Leverage Points: Places to Intervene in a System

Written by Donella Meadows

Folks who do systems analysis have a great belief in “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.

This idea is not unique to systems analysis — it’s embedded in legend. The silver bullet, the trimtab, the miracle cure, the secret passage, the magic password, the single hero who turns the tide of history. The nearly effortless way to cut through or leap over huge obstacles. We not only want to believe that there are leverage points, we want to know where they are and how to get our hands on them. Leverage points are points of power.

The systems analysis community has a lot of lore about leverage points. Those of us who were trained by the great Jay Forrester at MIT have all absorbed one of his favorite stories. “People know intuitively where leverage points are,” he says. “Time after time I’ve done an analysis of a company, and I’ve figured out a leverage point — in inventory policy, maybe, or in the relationship between sales force and productive force, or in personnel policy. Then I’ve gone to the company and discovered that there’s already a lot of attention to that point. Everyone is trying very hard to push it IN THE WRONG DIRECTION!”

The classic example of that backward intuition was my own introduction to systems analysis, the world model. Asked by the Club of Rome to show how major global problems — poverty and hunger, environmental destruction, resource depletion, urban deterioration, unemployment — are related and how they might be solved, Forrester made a computer model and came out with a clear leverage point1: Growth. Not only population growth, but economic growth. Growth has costs as well as benefits, and we typically don’t count the costs — among which are poverty and hunger, environmental destruction, etc. — the whole list of problems we are trying to solve with growth! What is needed is much slower growth, much different kinds of growth, and in some cases no growth or negative growth.

The world’s leaders are correctly fixated on economic growth as the answer to virtually all problems, but they’re pushing with all their might in the wrong direction.

SOURCE: The Donella Meadows Project