Application of systems thinking in management consulting

Abstract

Business issues have become increasingly complex, but new methodologies have been developed to cope with high levels of complexity. For top-management consultancies, which typically are asked to solve the most pressing problems of their clients, the question arises whether these methodologies are useful in their daily work. To that end, this paper compares the ideal-typical consulting and systems-thinking approaches. Special emphasis is laid on those aspects of these approaches that afford pragmatism and applicability from a consultant's perspective. The strengths and weaknesses of the systems-thinking approach with respect to consulting practice are identified. This specification supplies a basis for suggesting how to concretely integrate elements of the systems-thinking approach into the ideal-typical four steps in consulting projects - especially into the first steps on how to establish understanding and frame the assignment. It is shown that the systems-thinking methodology can enhance the typical course of action followed by consultants during their projects.