Vol.1, Issue 6, Nov - Dec 2003

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Statistics? Yech! I'm a Systems Thinker!

Bill Harris
Facilitated Systems

"Statistics? Ugh. Complicated formulas, and I never know which one to use. That's why I like systems thinking; I do models with simple numbers!"

Is that your mindset? I've thought such thoughts, too, on certain days, but we limit ourselves with such an attitude. Let's talk.

What is "statistics," anyway? WordNet ® 1.6 from Princeton defines it as "a branch of applied mathematics concerned with the collection and interpretation of quantitative data and the use of probability theory to estimate population parameters."

Bill Harris is principal and founder of Facilitated Systems, a company dedicated to helping organizations address complex problems, work more productively in meetings and groups, and learn more effectively from experience. If you'd like help understanding the physics of your organizational situation, feel free to contact him.

Facilitated Systems
Everett, WA 98208
USA
+1 425-337-5541

bill_harris@facilitatedsystems.com
http://facilitatedsystems.com/ 

Hmm. That sounds a bit more familiar. One of the first things we do in creating a model is to define an RBP: a Reference Behavior Pattern. The RBP focuses our modeling efforts by forcing us to create a model that can replicate that RBP "well enough." But how do we reduce the masses of numbers our client or our boss (another word for client, when we are working internally) may give us into something we can use with integrity? That's right: statistics.

How do we know our model replicates the RBP well enough? We have a number of tests, but statistical tests are certainly one means.

Does that mean we all need advanced degrees in statistics to accompany our hard-won skills in systems thinking? While I'm sure we'd benefit from such training, we can bring in a statistician for the harder issues. Simple calculations and tests suffice for many of our issues.

What's important, truly important, is a healthy respect for the data. I recently was conversing with someone about a particular issue with an eye towards creating a model to help us understand and possibly address that issue more effectively. The other person presented a couple of hypotheses that sounded very plausible. I went back to the office to make the RBP more precise and to create an initial model that could replicate that behavior.

When I started looking at hard data, though, the RBP graphs didn't look at all like the informal sketches we had made. While the presumed behavior was present, it was swamped by an effect that was several times larger. That led me to a different model and a different focus in my approach. Had I ignored the data, I might have created a plausible yet ultimately useless model that could perhaps have sidetracked others' efforts in this area.

So, no matter whether you need a general understanding of the system you're working in or answers accurate to 1% or better (there are those of us who regularly do that!), make sure your your model's results are grounded in the real world.

Make your systems thinking an exercise in reality programming!


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