"1SYSTEMS THINKINGSYSTEMS THINKING IN DEVELOPING SOLUTIONS TO SUSTAINABILITYCHALLENGES.by (Student)Class (Course)Professor InstitutionCity and State The Date 2SYSTEMS THINKINGIntroductionManagement is plagued with complexities that calls one to make rational decisions inaddressing challenges, projecting goals, laying foundations to achieve the goals andtargets set, managing unpredictable relationships, addressing stake-holders needs andexpectations, realizing the overall economic goal, balancing between profit maximizationand welfare among others. The framework of operations and management can be definedbefore- hand making any manager or service provider prone to being stuck to thestipulated frameworks or systems even when times call for strategic change from thestatus quo to sustainable solutions.According to Martin, Branniganand Hall (2005) Systems thinking is a criticalcomponent in solving any sustainability challenge. This is backed by Porter (2008)arguing that system thinking is fundamental in shaping mental models as well as strategicactivities. Systems are recognized to be very vital in establishing a state of order andorganizational stability as well as ‘adapted equilibrium’ (Stacey,Griffin and Shaw, 2000).They are geared towards security, stability and continuity by shaping organizationalinteraction to achieve a projected goal in a sustainable manner. Stacey, Griffin and Shaw(2000) in this case therefore define systems as very powerful tools that take into accountthe causal connections distance in space and time. Although Stacey, Griffin and Shaw (2000) point out that system thinking is notinvolved in defining human organizational life since systems and human and distinct,Fullan (2005) holds that human are also characterized as systems. This is based on the 3SYSTEMS THINKINGargument that systems are ‘bound to unseen fabrics of action that are interrelated’ whoseeffect take years to surface. It is held that most of the global phenomena are connected byhuman action as well as human interactions that are mostly unexpected and unintended.Shifting to more renewable sources of energy in AustraliaThe global phenomenon on climate change has shaped countries policies in adoptinggreen and sustainable technologies and policies. Many recent sustainable action plans andpolicies have been influenced by policies strategies on clean energy, substantialagricultural reforms as well as reforms on planning and regulation (Martin, BranniganandHall, 2005).Australia, which is considered a great emitter of carbon has taken up the challenge togoing green. Different initiatives have been adopted to address energy sources in the rushto break- free from coal which has been considered as Australian highest carbon intensivesource of energy (Melbourne Energy Institute, 2017). According to Melbourne EnergyInstitute (2017), the launch of the Victorian Renewable Energy Target is indeed a gamechanger to the Australian energy crisis. Victorian region is considered a heavy producerof brown coal, which means that, if the targets of attaining 25% proportion of electricitycoming from renewable energy by 2020 and 40% by 2025 are achieved, there will be amassive decline in the reliance of coal.The situation however is plagued by a number of concerns, chief of which is thestrategy to adopt in achieving these targets. The concerns of the majority are how the 4SYSTEMS THINKINGshift to renewable energy will be detached from the rush of a few to make much profitsand make it an inclusive agenda (ARENA and GreenSync, 2017). There have beenprevious strategies to address the issues of climate changes specifically linked to energydemand that include; the emissions trading scheme and the government safeguardmechanism. The coal exit plan although strategic in realizing the clean energy goal, hasfaced resistance since mega corporations relying of the resource would lose massively.This study therefore aims at establishing the efficacy of systems thinking inaddressing the shift to renewable energy in Australia.Organization of the EssayThis essay will is organized as follows:? Introduction that gives a background of systems thinking and the shiftto more renewable sources of energy in Australia. It also states the aimof the study.? A critical analysis on the role of systems thinking in Australian shift torenewable energy that contains; the link between systems thinking andsustainability, the Australian renewable energy targets, the strategicjourney of Australia’s realization of its renewable energy targets, theintegration of systems thinking in the realizing the renewable energytargets in Australia. 5SYSTEMS THINKING? Conclusion.The role of Systems Thinking in Australian shift to Renewable EnergySystems thinking approaches can be categorized into two: ‘interpretivism’ and‘complex adaptive systems.’ According to Porter (2008), interpretivism views anorganization and its environment as bound to embedded factors constructed socially. It isa concept that focuses on inclusiveness of the whole social systems that is characterizedby managers integrating all the stakeholders in discussions geared towards the attainmentof the common good. These embedded factors are therefore combined to come up withshared realities. In this, different views and opinions of various stakeholders are handleddemocratically. Complex and conflicting opinion are taken into consideration andultimately addressed and further incorporated in a rational, non- coercive and opendiscussion. The main objective of ‘interpretiveness’ is to achieve an inclusive,participatory and democratic social order.’ Other hand is the ‘Complex Adaptive System.’ Unlike the interpretive systems thatfocuses on gathering the ‘whole’ and attempting to reduce them to simple elements,‘Complex Adaptive Systems’ focuses on attaining the ‘equilibrium.’ This concept holdthat, it is possible to predict the future and control it which can be achieved by firstunderstanding the situation at hand , the future projection and the actions to take inaddressing the now and the future. The Complex Adaptive Systems bear some four keycharacteristics; self-organization that focus on how elements of the systems including allstake- holders arrange themselves and interact without a stipulated design. Emergence isthe second characteristic that means that the many micro- interaction that take place 6SYSTEMS THINKINGwithin a group lead to decentralization in an organization. Thirdly, is the ‘bottom upchange’ which means that variation in the lower level may lead seismic change of thewide behavior of a system. The fourth characteristic is referred to as the ‘edge of chaos’that marks the transition point between chaos and order that leads to the emergence ofinnovation (Porter, 2008).‘Complex Adaptive System’ is considered by Porter (2008) to be guided by theprinciples of empowering and building small groups of systems’ elements, facilitatingadaptive learning in all organization’s levels as well as supporting innovation by thestakeholders at the decentralized levels. The system is therefore considered to beinstrumental in situation where there is a conflict between the drive to attaining personalbenefits and that of the common good as well as situations of conflict among socialselements in terms of their viewpoints objectives. A case in point is when is whenshareholders view a sustainability initiative as driven by profit- making rather than socialand environmental motivation.Citing Senge (1990) Fullan considers systems thinking to be conceptual frameworksand bodies of tools and knowledge developed to help change people’s thinking byunderstanding the cause and effect of interaction over time. In his argument, Fullan (2005)points out that if an organization or a program lacks system thinkers, it would beimpossible to attain transformation of systems or organizations. He argues that to attainsuch, it is imperative to link system thinking with sustainability. In this case, he definessustainability as a system’s capacity to continuously engage in complex situations inorder to improve the systems consistently with the deeper values of the human purpose.7SYSTEMS THINKINGManagers are therefore expected to move towards the values of sustainability inorder to achieve the good of the whole. Fuller therefore outlines the basic elements ofsustainability as; The commitment to transform and to change context, building lateralcapacity through networking, endeavoring to commit to public service with a moralobjective, engaging in deep learning, having a dual commitment to both the short- termand long- term outcomes as well as adopting new vertical relationships that encompassesco-dependence tendencies, accountability and capacity building.According to Sims, Rogner and Gregory (2003), several methods have been put inplace to mitigate the emission of carbon dioxide. Technologically induced more efficientfossil fuels conversion has been suggested as a strategy that produces more than doublethe power station’s efficiency from 30%. Another method brought on board is thesuppression of emission by switching to low- carbon emissions, decarbonation of fossilfuel and the use of nuclear power (Sims, Rogner and Gregory (2003). The only optionthat is carbon free with no risk is the use of renewable energy sources. This not onlyprovide clean energy but also less costly and offers numerous options of investmentseven at the lowest level of the household. According to Clean Energy Council (2015) the 2015 statistics indicate that 14.6% ofthe Australian electricity emanated from renewable sources. Wind and solar energy areconsidered to take over from the fluctuating hydro- energy that has been on the decline inenergy production due to low rainfall. According to statistics, rooftop solar poweredenergy was able to generate and supply 5 gigawatts of energy a capacity that is enoughfor a virtual powers station. Clean energy investment has seen to more than 2500 8SYSTEMS THINKINGmegawatts of solar power as well as 8000 megawatts of wind power projects underconstruction that are enough to meet the 2020 renewable energy targets. To attain morerenewable energy target Australia has split its policies into two; large- scale targets andthe small- scale targets. The aim of developing these policies is to encourage the adoptionof renewable resources as well as spurring activities geared towards accompanying thetargets.These and other mega projects are funded by Australian Renewable EnergyAgency and renewable energy programs that are state- owned in 2015 amounted to $1.2billion.As earlier stated, systems thinking involves participation among other elements aswell as inclusion. Normally a crises call for action from both the public and the privatesector and in most cases, profit making firms tend to save the day by investing heavilywith an incentive of maximizing their profits. In this view, Australian energy demand hasseen to many industries take up the mantle to meet the rising demand for energy. However, system thinkers like ARENA and GreenSync have devised a strategy thatseek to transform Australia’s energy industry by involving everyone including householdthrough a technological system named deX (Decentralized Energy Exchange) (ARENAand GreenSync, 2017). The system therefore as put by GreenSync will change howenergy is not only produced, but traded and consumed even at the very local level. Theplatform therefore seeks to digitize the energy market- place. With the highest consumerof energy in Australian being commercial and residential (Australian Government, 2015),an inclusive and digitized marketing through an off- grid system (Clean Energy Council,2015) is very strategic."