Leverage point

• The Essay topic: Leverage point
• Class:4IT496 Simulation of Systems (WS 2018/2019)
• Author: Lukáš Lazar

Introduction

Leverage points are part of system analysis and system dynamics (more at page System Dynamics).

Definition of Leverage Points

"These are places within a complex system (a corporation, an economy, a living body, a city, an ecosystem) where a small shift in one thing can produce big changes in everything." [1]

Terminology

In the case of system analysis the definition for system is: "System is a set of elements whose interconnections determine their behaviour and the behaviour of the entire system." [2]
Important notion is that the systems modeled can be complex. Leverage points are even in such grand models such as the model of the world. The limits of scope and detail can be set by what problem we are trying to solve.
In complex systems it is almost necessary to focus effort of change (in solving problems) into those points, where least effort brings biggest change.

Key Principles

Here are some key principles that one has to bear in mind when finding/dealing with leverage points: [2]
• While fixating on parts, we miss understanding the whole
• Actions can have cascading effect over time
• There can be unintended consequences
• Find most important places for intervention, to change the long-term behavior of a system

References

• Xxx

• Yyy