. Because resilience may not be obvious without a whole-system view, people often sacrifice resilience for stability, or for productivity, or for some other more immediately recognizable system property.
The original purpose of a hierarchy is always to help its originating subsystems do their jobs better. This is something, unfortunately, that both the higher and the lower levels of a greatly articulated hierarchy easily can forget. Therefore, many systems are not meeting our goals because of malfunctioning hierarchies.
We are less likely to be surprised if we can see how events accumulate into dynamic patterns of behavior.
There always will be limits to growth. They can be self-imposed. If they aren’t, they will be system-imposed. No physical entity can grow forever. If company managers, city governments, the human population do not choose and enforce their own limits to keep growth within the capacity of the supporting environment, then the environment will choose and enforce limits.
The alternative to overpowering policy resistance is so counterintuitive that it’s usually unthinkable. Let go. Give up ineffective policies. Let the resources and energy spent on both enforcing and resisting be used for more constructive purposes. You won’t get your way with the system, but it won’t go as far in a bad direction as you think, because much of the action you were trying to correct was in response to your own action. If you calm down, those who are pulling against you will calm down too. This is what happened in 1933 when Prohibition ended in the United States; the alcohol-driven chaos also largely ended.
Missing information flows is one of the most common causes of system malfunction. Adding or restoring information can be a powerful intervention, usually much easier and cheaper than rebuilding physical infrastructure.
Power over the rules is real power. That’s why lobbyists congregate when Congress writes laws, and why the Supreme Court, which interprets and delineates the Constitution—the rules for writing the rules—has even more power than Congress. If you want to understand the deepest malfunctions of systems, pay attention to the rules and to who has power over them.
You keep pointing at the anomalies and failures in the old paradigm. You keep speaking and acting, loudly and with assurance, from the new one. You insert people with the new paradigm in places of public visibility and power. You don’t waste time with reactionaries; rather, you work with active change agents and with the vast middle ground of people who are open-minded. Systems modelers say that we change paradigms by building a model of the system, which takes us outside the system and forces us to see it whole.
Before you disturb the system in any way, watch how it behaves. If it’s a piece of music or a whitewater rapid or a fluctuation in a commodity price, study its beat. If it’s a social system, watch it work. Learn its history. Ask people who’ve been around a long time to tell you what has happened. If possible, find or make a time graph of actual data from the system—peoples’ memories are not always reliable when it comes to timing.
starting with history discourages the common and distracting tendency we all have to define a problem not by the system’s actual behavior, but by the lack of our favorite solution.
A society that talks incessantly about “productivity” but that hardly understands, much less uses, the word “resilience” is going to become productive and not resilient. A society that doesn’t understand or use the term “carrying capacity” will exceed its carrying capacity.
Don’t be stopped by the “if you can’t define it and measure it, I don’t have to pay attention to it” ploy. No one can define or measure justice, democracy, security, freedom, truth, or love. No one can define or measure any value. But if no one speaks up for them, if systems aren’t designed to produce them, if we don’t speak about them and point toward their presence or absence, they will cease to exist.
Carter also was trying to deal with a flood of illegal immigrants from Mexico. He suggested that nothing could be done about that immigration as long as there was a great gap in opportunity and living standards between the United States and Mexico. Rather than spending money on border guards and barriers, he said, we should spend money helping to build the Mexican economy, and we should continue to do so until the immigration stopped.
Aid and encourage the forces and structures that help the system run itself. Notice how many of those forces and structures are at the bottom of the hierarchy. Don’t be an unthinking intervenor and destroy the system’s own self-maintenance capacities. Before you charge in to make things better, pay attention to the value of what’s already there.
The official time horizon of industrial society doesn’t extend beyond what will happen after the next election or beyond the payback period of current investments. The time horizon of most families still extends farther than that—through the lifetimes of children or grandchildren. Many Native American cultures actively spoke of and considered in their decisions the effects on the seventh generation to come. The longer the operant time horizon, the better the chances for survival.