5x1: How Systems Change | Thursday, November 14th, 2024

by Monti Pace

The​ 5x1 newsletter​ is a concise and insightful resource around a simple concept: systems achieve goals.

sys·tem [ˈsistəm]
a set of things working together as parts of a mechanism or an interconnecting network.
a set of principles or procedures according to which something is done; an organized framework or method.

1 x Principle of Systemization

Points of Leverage provide the ability to create large scale changes in a system through small, well-placed interventions. Systems scientist Donella Meadows identified key leverage points ranging from information flows and rules to goals and paradigms - places where targeted effort can transform entire systems.

• Information Flows: How data and feedback move through the system, who does and doesn't have access to information
• Rules: The incentives, punishments, and constraints that shape behavior
• Self-Organization: Allowing the system to evolve and adapt organically; the system changes itself (also known as Spontaneous Order)
• Goals: The purpose or function that drives the system
• Paradigms: The mindset or assumptions from which the system arises; deep set beliefs about how the world works

While we often recognize these leverage points, we sometimes push against them in ways that create resistance rather than change, like trying to force behavioral change through willpower alone instead of adjusting the underlying system. The most effective approach is identifying the highest-leverage points and applying strategic, directed pressure to create lasting transformation.

1 x Systemization Quote

"The higher the leverage point, the more the system will resist changing it." - Donella Meadows

1 x Reflection Question

Examine the systems (small or systemic) that you're trying to change in your life. Are you focused on points of low leverage? Are you resisting points of high leverage, such as paradigm shifts, out of fear? Are you pushing in the wrong direction on a leverage point?

1 x Personal System Idea

• Information Flows: If you’re tracking health data to achieve fitness or nutrition goals, the real-time information is likely buried in an app or dashboard you have to consciously seek out. Consider changing how you access that information. Strip it down to one key metric (e.g., step count or water intake) and display it somewhere more visible. This could be a widget on your phone’s home screen or a simple tracker on your refrigerator that you update daily.
• Rules: While laws are the most common rules we encounter daily, we have more influence over them than we might think. For example, if you’re trying to help the environment but face HOA rules or local regulations preventing you from growing a garden or installing solar panels, take action. Attend (or consider joining!) HOA meetings or county/city zoning commission meetings to work with officials on changing these rules. Your voice matters more than you realize.
• Self-Organization: This leverage point can be challenging, because it requires us to let go and observe what naturally emerges. Instead of constantly reminding family members or berating yourself about putting coats and shoes in the hall closet, watch where these items naturally end up. Then, work with these patterns rather than against them - perhaps by adding hooks behind the front door or a shoe rack in the garage where items tend to accumulate naturally.
• Goals: If you have a goal that keeps not getting done, like digitizing all your physical files, step back and examine it. Is your true goal to have everything digitized, or is it to easily find important information when needed? By reframing the goal, you can design a more achievable system - perhaps scanning only essential documents rather than attempting to digitize everything.
• Paradigms: While shifting deep-seated beliefs might seem daunting, history shows that paradigms can change rapidly. Consider the #MeToo movement - after decades of slow progress, perspectives on sexual harassment and power dynamics shifted dramatically when women began sharing their experiences widely. On a personal level, changing our self-talk paradigms can be equally powerful. Shifting from a fixed mindset (“I’m bad at X”) to a growth mindset (“I haven’t learned X yet”) opens up new possibilities in our systems by reinforcing our ability to learn and grow toward our goals.

1 x Business System Idea

• Information Flows: Crucial business insights often get scattered across different tools and platforms - revenue data in your accounting software, client feedback in emails, project updates in your task manager, leads in your CRM. Instead of bouncing between systems, deliberately design how this information flows to you. For example, you could create a simple "business insights" document where you paste notable information when you encounter it (positive client feedback, common pain points you hear, ideas for new services, or lessons learned from projects), or you can set up a weekly ritual where you review one key area (like client communications or project outcomes) and capture the patterns you notice. The goal isn't to track everything but to ensure important insights don't slip through the cracks and can actually inform your decisions.
• Rules: While external regulations might feel fixed, many constraining "rules" in business are actually just inherited practices or assumptions. For example, if your calendar always seems to get filled with meetings, examine your meeting policies. Do you really need every meeting to be an hour by default? Change your settings on your calendar links to make meetings 30 minutes by default. You'd be amazed how people can become more focused and concise when it's expected. Be on guard for "that's just how we do it" rules that might be holding you back.
• Self-Organization: Instead of forcing yourself to use a task management system that feels unnatural, observe your own patterns. Do you naturally jot tasks in your notebook during meetings? Are you more likely to remember things if you email them to yourself? Do you prefer keeping a running list in your notes app? Rather than fighting these instincts, build your system around them. If you naturally write tasks in your notebook, perhaps your system should include a daily 5-minute review of your notes to transfer important items to a more permanent home. Work with your natural tendencies instead of against them.
• Goals: If your team consistently misses revenue targets, perhaps the goal itself needs examination. Is pure revenue growth really what you're after, or is it sustainable profitability? Are you measuring what truly matters? Netflix famously shifted their core metric from subscriber count to viewing hours, recognizing that engaged viewers were more likely to remain subscribers. Changing the goal changed their entire content strategy.
• Paradigms: The most powerful paradigm transformations often start with examining our own limiting beliefs about business. Perhaps you believe “I can’t raise my prices because clients won’t pay more”, “I have to be available 24/7 to provide good service”, or “my industry requires in-person meetings to build trust.” Challenge these assumptions by testing small changes - try raising prices for new clients while grandfathering existing ones, establish clear boundaries around your availability while improving your response quality, or experiment with virtual meetings for some clients. When you shift these fundamental beliefs about how your business must operate, you often discover that many of your constraints were self-imposed.