Introduction

In today's rapidly evolving business landscape, the imperative for sustainability and holistic problem-
solving approaches has became more pressing, and the integration of systems thinking and design
thinking emerges as a paramount imperative for businesses striving to foster sustainable practices and
enact meaningful change. Systems thinking, a holistic approach to problem-solving, emphasizes the
interconnectedness of elements within complex systems and underscores the need to perceive and
address issues in their entirety. Conversely, design thinking champions empathy-driven innovation,
focusing on understanding user needs and crafting solutions that resonate with human experiences.
While distinct in their methodologies, these two paradigms share fundamental principles and
complement each other in navigating the multifaceted landscapes of contemporary business and social
responsibility. While these methodologies have distinct methodologies and focus areas, they share
fundamental principles that make them highly complementary, prioritizing holistic understanding,
iterative processes, and creative problem-solving. This essay includes three parts: firstly, discussing the
essence of systems thinking and its relevance in the context of holistic problem-solving; secondly,
dissecting the similarities and differences between design thinking and systems thinking; and finally,
delving into Unilever's case. Through the case study analysis, the essay will illustrate how the synergy
between systems thinking and design thinking can lead to tangible outcomes in product innovation,
supply chain optimization, and corporate social responsibility initiatives, providing insights into how
organizations can leverage these complementary approaches to navigate complexity, foster innovation,
and create meaningful impact in an ever-evolving world.

The historical evolution

The term "Systems thinking" itself might not have been explicitly coined by a single individual, but it
became a central tenet within the framework of systems theory, which was pioneered by several
influential scholars. The history of systems thinking can be traced back to early 20th-century scholars
such as Ludwig von Bertalanffy, who proposed the concept of "General systems theory” (Drack et al.,
2007). Von Bertalanffy emphasized the need for interdisciplinary approaches to understanding systems
across diverse domains, ranging from biology and ecology to psychology and sociology. His work laid the
foundation for systems thinking by highlighting the importance of viewing systems as integrated wholes
with emergent properties that cannot be fully understood by examining their individual components in
isolation (Kresh, 2006). Systems thinking gained further attention in the latter half of the 20th century,
particularly within the fields of management and organizational theory. Scholars such as Peter Senge,
author of "The Fifth Discipline," popularized the concept of systems thinking in the context of
organizational learning and development. Senge emphasized the interconnectedness of organizational
systems and the importance of understanding underlying patterns and structures to facilitate
organizational change and innovation (Senge, 2014).

Definition

Systems thinking is a comprehensive and holistic approach to problem-solving that emphasizes the
interconnectedness and interdependencies within systems (Jackson, 2016). It involves viewing problems
from a broader perspective, recognizing that actions and outcomes are influenced by complex
relationships and feedback loops. Rather than focusing solely on isolated components or linear cause-
and-effect chains, systems thinking considers the dynamic interactions and emergent properties that
arise from these relationships (Monat et al., 2015).
More specifically, at its core, systems thinking integrates various perspectives and disciplines to examine
the linkages and interactions between the elements comprising a system. It acknowledges the
complexity and interconnectedness inherent in systems and encourages the exploration of
interrelationships, perspectives, and boundaries within a system (Jackson, 2016). Recognizing that each
actor within the system may have a unique perception of the situation, systems thinking underscores the
importance of understanding diverse perspectives for effective problem-solving and decision-making.
Moreover, it is particularly valuable in addressing complex or "wicked" problems that challenge simple
solutions, fostering organizational and social learning by promoting adaptive management and
continuous improvement in response to changing circumstances (Knight et al., 2019).

Why systems thinking matters?

The adoption of systems thinking is crucial for tackling the major development and humanitarian
challenges of the 21st century. Issues like climate change, poverty, and healthcare require
comprehensive solutions that account for their systemic nature. Systems thinking enables practitioners
to understand the underlying causes of complex problems, identify leverage points for intervention, and
anticipate unintended consequences. By embracing systems thinking, individuals and organizations can
navigate the inherent complexity of real-world systems and develop more effective strategies for
sustainable development and social change.

Six major concepts

To navigate the complexities of a rapidly changing business environment, it is essential for organizations
to embrace six key concepts of systems thinking (Acaroglu, 2023). The first fundamental concept is the
practice of systems mapping, where understanding the ecosystems surrounding a problem becomes
essential for effective deconstruction and solution-finding. This mapping leads to the exploration of
interconnectedness, emphasizing that the world is intricately linked (Pilkington et al., 2023), as
exemplified by the far-reaching impact of the COVID-19 pandemic. Synthesis is crucial in making sense of
diverse elements within the context of problem-solving, involving combining ideas to generate
innovative solutions. Additionally, the concept of emergence highlights that larger entities can arise from
smaller components, a perspective particularly significant in the synthesis process (Acaroglu, 2023).
Feedback loops represent a critical aspect, facilitating continuous improvement and adjustment based
on stakeholder insights, while causality underscores the understanding of cause-and-effect relationships
within the system, guiding strategic interventions and fostering positive outcomes through informed
actions and adjustments (Luke et al., 2024).

Similarities

Design Thinking and Systems Thinking share several similarities that make them complementary and
valuable methodologies for problem-solving and innovation.

Human-Centered Perspective: Both design thinking and systems thinking prioritize understanding human
needs and behaviors. While design thinking focuses on empathizing with users to create solutions that
address their specific needs and preferences ( Järveläinen et al., 2014), systems thinking considers the
impact of human behavior and interactions within the broader context of complex systems (Sterman,
2002).

Iterative Process: Both approaches involve iterative processes that emphasize learning, experimentation,
and adaptation. In Design Thinking, iteration occurs through cycles of ideation, prototyping, and testing
to refine solutions based on user feedback. Similarly, Systems Thinking involves ongoing feedback loops
and adjustments to mental models as practitioners gain deeper insights into system dynamics and
behaviors (Sterman, 2002).

Holistic Understanding: Both Design Thinking and Systems Thinking advocate for a holistic understanding
of problems and solutions. Design Thinking encourages practitioners to consider the broader context and
ecosystem in which a solution will operate, including social, cultural, and environmental factors (Elsbach,
2018). Systems Thinking, meanwhile, emphasizes understanding the interconnectedness and
interdependencies within complex systems, considering the relationships among various elements and
feedback loops.

Creative Problem-Solving: Both methodologies promote creative problem-solving approaches that

challenge conventional thinking and encourage innovative solutions. Design Thinking fosters a mindset of
curiosity, experimentation, and divergent thinking to generate novel ideas and concepts. Similarly,
Systems Thinking encourages practitioners to explore non-linear relationships, emergent behaviors, and
alternative perspectives to uncover new insights and opportunities for intervention (Morgan, 2005).

Differences:

Aspect Design Thinking Systems Thinking

Focus Primarily focused on addressing Emphasizes understanding the
 specific user needs and solving design behavior, interactions, and emergent
challenges through empathy and properties of complex systems
creativity
Methodology Utilizes a human-centered approach, Utilizes a holistic approach to
employing techniques such as analyze system behavior, employing
empathizing, defining problems, techniques like systems mapping,
ideating, prototyping, and testing feedback loops, and causal loop
diagrams
Problem Scope Addresses localized design challenges Addresses broader, systemic issues
related to products, services, or user and challenges that involve multiple
experiences stakeholders and interconnected
elements
Tools and Employs tools like user personas, Utilizes systems diagrams, influence
Techniques journey maps, brainstorming sessions, diagrams, causal loop diagrams,
rapid prototyping, and design sprints stock-and-flow models, and scenario
analysis
Time Frame Often results in quick iterations and Requires a longer-term perspective
rapid testing of ideas to drive for understanding system behavior,
innovation within shorter time frames with interventions often taking time
to manifest results
Implementation Commonly applied in product design, Applied in diverse fields including
service design, and innovation policy-making, urban planning,
processes across various industries environmental management,
healthcare systems, and
organizational development
Stakeholder Emphasizes collaboration with end- Engages multiple stakeholders from
Engagement users, stakeholders, and different domains to understand
multidisciplinary teams throughout system dynamics, co-create
the design process to ensure solutions solutions, and anticipate unintended
meet user needs consequences
Outcome Focused on delivering tangible Oriented towards achieving systemic
Orientation outcomes such as user-friendly change, sustainability, resilience,
products, intuitive interfaces, and and addressing root causes of
delightful experiences complex problems
Creativity and Encourages divergent thinking, Promotes innovative thinking,
Innovation creativity, and experimentation to systems insight, and adaptive
generate novel solutions to design strategies to navigate complex,
challenges interconnected systems
Problem- Iterative problem-solving approach Systems-oriented problem-solving
Solving that encourages learning from failure, approach that seeks to understand
Approach rapid iteration, and continuous the underlying structure and
improvement behavior of systems before
intervening

Systems thinking and design thinking share fundamental principles that make them highly
complementary in problem-solving endeavors. The integration of systems thinking and design thinking
allows practitioners to tackle complex challenges from multiple perspectives. By understanding the
broader context in which problems occur, practitioners can develop solutions that are not only user-
friendly but also responsive to systemic dynamics. Systems thinking encourages practitioners to consider
the interplay of social, cultural, economic, and environmental factors, providing a holistic understanding
of the problem space (Stroh, 2015). Design thinking complements this approach by emphasizing the
importance of understanding users' physical environments, social interactions, and cultural influences.

An iterative process lies at the heart of both systems thinking and design thinking. Systems thinking
advocates for continuous learning and adaptation, with practitioners gathering data, analyzing feedback,
and refining their understanding of the system over time (Jackson, 2016). Similarly, design thinking
promotes prototyping, testing, and iteration based on user feedback, ensuring that solutions evolve to
meet changing needs and preferences. This iterative approach enables practitioners to develop solutions
that are not only effective but also adaptable to evolving circumstances within the system.

Systems mapping, a technique commonly associated with systems thinking, can be integrated into the
design thinking process to provide a comprehensive view of the problem space. Systems mapping helps
identify interconnected relationships and variables within a system, uncovering root causes and points of
intervention (Pilkington et al., 2023). By incorporating systems mapping into the design thinking process,
practitioners can develop solutions that address underlying systemic issues and drive positive change
within the system.

Combining systems thinking and design thinking offers a dynamic approach to problem-solving that is
essential in navigating the complexities of our interconnected world. This integration empowers
practitioners between perspectives, zooming in and out to analyze issues from multiple angles. By
merging the analytical tools of systems thinking with the creative processes of design thinking,
individuals can develop a deeper, more holistic understanding of the systems they encounter, whether
they are organizational structures, community dynamics, or societal frameworks.

Moreover, this integrated approach fosters the development of empathy, a cornerstone of both systems
thinking and design thinking. Understanding the needs, motivations, and experiences of stakeholders is
fundamental to designing effective solutions that resonate with the people they aim to serve. By
grounding problem-solving efforts in empathy, practitioners can forge meaningful connections with
stakeholders and design interventions that are responsive to their diverse needs and contexts.

How design thinking hand in hand with systems thinking can create sustainable change for Unilever:

This part will present how design thinking and systems thinking combine to cultivate sustainable change
within Unilever, a multinational consumer goods company. The explanation would delve into the
strategies and initiatives undertaken across various domains, including product innovation, supply chain
optimization, corporate social responsibility (CSR), and social innovation.

Product Innovation with Sustainability:

Design thinking principles guide Unilever's product innovation processes, ensuring that solutions are
aligned with consumer preferences and values while adhering to sustainability imperatives. For example,
Dove's campaigns promoting body positivity resonate with consumers seeking products that align with
their values of inclusivity and self-care (UBC, n.d). By incorporating sustainability into its brand
messaging and product development, Unilever connects with environmentally conscious consumers
while driving positive social change.

Simultaneously, Unilever employs systems thinking to access the environmental footprint of its products
throughout their lifecycle. By adopting a holistic perspective, Unilever evaluates the interconnectedness
of its supply chain components, from sourcing raw materials to manufacturing, distribution, and
disposal. This comprehensive evaluation enables Unilever to identify opportunities to mitigate waste
generation, minimize carbon emissions, and foster circularity, ensuring that sustainability considerations
are considered at every stage of the product lifecycle and its operation (Unilever PLC., n.d). By analyzing
the environmental implications of its products at each stage of the lifecycle, Unilever identifies
opportunities for improvement and innovation, ultimately contributing to its overarching sustainability
goals.

The synergy between design thinking and systems thinking is evident in Unilever's Sustainable Living
Brands, which grew over 46% faster than the rest of the business in 2019 (Unilever PLC., n.d). By
combining these methodologies, Unilever can develop innovative solutions that not only meet consumer
expectations but also contribute to environmental conservation and corporate social responsibility,
thereby fostering a more sustainable future.

Supply Chain Optimization and Sustainability:

Unilever has set ambitious sustainability targets, including achieving net-zero emissions from all its
products by 2039 and ensuring that its plastic packaging is reusable, recyclable, or compostable by 2025
(Unilever PLC., n.d). These goals underscore Unilever's commitment to sustainability extends to its
sourcing practices and supply chain optimization, where design thinking and systems thinking play
pivotal roles in driving meaningful change.

Design thinking encourages Unilever to rethink supply chain processes with a focus on efficiency,
transparency, and sustainability, prompting the identification of opportunities for waste reduction and
resource optimization. Meanwhile, systems thinking provides a comprehensive perspective on Unilever's
supply chain, allowing the company to map out interdependencies, identify bottlenecks, and integrate
sustainability considerations across sourcing, manufacturing, distribution, and waste management
processes. Through a systems thinking approach, Unilever analyzes the complexities of its supply chain,
examining factors such as agricultural practices and labor conditions to identify opportunities for positive
social and environmental outcomes.

The company collaborates closely with suppliers to promote sustainable farming practices, as outlined in
its Sustainable Agriculture Code. Initiatives like the Sustainable Soy Program demonstrate Unilever's
commitment to sourcing 100% of its agricultural raw materials sustainably by 2023 (Unilever PLC., n.d).
Through these efforts, Unilever aims to minimize its environmental footprint and support ethical
practices in the agricultural sector. Furthermore, Unilever's supply chain optimization initiatives are
driven by systems thinking principles, focusing on enhancing sustainability and efficiency (Sroufe, 2013).
The company's Sustainable Living Brands, which prioritize environmental and social impact, contribute
significantly to its greenhouse gas reduction targets.

Corporate Social Responsibility (CSR) Initiatives:

In Unilever's CSR initiatives, the integration of design thinking and systems thinking reflects a
multifaceted and strategic approach to addressing complex societal challenges. Design thinking serves as
the vehicle for Unilever to engage deeply with a diverse range of stakeholders, encompassing
communities, consumers, employees, and more. Through empathetic exploration and understanding
facilitated by design thinking principles, Unilever gains valuable insights into the human experiences and
aspirations within the contexts where CSR initiatives are implemented. For instance, initiatives like the
"Sunlight" program, providing access to clean drinking water in rural areas, are shaped by a nuanced
understanding of the specific needs and preferences of the communities involved.

Complementing design thinking, systems thinking provides Unilever with a comprehensive and
interconnected view of the broader systemic landscape in which CSR initiatives operate. This entails a
rigorous analysis of the interplay between social, economic, and environmental factors, acknowledging
the complexity and interconnectedness of these dimensions. This systemic approach enables Unilever to
identify underlying causes, systemic gaps, and potential leverage points for driving sustainable change
and positive social impact. The company's commitment to CSR is evident in initiatives like the
"Sustainable Living Plan," which aims to improve the health and well-being of one billion people, reduce
environmental footprints, and enhance livelihoods across its value chain (Unilever., n.d.).

Unilever's CSR strategy is fortified by the symbiotic relationship between design thinking and systems
thinking. Design thinking principles not only guide the human-centric ideation and implementation of
CSR interventions but also ensure that these initiatives are culturally sensitive, resonating with the
diverse communities they aim to serve. Simultaneously, systems thinking empowers Unilever to address
the systemic challenges that underpin societal issues, fostering a strategic and sustainable approach to
positive social impact. The tangible outcomes of this synergy are evident in the "BrightFuture" program,
where Unilever collaborates with NGOs and local governments to provide hygiene and sanitation
initiatives, reaching over a billion people (Unilever., n.d.).

Moreover, the impact of Unilever's CSR initiatives is underscored by measurable outcomes and key
performance indicators. For instance, the "BrightFuture" program, aligned with the United Nations
Sustainable Development Goals, has positively impacted over 38 million people through health and
hygiene programs (Unilever., n.d.).. Through an empathetic understanding of diverse stakeholder needs,
a systemic analysis of societal dynamics, and a commitment to measurable outcomes, Unilever continues
to drive meaningful change and foster sustainable development across diverse communities and
contexts.

Conclusion

In conclusion, the integration of design thinking and systems thinking represents a pivotal approach to
addressing the multifaceted challenges of today's world. This fusion not only fosters innovation but also
promotes sustainable solutions that resonate with diverse stakeholders. By combining the human-
centered principles of design thinking with the systemic insights of systems thinking, organizations can
navigate complexity with agility and purpose. Whether in product development, supply chain
optimization, or social innovation, this integrated approach empowers practitioners to tackle problems
holistically, fostering resilience. As exemplified by cases like Unilever and numerous others, integrating
design thinking's user-centric perspective with systems thinking's systemic analysis offers organizations a
potent framework for effecting meaningful change. As the global landscape continues to evolve,
integrating design thinking and systems thinking stands as a beacon of transformative potential, guiding
organizations toward a future defined by resilience, adaptability, and collective prosperity.

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