Systems Thinking and Process Optimization, Thesis of Accounting

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IT 220 - 6-1 Activity: Systems Thinking Project Milestone Southern New Hampshire University

Systems Thinking This is the practice of viewing a problem or situation as an interconnected system in addition to independent systems. It is looking at the issue like a set of dominoes. Understanding how the pieces work together as one rather than each individual part. This allows the user to analyze interactions and feedback looks in the system to identify behaviors that could one day be eliminated or improved. Collections There are multiple collections in a system. Certain parts of the system require multiple units to work together to perform a function. The components work together towards a common goal, that common goal is part of a larger system. Without them the system cannot function but without the system they are essentially useless. Feedback Loops There are four stages to a feedback loop. Evidence, Relevance, Consequence, Action. You need to gather data on the issue. You need to establish why this data matters. What relevance does it have with a certain group of people or does it apply to all. Then consequence, not so much a punishment necessarily but what will happen If the data is left to continue its course repeatedly. Last is action, what needs to be done to stop the course it is taking. How do we use what we’ve learned to improve the system. Stock and Flow Diagram The best way I can explain a stock and flow diagram is an inventory system. There is stock, whether it’s coming in, being held, or going out. The diagram shows how things arrive,

execute, and leave. How are the stocks influenced by the addition and subtraction of the system. It can also show how the outcome of a feedback loop will help or hinder the process. Casual Loop Diagram This diagram is more of a bullet point than a flow. It displays how the relationship between things change in a positive or negative way. It is basically a cause-and-effect chart that changes so the end user can attempt to gain the best balance in the system possible.

The diagram below shows the process Lost Pines Outfitters utilizes for online ordering. From the beginning, receipt from the warehouse to the end of thanking the customer for their

References Goetz, T. (2011, June 19). Harnessing the power of feedback loops. Wired. https://www.wired.com/ 2011 / 06 /ff-feedbackloop/