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Systems Thinking (Traps (Shifting the Burden to the Intervenor (Healthcare…
Systems Thinking
Traps
Policy Resistance - Fixes That Fail
The Tragedy of the Commons
Overuse of a resource common to all
Drift to Low Performance
Keeps standards similar over time
Be consistent in measuring performance
Escalation
Competing reinforcing loops
Profitability vs. growth in Insurance
Success to the successful
Winners are put in better positions to win
Capitalism - growth begets growth
Professional sports drafts
Entitlement programs?
Shifting the Burden to the Intervenor
Healthcare
Some addiction treatments
Retirement planning - pensions to savings
Rule Beating
Seeking the Wrong Goal
Be Specific
Be explicit
Interrelations
Nearly all systems are interconnected
How decisions impact other systems
Unintended consequences of actions
Biggest question: How does one best anticipate consequences?
Stocks and Flows
Reinforcing Loops
Amplifying Loops
Vicious Cycles
Virtuous Circles
Balancing Loops
Stabilizing
Goal-seeking
Regulating
Stocks are information or material
Flows are changes (increases or decreases) in stocks
Leverage Points
Points of Power
Small effort leads to large change
The leverage points are often counterintuitive
Economic growth exacerbates problems its trying to solve
Most effective points are Goals and Paradigms