What is a System? [The Climate Leader]

Summary

This video script delves into the concept of 'system' in systems thinking, emphasizing how the interconnections within a system dictate its behavior. It illustrates the idea that well-intentioned individuals can make detrimental decisions when systems are flawed. The speaker advocates for systemic improvements as a means to enhance the world, using the example of an energy company CEO's decision-making process. The script encourages viewers to focus on altering systems rather than blaming individuals, highlighting the need for collective effort to change incentives and pressures that influence decisions, such as energy policies and business models.

Takeaways

• 🌟 Systems thinking involves understanding how the interconnections between elements in a system determine its behavior.
• 🔍 A system is defined as a set of elements whose interconnections are crucial for the behavior of the whole.
• 🌿 The example of a flower illustrates how elements within a system are interconnected and influence the system's behavior.
• 💡 Good people can make harmful decisions if the systems they operate within are poorly designed.
• 🛠 Improving systems is one of the best ways to improve the world, as it can lead to better decision-making.
• 🏭 The script uses the example of an energy company CEO to discuss how systemic pressures can influence decisions.
• 💼 Shareholders' desire for profitability and the expected profitability of projects are key systemic pressures on decision-makers.
• 🌱 The cost and policies related to energy sources, such as carbon pricing and air quality standards, affect systemic incentives.
• 🤔 The script encourages questioning whether a new decision-maker would make different choices if placed in the same system.
• 🌍 It suggests that changing systemic factors like taxes, regulations, and incentives can lead to different outcomes.
• 🔄 Systems do not change by themselves; they require the collective effort of individuals to advocate for and implement changes.
• 🛑 The importance of perseverance in changing systems is highlighted, as it is unlikely to be easy but can lead to significant improvements.

Q & A

What are the two main things the speaker offers in the video?

The speaker offers an explanation of what is meant by 'system' in the context of systems thinking and a practical idea from systems thinking that can be applied to improve the world by focusing on system design rather than individual decision-makers.

What is the specific definition of a 'system' according to the speaker?

A system is defined as a set of elements whose interconnections determine their behavior.

Why is the collection of circles not considered a system in the video?

The collection of circles is not considered a system because, although it has elements, they are not particularly interconnected.

What example is given to illustrate the concept of a system?

The example of a flower is given to illustrate a system, where the parts or elements interact in a way that determines the behavior of the whole system, such as roots supplying water and nutrients to the leaves and petals attracting pollinators.

What is the role of the CEO in the decision-making example provided in the script?

The CEO of an energy company is faced with the decision of whether or not to construct a new coal-fired power plant, influenced by various elements including personal beliefs, shareholder demands, profitability, and external factors like carbon pricing and energy costs.

How does the speaker suggest the decision of a CEO might be influenced by the system they are in?

The speaker suggests that even if a CEO is personally concerned about climate change, the incentives and pressures of the system, such as shareholder demands for profitability and the cost of renewable energy, may lead them to make decisions that are not environmentally friendly.

What is the key question the speaker encourages viewers to apply to their own work?

The key question is whether a new decision-maker placed in the same system would make a different decision, prompting viewers to consider how they can change the system rather than blaming the individual decision-makers.

What strategies are mentioned in the script for changing the system to influence decision-making?

The strategies mentioned include changing taxes, regulations, incentives, policies, implementing carbon pricing, reducing the cost of renewable energy through research and development or subsidies, and developing new business models that consider goals beyond profit.

Why is it important to focus on the system rather than the players according to the video?

Focusing on the system rather than the players is important because systems rarely change by themselves; they change when people work together to strategize, collaborate, and push for new behaviors and outcomes.

What does the speaker suggest as a possible outcome of changing the system's incentives and pressures?

The speaker suggests that changing the system's incentives and pressures could lead to different outcomes in decision-making, potentially resulting in more environmentally friendly and sustainable choices.

How does the speaker describe the process of changing systems?

The speaker describes the process of changing systems as unlikely to be easy, requiring perseverance, asking questions about the pressures and incentives within the system, and exploring new strategies and possibilities for change.

Outlines

00:00

🌟 Systems Thinking and Decision-Making

The video introduces the concept of 'system' in the context of systems thinking, emphasizing that a system is defined by the interconnections between its elements, which determine its behavior. It uses the example of a flower to illustrate a system and contrasts it with a collection of unrelated circles. The speaker then discusses the impact of a system's design on decision-making, suggesting that even well-intentioned individuals can make harmful decisions if the system they operate within is flawed. The example of an energy company CEO deciding on a new coal-fired power plant is used to highlight how various systemic factors, such as shareholder expectations and market conditions, can influence decisions. The importance of improving systems to effect positive change is underscored.

05:02

🛠️ Changing Systems for Positive Impact

This paragraph delves into the idea that changing systems can lead to more effective and sustainable outcomes than simply replacing individuals within those systems. It suggests that while individuals may have personal beliefs, it is the systemic pressures and incentives that often dictate decisions. The speaker encourages viewers to consider how systems can be altered to promote better decision-making, rather than focusing solely on the individuals making those decisions. The paragraph also touches on various strategies for changing systems, such as implementing new policies, advocating for carbon pricing, and supporting research into renewable energy. It acknowledges the difficulty of changing systems but encourages persistence and strategic thinking to find new ways to influence systemic behavior.

Keywords

💡System

A 'system' in the context of this video is defined as a set of elements whose interconnections determine their behavior. It is central to the video's theme as it highlights how the structure and interactions within a system can influence outcomes and decisions. For example, the script discusses a flower as a system where its parts work together to sustain the whole.

💡Systems Thinking

Systems thinking is an approach that focuses on the way a system's components interact and how this interaction affects the system's overall performance. The video emphasizes the importance of systems thinking in understanding and improving complex situations, such as the decision-making process within an energy company.

💡Interconnections

Interconnections refer to the relationships and interactions between the elements of a system. The video uses this term to explain how these connections can determine the behavior of the system, as seen in the example of a flower where the roots, petals, and other parts are interconnected to support its life cycle.

💡Behavior

In the video, 'behavior' denotes the actions or reactions of a system in response to various influences or stimuli. It is tied to the concept of interconnections, as the way elements of a system interact determines the system's behavior, which is a key point in advocating for systemic change.

💡Decision-Making

Decision-making is the process of selecting a course of action from among multiple alternatives. The video script uses the example of an energy company CEO deciding on a new power plant to illustrate how systemic pressures can influence individual decisions, even when they may conflict with personal beliefs.

💡Incentives

Incentives in the video are the rewards or motivations that influence decision-making within a system. The script discusses how the desire for profitability and shareholder demands can incentivize certain decisions, such as constructing a coal-fired power plant, even if it's not environmentally friendly.

💡Profitability

Profitability is the ability to generate profit. It is a key factor in the decision-making process of the energy company CEO mentioned in the script. The profitability of a new coal-fired power plant is weighed against other energy sources, influenced by factors like carbon pricing and energy costs.

💡Climate Change

Climate change is the long-term alteration of weather patterns. The video script uses the concern for climate change as a personal belief that might influence a CEO's decision, but it also points out that systemic incentives can override individual concerns if they are not aligned with the system's goals.

💡Renewable Energy

Renewable energy refers to energy from sources that are naturally replenished, such as solar or wind power. The video contrasts renewable energy with fossil fuels, discussing how the cost and incentives around these energy sources can affect decisions within the energy sector.

💡Change

Change, in the video, is the act or instance of making or becoming different. The script encourages viewers to focus on changing systems rather than blaming individuals, suggesting that systemic changes can lead to different outcomes and behaviors, such as in the case of energy policy and business models.

💡Strategies

Strategies are plans or methods for achieving a goal. The video suggests that finding new strategies for changing systems is crucial for creating a positive impact. Examples include advocating for policies, developing new business models, and reducing costs through research and development.

Highlights

Definition of a system: A set of elements whose interconnections determine their behavior.

Systems thinking and the idea that poorly designed systems can lead good people to make harmful decisions.

Improving systems is one of the best ways to improve the world.

Example of a flower as a system with interconnected parts determining its behavior.

A forest, sports team, neighborhood, company, and political movement are all examples of systems.

The importance of understanding how interconnections determine the behavior of a system.

Case study of an energy company CEO deciding whether to build a new coal-fired power plant.

Factors influencing the CEO's decision, including shareholder pressure and profitability.

The impact of carbon pricing, energy costs, and air quality standards on business decisions.

How personal beliefs may not be enough to overcome systemic incentives.

The challenge of maintaining shareholder confidence when making decisions against profitability.

Encouraging viewers to apply systems thinking to their own work and challenges.

The futility of blaming individuals within poorly functioning systems.

Strategies for changing systems, including taxes, regulations, incentives, and policies.

Examples of global efforts to change energy incentives and reduce carbon emissions.

The development of new business models that consider goals beyond profit.

The importance of collaboration, strategy, and persistence in changing systems.

Systems rarely change by themselves; they require active effort from individuals.

The potential for new strategies and possibilities when focusing on changing systems rather than blaming individuals.

Transcripts

in this video I'll offer you two things

first I'll explain what we mean by the

word system when we say systems thinking

or a systems approach and second I'll

share with you an important idea from

systems thinking one that you can apply

and test right away in your own work

this is the idea that good people can

make harmful decisions if the systems

within which they're making those

decisions are poorly designed and

therefore that one of the best ways to

try to improve the world is to improve

the systems that we all live and work

within so let's start with the

definition of a system system maybe a

word that you've heard quite a lot

lately may be used in different ways in

the climate leader we define the word

system very specifically a system is a

set of elements whose interconnections

determine their behavior

this collection of circles is not a

system it has elements but they aren't

particularly interconnected this flower

on the other hand is definitely a system

it's composed of parts or elements and

the way the elements interact determines

the behavior of the whole system the

roots supply the leaves with water and

nutrients the arrangement of the petals

and the flower attracts pollinators and

so on of course the flower is also an

element in a bigger system that contains

soil and other plants Sun and wind and

rain a forest is a system and so is a

sports team a neighborhood a company

your liver those are all systems a

parliament or political movement those

are systems to any set of elements whose

interconnections determine their

behavior is a system now what do I mean

by the interconnections determining the

behavior that should become more clear

if we talk about a concrete specific

example imagine there's a CEO of an

energy company who needs to decide

whether or not that company should

construct a new coal-fired power plant

let's think about some of the elements

that might influence that decision maker

that person's individual concern about

climate change might influence the

decision and different individuals

playing the role of CEO might have

different levels of concern but no

matter what the individuals

beliefs there are a set of pressures

that would apply to most people holding

that role there's how strongly

shareholders desire the company to be

profitable and there's the expected

profitability of a new coal-fired power

plant compared to other types of

electricity generation that

profitability in turn depends on a whole

set of factors including whether there's

a price for carbon pollution and how

high that price is what the cost of

other sources of energy are and the cost

to meet other standards like air quality

standards you might think of other

influences as well

a CEO who is personally concerned about

climate change might very well be

reluctant to invest in a coal-fired

power plant but if all of the incentives

of the system remain the same if the

shareholders are demanding a high return

on investment if carbon pollution is

free if renewable energy is much more

expensive than fossil energy then do you

think a CEO who wanted to maintain his

or her position would be able to decide

against a coal-fired power plant if it

was the most profitable alternative

maybe maybe a remarkable individual

could do just that but then what would

happen how long would that individual

keep shareholder confidence

how long until a new leader would be

recruited one who would be more focused

on profits and less focused on climate

this line of thinking leads to an

important question that you should apply

to your own work what a new

decision-maker placed in the same system

make a different decision if you find

yourself facing a system that's not

functioning in the way you'd like to see

whether that system is the UN climate

negotiations or your team of six at your

workplace we'd encourage you to take

your frustration and your desire for

change and apply it not to blaming the

decision-maker stuck within a poorly

functioning system but instead to asking

yourself how that system could be

changed if we take our example of the

energy company's CEO replacing one CEO

with another individual might not lead

to radical change but what if we could

change the taxes the regulations the

incentives the policy is influencing

those decision-makers then we might see

real differences and in fact around the

world people are organizing themselves

to change the mixture of incentives and

pressures that influence decisions about

where our energy comes from in the u.s.

the Obama administration is putting

tougher controls on the performance

standard for coal-fired power plants

around the world climate advocates are

pressuring governments to adopt carbon

prices others are working to reduce the

cost of renewable energy via research

and development or via government

subsidies for clean energy a new

business models are being developed that

allow business decision-making to take

into account goals other than profit

each of these strategies if successful

has a chance to change the balance of

pressures and incentives in ways that

could lead to different outcomes

systems rarely change by themselves they

change because people like you and me

work together strategize collaborate

push pull coax and sometimes forced

systems into new behaviors choosing to

focus more on the system and less on the

players does not mean sitting passively

back and waiting for systems to change

themselves sometimes it means being

brave say when advocating for an

unpopular policy sometimes it means

being persuasive say when coaxing

someone to try a new technology or the

subway instead of a car sometimes it

means leading by example sometimes it

means being willing to commit civil

disobedience sometimes it means showing

up with a spreadsheet full of

cost-benefit calculations changing

systems is unlikely to be easy if it was

easy to change a system for the better

it probably would have already been

changed but if you persevere if you

continue to ask yourself how do the

pressures and incentives in this system

give rise to its behavior that I think

that you'll find new strategies new

possibilities and new avenues for change

you