Applying Systems Thinking and Participatory Design to Policy Development

ABSTRACT This article explores the application of systems thinking to address complex policy challenges, or “wicked problems”. Addressing complex policy problems is difficult when they exist in dynamic environments with interconnected systems, each with their own subsystems and a lack of clear causal chains. Grounded in systems theory and thinking, an inductive, participatory soft systems methodology is adopted, moving beyond linear, top‐down approaches to demonstrate how policy problems that account for the whole system(s) and its interactions are considered, thereby offering a more effective approach to policy development. The article uses a case study of female entrepreneurs in York and North Yorkshire, England, to illustrate this approach. NVivo is employed to generate clusters or “systems” to demonstrate the interconnected nature of challenges faced by female entrepreneurs and identify potential policy levers to address them. Rational approaches alone are insufficient for policymaking and by embedding a soft systems methodology with an inductive participatory approach, hidden systems and subsystems are uncovered, enabling the design of inclusive, place‐based policy interventions. This approach uncovers patterns, derives actionable insights, and designs targeted, context‐sensitive policy interventions.