What is Feedback Loops?

A feedback loop exists when the output of a process circles back to influence its own input. Balancing loops push a system toward a goal or equilibrium, such as a thermostat regulating temperature, while reinforcing loops amplify change in one direction, such as compounding interest or a viral trend.

Most real systems, from ecosystems to teams to markets, are made up of many overlapping feedback loops, and identifying which loops dominate at a given moment explains behavior that looks mysterious from a straight-line, cause-and-effect point of view. It is one of the most practical diagnostic tools in systems thinking.