Feedback Loop Audit
A diagnostic tool for examining whether your organization's sensing system actually works.
A diagnostic tool for examining whether your organization's sensing system actually works. The framework addresses three questions mapping to biological principles: What are we sensing? (Receptor audit), How does information flow from sensors to action? (Transduction audit), and Do we have feedback loops that correct errors? (Feedback audit). Most organizations are functionally deaf - they hire analysts, deploy dashboards, and collect terabytes of data, then make decisions based on gut feel and politics.
When to Use Feedback Loop Audit
Use when you suspect your organization is collecting data but not acting on it, when response times to market changes feel too slow, when you're unsure which metrics actually predict future performance, or when you want to systematically improve organizational sensing and adaptation capabilities.
How to Apply
The Sensing Check: Do You Measure What Matters?
List every metric your organization tracks. Then ask: Which of these actually predict future performance? Most metrics are lagging indicators (what already happened). You need leading indicators (what's coming). Force rank your metrics - which 10 actually matter? Which 5 are critical? If you had to throw out every dashboard except one, what would you keep? That's your receptor set.
Questions to Ask
- Which metrics actually predict future performance vs. report the past?
- Can a frontline employee explain how their work affects the key metric?
- Are you spending more time discussing what to measure than acting on measurements?
- If you had to keep only 5-8 metrics, which would they be?
Outputs
- Leading Indicator Dashboard with 5-8 critical metrics
- Clear ownership for each metric
- Thresholds that trigger action
The Signal-to-Action Test: From Detection to Decision
Trace the pathway from signal detection to action for your top 3 metrics. Example: Your NPS drops from 45 to 38. Who gets notified? How fast? Who decides what action to take? How long until action is implemented? How do you know if the action worked? If the answer is 'We discuss it in the next quarterly review,' your transduction pathway is broken.
Questions to Ask
- For each key metric, who gets notified when it changes?
- How many handoffs exist between signal detection and action?
- What blockers prevent transduction (incentives, silos, legacy constraints)?
- What's your current signal-to-action cycle time?
Outputs
- Signal-to-Action Flow Diagram for each critical metric
- Identified bottlenecks
- Interventions to reduce transduction time by 50%
The Loop Detective: Do Feedback Systems Self-Correct?
Verify that your feedback loops close. For recent initiatives, measure: did it work? Install feedback loops with automated alerts when metrics move. Identify positive feedback loops to amplify. Most companies launch features, declare victory, and never check - open-loop control. That's like turning your car's steering wheel and never looking at the road.
Questions to Ask
- For each action, do you measure the outcome?
- How long until you know if an initiative worked?
- When something works exceptionally well, are you doing more of it?
- When did your organization last do something hard on purpose (hormetic stress)?
Outputs
- Initiative tracking with success metrics and review cadence
- Automated alerts for metric deviations
- Amplification plan for top 3 positive feedback loops