Systems Thinking and SSM Applied to Sugarcane Supply Chains

Introduction to Systems Thinking

The key constructs of systems thinking were established in the first half of the 20th century in fields such as psychology, ecology, organismal biology, and cybernetics (Capra, 1997). They include: sub-systems, parts and wholes, environment, system and boundary, process and structure, emergent properties, hierarchy of organizations, negative and positive feedback, data and control, open systems, holism, and the observer. The practical application of these constructs across many fields was articulated by von Bertalanffy (1950), who referred to these concepts as General Systems Theory (GST). These concepts were subsequently adapted in Organizational Research and Management Science (OR/MS) and were referred to as management cybernetics (Beer, 1967), systems engineering (Hall, 1962), system dynamics (Forrester, 1968), and, finally, what may be called the systems approach (Churchman, 1968; Klir, 1969; Weinberg, 1975) (Mingers & White, 2009).

The systems thinking and systems approach has been closely linked to the growth of organizational research and management science. Initially it was intimately associated with the work of proponents such as Ackoff and Churchman, and later through innovations such as soft systems methodology. Systems thinking can be rightfully regarded as a complete field with many methodological and theoretical innovations. However, because of its broad generalization, systems thinking is applicable to a wide variety of problem areas — and therefore any review of systems thinking should always be a selective one.

The significance of systems thinking for OR/MS was recognized from the outset by pioneers including Ackoff and Churchman, cyberneticists such as Beer, and systems engineers such as Hall. However, the growth of OR led to certain divergences: OR evolved to focus on computer and mathematical modeling approaches, to the detriment of systems thinking. System dynamics and cybernetics grew separately and in relative isolation, while systems engineering came to be used primarily in the United States public sector. These divergences eventually produced a crisis in organizational research, resulting in the formation of soft systems — both critical and systemic. The latest theories to emerge from this crisis include chaos and complexity theory (Mingers & White, 2009).

Problem Situation in the Sugarcane Milling Industry

Milling areas are often characterized by challenges arising from the involvement of many stakeholders in the sugarcane supply chain. These stakeholders hold different values, goals, mentalities, expectations, and strategies (Bezuidenhout & Bodhanya, 2010). This diversity can result in competing interests, creating conflicts and tension throughout the supply chain (Gerwel et al., 2011).

The problems posed by hard technical issues in sugarcane industry supply chains are key components in the development of any mill area. These include the quality of the cane and its supply, the efficiency of the mill, and the division and distribution of proceeds. Beyond these hard technical issues, there are also problems of managing other components such as objectives, values, leadership, communication, and trust — all of which must be addressed when aiming to enhance a sugarcane supply chain (Bezuidenhout & Bodhanya, 2010).

Justification for Soft Systems Methodology

Soft Systems Methodology (SSM) is a philosophy that takes into account intervention in unpredictable, real-life circumstances where there are problematic areas (Checkland, 1985). The emphasis is on making adaptations, through productive discussions, in areas where relevant stakeholders mutually surface their perceptions and deal with issues. The emphasis is on accommodation among diverse partners and on arriving at an agreed-upon course of action (Presley & Meade, 2002). The stages in SSM include: forming answers concerning problem situations; creating models that take debate and discussion into consideration by contrasting the reality of situations with their potential; and settling on a strategy to realize change. Distinctive instruments are also utilized — for example, the generation of "rich pictures," which are used to identify stakeholders and their interests (Gerwel et al., 2011).

Using the System of Systems Methodologies (SoSM) framework, SSM was selected because the systems being described are relatively simple — comprised of a small number of highly structured relationships that are broadly stable and moderately unaffected by interactions with external elements (Systemswiki, 2014). These interactions are those between the hard technical issues and the other components described above. Additionally, the participants in the framework are pluralist: basic interests are compatible, but members do not share identical values and beliefs. This means space is needed for open deliberation, differences, and potential conflict, while participants require involvement in decision-making and accommodations and compromises must be found (Systemswiki, 2014).

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