Feedback Loops
Outputs of a system circle back as inputs, either amplifying or dampening effects.
What It Is
A feedback loop occurs when outputs of a system are routed back as inputs, forming a circuit of cause and effect. Positive (reinforcing) feedback loops amplify changes, creating exponential growth or decline. Negative (balancing) feedback loops counteract changes, creating stability. Most complex systems contain multiple interacting feedback loops.
Why It Matters
Feedback loops explain why some problems spiral out of control while others self-correct, why small advantages compound into large ones, and why systems often resist change. Understanding feedback loops helps you identify leverage points, predict system behavior, and design interventions that work with rather than against natural system dynamics.
How to Apply It
- 1
Map out how outputs feed back into inputs in your system
- 2
Identify reinforcing loops (vicious or virtuous cycles)
- 3
Identify balancing loops (self-correcting mechanisms)
- 4
Look for delays between cause and effect
- 5
Design interventions that create positive feedback loops
Example
A company with a great product attracts talented employees, who make the product better, attracting more talent (positive feedback). But success can also create negative feedback: growth strains culture, quality drops, talent leaves, making it harder to attract new talent. Understanding both loops helps manage growth sustainably.