Systems Leadership

Systems Leadership springs out of Systems Theory and ideas around Systems Change. In this short introduction, we will, with the help of Systems Innovation Links to an external site., provide an overview of some of the current thinking on what Systems Leadership might be.

“When you are addressing really large-scale challenges, and you really are motivated by the big scale, and you want to make a big difference, then what you need are methodologies that are significantly different from current ones and even innovation methodologies that outperform the current innovation methodologies, but also different mindsets, you need different organizational behavior, and above all you need a new kind of leadership and that type of leadership we are calling systems leadership and it is significantly different from business as usual.” (Said by Banny Banerjee Links to an external site., Stanford University)

Due to its nature, the kind of leadership required for systems change is different from traditional ideas on leadership. We tend to think of leadership as a position at the top of an organization that comes with the authority to make decisions to be executed by others. However, systems change is about leading across boundaries, meaning you will be leading with very little authority and possibly a role that provides only minimal influence in and of itself. This is leadership as a verb, not a noun. It is what we do, not the position we hold, that gives us influence.

Change has to start somewhere. Someone has to start the work of bringing the new possibilities in the system together at the beginning; this is the work of systems leaders. The leaders who step across the line, create a new space, and are prepared to resist the forces that will inevitably be directed at them for challenging and threatening the existing system. Leaders illustrate that what is, is not the only possible way that things could be. This both inspires people and threatens the existing regime.

Change often starts with undesirable conditions, but creative system leaders help people move beyond just reacting to these problems to building positive visions for the future. This typically happens gradually as leaders help people express their deeper aspirations, build a shared language, form connections, and build trust based on tangible accomplishments realized together.

This set of video tutorials introduces you to some of the key authors and ideas in systems leadership.

Lecture 1: Systems Leadership Introduction

On the one hand, Systems Leadership is not a new idea. The fundamentals of Systems theory were developed a long time ago. On the other hand, the need to develop an understanding of what leadership is required in complex change contexts is not that old, and also not that advanced. The "command and control" approach to change management, which has dominated the management literature and practice, was challenged in the 1970s. The growth of more and more wicked public problems helped us understand that visionary and sustainable change must be built on a systems approach. Still, we are only at the beginning of exploring the characteristics of a leadership that facilitates system change in the real world (as opposed to the theoretical models). See this as input for the beginning of your thinking on Systems Leadership.

Systems leadership, of course, emphasizes understanding and addressing the complexities of interconnected systems. Some of the key aspects of systems leadership are:

Holistic Perspective: Systems leaders view organizations as interconnected systems rather than isolated parts. They understand how different elements interact and influence each other.
Collaboration and Partnerships: They foster collaboration across boundaries, encouraging partnerships between different departments, organizations, and sectors to address complex challenges.
Adaptive Leadership: Systems leaders are flexible and adaptable, capable of navigating uncertainty and responding effectively to changing environments.
Empowerment and Inclusion: They empower others by promoting inclusive decision-making processes, ensuring diverse voices are heard and valued.
Long-term Thinking: Systems leaders prioritize sustainable, long-term outcomes over short-term gains, considering the broader implications of their decisions and actions.

Leadership is a broad and elusive concept. It is also an evolving concept. This makes it difficult to contrast systems leadership from more traditional ideas of leadership. However, it might be helpful to suggest some differences. Traditional Leadership tends to operate within linear and hierarchical frameworks, focusing on direct control and command within a specific organization. Systems Leadership, on the other hand, recognizes the interconnected nature of complex systems and focuses on understanding and navigating complex systems. Systems leaders need to see the bigger picture and how different elements within a system interact. There is a difference in terms of complexity and interconnectedness.

Traditional Leadership typically involves top-down decision-making, where leaders set the vision and direction and expect others to follow. Systems Leadership, on the other hand, emphasizes collaboration across multiple levels and domains, fostering collective sense-making and co-creation among diverse stakeholders. Systems leaders act as facilitators, enabling widespread action and engagement.

Leadership traditionally relies on established procedures and strategies, aiming for stability and predictability. This is not relevant in a highly complex and changing context. Systems Leadership, therefore, encourages adaptive learning and experimentation, allowing for emergent solutions to arise from local efforts and interactions. System leaders should thrive in uncertainty and foster environments that will enable innovation to flourish.

Traditional leadership tends to center on individual leaders who hold authority and make key decisions. Systems Leadership should involve empowering networks, communities, and teams to engage in adaptive processes of learning and innovation. Leadership should be distributed and shared among many, rather than concentrated in a few individuals.

The presentation is available in pdf here Download here.

Lecture 2: A new kind of leadership

Banny Banerjee is recognized for pioneering the concept of Systems Innovation, which entails developing integrated strategies to address complex challenges, including those related to sustainability, large governance systems, and organizational transformations. His work is centered on developing innovative approaches to tackle systemic challenges and drive sustainable change.

Banerjee’s thoughts on Systems Leadership emphasize the need for leaders who can adapt to rapid changes and complex challenges. This involves being flexible, open to new ideas, and able to navigate uncertainty. He advocates for a leadership style that fosters collaboration across different sectors and disciplines. This helps in addressing systemic issues more effectively. Leaders should be able to envision long-term goals and inspire others to work towards transformative changes.

His thoughts on leadership are closely linked to Systems Innovation. Banerjee focuses on creating integrated strategies that address complex challenges. He suggests design thinking as a tool for strategic initiatives and large-scale transformations. This approach encourages creativity, user-centered design, and iterative problem-solving. Leadership should aim to build resilience and promote sustainable practices within organizations and systems. This ensures that changes are not only effective but also enduring.

Margaret Wheatley is another prominent thinker. Her key ideas on leadership and change focus on the importance of relationships, networks, and emergent processes. Wheatley believes that real power and energy for change come from relationships. The ability to form and maintain connections is more crucial than tasks, roles, or positions. Change happens when networks of relationships form among people who share a common cause and vision. These networks evolve into intentional working relationships, fostering new knowledge, practices, and commitment.

Wheatley emphasizes that large-scale change occurs through emergence. This process involves separate, local efforts that connect and strengthen their interactions, leading to a decisive cultural shift. Significant change often starts with small conversations among people who care. These conversations can lead to actions that change lives and restore faith in the future. There is, she argues, no greater power for change than a community discovering what it cares about. This shared concern can initiate the process of change.

Wheatley advocates for adaptive change, where leaders and organizations are flexible and responsive to the complexities of their environments. She also advocates for a systemic approach to change, recognizing that everything is interconnected and that changes in one part of the system impact the entire system.

She believes that leadership involves enabling self-organizing systems where individuals collaborate based on shared interests and passions. This approach leads to creativity and adaptive solutions. Wheatley argues that leaders must be comfortable with chaos and uncertainty. Rather than trying to control everything, leaders should understand that chaos can lead to a new order and opportunities for innovation. Leadership involves recognizing and supporting emergent change, where small, local efforts connect and evolve into larger, systemic transformations.

The presentation is available in pdf here Download here.

If you want ot read more:

Banerjee, Banny and Stefano Ceri (Eds) (2016) Creating Innovation Leaders: A Global Perspective. Springer.

Wheatley, Margaret J. (2006) Leadership and the New Science - Discovering Order in a Chaotic World. Random House.

Lecture 3: Personal change

The first thing to note in any systems change initiative is that change starts with us. As Gregory Bateson said: "you can't change the system without changing yourself.” Systems change is certainly about collaboration and the mobilization of whole ecosystems of people and organizations to change systems “out there”; however, this process begins with an individual or group of individuals separately feeling that something is not right and embarking on a personal journey of questioning and discovery.

The presentation is available in pdf here Download here.

Lecture 4: Values & Motivation

In leading transformation in complex systems, there are often no clear answers or linear paths. Values serve as a compass, guiding leaders through ambiguity and conflicting interests. They provide a foundation for prioritization, especially when trade-offs are required. In systems work, leaders often lead by influence rather than command. People are more likely to follow those who are authentic and act in line with shared values. Values-driven leadership builds credibility, legitimacy, and moral authority. Trust is the currency of change in complex systems; values signal trustworthiness.

Systems change is slow, uncertain, and often frustrating. Motivation grounded in purpose or personal values (e.g., social justice, sustainability) sustains leaders through setbacks and resistance. This kind of motivation is more durable than external rewards or formal roles.

Complex systems involve many actors with diverse agendas. Articulating shared values helps build alignment and common ground. Motivation becomes contagious: if people see your commitment, they’re more likely to engage themselves. “Shared purpose” becomes a unifying narrative that holds disparate actors together.

Systems leadership is not just about changing structures — it's also about shifting culture and mindsets. Leaders must embody the change they want to see, exemplifying values such as humility, learning, inclusion, and transparency. Motivation and values signal that the leader is not just managing change, but living it.

The presentation is available in pdf here Download here.

Lecture 5: Seeing and acting for the whole

Another leading thinker in the field of systems leadership is Otto Scharmer. His leadership thinking is encapsulated in his Theory U, which offers a transformative approach to leadership and organizational change.

The key elements of Theory U:

Co-Initiating: Building a shared intention by listening deeply to others and to what life calls you to do.
Co-Sensing: Observing and sensing the system from the edges, engaging with diverse perspectives to understand the whole.
Presencing: Connecting to the deepest source of inspiration and will, allowing the inner knowing to emerge.
Co-Creating: Prototyping and iterating solutions in real-time, experimenting with new ideas and approaches.
Co-Evolving: Embedding the new practices and innovations into the larger system, scaling up successful prototypes.

The presentation is available in pdf here Download here.

If you want to read more:

On Theory U from The Presencing Institute Links to an external site.

Scharmer, C. Otto (2018) The Essentials of Theory U: Core Principles and Applications, Berrett-Koehler

Scharmer, C. Otto and Katrin Kaufer (2025) Presencing: 7 Practices for Transforming Self, Society, and Business, Berrett-Koehler

Lecture 6: Creating conditions for emergence

Otto Scharmer sees leadership as being “about being better able to listen to the whole than anyone else can.” This is the defining ability of a systems leader: the capacity to see the larger system. They do not just have to see the whole thing, but also create and hold a space. The primary attribute of a true leader is emptiness, which is the condition or space for the creation of something new.

The presentation is available in pdf here Download here.

Lecture 7: Liminal space

The term "liminal" is an adjective that describes something occupying a position at or on both sides of a boundary or threshold. It relates to a transitional or initial stage of a process. For example, liminal spaces can be physical places, such as hallways or airports, which are neither fully one place nor another, but rather transitional areas. In a broader sense, it can also refer to periods of change or transformation, such as the time between waking and sleeping.

In general, liminal spaces are spaces lived in for a certain amount of time as one transitions from a previous state to the next stage. A liminal space is a time between the 'what was' and the 'next.' It is a place of transition, waiting, and not knowing. Liminal space is where transformation occurs when we pause and allow it to shape us into a new form.

Liminal space in leadership refers to the transitional phase where leaders navigate through periods of significant change, uncertainty, and ambiguity. This concept is derived from the term "liminality," which originates from anthropology and describes the state of being "betwixt and between" different stages or realities.

In leadership, liminal space is characterized by:

Uncertainty and Ambiguity: Leaders must make critical decisions without a clear understanding of the future state.
Disruption and Change: Traditional leadership strategies may no longer be effective, requiring innovative approaches.
Opportunity for Innovation: This space allows leaders to foster creativity and reshape organizational culture to align with emerging realities.

Effective leaders in liminal spaces are adept at:

Navigating Uncertainty: They manage stress and emotional exhaustion while maintaining alignment within the organization.
Fostering Collaboration: They support cross-functional collaborations and ongoing communication.
Building Resilient Teams: They create adaptive and resilient teams that can thrive in an ever-evolving landscape.

Frances Westley is another of the leading thinkers on leadership and change in complex systems. Westley emphasizes the importance of leaders who can envision and inspire transformative change. These leaders can see beyond immediate challenges and mobilize collective action towards long-term goals. She explores how leaders can act as agents of change within complex adaptive systems, fostering innovation and resilience. Westley advocates for strategic approaches to change that involve deep collaboration across sectors and disciplines. She believes in the power of collective action to address complex social and ecological problems. Her work highlights the role of institutional entrepreneurs who drive change by creating new norms, practices, and structures within organizations and systems. Westley focuses on social innovation as a key driver of sustainable development. She argues that innovative solutions to social and environmental challenges require collaborative efforts and systemic thinking. She emphasizes building resilience in social-ecological systems, advocating for adaptive strategies that can withstand and thrive amidst change and uncertainty.

The presentation is available in pdf here Download here.

If you want to read more:

Dan Pontefract (2014) Leadership in Liminal Times Links to an external site., Harvard Business Review. October 10

Janet M Shlaes (2025) Leading in the "Between Space", Links to an external site. Psychology Today. May 16

Westley, Frances (et al) (2007) Getting to Maybe: How the World Is Changed, Penguin Random House

Systems Leadership Canvas

System Innovation has developed a Systems Leadership Canvas Download Systems Leadership Canvas that might be useful.

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