A technique facilitates continued operation of a position indicator which may be used with a valve or other types of actuatable components. The technique utilizes a housing and a stem driver mounted for rotation within the housing to actuate the valve/component to a desired position. The stem driver has a threaded region which is threadably engaged with a clutch collar located in the housing. When the stem driver is rotated relative to the clutch collar, the clutch collar moves in an axial direction along the interior of the housing. The clutch collar is coupled with a bracket which moves during axial translation of the clutch collar. The clutch collar comprises a flexible portion which enables slippage of threads at the region of coupling between the clutch collar and the stem driver if movement of the bracket becomes sufficiently restricted.