Systems Intelligence

for Life Cycle Management

Shifting the Focus from
Products to People
Raimo P. Hmlinen

raimo@hut.fi

www.systemsintelligence.hut.fi

S ystems

Analysis Laboratory

Helsinki University of Technology

Disciplines for coping with

complexity
Operation Research / Management Science /
Systems Analysis
Develop generic tools and methods for
structured problem solving and decision
support.
The Science of Better
Goals: Improve problem solving by learning,
understanding and communication
Based on a systems thinking perspective
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Multi-Criteria Decision Analysis

(MCDA)
Transparency in decision making
Integrated management of
objective data and subjective values
Incorporation of risks and uncertainty
Well developed theory
Textbooks e.g.Belton, Stewart 2002; French et al. 2009
Increasingly used in environmental management
Introduced into Life Cycle Assessment literature
in the late 1990s ( Miettinen, Hmlinen 1997)
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Steps in MCDA
Problem structuring
Value focused thinking
Identification of objectives and alternatives
Interactive preference elicitation
Composition of overall preferences and rankings
Sensitivity analysis what if
Result: Transparent recommendation
Tools and e-learning material available on the web:
www.decisionarium.hut.fi
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Analysis Laboratory

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Todays Topic
Systems Thinking in LCM
New lens:
Systems Intelligence (SI)
LCM is a systems approach
Shifting the focus from products to people makes
human thinking the driver for improvement
SI + LCM = Ecological Intelligence
Key perspective in Environmental Leadership
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Analysis Laboratory

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Systems Intelligence
(Hmlinen and Saarinen, 2004)
Intelligent behaviour in the context of complex
systems involving interaction,dynamics and
feedback
Combines human sensitivities with
engineering thinking
Pursuing the idea of making things work

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Systems Intelligence
A person with Systems Intelligence
understands that she is always part of a
system in her environment
She perceives herself as part of the whole
- her own influence upon the whole
- the influence of the whole upon herself
- she realizes that others in the system can
have different views of the whole
- she is able to act intelligently in the system
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The SI perspective
Helps to identify productive forms of action
It is a competence that can be improved by
learning
Systems Intelligence is a basic form of
human intelligence

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Multiple Intelligences
(Howard Gardner 1983)

Linguistic
Musical
Logical-Mathematical
Spatial
Bodily-Kinesthetic
The Personal Intelligences intra / inter
Plus higher-level cognitive capacities e.g.
common sense and wisdom

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SI and Multiple Intelligences

Systems Intelligence is another higher level
cognitive capacity
SI links intelligence with the concept of
system and systemic thinking
SI embedds Social and Emotional intelligence
(Goleman 1995, 2006)
Systems Intelligence is a survival asset we
have as a species
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SI relates to
Systems Thinking
(Churchman 1968, Senge 1990,Checkland 1999,Jackson 2003)

Organizational theories and Action research

(Argylis, Schn , Schein ,Bohm 1980, Isaacs 1999)

Philosophy, Socratic tradition for thinking for good life

Positive psychology
(Bateson 2000, Goffman 1974, Seligman 2002)

Theories of decision making and problem solving

(Simon 1956, Keeney 1992, Kahneman, Tversky 2000)

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Organizational learning
The Fifth Discipline
(Peter Senge 1990):
Personal Mastery
Mental Models
Shared Vision
Team Learning
Systems Thinking
Systems Intelligence is the link between
Personal Mastery and Systems Thinking.

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Systems Thinking
Emphasizes the importance of wholes and
perspectives
Models systems of interaction from outside
Can become a trap when one only sees the
system from outside and does not
recognize herself being an active player in the
system

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Characteristics of systems
Whole is more than the sum of its parts
Whole and Part are relative abstractions
Always subject to redefinition by changing the
perspective

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How we see systems

determines the model

Beliefs about needs and goals

Framing: costs or benefits
Boundaries: fixed or flexible
Alternatives: fixed or flexible
Values: fixed or evolving and constructed in
the context.

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Systems can take over

People can get caught in systems that serve
nobodys interests
People can feel helpless regarding their
possibilities of changing the system
People react to the system without seeing
their effect on the whole

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Systems Intelligence
Becomes a challenge for personal learning
Trusts that people can influence complex
systems
The theoretical understanding of Systems
Thinking need not increase Systems
Intelligence

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Ask first the System Questions

1. What does the system generate and to what
extent is this what we want?
2. How does the system mold us as human
beings?
3. What kind of in-between does the system
endorse?

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Change is not easy

Mental change

Perceptual change
Individual behavioural change
Change in the system

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Thinking about thinking

Key to learning Systems Intelligence
Ones actions are a function of ones thinking
(mental models, beliefs, assumptions,
interpretations, etc.)
Challenge my mental models by meta-level
thinking regarding my own thinking

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Invisible system
We often perceive systems only through a
mechanistic perspective
We see materials, products and costs
When people are considered:
the true system often includes hidden
subsystems
such as processes of trust or fear generation
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Seeing oneself in the system

With the eyes of the others
The impact of my behaviour upon the
behaviours of others
The impact of the current system on all of
us

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Managing the invisible

To understand the system, it can be more
important to know what is not produced than
what the standard output is
SI tries to understand both the visible and the
invisible part

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Perceptual and behavioural

change

Seeing both the organizational/physical and

the human parts
SI looks for productive inputs to impact both
parts
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Change in the system

People adjust to systems instinctively.
If a system is changed, people also change
their behaviours. This leads to further change
A small change in my behaviour might trigger
a chain of changes in the behaviours of
others

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Evolution gave us SI

In experimental games :
People choose co-operative strategies with Systems
Intelligence. They do not take everything for themselves.

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5 step ladder of SI
1. Seeing oneself in the System Ability to see ones roles and
behaviour in the system. Also through the eyes of other people and
with different framings of the system. Systems thinking awareness.

2. Thinking about Systems Intelligence Ability to envision

and identify productive ways of behaviour for oneself in the system

and understanding systemic possibilities.

3. Managing Systems Intelligence Ability to personally work

with systems intelligence.
4. Sustaining Systems Intelligence Ability to continue and
foster systems intelligence in the long run .

5. Leadership with Systems Intelligence Ability to initiate

and create systems intelligence culture in ones organization.

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So What?
Is there a role for
Systems Intelligence in LCM?

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LCA is Systems Thinking

Describes a product system and assesses
the inventories and impacts.
LCA is not enough
The Systems Thinking trap lurks in LCA.
Life Cycle Management takes LCA into action

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Life Cycle Management

(UNEP/SETAC LMC Definition Study 2003)
Integration of
life cycle perspective and economic, social,
environmental considerations
into overall
strategy, planning and decision making of
organizations product portfolio
System oriented platform
Improvement and sustainability driver
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The system questions

What does a product system produce?

- satisfaction of needs what else?

- environmental costs is this what we want?
How does the product system mold us?
How does the product system influence
our in - between?
- does it endorse environmental responsibility
and sustainability culture
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Happiness as an indicator in LCA

(Hofstetter, Madjau, Ozawa, 2006)

Does the system produce happiness ?

A weighted sum of happiness enhancers and
rebound effects?
set achievable important non-materialistic
goals (weight = 2.5)
become an outgoing personality (1.5)
focus beyond self (1)
.
But - happiness is systemic

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Systems can take over

People can be caught in environmentally
harmful systems that serve nobodys interests
People in the system can feel helpless
regarding their possibilities of changing the
system
We live in consumption systems without
seeing the cumulative overall effects

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Social Life Cycle Management

Impact categories are expanded
Social evaluation of companies is not enough
Expanding the product / service system
boundary with a social perspective?
involve the stakeholders
re-evaluate needs

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Stakeholder involvement with SI

Invisible elements, emotions / trust are
important in the process
The way people are encountered can be
more influential than the issue itself
Dialogue not conflict resolution
Beliefs about the expected beliefs and goals
of others do matter

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Goal and Scope in LCA

Redefinition question:
What other possibilities
are there to meet
peoples needs?

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Consuming in Virtual Second Life

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Maslows Hierarchy of Needs

Can we see the drivers of our needs
related to our consumption ?

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Invisible systems
What is not produced (happiness /sustainability)
can be more important than the material output of
the products system
The process of achieving a social goal can
matter more than the end product:
-buying a bread or home baking the bread

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Personal Life Cycle Management

My priorities in the satisfaction of needs over my
own life
Rethinking values can lead to revision of needs
= a change in the system
Where can I make value based trade-offs?
Can I learn to manage consumption in a more
sustainable way
Change is not easy
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5 Levels of SI in personal LCM

1. Seeing oneself in the Environmental System Ability to

see ones impacts on the environment. Environmental awareness.

2. Thinking about Environmental Systems Intelligence

Ability to envision changes in ones consumption

3. Managing Environmental Systems Intelligence Ability to

personally change consumption patterns.
4. Sustaining Environmental Systems Intelligence Ability
to continue personal systems intelligent LCM in the long run .

5. Leadership with Environmental Systems Intelligence

Ability to initiate and create systems intelligent LCM culture in ones

social network/ organinzation.

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Systems Intelligence in LCM

Underlying philosophy in Life Cycle Thinking?
Awareness of SI makes people want to have
more of it
It is systems intelligent for companies and
people to use LCM
Formula for Ecological Intelligence:
EI = SI + LCM
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Systems Intelligence Research Group

Co-directors:
Professors Raimo P. Hmlinen and
Esa Saarinen
Downloadable articles and books on SI:
http://www.systemsintelligence.hut.fi/

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References
Belton Valerie and Stewart Theodor J. 2002. Multiple Criteria Analysis, An
Integrated Approach. Massachusetts, Kluwer
Churchman C. West. 1968. The Systems Approach. New York, Delta
French Simon, Maule John and Papamichail Nadia. 2009. Decision
Behaviour, Analysis and Support. Cambridge, University Press
Gardner Howard. 1983. Frames of Mind: The Theory of Multiple
Intelligences, Tenth anniversary edition. New York, Basic Books
Griesshammer Rainer et al. 2006. Feasibility Study: Integration of Social
Aspects into LCA, UNEP-SETAC
Goleman Daniel. 1995. Emotional Intelligence, New York, Bantam Books

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References
Goleman Daniel. 2006. Social Intelligence, London, Hutchinson
Goleman Daniel. 2009. Ecological Intelligence, Bantam
Hofstetter Patrick, Madjar Michael and Ozawa Toshisuke. 2006.
Happiness and Sustainable Consumption, Int J LCA 11, Special Issue 1,
Ecomed Publishers
Hmlinen Raimo P. and Saarinen Esa (Eds.). 2004b. Systems
Intelligence - Discovering a Hidden Competence in Human Action and
Organizational Life, Helsinki University of Technology, Systems Analysis
Laboratory Research Reports, A88, October 2004
Jackson Michael C. 2000. Systems Approaches to Management, New
York, Kluwer

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References
Keeney Ralph L. 1992. Value-Focused Thinking: A Path to Creative
Decisionmaking, Cambridge, Harvard University Press
Miettinen Pauli and Hmlinen Raimo P. 1997. How to Benefit from
Decision Analysis in Environmental Life Cycle Assessment (LCA), European
Journal of Operational Research 102, Elsevier
Miettinen Pauli and Hmlinen Raimo P. 1999. Indexes for Fixed and
Feasible Environmental Target Setting: a Decision Analytical Perspective,
International Journal of Environment and Pollution 12, Nos.2/3.
Saur Kondrad et al. 2003. LMC Definition Study, UNEP/SETAC Life Cycle
Initiative
Senge Peter. 1990. The Fifth Discipline: The Art and Practice of the
Learning Organization, New York, Doubleday Currency

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