Systems Thinking

The impacts of geopolitical tensions on energy availability and affordability are not new, but as summer departs and autumn arrives, planning for a difficult winter begins.  

Truss has promised an energy relief package larger than the COVID-19 support scheme to help households and businesses. But very few problems exist in isolation. There are nearly always secondary consequences.  

Consider the largest UK producer of fertiliser who has suspended operations in several factories citing the rising cost of gas. The closure of these factories not only impacts fertiliser availability, but Carbon Dioxide is a by-product of ammonia production and is sold on to the meat and drinks industries. Closing these factories has potential to exacerbate food inflation further.   

Another unintended consequence of the cost-of-living crisis is vehicle safety. Halfords has warned how drivers buying older cars and struggling with maintenance costs pose a danger to everyone on our roads. 

Taking a systems thinking approach is essential to fully understand and minimise the impacts of the energy crisis on business.

Businesses who have already reduced their energy dependency through investing in renewable energy infrastructure, energy efficient equipment and changing workflows or suppliers to reduce energy consumption, will be impacted less. Consulting with related industries and stakeholders is a must.  

John Lewis has been listening. This winter, they will be offering free meals to employees whilst at work. Organisations must do everything in their power to stop people going hungry. 

The past two years we have been exposed to rapidly changing circumstances. The pandemic, record inflation, and now the energy crisis. Our ability to see the bigger picture will prepare us for the next big challenge – whatever that may be.

Connecting people and systems together is the first step to building a resilient future.