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Systems Thinking Alliance

Leverage Points, Bounded Rationality, & Super Early Deals

Issue # 5
4 Min Read

In This Issue

INTERCONNECTED INSIGHTS

Small Moves, Big Impact: Unlocking the Power of Leverage Points.

Alright, systems thinkers, buckle up because we’re about to talk about leverage points – a fancy way of saying those hidden little sweet spots in a system where a small nudge can create massive change. Think of it as the ultimate life hack, not for your inbox (good luck with that) but for the intricate systems shaping our world—like communities, economies, or even the climate.  

The concept of leverage points was made iconic by Donella Meadows (aka mother of systems thinking). She identified them as the high-impact areas within a system where strategically applied pressure can totally flip the script. For instance, consider how policies targeting emission caps have spurred renewable energy investment worldwide. Small change to the rules, enormous ripple effects on how we live, work, and power up Netflix. 

Of course, spotting a leverage point isn’t like geotagging buried treasure. It’s more like trying to find one specific peanut in a crowded Snickers bar -it’s in there, but it requires some extra effort. There are challenges galore -like resistance from the system itself (yes, systems get all “you-can’t-tell-me-what-to-do”) and the sheer complexity of untangling what actually makes everything tick. But oh, the rewards! Get it right, and you could turn big, unwieldy problems into win-win solutions. 

For example, in Copenhagen, boosting bike-centric policies—everything from dedicated lanes to tax incentives – hasn’t just improved mobility; it’s reduced pollution, cut healthcare costs, and made everyone’s thighs look amazing . That’s leverage at work – hitting multiple goals with one sharp move. 

For more brain-expanding goodness on leverage points (and a few ways they might shake up your own thinking), check out our full article here:  

Transforming Systems with Leverage Points: Insights and Critiques, and Future Directions 

CONCEPT CORNER

Bounded Rationality

Ever had to make a decision and felt like your brain just went, “Yeah, that’s enough thinking for today”? Congratulations, you’re human—and living proof of Herbert Simon’s idea of Bounded Rationality.   

The gist? We’re not making decisions in a vacuum with endless time, brainpower, or data. Nope, we’re all about making good enough decisions with the cards we’re dealt. Simon argued that instead of chasing the “perfect” solution (whatever that is), we rely on mental shortcuts, aka heuristics. It’s like choosing the first decent pair of jeans you see instead of trying on the entire store. Efficient, right?   

Bounded Rationality breaks down decision-making into something we can all relate to: 

  • We can’t process all the info. Who’s got the time?   
  • We’re working under time pressure. (Decision fatigue, anyone?)   
  • Situations are messy, and no one handed us a cheat sheet.   

Instead of pretending we’re logic machines, we lean on intuition and trial-and-error to get by. Sure, it’s not perfect, but it helps us tackle life’s complex questions one heuristic at a time. Thanks, Herb, for reminding us it’s okay to aim for “good enough.” 🙌   

THE WISDOM WISPER

Profound quote from systems thinker

Fyodor Dostoevsky once said, “If everything on earth were rational, nothing would happen.” At first glance, it sounds like a nod to chaos, but there’s a profound systems thinking gem buried here.

Imagine a world where every action follows perfect logic. No risks would be taken, no bold ideas would emerge, and innovation? Forget about it. Rationality has its place, but it thrives alongside the unpredictable sparks of human emotion and intuition – the same ones that drive change, creativity, and growth.

Systems thinkers know that irrationality isn’t just noise; it’s often the catalyst for breakthroughs. Progress happens when people push boundaries, ignore the “rulebook,” and try the untried. Dostoevsky’s words remind us that the interplay between order and unpredictability is what makes systems dynamic, adaptable, and alive.

Bottom line? A little irrationality is not a flaw – it’s the fuel for progress. 🌀

SUPER EARLY BIRD OFFER

Level Up Your Systems Thinking 💡

Looking to sharpen your skills and stand out in today’s complex world? Become a Certified Systems Thinking Associate and unlock the tools to tackle interconnected challenges. 

Curious about what the certification covers? We’ve got you! Head over to Systems Thinking Alliance to download the course outline and see how this program can transform the way you approach problem-solving. 

Don’t wait—your systems thinking upgrade starts here. 🚀 

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