Why You Need Systems Thinking Now

Traditional innovation approaches—breakthrough and design thinking—often ignore the complex ripple effects they produce in interconnected systems. In a world facing multifaceted challenges like climate change and sustainability, a systems-thinking approach offers a more resilient and holistic path forward. Systems thinking emphasizes understanding interdependencies, redefining problems iteratively, and engaging diverse stakeholders to co-create solutions. This article outlines a four-step framework: (1) Define a desired future state. (2) Reframe problems so that they resonate across stakeholders. (3) Focus on flows and relationships over discrete products. And (4) implement small nudges to gradually shift the system. Examples from Maple Leaf Foods, Co-operators Insurance, and the CSA Group illustrate how this approach can realign business models for long-term sustainability. While not a replacement for other innovation methods, systems thinking addresses their limitations in tackling “wicked problems.” It encourages companies to anticipate unintended consequences, build coalitions, and adaptively guide transformation in complex environments.