What are Feedback Loops? Meaning.
Feedback Loops are a characteristic challenge of complicated
situations and problems in many management areas such as
strategy, decision-making,
investing and organizational development.
They are a pattern of interacting processes where a change in one variable,
through interaction with other variables in the system, either reinforces
the original process (positive feedback loop) or suppresses the process (negative
feedback loop). In this way, these kind of effects can cause a change in one
element to multiply itself causing a stronger effect than expected or can
indeed sometimes cancel itself out.
For example even a simple management decision to invest more
in one particular region may lead to more local customers resulting in higher
revenues, but may also lead to jealous managers in other regions, who leave
the company, leading to decreased revenues in the other countries.
Also called complicatedness.
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Compare with:
Systems Thinking
| Bullwhip
Effect |
Paralysis by Analysis |
Causal Ambiguity |
Cognitive Bias |
Analogical Strategic
Reasoning | TRIZ
| Lateral Thinking
| Bounded Rationality
| Strategy Dynamics
| Behavioral Finance
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