Mental Models For Managing Change - Leverage Points

Welcome to a very special mini-series on The Inner Game of Change. I’m thrilled to take you on this journey as we explore something both timeless and practical: Mental Models for Managing Change.

In this episode of Mental Models for Managing Change, we explore Leverage Points — a systems thinking model that helps change leaders identify the small, high-impact interventions that can shift entire systems.

Popularised by Donella Meadows, Leverage Points reveal why some efforts lead to deep transformation, while others barely make a dent. Ali Juma unpacks this model through a real-world example from Toyota’s production system and shares five places where change managers can look for untapped leverage.

If you are tired of pushing hard with little traction, this episode will help you focus your energy where it counts most.

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Ali Juma
@The Inner Game of Change podcast

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Episode Transcript

Speaker 1 (00:05):
Hi everyone and welcome back to Mental Models
for Managing Change.
I am Ali Juma and I'm so gladyou're tuning in.
Before we dive into today'sconversation, let's quickly
revisit what a mental modelactually is.
A mental model is a way ofseeing, a thinking tool that
helps us interpret complexity,make decisions and navigate

(00:29):
change more intentionally.
Think of it like a compass forthe mind when things around us
get messy or uncertain.
These models help us cutthrough the noise and find
direction.
In our last episode, weexplored the circle of control,
influence and concern, a modelthat helps us focus energy where

(00:51):
it counts.
We talked about letting go ofwhat we cannot change and
zeroing in on what we can act onand influence.
Today, we take that evenfurther, because when you are
trying to create a meaningfulchange, especially in complex
systems, not every action hasthe same impact.
Some efforts move the needle,others just wear us out.

(01:15):
That's where today's modelcomes in.
It is called leverage points.
It is all about finding thesmall shifts that create big
results.
If you've ever asked yourself,why are we working so hard for
so little change?
This episode is for you.
What is a leverage point?

(01:36):
A leverage point is a place ina system where small
intervention can lead to largesystemic change.
The term comes from systemsthinker Donala Meadows, who
famously said Leverage pointsare places to intervene in a
system.
Some are more powerful thanothers.
The idea is simple.

(01:57):
Not all parts of a system areequal.
Some points, like rules,structures and incentives, are
easier to change but havelimited effect.
Others, like goals, paradigmsor mental models, are harder to
shift but can transform thewhole system.
A real-world example Toyota'ssmall, smart shift.

(02:19):
Let me bring this to life.
In the 1950s, toyota wasn't agiant.
It was a small automaker tryingto survive in post-war Japan,
competing against American carcompanies with massive factories
and budgets.
Most would have assumed theyneeded to scale up.
But Toyota saw a differentleverage point the flow of work.

(02:40):
A different leverage point theflow of work.
They focused not on volume butwaste, reducing delays, defects
and overproduction.
From this focus came ideas likejust-in-time manufacturing,
visual workflow systems andcontinuous improvement the heart
of the Toyota production system.

(03:01):
It was not about forcing moreeffort, it was about changing
the rules of the game andtransformed the company.
Where should change managers?
Look Now?
Let's zoom into your work,whether you are leading a
large-scale transformation ornavigating change at the team
level.
Here are five places changemanagers and leaders should be

(03:24):
scanning for leverage points.
1.
Feedback loops Are therereinforcing loops making the
problem worse, or positive onesyou could amplify?
2.
Decision-making bottleneckswhen are people waiting on
clarity or authority?
Loosening one decision pointmight unlock momentum across the

(03:47):
board.
3.
Incentives and unspoken rulesDo people say yes to change but
get rewarded for staying thesame?
Culture often lives in theinvisible reward structures.
4.
Narratives and beliefs whatstory do people tell themselves

(04:08):
about the change?
What mindsets are holding thesystem in place?
5.
Purpose alignment Does thischange align with the bigger?
Why?
If not, people might comply,but they will not commit.
How to use this model?

(04:28):
Here are three ways to bringleverage point thinking into
your day-to-day change practice.
One ask smart questions Insteadof asking what should we do
next.
Ask what one shift could changeeverything downstream.
Two start at the structure butaim at the story.

(04:49):
Policies and processes arevisible, but real transformation
comes when you challenge themindset that built them.
That built them.
Three do less better Resistedurge to fix everything.
The best leverage pointssimplify the system, not make it

(05:10):
more complex.
So here's your reflection forthe week.
What are we trying to force andwhere might a smarter nudge
make more impact?
You might be surprised howoften it is not about doing more
, but more about seeing thesystem differently.
Thanks again for listening toMental Models for Managing

(05:31):
Change.
I hope this episode has givenyou something useful, maybe even
a shift in how you look at thesystems around you.
If this resonated, share itwith a colleague, tag me in your
own reflection or even run aleverage point scan on your next
big project.
Next time we'll explore mapversus territory, a mental model

(05:54):
that reminds us the way werepresent the world is not the
same as the world itself, and inchange, that distinction can
make all the difference.
And remember, as Donala Meadowssaid, leverage points are not
intuitive.
If they were, we wouldn't needsystems thinking.
See you next time and keepthinking deeper.

(06:16):
And one more thing If you'reenjoying this mini-series and
want to go deeper into a humanside of change conversations
about leadership, culture andthe psychology of transformation
you might enjoy some of thelonger episodes on my other
podcast stream, the Inner Gameof Change.

(06:37):
It is where I sit down withthinkers, leaders and
practitioners to explore what itreally takes to lead change
from the inside out.
You will find those episodesright here in the same feed.
Thanks again and talk soon,thank you.