By Eugene le Roux, FSAIRAC, and Eamonn Ryan
In parts one to four of this series, we explored the foundations of systems thinking in management – the idea that organisations function as interconnected systems rather than isolated departments or individuals.
Perhaps the question to ask is not ‘What is the lowest salary I can get away with?’ Wayhomestudio | Freepik.com
In this continuation, we turn to some very real, and very human, dilemmas that managers face. These scenarios may appear anecdotal, yet they illuminate the tension between theory and practice, between short-term expediency and long-term sustainability.
a) When an adversary stumbles: to help or not to help?
Every manager knows the sting of losing a project to a competitor – even more so when you are confident that your organisation could have executed it better. Now imagine you watch from the sidelines as the ‘winning’ competitor heads for disaster. The temptation to sit back, smile wryly, and let the losses pile up is powerful. After all, doesn’t this vindicate your original position?
Yet systems thinking challenges us to view such failures in a broader context. If large sums of money are wasted, it is not only the competitor who suffers. Clients lose, the market loses, and reputations across the sector may be tarnished. By refusing to assist, you may inadvertently weaken the entire ecosystem of which you are part.
Does that mean one must always ‘be the adult’ and step in? Not necessarily. The decision lies in balancing integrity with prudence. At times, offering advice or signalling a warning may be enough to demonstrate professionalism, without taking responsibility for another’s failure. The greater question is: do we want to win by being the last one standing, or by helping to create a stronger system where competence and collaboration define the playing field?
b) Paying poorly: the hidden cost of cheap labour
Business operates in markets where pricing matters, and the supply-and-demand principle applies not only to products but to labour. Managers sometimes rationalise that employee remuneration is simply a function of this equation. But here lies the danger: the moment employees feel they are reduced to tradeable commodities, loyalty and motivation vanish.
Systems thinking reminds us that the health of the organisation depends on the commitment and energy of its people. Cutting costs through underpayment may deliver immediate financial gains, but the longer-term costs – high turnover, disengagement, poor customer service – can erode the system from within.
Perhaps the question to ask is not ‘What is the lowest salary I can get away with?’ but rather ‘What level of compensation sustains the trust and dignity on which our system thrives?’
c) Neglecting training: a silent erosion
If there is one management aspect that consistently receives lip service rather than serious attention, it is training. Too often, organisations allocate funds to meet compliance requirements, report them in annual reviews, and then tick the box without ever asking whether meaningful skills have been developed.
More disheartening still are cases where professional individuals have offered to provide training at no cost, and management has shown little interest. The issue is not money, but mindset. Training is seen as peripheral, rather than integral to long-term system health.
A systems-oriented organisation views training as a repository of collective wisdom. Do you, for example, maintain a library of training material accessible to new employees or to current employees transitioning into new roles? Without such a structure, the same mistakes are repeated, knowledge is lost, and the system falters.
