Leverage Points

Folks who do systems analysis have a great belief in “leverage points.” These are places within a complex system (a corporation, an economy, a living body, a city, an ecosystem) where a small shift in one thing can produce big changes in everything. This idea is not unique to systems analysis — […]

Places to Intervene in a System. page (in increasing order of effectiveness)

12. Constants, parameters, numbers (such as subsidies, taxes, standards). 11. The sizes of buffers and other stabilizing stocks, relative to their flows. 10. The structure of material stocks and flows (such as transport networks, population age structures). 9. The lengths of delays, relative to the rate of system change. 8. The strength of negative feedback loops, relative to the impacts they are trying to correct against. 7. The gain around driving positive feedback loops. 6. The structure of information flows (who does and does not have access to information). 5. The rules of the system (such as incentives, punishments, constraints). 4. The power to add, change, evolve, or self-organize system structure. 3. The goals of the system. 2. The mindset or paradigm out of which the system — its goals, structure, rules, delays, parameters — arises. 1. The power to transcend paradigms.

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According to Senge (1990), it is a place in the structure of the system where a solution (i.e., actions and changes in structure) can be applied that “can lead to significant, enduring improvements” (p. 114). It is important to note that best results do not necessarily come from large-scale interventions but can also be from small and well-focused actions. Specifically, it is a low leverage point if a small amount of change causes a small change in system behavior and it is a high leverage point if a small amount of change causes a large change in system behavior. Finding leverage points, particularly a high leverage point, is a challenge that requires the use of advanced problem-solving tools. Likewise, it becomes more puzzling if there are multiple leverage points in a system. Hence, we offer an alternative criteria allowing for the location of a point in a CLD where interventions made can maximize leverage. We call this the Potential Leverage Point (PLP). As such, we pose the research question: How to identify potential leverage points in a system within a causal loop diagram? By identifying PLPs, we can apply intervention that can maximize leverage. To address this, we set the following research objectives:

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ROXAS, Fernando Martin Y., RIVERA, John Paolo R. and GUTIERREZ, Eylla Laire M., 2019. Locating Potential Leverage Points In A Systems Thinking Causal Loop Diagram Toward Policy Intervention. World Futures. Online. 17 November 2019. Vol. 75, no. 8, p. 609–631. [Accessed 26 February 2023]. DOI 10.1080/02604027.2019.1654784. Outcomes depending on various interacting and adaptive parts and actors in a volatile, uncertain, complex, and ambiguous (VUCA) world are challenging to analyze using traditional thinking. Hence, Systems Thinking (ST) can be applied as a tool to aid policy makers in designing interventions that anticipates various ways in which a system might react to policy changes through the practice of integrating multiple Perspectives into a causal loop diagram (CLD). We formalize criteria for identifying potential leverage points (PLP) in a CLD. Identifying PLPs enable policy makers to apply ST tools to devise strategies that are capable of addressing VUCA problems.