Feedback Loops
Feedback loops are the core mechanism for organizational learning and adaptation.
The loop must close faster than the environment kills you. Your cycle time must beat your mortality rate.
The mechanism is simple: sensor → control center → effector → sensor. The sensor detects change, the control center processes it, the effector acts to reverse the change, and the sensor confirms the system is returning to baseline.
Business Application of Feedback Loops
Feedback loops are the core mechanism for organizational learning and adaptation. Netflix's Qwikster reversal demonstrates a closed loop: sense customer anger → act (reverse decision) → measure (subscriber stabilization) → confirm correction worked. Kodak's failure shows an open loop: sense digital shift → no action → no measurement → no learning. The loop must close faster than the environment kills you. Your cycle time must beat your mortality rate.