The learning organization has been a unifying concept in the field of organizational development, first introduced by Peter Senge in 1990. Its relevance has not diminished but instead is becoming more significant given the nature of business complexity. To deal with fundamental issues, simply problem-solving is insufficient; we need to work toward “problem-dissolving” so that the underlying issues are permanently resolved. Many companies fall into the trap of single-loop learning, where they fix immediate issues without questioning the underlying assumptions that led to those problems. While this method improves efficiency, it often fails to drive true transformation. Double-loop learning, on the other hand, challenges fundamental beliefs and creates the conditions for lasting organizational change.

One of the most effective ways to apply double-loop learning is through the creative tension model, a framework that highlights the gap between the current reality and the desired vision. Instead of reacting to problems in isolation, organizations can use creative tension as a force to drive meaningful, systemic change. This concept is particularly relevant in digital transformation initiatives, where technology alone is not enough—leaders must align people, processes and mindsets to achieve sustainable success.

To understand the difference between single-loop and double-loop learning, consider how organizations typically react to challenges. Single-loop learning is akin to adjusting a thermostat: It focuses on fixing errors within the existing system without questioning the system itself. For example, if an organization struggles with low productivity, it may introduce performance incentives or efficiency tools to address the issue. However, it does not question whether the way work is structured is fundamentally flawed. Double-loop learning, in contrast, goes deeper. It challenges the core assumptions behind decision-making and strategy. Instead of merely adjusting incentives, double-loop learning might lead leaders to reflect: Why are employees disengaged in the first place? Are our current management practices stifling creativity and innovation? Do we need to rethink our organizational structure to empower teams more effectively?

To illustrate the power of double-loop learning, consider the case of a client company in the business of precision engineering. They embarked on a digital transformation journey to become a “smart factory.” The company invested heavily in IoT sensors, AI-driven predictive maintenance and real-time production analytics. However, despite these technological advancements, the transformation was stagnant due to a lack of adoption from factory workers and middle management.

The company’s vision was clear: a fully digital, highly automated factory where AI and IoT would optimize production processes, minimize downtime and improve efficiency. However, the current reality was vastly different. Employees were resistant to automation, fearing job displacement. Middle managers were skeptical about integrating AI insights into decision-making, and data silos prevented seamless collaboration.

At first, the company responded with single-loop learning strategies, such as providing additional training on AI tools to workers, introducing incentives for embracing automation and mandating the use of new analytics dashboards in production meetings. While these actions helped to some extent, they did not address the underlying mental models that were fueling resistance.

Four months into the effort, the leadership team began to realize that their approach was fundamentally limited. They needed to go beyond surface-level problem-solving and rethink how they framed the transformation. Using double-loop learning, they began asking deeper questions that surfaced prevailing mental models to reexamine the assumptions about workforce dynamics that needed to be addressed for digital adoption to succeed.

This led to a major shift in strategy. Aligning with the concept of creative tension meant that they could move from a reactive orientation to a more generative one. For this precision engineering company, this meant communicating a people-centered vision, empowering employers through structured upskilling and breaking down existing silos.

In real terms, they emphasized how automation would reduce tedious, repetitive tasks, allowing workers to take on higher-value roles. Furthermore, a ground-up, peer-led mentorship program was launched, allowing experienced workers to coach their colleagues on using new technologies. Finally, the leadership established cross-functional teams that included factory workers, engineers and middle managers.

At the heart of this transformation was creative tension: the gap between current reality and the envisioned smart factory. Rather than seeing this gap as a source of frustration, leaders used it to drive engagement and action. One could see that with single-loop learning, the gap between vision and reality led to resistance, frustration and disengagement. After double-loop learning, the same gap became a shared challenge that employees and leadership worked together to solve.

By leveraging creative tension effectively, the company was able to turn resistance into motivation. Instead of enforcing change, they co-created it. Organizational transformation requires more than just solving problems—it demands rethinking the fundamental assumptions behind how work is done.

Leaders looking to apply double-loop learning in their organizations must reframe their mental models to go beyond fixing symptoms and redefine the leadership’s role in leading change, inspiring action connected to vision and fostering a learning organization culture. By integrating double-loop learning into management practice, businesses don’t have to be stuck reacting to change; they can actively position themselves to shape it.

Thomas Lim is the Vice-Dean of Centre for Systems Leadership at SIM Academy. He is an AI+Web3 practitioner & author of Think.Coach.Thrive!

A reinforcing loop is one type of causal loop, a term used to describe one way a number of variables can be connected. In a reinforcing loop specifically, one variable reinforces another, which in turn reinforces yet another. When the value of one variable goes up, the corresponding variable affected also goes up. And if one goes down, the other goes down also.

The Core Theory Of Success As A Reinforcing Loop

Dr. Daniel Kim’s Core Theory of Success is a good example of a systems causal loop that explains how the quality of interactions within a team or organization drives overall performance. It operates as a reinforcing loop, where each element strengthens the others in a continuous cycle. The core elements of this loop are:

• Quality Of Relationships: Positive, trusting relationships within the team create a foundation for open communication, collaboration and mutual respect. High-quality relationships foster psychological safety, allowing team members to share ideas freely and work together effectively.

• Quality Of Thinking: When relationships are strong, team members engage in deeper, more creative thinking. They are more likely to challenge assumptions, explore innovative solutions and make informed decisions. The collaborative environment enhances the team’s ability to think critically and strategically.

• Quality Of Action: High-quality thinking translates into effective action. Teams that think well together are able to plan and execute strategies with precision, leading to coordinated and impactful efforts. This leads to smoother execution of tasks and more aligned actions toward shared goals.

• Quality Of Results: Quality actions naturally lead to high-quality results. These results may be seen in terms of improved performance, better outcomes, successful project completion or reaching organizational goals. Positive results reinforce the belief in the team’s abilities and approach.

As the team sees positive results over time, team members become more motivated and committed. Success strengthens their relationships even further, creating a virtuous cycle. This motivation drives continuous improvement, pushing the team toward becoming a high-performing unit. Thus, this theory operates as a reinforcing loop because each element strengthens the others. When teams achieve positive results, it enhances their confidence and further improves the quality of relationships, leading to even better quality of thinking. In turn, this drives higher quality of action and, consequently, superior quality of results. This self-reinforcing cycle helps teams grow into high-performing, cohesive units over time.

Causal Loops In The Real World

In a real-world operating context, a company may desire to showcase itself as being highly innovative. They then decide to bring to market a new project that would differentiate itself by integrating many leading technologies and approaches. When the level of integration is high, the complexity of the project goes up. This results in the number of parameters required increasing exponentially. That brings about potential lapses and errors, which would drive down the quality of the results. The project then gets stripped down to bring down the integration complexity. Such a scenario can utilize a balancing loop to convey the risk involved.

The HR team in a company I worked with noticed burnout and low energy, even among their high-performing employees. What was happening? What could HR do to improve the situation?

Using a causal loop diagram, the diagnosis might be that what impacts performance is the effort required, which is largely tied to motivation. High performance begets recognition, which in turn motivates the individual. As such, a reinforcing loop can be drawn up such that recognition results in motivation, driving effort toward performance, which in turn increases recognition.

In this particular company, project teams were formed by peer selection, and those who had been officially recognized were often sought after for their expertise. In this scenario, a reinforcing loop existed where recognition boosted motivation, leading to higher effort and performance, which then led to more recognition. However, the unintended consequence was that high-performing employees became burdened with additional work through these peer-selected project teams and experienced exhaustion, anxiety and distress.

Ironically, therefore, the same motivation that increased enthusiasm also resulted in greater burden and ultimately burnout (low energy resulting in low performance). Hence, it is very important that when HR formulates new policies such as staff recognition awards, they take into consideration the different causal loops at play, so that the intervention does not inevitably create unintended consequences in the longer term.

Turning back to the Core Theory of Success, if management deems the performance of the team inadequate, they may be tempted to intervene by exerting pressure. This pressure to improve results means increased top-down efforts, which can yield short-term improvements. However, continuous pressure can create excessive tension and distress, negatively affecting the quality of relationships, which ultimately decreases the quality of thinking and hampers the quality of results over time. Weakened collaboration and team cohesion might even create a negative vicious cycle, worsening performance over time.

While pressure may offer temporary gains, true and sustainable improvement requires a different approach. Focusing on core values and strengthening relationships through authentic conversations should accompany any pressure intervention to ensure employees feel cared for and heard in difficult times. It is critical to keep a close watch to ensure that the positive gains through building trust outweigh temporal stressful pressure.

Final Thoughts

In conclusion, the Core Theory of Success can become a powerful engine for sustained, long-term organizational performance. By embedding its principles into the company’s culture, organizations can foster strong relationships, inspire innovative thinking, drive impactful actions and achieve lasting results, creating a dynamic environment for continuous growth and success.

Thomas Lim is the Vice-Dean of Centre for Systems Leadership at SIM Academy. He is an AI+Web3 practitioner & author of Think.Coach.Thrive!

A major challenge confronting organizations today stems from grappling with the challenge of navigating day-to-day issues while striving to maintain focus on long-term goals. Whether it’s adapting to a post-pandemic reality or undergoing a digital transformation, leaders are frequently faced with balancing the pressing demands of the present with a compelling vision for the future. This is where the creative tension model comes in—a powerful framework for bridging the gap between current reality and desired vision.

The creative tension model, rooted in systems thinking, highlights the natural tension that arises when individuals or organizations confront the difference between where they are and where they want to be. The creative process is driven by the gap between vision and reality. When we imagine what we want to create, we visualize a future that highlights what’s missing in the present. This is often referred to as “structural tension.”

Rather than viewing this tension as a source of stress or conflict, creative tension encourages leaders to use it as a motivating force to drive transformation. By acknowledging the gap between current reality and future aspirations, leaders can harness the tension productively, creating an environment where innovation and growth thrive.

But how does creative tension work in practice? Let’s explore two real-world examples that demonstrate how leaders can manage the tension between their current reality and vision to achieve remarkable results.

1. Post-Pandemic Mental Wellness Initiative

In the first scenario, an organization tasked a leader with designing a mental wellness intervention for employees in the wake of the Covid-19 pandemic. The designated finance leader had little expertise in mental wellness or corporate strategy and was understandably anxious about the assignment. The stakes were high—after all, the mental health of the workforce was at risk, and the leader’s reputation depended on delivering an effective solution. This sense of stressful tension dominated the leader’s current reality: feelings of vulnerability, reluctance to step outside their comfort zone and a desire to find “safe” but unremarkable solutions.

However, by applying the creative tension model, the leader was able to reframe the situation. Instead of focusing on the stress and uncertainty of the present, they shifted their perspective to envision a future where they could make a meaningful impact on their colleagues’ well-being. This desired future reality included a holistic mental wellness program that was employee-centric, supportive and energizing.

The act of recognizing and embracing the tension between the current reality and the vision enabled the leader to move from a place of fear and avoidance to one of creative problem-solving. Instead of cobbling together a subpar solution, they felt empowered to design interventions that aligned with the broader goal of fostering a healthy, rejuvenated workplace. The leader was able to rally support for the intervention design with his refreshed outlook. This is the power of creative tension—when leaders can focus on what they want to create rather than merely reacting to stressors, they unlock new possibilities.

2. IT Intervention In A Digital Transformation Project

In a second scenario, a consulting team was working on a process re-engineering project for a government statutory board. Midway through the engagement, the chief information officer (CIO) requested an additional IT intervention that was outside the project’s initial scope. The consulting team, initially feeling uneasy about this sudden change, faced a dilemma. Their current reality was filled with stress, second-guessing and concerns that this new request might derail their efforts to meet existing project deadlines.

In this case, the stressful tension translated into reactive behaviors, such as preparing justifications and caveats to protect themselves from potential fallout. The team’s response, driven by fear of failure, was to pitch the new idea with hesitation, bracing for challenges and hoping that the CIO’s request would not negatively impact their progress.

However, by using the creative tension model, the team was able to refocus on the desired vision—becoming a trusted advisor to the CIO and a valuable partner in the statutory board’s digital transformation journey. This vision emphasized building trust, demonstrating competence and showcasing their expertise through regular updates and workshops. By holding onto this vision and managing the tension between their current reality and future aspirations, the consulting team transformed their approach from one of reluctance to one of opportunity.

Rather than being bogged down by stress, the team began to see the additional request as a chance to demonstrate their value and deepen their relationship with the client. In the end, their proactive attitude and willingness to embrace the tension led to greater collaboration, openness and trust between the client and consulting teams. Again, creative tension proved to be a catalyst for innovation and strengthened partnerships.

Why Managing Creative Tension Is Critical For Organizational Success

These examples demonstrate that when leaders manage creative tension effectively, they are better equipped to drive meaningful change within their organizations. The model doesn’t eliminate the challenges of the present—rather, it frames those challenges as part of a larger process of growth and transformation. Leaders who harness this tension understand that the gap between current reality and future vision is not a problem to be solved but an opportunity to be seized.

Systems leaders equipped with models like creative tension can help their organizations navigate wicked complexity. By mastering the creative tension model, leaders are better positioned to foster innovation, drive systemic improvements and lead their organizations confidently into the future. When leveraged effectively, it transforms challenges into opportunities and propels teams toward success. In the hands of skilled systems leaders, this model, used in conjunction with other related systems frameworks, can greatly propel organizations in overcoming the most daunting challenges in the workplace.

Thomas Lim is the Vice-Dean of Centre for Systems Leadership at SIM Academy. He is an AI+Web3 practitioner & author of Think.Coach.Thrive!

At this time of the year, many organizations are drafting their work plans for the year ahead. During this season, numerous change projects are being birthed in service of the grand strategic vision. For each approved initiative, resources are allocated and a project team is formed. While this might work for standalone projects, increasingly, dealing with complex external environments and internal structures means that organizations must adopt a systemic view of the whole.

This means that driving organizational change is more than just the sum of all “change projects.” It requires teams that are adept at navigating complexity, fostering collaboration and sustaining momentum. The concept of systems leadership offers a powerful framework for guiding transformational change, focusing on five key roles: steward, theory builder, designer, coach and teacher. Each role embodies essential capabilities that, when combined, create a robust transformation team capable of leading change with agility and purpose.

1. Steward: Building Confidence By Leading From The Emerging Future

The role of the steward in systems leadership is about grounding the organization in its core purpose and values while steering it toward future possibilities. A steward is not just a custodian of the status quo; they are visionary leaders who align the organization’s long-term goals with its foundational principles. By embodying the organization’s mission and values, stewards build trust and confidence within the team, fostering a sense of collective responsibility and commitment.

In the context of organisational change, stewards play a critical role in maintaining alignment between the transformation efforts and the organization’s overarching goals. They ensure that every strategic initiative or pivot aligns with the core values, thereby safeguarding the organization’s integrity even as it evolves. For the transformation team, having a steward means there is always someone who can articulate why the change is necessary and what need the change is addressing—anchoring the team’s efforts in a broader purpose that motivates and inspires.

2. Theory Builder: Building Consensus By Concretising Theories

The theory builder’s role is to develop the conceptual frameworks that explain why things happen the way they do within the organization. This involves formulating hypotheses, testing them and refining them based on observed outcomes. A theory builder is crucial for organizational change because they provide the intellectual rigor needed to create the theories of success based on causal loop diagramming.

In a transformation team, the theory builder helps build consensus by grounding discussions in well-developed hypotheses that can be tested and validated with evidence. This role is essential for ensuring that change initiatives are not based on whims or untested ideas but are instead rooted in a deep understanding of organizational dynamics. By doing so, theory builders enable the team to make informed decisions that are more likely to lead to successful outcomes.

3. Designer: Building Culture By Being A Change Agent

The designer steps out of the day-to-day operations to take a systemic view of the organization. Their focus is on working on the system rather than just reacting to crises or solving immediate problems. The designer’s role is about creating a culture of continuous improvement and innovation by creating, modifying or eliminating systemic structures to better align with the organization’s strategic objectives.

For the transformation team, the designer is the architect of change. They envision the future state of the organization and design the pathways to get there. By taking a holistic view, the designer ensures that the change is sustainable and scalable, addressing not just the symptoms but the root causes of organizational challenges. The presence of a designer in the team fosters a culture of proactive problem-solving and innovation, which is critical for driving long-term success.

4. Coach: Building Capacity By Increasing Competence

The role of the coach is to unleash and awaken the talent, capabilities and passions within the team. Coaches focus on developing the individual and collective strengths of the team members, enabling them to contribute more effectively to the transformation efforts. A coach taps into the resources that are already within the leader and the team, fostering an environment of continuous learning and development.

In organizational change, the coach is essential for building the capacity needed to sustain transformation. By focusing on skill development and empowerment, using systemic coaching frameworks such as the PEARLS model, the coach ensures that the team is not just following directives but is actively engaged in shaping the change process. This role is particularly important in building resilience within the team, enabling them to adapt and thrive in the face of challenges.

5. Teacher: Building Commitment By Role Modeling

The teacher’s role is to lead by example, demonstrating the behaviors and attitudes that are necessary for successful change. Through both actions and words, teachers model the way forward, instructing team members in a manner that furthers their development. The teacher helps build commitment within the team by showing that they are not just talking about change but are actively living it.

For the transformation team, having a teacher means there is a clear standard of excellence to aspire to. Teachers inspire commitment by embodying the principles and practices they teach, making it easier for the team to align their actions with the desired outcomes. This role is crucial for maintaining momentum in the change process, as it reinforces the behaviors that lead to success.

Conclusion: A Holistic Systems Leadership Approach To Drive Change

While each of these roles—steward, theory builder, designer, coach and teacher—brings unique strengths to the table, the true power of systems leadership lies in the integration of these roles within a transformation team. Not every member needs to excel in all five areas, but a well-rounded team where these competencies are collectively present is essential for navigating the complexities of organizational change.

Together, these roles create a dynamic and resilient transformation team that is equipped to lead organizational change in a way that is strategic, systemic and sustainable so that organizations not only cope with change but drive the transformation to thrive in the face of uncertainty and complexity.

Thomas Lim is the Vice-Dean of Centre for Systems Leadership at SIM Academy. He is an AI+Web3 practitioner & author of Think.Coach.Thrive!

SIM Academy and Accenture have joined forces to address the increasing complexities of today’s business landscape. Through a newly formed partnership, the two organisations aim to cultivate a new generation of leaders equipped with Systems Leadership skills.

A Memorandum of Understanding (MOU) was signed on 8 March 2024, formalising the collaboration. This partnership will see SIM Academy’s Systems Leadership discipline integrated into Accenture’s Project Leadership (APL) programme. The programme is designed for Senior Managers, Associate Directors, and Managing Directors at Accenture.

The MOU was signed at SIM Management House and was represented by SIM President & CEO Mr Seah Chin Siong and Accenture Singapore Senior Managing Director Mr Mark Tham. 

As the client of this inaugural two-tier programme, Accenture Singapore will incorporate SIM Academy’s Systems Leadership discipline into current project management methodologies. We look forward to this collaboration and its potential to enhance project management and leadership capabilities in navigating the complexities of today’s dynamic business landscape while driving transformative change across organisational levels.