In an increasingly interconnected and volatile global economy, business success no longer depends solely on optimising isolated functions or executing top-down strategies. Today’s leaders must develop a systemic mindset—one that considers the entire ecosystem, from supply chains and customer experiences to regulatory environments and geopolitical shifts.
We sat down with Thomas Lim, the Dean of the SIM Centre for Systems Leadership, to discuss what leadership looks like in a world characterised by fractured markets, geopolitical tensions, and relentless change.
Q: How do you define systems leadership, and how does it differ from traditional leadership models?
Thomas: Well, systems leadership represents a fundamental shift in how we think about leadership itself. Traditional models tend to lean heavily on command-and-control or pacesetting models. Systems leadership, on the other hand, is more about orchestration. Influence is exercised through interconnectedness, feedback loops, and shared responsibility. Instead of directing teams, systems leaders enable collective intelligence to flourish. There are three key aspects at play here: Complexity Mastery, Creation Mastery, and Collaboration Mastery
Q: Why do you believe systems thinking is crucial for business leaders navigating today’s fractured and complex environment?
Thomas: In today’s context, marked by volatility and deep interdependence, linear strategies tend to collapse under pressure. Rigid plans often ignore the web of relationships and influences that shape outcomes. Systems thinking gives leaders a way to see beyond immediate events—to recognize the deeper patterns. This broader perspective empowers organizations to make anticipatory adjustments and build resilience, rather than just reacting to crises after they happen.
Q: Can you share an example of a situation where a systemic approach helped address a core business challenge more effectively than traditional methods?
Thomas: Absolutely. Think about a financial institution facing rapid digital disruption. Instead of chasing individual fixes for specific problems, they mapped their entire ecosystem—covering customers, regulators, fintech partners, and internal processes. By doing so, they gained clarity and strategic agility. This holistic view revealed leverage points that allowed them to adapt swiftly and implement solutions that worked across the entire system, rather than in isolated pockets. The problem of ‘system blindness’ is such that the issue persists even if each functional unit is doing its best. The systemic approach looks across and locate the points of leverage which would help to ‘problem dissolve’ the issue, rather than creating quick fixes that unintentionally shift the burden to someone else in the ecosystem.
Q: From your perspective, what are the risks of not adopting a systems leadership approach in today’s volatile business environment?
Thomas: The risks are pretty significant. Organizations that ignore systems thinking tend to over-optimize within their silos, which can erode long-term business viability. They develop blind spots—weaknesses that can suddenly escalate into crises, threatening the entire business. Without a systemic view, companies can find themselves caught off guard by disruptions or cascading failures that could have been anticipated or mitigated.
A good example is from the social services sector, where the challenge of sustaining volunteerism cannot be solved by any single Social Service Agency acting alone. Each agency has its own recruitment drives and training programs, but without coordination the efforts compete for the same pool of people, leading to burnout and disengagement. By applying systems leadership, the sector begins to see volunteerism as an ecosystem issue that requires shared platforms, common standards, and collaborative strategies. This shift moves the conversation from patchwork fixes to collective solutions, optimizing for the sector by enlarging the pie, and not resulting in a zero-sum game.
Q: What tools or frameworks do you recommend for business leaders seeking to analyze and address systemic issues?
Thomas: Leaders should consider frameworks like Daniel Kim’s Vision Deployment Matrix and the Hierarchy of Choices. These tools help align purpose, vision, strategy, and actions while keeping systemic impacts front-and-center. Visual tools like causal loop diagrams are also powerful—they help uncover reinforcing or balancing dynamics within systems and show where the real leverage points lie. Often, the “right levers” aren’t where the pain is most obvious—they tend to be upstream, embedded in structures or mental models. Recognizing and influencing these hidden points can turn challenges into opportunities for systemic change.
Q: How can individual leaders cultivate a systemic mindset? Are there specific practices or habits you suggest?
Thomas: Leaders can cultivate a systemic mindset by practicing pause and reflection before jumping into action. Regularly mapping stakeholders and asking, “What am I not seeing?” is vital. Self-awareness and personal mastery are crucial because our mental models shape how we interpret complexity. Without internal clarity, external complexity can become overwhelming and paralyzing.
Q: What advice would you give to business leaders just beginning to explore systems thinking?
Thomas: My advice is to start small. Pick one challenge and map it from multiple perspectives—events, patterns, structures, mental models, and vision. This iterative practice builds system literacy over time and helps shift your thinking from reacting to proactively shaping outcomes. Gradually, this habit of viewing the entire system becomes a real competitive advantage. It transforms leadership from simply managing parts to orchestrating the entire web of interconnected forces; a truly essential skill to thrive in today’s complex, ever-changing landscape.
To learn more about systems leadership, explore additional articles here or sign up for the Learning & Leadership Festival 2025, organized by the SIM Centre for Systems Leadership, scheduled to take place on 15 October.
