System Feedback Loops
Reinforcing Loop reflects the ability of one action to produce an outcome that influences more of the similar action thus resulting into eventual growth or decline (Bellinger, 2004). one of the foundational structures in relation to systems of thinking. Virtuous Cycle is the ability of reinforcing loop structure to produce desirable result in the process of its application. In the incidence of desired result, organizations and business entities have the tendency of ignoring the influence of reinforcing loop. This is dangerous for growth and development of the organization because aspects of the entity do not grow forever. In the presence of desirable results, individuals and business entities have the opportunity to adopt new strategies to ensure that the systems and processes continue to experience growth. Viscous cycle is the ability of reinforcing loop to produce undesirable results in relation to growth and development.
The most appropriate way of dealing with viscous cycle is to identify a way of breaking one of the feedback loops to minimize the capacity of the structure to reinforce itself within the settings of the organization (Bellinger, 2004). Reinforcing loop usually occurs in the presence of external and additional influences. Since there is no limitation of growth, it is ideal to seek new measures constantly to allow systems and structures of the organization to experience growth and development. Reinforce loop results from development in certain areas of the organization hence illustration that growth and development must come at a cost. Reinforce loop is usually result of critical interaction amongst different systems and structures within the organization. The interacting agents of the reinforcing loop include individuals, groups, and relevant organizations. An illustration of reinforcing loop can be in the form of business entity and consumers. In the virtuous version (desirable results), business entity has the need capacity to deliver value thus adding to the actual consumers by attracting potential customers. Customers contribute to growth and development of business entity by adding money to the company. This interaction system is beneficial to customers and business entities because of increase in value to both parties. The interaction system can also experience viscous version of the reinforcing loop. In this incidence, business entity lowers the value of product and service delivery as a reflection of loss of focus in strategies. This negligence by the entity results into a reduction in the number of customers relevant to the products and services of the company.
Reduction in the number of consumers would result into low levels of revenues and profits by the company at the end of the financial year thus loss to the business entity. This interaction is not beneficial to both parties hence failure of the systems and structures. Reinforcing feedback loop representations usually contain minimal of two variables: performance or condition experiencing reinforcement and action with the capacity to produce reinforcement. Reinforcing loop has the ability to increase the impact of change within the system. The causal factors of the include gaps, delays, and other external factors.
Balancing Loop represents efforts to change the current state to a desired state through implementation of different actions (Bellinger, 2004). the ability of the company to change the conditions of the systems and structures. The business entity works in accordance with objectives and goals to improve the current state. Balancing loop is the creation of objectives and goals to facilitate attempts by the company to grow and develop. In balancing loop, it is critical to define the current state effectively in order to determine on what needs to undergo modification. Business entities need to define desired state in order to project implications of objectives in achieving the condition. has the ability to reduce the impact of change in the systems and processes of production within the organization. The duration in relation to the realization of achievement of the objectives would determine the ability of the organization to reach the desired state. Long duration of implementation of objectives would force the organization to settle for lower conditions in comparison to the desired state. This indicates lowering of the goals and standards with the increase in time of implementation (Bellinger, 2004).
The organization must prepare its systems and structures for problems that might arise from implementation of objectives to achieve the desired state. The main influence of the problems arising in implementation of the objectives is the increase in the goal making states making them difficulty to achieve by the organization. Balancing loops represent goal-seeking processes by the company to achieve desirable state. The causal factor in relation to balancing feedback loop is the gap in quality. The difference between the desired state and the current state drives the implementation of balancing loops thus the development of objectives and goals to improve the quality. An example of balancing loop is the ability of the organization to improve the quality of services thus enhancing satisfaction of the consumers. This action by the business entity would lead to increase in the demand for the products and services of the company. The company will then decide to react in response to change in demand under certain limitations. The company experiences minimal time in dealing with individual consumers thus inability of the business entity to facilitate further improvement in quality. This forces the quality of the products and services to remain constant. Quality of services and products vary with time (Bellinger, 2004).
Learning Activities in each that Skype has already taken
Skype Limited applies balancing loop with the aim of improving it position in the market and industry. It is essential to apply this loop because it enables Skype Limited to work in response to goals and standards of the market. The company aims at improving the quality of service delivery to consumers thus attracting new and potential customers. This results into an increase of the size of demand of the products and services of the company. Skype Limited operates under realistic goals and objectives in meeting the needs and preferences of the consumers. This is an indication of applying balancing loop in the production system of the company. Different departments within the Skype Limited apply balancing loop to achieve desired results at the group level. The overall influence of balancing loop is the increase in the number of customers and revenue levels at the end of the financial year.
Skype Limited also adopts reinforcing feedback loop in order to maintain high quality of services and products. It is essential for business entities to maintain a high level of standards to attract new customers thus increasing the pool of subscribers. Skype Limited understands the importance of achieving desirable results thus discourages lack of focus and provision of low quality products and services. Lack of focus and provision of low quality services would result into a reduction of revenues and profit levels due to decrease in the number of consumers within the market segmentation. Implementation of balancing and reinforcing feedback loops allows the company to learn on the organizational requirements thus relevant to the development of Skype Limited. The company conducts research aiming to obtain necessary information about preferences of the market segmentation. This information is crucial to application of balancing and reinforcing feedback loops.
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Larsen, K., McInerney, C., Nyquist, C., Santos, A., & Silsbee, D. (1996) Learning Organizations (Part VI: Systems Thinking) Retrieved from http://leeds-faculty.colorado.edu/larsenk/learnorg/index.html on 2/20/12