In today’s ever-evolving corporate landscape, achieving success transcends traditional hierarchical management. The concept of systems leadership, especially in the context of commercial enterprises, mirrors orchestrating a symphony of diverse elements toward a harmonious outcome. To master systems leadership effectively, organizations need to fundamentally transition to a systems thinking approach to leadership design and execution. The PEARLS systems leadership model can inform the adoption of systems leadership principles within enterprises.

First, systems leadership can be defined as an approach to leadership that focuses on addressing complex and interconnected challenges by mobilising and collaborating with diverse stakeholders across multiple sectors or domains. Some key characteristics include cross-team and cross-sector collaboration, holistic perspectives, long-term causal orientation and the use of systems thinking methodologies. The PEARLS approach maps systems leadership principles using the following pillars: purpose, experience, attitude, resilience, learning and step-out. These six pillars are designed to empower leaders and managers to create shared mental models, visualise scenarios and simulate outcomes of their actions and decisions.

Purpose (P)

At the nucleus of systems leadership resides a well-defined purpose and a compelling vision that binds all stakeholders together. Consider a client, such as a supply chain company, committed to transforming its operations for societal betterment through an environmental, social and governance (ESG) initiative. As a traditional enterprise embarking on this transformative journey, it is beset with multiple layers of challenges and complexity, including regulatory compliance, supply chain transparency and technology adoption—such as the use of blockchain for end-to-end tracking. Systems leadership meant that this business needed to rally both internal and external stakeholders toward their common cause and overcome resistance to change.

The business proceeded to engage its leadership using systems mapping through the hierarchy of choices and systems axiom to visualise the intricate web of relationships and dependencies within and external to the organisation and the ecosystem it is operating. This mapping endeavour provided the rich canvas needed to align shared mental models of the organisation’s purpose and its interconnectedness with the broader industry.

Experience (E)

Systems leaders must possess an in-depth understanding of their industry and their organisation’s ecosystem intricacies. This profound understanding enables them to leverage their experience to build bridges across sectors and establish strategic partnerships. In the above case, this meant recognising the interplay between their supply chain and environmental and social factors, motivating them to act responsibly. Using the levels of perspectives, leaders were given the opportunity to view issues in current reality and opportunities of future desired reality from multiple levels of perspective. Having data and conversations at the event, patterns over time and systemic structure levels based on present experiences allow for deep conversations around a common vision and new mental models for success. This approach allows them to gain a holistic understanding of their organisation’s culture and dynamics and a road map for change management.

Attitude (A)

A systems leader’s attitude is one of humility, acknowledging that no single entity possesses all the answers. It’s about fostering relationships and trust, rather than relying solely on hierarchies. A humble approach encourages open dialogue and collaboration. During a transformation journey, they embraced this attitude by actively soliciting input from employees, suppliers and local communities to drive positive change. Team coaching proved to be most valuable in facilitating authentic conversations about the quality of relationships in the context of the core theory of success and how attitudes may be shaping certain behaviours within the enterprise. Using this and other causal loop diagrams, teams were able to identify leverage points for intervention and foster a culture of collaboration and continuous improvement.

Resilience (R)

Leading systemic change often requires navigating uncertainty and ambiguity. Systems leaders must exhibit resilience in the face of complex challenges. For instance, they’ve encountered numerous obstacles during their ESG planning and discussions regarding trade-offs. Team coaching was instrumental in helping leaders understand how the work of different departments needs to be “nested” to align their future workstreams to the purpose and vision uncovered through the earlier hierarchy of choices output. By considering multiple options and their potential consequences, leaders can make informed choices that align with their organisation’s purpose and navigate challenges more effectively. Building resilience for the journey ahead and remaining unwaveringly and steadfastly committed to their core mission becomes the enterprise’s corporate imperative.

Learning (L)

Systems leaders are lifelong learners, continuously seeking to expand their knowledge and perspective. They employ techniques such as narratives and framing to reshape how people perceive issues, fostering progress. They put together a learning and organizational design five-year framework to emphasize personal and team development. The corporate communications made clear that the enterprise will cultivate a culture of continuous double-loop learning, adapting its strategies based on insights gleaned as a learning organisation as part of its transformation narrative.

Step-Out (S)

Systems leadership is not about exerting control but empowering collective action among diverse stakeholders. Leaders have exemplified this by forming coalitions of the willing, forging connections and venturing outside their comfort zones to drive meaningful change. The next steps were charted based on the best outcome envisaged through scenario planning and guiding ideas afforded through the architecture and essence of the learning organizations model. This approach allowed leaders to anticipate and prepare for various future circumstances based on data being collected on an intentional basis. By exploring different pathways, leaders can step out of their traditional approaches and proactively shape their organisation’s future.

In conclusion, systems leadership, when implemented through the PEARLS model and supported by these powerful models and tools, empowers enterprises to confront complex challenges, create shared value and navigate the ever-evolving business landscape in service of ESG outcomes. By tapping systems leadership and thinking, leaders can create a shared vision, visualise a clear desired future reality, and simulate outcomes of their actions and decisions, ultimately propelling their organisations toward transformative 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!