In an ever-changing world, understanding and harnessing the potential of systems thinking offers many benefits for organisations and individuals alike.
What is a system?
Systems are a set of connected parts or components that affect each other – the components (people, organisations, structures), the relationships between them and the behaviours that result.
To explain the concept using a familiar example, a house is a system. It’s composed of many interdependent components, each of which affects the performance of each other and the system (house) as a whole. When the settings of one element change – for example, ventilation levels – the impact can present itself in a variety of ways including mould growth and changes in humidity, temperature and CO₂ levels. When you add humans and human behaviour to the system, the results are even harder to predict.
The building and construction sector is also a system – one that plays a pivotal role in shaping our physical environment and our communities. The building system is described as a ‘complex system’ because it includes many different parts and relationships. Depending on what behaviours or challenges you’re interested in, the boundary of the building system can change. The building system can include other sectors (like finance or insurance). Why? Because changes in these other sectors, such as interest rate changes or inability to access insurance, can impact the ability of the building system to deliver. Understanding how interdependencies shape the overall functioning of the system is critical for effective decision-making and problem-solving.
As well as being a significant employer and contributor to Aotearoa’s economic growth, the building and construction sector has far-reaching impacts on the health and wellbeing of New Zealanders. It is also a sector facing significant challenges – many of them long standing.
Through information gathered in touchpoints like the Industry Insights Survey, BRANZ can see that issues such as performance challenges with the building envelope, energy efficiency, environmental impact, affordability and productivity are regularly top of mind.
Addressing these challenges requires moving away from siloed, linear, short term thinking towards a more holistic, collaborative system, with longer-term shared sector goals. This is where systems thinking and dedicated system transformation effort can help – whether that is shifting the mindsets, assumptions and behaviours that hold many of these challenges in place or recommending targeted improvements.
Systems thinking and system transformation
Globally, the concept of system transformation has gained significant traction in recent years. To address complex challenges such as climate change, resource scarcity and social inequity, there is a growing recognition of the value offered by systems thinking and the need for system transformation.
Systems thinkers want to understand the interactions between stakeholders, rules, structures and social dynamics and see how parts of a system interact and influence each other to achieve (or prevent) desired outcomes.
By examining the system as a whole and monitoring behaviour and trends over time, systems thinking allows for a better understanding of the underlying causes of issues. This helps identify places in the system where action can have a big impact, moving beyond surface-level, isolated quick fixes. Transformative action involves reshaping one or more key elements within the system to achieve better outcomes.
Bringing transformation to life
BRANZ has a role in growing a better-performing building sector – one that delivers better outcomes for all New Zealanders. Since its inception, BRANZ has been exploring, finding and testing system issues affecting the building and construction system in Aotearoa.
The decision to apply systems thinking to building and construction issues grew out of an increasing awareness that several challenges within the system weren’t really improving, regardless of the work that was taking place.
BRANZ has been developing its systems thinking capability and formally added system transformation to its strategy in 2020.
Much of the work to date has involved working with others in the sector to understand system dynamics and needs and monitoring indicators of system performance. BRANZ has also been working to understand the root causes of some of the engrained system challenges. Identifying the root causes of issues rather than just addressing symptoms helps find the right points to intervene and develop initiatives to support lasting positive change at a system level.
The system transformation activity sits alongside BRANZ’s core research and consultancy services. While looking at how to build a better future, BRANZ continues to invest in knowledge and resources that help address the pressing research needs of the building sector as it is today.
Impacting the sector
Using systems thinking approaches can help the industry transform its practices and contribute to a more sustainable, productive future. For Aotearoa’s building and construction sector, system transformation will mean embracing new ways of thinking and working, requiring industry participants to partner with others and to challenge assumptions about how the sector works.
Will it always be comfortable? The short answer is no – transformation requires change, which can be challenging.
Resistance to change is one of the most significant. Systems are designed to maintain the status quo, and vested interests often create barriers to changeTo achieve real change, system transformation requires a shift towards long-term, sustainable thinking. Quick wins are rare when you’re trying to shift the structures or beliefs that underpin a system.
A collective effort
The building and construction sector has enormous potential for system transformation. It provides opportunities to work collectively for more efficient use of natural resources, improved productivity and increased performance and affordability. System stakeholders will need to acknowledge and work to address resistance, complexity, coordination issues, short-term thinking and the various barriers to achieve change.
Systems thinking provides a powerful lens to help us understand the building system, identify patterns and trends, make informed decisions and find better solutions. Embracing system transformation is not only a necessity – it is a powerful opportunity to shape the sector so that it better meets the needs of all New Zealanders.