Feedback Loops

Knowledge Center

Description of Feedback Loops. Explanation.

Contents

Summary
Forum
Best Practices
Expert Tips
Resources
Print

All about Feedback Loops

Knowledge Center

Join now. Completely free.

Why register?

Welcome to the world's #1 website about management.

Discover 1000s of knowledge centers.
Learn from colleagues and experts.
Share best practices with 1,000,000 members.
Accelerate your management career.
Completely free.

Definition Feedback Loops. Description.

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.