From Value Networks to Causal Loop Diagrams: Strategic Preparation for Designing Systemic Interventions in Organizations

Abstract

The subject matter of this chapter introduces a novel way to navigate between two different conceptual worlds: that of value networks and that of causal loop diagrams. It answers the question of how to connect the world of interdependent value flows to the world of interdependent causal relationships between variables. A pragmatic methodology is presented to the strategic management community for the first time. Some examples will be shared. This is an advancement compared to what was common practice: additive analyses of value networks and causal loop diagrams, with separate sensemaking efforts, without an integrative stance. This methodology will offer strategic management practitioners and researchers a way of setting the stage for designing a systemic intervention through modification of system structure’s causal loop diagrams, when the only available information is a diagnostic of a value network, and derived from it, thus offering an opportunity for an increase in strategic management academic and professional writings.