BUSINESS SCHOOL, Master of Business

Administration

System Thinking for Management

Assignment 4
Name Weng Cheong

Student ID A1610048

Name Song LiHong Leo

Student ID A1676335

Name Kelvin Lin

Student ID A1655833

Name Kevin

Student ID A1653734

Name Clarissa Khoo

Student ID A1616235

Name Lee Kok Nam Joshua

Student ID A1633421

Email address for return of assignment

Lecturer name: Prof Ockie Bosch & Dr Nam Nguyen

Date submitted

08 November 2015

Word Count (tables, charts, pictures references and appendices are not included): XX words
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Contents
1.

Executive Summary...................................................................................... 3

2.

Introduction.................................................................................................. 3

3.

Background of Issues....................................................................................3

4.

Key variables................................................................................................ 3

5.

Casual loop Diagram.................................................................................... 3

6.

System Archetypes....................................................................................... 3

7.

Leverage Point.............................................................................................. 3

8.

BBN Model.................................................................................................... 3

9.

Group Learning Process................................................................................ 3

10.

Conclusion................................................................................................. 3

11.

References................................................................................................. 3

12.

Appendices................................................................................................ 3

Executive Summary
Introduction

Background of Issues

Key variables

Casual loop Diagram

System Archetypes

Leverage Points
Based on the CLD in Figure X, three key leverage points were identified as Adequacy of
Retirement Savings, Foreign Talent and Skill Upgrading Opportunity. However, as Foreign
Talent and Skill Upgrading Opportunity relates to manpower, they will be combined in the
BBN model to show how both points affects the goal of workforce sustainability.
a. Adequacy of Retirement Savings
Adequate retirement savings is one of the leverage points for achieving workforce
sustainability. When an individual is able to have sufficient savings, it leads to better financial
confidence, and hence the willingness to create baby that will help increase population
growth and hence allows workforce sustainability.
As an article from Times news was published, with an economic recession it has led to a
sharp increase in the number of American men who underwent vasectomies as they were
less-likely to be employed and have no health insurance, which will change their desires of
wanting children [Alexandra Sifferlin, 2014]. Therefore this supported the point that with
lesser financial confidence, it leads to lesser baby made to help boost the population and
hence decrease support in workforce sustainability.
b. Foreign Talent
c. Skill Upgrading Opportunity

BBN Model
With the identification of the leverage points above, creating a BBN model will be able to
identify the intervention points that will help bring us to an ideal state with a small change
that can cause a largest improvement to the goal.
Figure 5 shows the BBN model on Adequacy of Retirement Savings. We can see how the
different factors affect the retirement savings, and Figure 6 shows that if one has adequate
retirement savings it will help to achieve the goal of workforce sustainability.

Amount of Debt
Low
Medium
High

Monthly Expenditure

30.0
40.0
30.0

Low
Medium
High

Low
Average
High

Cost of Living
Low
Medium
High

General Income Level

30.0
40.0
30.0

45.0
35.0
20.0

Age of Retirement

26.6
49.4
24.0

Below 55
Below 60
Below 65

22.0
39.7
38.2

Health Condition
CPF Withdrawal Amount
Low
Average
High

26.4
52.1
21.5

Poor
Average
Good

37.5
54.1
8.38

Govt reimbursement on healthcare

Low
Medium
High

11.5
38.8
49.8
Health Insurance Coverage

Sufficient Govt Support

Yes
47.3
No
52.7

Low
Average
High

Adequate Retirement Savings

Yes
No

51.6
48.4

42.2
38.2
19.5
Education

Low
High

50.0
50.0

Population Growth
Low
High

42.9
57.1

Workforce Sustainability
Unsustainable
Sustainable

45.7
54.3

Figure 5. BBN model of Adequate Retirement Savings

Adequate Retirement Savings

Yes
No

100
0

Education
Low
High

50.0
50.0

Population Growth
Low
High

17.5
82.5

Workforce Sustainability
Unsustainable
Sustainable

30.5
69.5

Figure 6a. BBN Model of how Adequate Retirement Savings affect the goal

Adequate Retirement Savings

Yes
51.6
No
48.4

Low
High

Education
100
0

Population Growth
Low
34.2
High
65.8

Workforce Sustainability
Unsustainable
40.5
Sustainable
59.5

Figure 6b. BBN Model of how Education affect the goal

The other major systemic intervention includes the health insurance coverage that has a
slightly higher impact than sufficient government support as we look at Figure 7a and 7b
below. However when both comes together, with sufficient government support and high
health insurance coverage they will be able to increase the retirement savings significantly.

Sufficient Govt Support

Yes
46.8
No
53.2

Health Insurance Coverage

Low
0
Average
0
High
100

Adequate Retirement Savings

Yes
76.4
No
23.6

Low
High

Education
50.0
50.0

Population Growth
Low
29.9
High
70.1

Workforce Sustainability
Unsustainable
37.9
Sustainable
62.1

Figure 7a. BBN Model - Health insurance coverage

Sufficient Govt Support

Yes
100
No
0

Health Insurance Coverage

Low
42.5
Average
38.2
High
19.3

Adequate Retirement Savings

Yes
76.3
No
23.7

Low
High

Education
50.0
50.0

Population Growth
Low
29.9
High
70.1

Workforce Sustainability
Unsustainable
38.0
Sustainable
62.0

Figure 7b. BBN Model - Sufficient Govt Support

In order to have workforce sustainability through an increase in population growth we can

see that having adequate retirement savings by an individual is important, as shown in
Figure 6a. In Figure 6b, although education plays a part in influencing population growth,
however, growth is still highly dependent on whether one has adequate savings. Certainly,
when one has lower education, there will be a tendency to have higher birth rates, therefore
with a combination of low education and sufficient retirement savings, it leads to a high
population growth.
The strategy here will be that the government will need to look at supporting the individuals,
through better healthcare policies as well as better CPF withdrawal amount in the later years,
so that one can feel more assured that when they retire all is well plan and well taken care
of. Current healthcare policies only provides subsidy amount to a limit, therefore for those
more critical illnesses there will not be sufficient coverage and will have to depend on
individual insurance coverage or otherwise will be out from own pocket.

Conclusion

References
Alexandra Sifferlin, A lot of Men Got Vasectomies During Recession. Oct 20, 2014. TIME
Online News - http://time.com/3524659/recession-business-vasectomies-health/

Appendices