Positive Feedback Loop

Positive Feedback Loop

Positive Feedback Loop Jonathan Poland

A positive feedback loop is a situation where an initial change or input (A) leads to a further change or output (B), which in turn reinforces or amplifies the initial change (A). This creates a reinforcing loop that can lead to increasingly extreme outcomes.

While the term “positive feedback loop” may suggest a positive outcome, these loops can actually have either positive or negative impacts, depending on the specific circumstances. For example, a positive feedback loop can lead to a virtuous cycle of increasing success, or it can lead to a downward spiral of failure.

Some examples of positive feedback loops include:

  • A stock market bubble, where rising prices lead to increased demand, which in turn drives prices even higher
  • A self-fulfilling prophecy, where a belief or expectation leads to behavior that confirms the belief, reinforcing the original expectation
  • A social media echo chamber, where the algorithms that curate content for an individual user lead to an increasingly narrow range of viewpoints being presented, reinforcing the user’s existing biases and beliefs.

Overall, positive feedback loops can have significant impacts on systems, and it is important to understand and manage them in order to avoid unintended consequences.

What is a Business Model? Jonathan Poland

What is a Business Model?

A business model is a plan or framework that outlines how a business intends to generate revenue and profit. It…

What is Force Majeure? Jonathan Poland

What is Force Majeure?

Force majeure refers to circumstances beyond the control of a party that prevent them from fulfilling their obligations under a…

Manufacturing 150 150 Jonathan Poland

Manufacturing

Manufacturing is a critical phase in business development, especially for companies that produce physical goods. The synergies between manufacturing and…

Brand Status Jonathan Poland

Brand Status

Brand status refers to the social standing that is associated with a particular brand. Customers may use brands as a…

Brand Objectives Jonathan Poland

Brand Objectives

Brand objectives refer to the specific goals that a brand is working towards. These goals can be both long-term end-goals,…

User Intent Jonathan Poland

User Intent

User intent refers to the goal or objective that a person has in mind at a given moment. Modeling user…

Decision Costs Jonathan Poland

Decision Costs

Decision costs refer to the costs associated with making a decision. These costs can take many forms, including the time…

Technology Skills Jonathan Poland

Technology Skills

Technology skills refer to the talents and abilities related to information technology and physical technology, such as machines. This includes…

Decision Framing Jonathan Poland

Decision Framing

Decision framing refers to the way in which a choice or dilemma is presented or structured. This includes the language…

Learn More

First-mover Advantage Jonathan Poland

First-mover Advantage

First-mover advantage refers to the competitive advantage that a company can gain by being the first to enter a new…

Storytelling Jonathan Poland

Storytelling

Storytelling is the act of using narrative to communicate information in an engaging and memorable way. Businesses can use storytelling…

A/B Testing Jonathan Poland

A/B Testing

A/B testing, also known as split testing or experimentation, is a statistical method used to compare two versions of a…

Customer Retention Jonathan Poland

Customer Retention

Customer retention is the practice of reducing the loss of customers to competitors. A high customer retention rate typically results…

Continuous Production Jonathan Poland

Continuous Production

Continuous production is a method of manufacturing in which materials and parts are continuously processed and kept in motion or…

What is the Broken Window Fallacy? Jonathan Poland

What is the Broken Window Fallacy?

The broken window fallacy refers to the idea that the economic benefits of destructive events, such as wars and natural…

Team Management Jonathan Poland

Team Management

Team management involves directing and controlling an organizational unit. Some common team management functions include setting goals and objectives, assigning…

Business Models Jonathan Poland

Business Models

Business models define how a company creates, delivers, and captures value. There are numerous business models, each tailored to specific…

Design to Value Jonathan Poland

Design to Value

Design to value refers to the design requirements and considerations that aim to maximize the value of a product or…