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ARTICLE · 20 APRIL 2020

Taking a very non-traditional approach to quantifying an account of profits

Systems thinking is a way to understand dynamic relationships, to make better choices and avoid unintended consequences.

AustraliaAccounting and Audit

Since the Federal Court's decision in Apand Pty Limited & Ors v Kettle Chip Co Pty Limited1 20 years ago, the world has become a more complex place. Automation, AI and the volume of data and interconnectedness created through advances in technology are among a myriad of factors that have fundamentally re-shaped the ways organisations operate.

To see how well the decision in Apand stacks up in light of today's dynamic environment, I adopted a very un-traditional approach: systems thinking.

What is systems thinking?

Systems thinking emerged in the early 1990s and today is used by businesses in scenario planning and developing solutions to complex problems. Systems thinking recognises that every decision we make has consequences: viewing our environment as a system of constituent parts helps us anticipate and plan for the consequences of our decisions on other parts of the system. Put another way, it is a disciplined way of understanding dynamic relationships to

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