MBA

EoB 2023.24

SYSTEMS +
SYSTEMS
THINKING
Dr Jill Bogie

© 2021 Gordon Institute of Business Science

© 2018 Gordon Institute of Business Science
SESSION OBJECTIVES

Objectives:
Using theories, concepts, and frameworks to:
• recognise and assess systemic challenges and problems faced by organisations;
• understand the interconnectedness of business, social and environmental issues; and
• use systemic approaches to formulate a response and take meaningful action.

Key topics:
• The principles and concepts of systems thinking and organisations
• The characteristics of System Leadership

© 2018 Gordon Institute of Business Science

 LESSON PLAN
SYSTEMS AND SYSTEMS THINKING

Break

30 minutes

90 minutes 90 minutes

Introduction to NIKE PART 1

systems thinking

Group Discussions
Questions
Plenary
Discussion Plenary Discussion
+
Some Theory

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 Three
questions

CLASS DISCUSSION

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© 2018 Gordon Institute of Business Science
Three questions
1. What do you understand when we talk about a
system or the system?
2. What do you understand when we talk about
systems thinking or adopting a systemic approach?
3. Where have you experienced systems thinking
recently?

© 2018 Gordon Institute of Business Science

Some key
concepts

INTRODUCTION TO SYSTEMS
THINKING

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© 2018 Gordon Institute of Business Science
Snowden & Boone: Types of system

SINGLE SYSTEM MULTIPLE SYSTEMS

SIMPLE COMPLICATED COMPLEX

Action: FIX Action: DESIGN

Problem solve

KNOWN KNOWNS KNOWN UNKNOWNS

FUNCTIONAL - REACTIVE GOAL ORIENTED - ADAPTIVE

Adapted from:
Snowden, D. & Boone, M. (2006). A Leader’s Framework for Decision Making. Harvard Business Review, 85(11), 68-76. © 2018 Gordon Institute of Business Science
Types of system

Sum of parts Sum of parts

EFFICIENT CAUSE EFFICIENT CAUSE

SIMPLE COMPLICATED COMPLEX

Action: FIX Action: DESIGN

Problem solve

ANALYSE ANALYSE
LEARN FROM WHAT DESIGN
GOES WRONG THINKING

Adapted from:
Snowden, D. & Boone, M. (2006). A Leader’s Framework for Decision Making. Harvard Business Review, 85(11), 68-76. © 2018 Gordon Institute of Business Science
Theorising about systems Course objectives

Theories – theorising – key constructs and concepts

1. System Leadership Senge et al. (2015)

2. Sustainable Supply Chains: Villena & Gioia (2020)
3. Responsibilities to society: Hsieh (2018)

© 2018 GORDON INSTITUTE OF BUSINESS SCIENCE

© 2018 Gordon Institute of Business Science
SOME THEORY
What are the key insights from Senge et
al. (2015)?

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© 2018 Gordon Institute of Business Science
 Course objectives
Senge et al. System leadership

1. Leaders who are:

• Shifting conditions
• Always learning
• Creating change at scale
• Tackling grand challenges – collaboratively – building collaborative networks for
systemic change

2. Core capabilities:
• Seeing the big picture – broadening understanding
• Being reflective – questioning - deepening understanding
• Looking ahead – co-creating the future – foresight – shifting to collective focus

3. Gateways: 3 dimensions
4. Pathways: 6 dimensions © 2018 GORDON INSTITUTE OF BUSINESS SCIENCE
© 2018 Gordon Institute of Business Science
SOME THEORY
What are the key insights from Villena
and Gioia (2020)?

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© 2018 Gordon Institute of Business Science
Villena and Gioia: Key insights
1. More responsible supply chains – difficult to achieve in practice
2. Examples: Apple – Nike – apparel companies - working conditions
3. Study industries: automotive; pharma; electronics – various countries
4. Commitment to social and environmental standards
5. Challenges in the supply chain are in the ‘lower tier’
• Little attention; not well-known; lack of control
• Lack of capacity; lack of knowledge; lack of skills
6. Lower tier suppliers – a combination of approaches – direct –
indirect – collective - global
7. Best practices
* Direct – direct monitoring. * Indirect – delegate to 1st tier suppliers
* Collective – industry level * Global – collaboration – international initiatives
Villlena, V., & Gioia, D. (2020). A more sustainable supply chain. Harvard Business Review, 98(2), 84-93. © 2018 Gordon Institute of Business Science
SOME THEORY
What are the key insights from Hsieh
(2018)?

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© 2018 Gordon Institute of Business Science
Hsieh: Key insights
1. Approaches to responsibilities of business in society
• Friedman – shareholder view
• Freeman - stakeholder view
2. Managing harms
• What are the harms? physical; economic; psychological/emotional; social; societal
• Responsibilities for harm – culpable (direct); complicit (involvement); capable (to prevent)
• Response to harm – refrain; remedy; regulate. Business as usual; as bystander; as
innovator; as activist

3. Political limits on business activities

4. Challenges and opportunities

Hsieh, N-H. (2018). Responsibilities to society. (Note no. 9-317-065). Harvard Business School Publishing.
© 2018 Gordon Institute of Business Science
© 2018 Gordon Institute of Business Science
Nike Case: Part 1
Global Sourcing at Nike
Applying systems thinking
Readings:
Hsieh, N-H. (2018). Responsibilities to Society. Harvard Business
School. HBS Module Note 9-317-065.
Hsieh., N-H., Toffel, M., & Hull, O. (2019). Global Sourcing at Nike.
Harvard Business School. HBS case: 9-619-008.
Nike. (2023). Responsible sourcing.
https://about.nike.com/en/impact/focus-areas/responsible-
sourcing

© 2021 Gordon Institute of Business Science

© 2018 Gordon Institute of Business Science
Briefing the case: Nike

(a) key insights in

the case material
(b) understanding
the supply chain
responsibilities at
Nike
(c) what happened
next?

© 2021 Gordon Institute of Business Science

© 2018 Gordon Institute of Business Science
Nike Case: Part 1
Global Sourcing at Nike
Sustainable sourcing
Readings:
Hsieh, N-H. (2018). Responsibilities to Society. Harvard Business
School. HBS Module Note 9-317-065.
Hsieh., N-H., Toffel, M., & Hull, O. (2019). Global Sourcing at Nike.
Harvard Business School. HBS case: 9-619-008.
Nike. (2023). Responsible sourcing.
https://about.nike.com/en/impact/focus-areas/responsible-
sourcing

© 2021 Gordon Institute of Business Science

© 2018 Gordon Institute of Business Science
Case analysis: Global Sourcing at Nike
CASE ANALYSIS: 45 minutes
RESPONSIBILITES IN THE SUPPLY CHAIN
1. What are some of the big challenges facing NIKE in its
supply chain? And what types of harm can you identify
related to these challenges?
2. What responsibilities are discussed in the case in relation
to these harms? Please categorise the responsibilities.
• Doing less harm
• Avoiding harm
• Contributing to positive outcomes
3. What strategies did Nike adopt in each of the above
categories to respond to the harm and the responsibilities?

© 2018 GORDON INSTITUTE OF BUSINESS SCIENCE

© 2018 Gordon Institute of Business Science
Nike Case: Part 1
Responsible supply chains
Discussion:
1. Challenges in the supply chain
2. Categorise responsibilities
3. Nike strategies in each category

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© 2018 Gordon Institute of Business Science
 Responsibilities in the supply chain
5 types of social harm
1. Recognise types of harm 2. to understand responsibilities 3. then respond
Types
1. Physical
2. Economic
3. Psychological and emotional
4. Social harm – harm to a person’s relationship with others
5. Societal harm – harm to the functioning of society
– Cause harm
– Cause less harm
– Do not cause harm

Nien-Hê Hsieh (2019) – Responsibilities in the Supply Chain. Harvard Business School Publishing. Harvard Case 9-319-114.
© 2018 Gordon Institute of Business Science
 Responsibilities in the supply chain
5 types of social harm
1. Recognise types of harm 2. to understand responsibilities 3. then respond

Understand responsibilities
• Culpable – causation – intentional or unintentional
• Complicit – involvement – inaction to aiding and abetting
• Capable – of preventing or addressing harms

Responding – at least 3 options

1. Refrain
2. Remedy
3. Regulate

Nien-Hê Hsieh (2019) – Responsibilities in the Supply Chain. Harvard Business School Publishing. Harvard Case 9-319-114.
© 2018 Gordon Institute of Business Science
 What
happened
next?

Strategy 2020 to 2025 – Purpose25

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© 2018 Gordon Institute of Business Science
What happened next?
2020 to 2025
Purpose25
Nike FY20: Impact report
https://purpose-cms-preprod01.s3.amazonaws.com/wp-
content/uploads/2021/04/26225049/FY20_NIKE_Inc_Impact_Report2.pdf

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fo Getty Images
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Investor rating example: Nike Inc.
2023

https://www.sustainalytics.com/esg-rating/nike-inc/1008170227
© 2018 Gordon Institute of Business Science
Investor rating example: Nike Inc.
2022

https://www.sustainalytics.com/esg-rating/nike-inc/1008170227
© 2018 Gordon Institute of Business Science
Q&A

© 2021 Gordon Institute of Business Science

© 2018 Gordon Institute of Business Science
MBA
EoB 2023.24

SYSTEMS +
SYSTEMS
THINKING
Dr Jill Bogie

© 2021 Gordon Institute of Business Science

© 2018 Gordon Institute of Business Science