Naturally, socio-economic and ecological systems are made up of hundreds of interconnected positive and negative loops and its ultimate behaviour isn't obvious. The concept of the loop is very useful because it enables us to start from the structure of the system that we are analysing and work towards its dynamic behaviour. If a system fluctuates persistently, remains in equilibrium or drops off rapidly, we can identify the structural reasons and decide how to go about modifying the causal loops that are going to influence it. This procedure can be applied to anything from the control of an industrial process to the monitoring of diabetes or cancer, fluctuations in the price of raw materials, or economic growth.
Yet the most important use of this concept is in understanding how the structure of systems affects their behaviour. In the same market and in the same year, various firms that offer the same product present very different economic results.
The less competent managers put this down to causes beyond their control - the cost of labour, competitors, customers' habits, and so on - when in fact they should study why the systems they control (their businesses) have a less competitive structure than those that show better results.
Content
Introduction
1. Identifying the Problem
2. Defining the System
3. The Boundaries of a System
4. The Causal Diagram
5. Feedback
6. The Limiting Factor
7. The Key Factors
8. Classification of Systems
8.1. Stable and Unstable Systems
8.2. Hyperstable Systems
8.3. Oscillating Systems
8.4. Sigmoidal Systems
9. Generic Structures (Dynamic archetypes)
9.1. Resistance to Change
9.2. Erosion of Objectives
9.3. Addiction
9.4. Shifting the Burden to the External Factor
9.5. Short and Long-Term Effects
10. World Models
11. Control Questionnaire
Annex
I.History and basic concepts
II.Frequently Asked Questions FAQs
III.Training Courses
IV.Software
V.Bibliography
About the author
Juan Martín García is teacher, consultant, and a worldwide recognized expert in System Dynamics, with more than twenty years of experience in this field. Ph.D. Industrial Engineer (Spain) and Postgraduated Diploma in Business Dynamics at Massachusetts Institute of Technology MIT (USA). He teaches Vensim online courses in http: //vensim.com/vensim-online-courses/ based on System Dynamics.
