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    Causal Loops & Clipboard simulation

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    Identify one Balancing Loop and one Reinforcing Loop. These feedback loops should be critical to Whole Foods Market's performance and success. You should have a good idea of what these are from your previous analysis. Explain each one of these loops - what are the causal factors and how do they affect each other. For the Reinforcing Loop, look for an area where there is growth. For the Balancing Loop, look for goal behavior. Once you have identified and explained these critical feedback loops, identify how Whole Foods Market has generated organizational learning, and how they can go further and generate additional organizational learning. What do they need to do to improve their performance further?

    Part II
    It is still 2012: January 2, 2012, the beginning of Time Warp 3. You have completed your analysis and revised strategy for the next four years. Just like the last time, you enter your predetermined decisions each year and collect the data for future analysis. Now it is New Year's Eve, 2015, and you are hoping against hope that Time Warp 3 and all time warps will soon come to an end. You have the results of your decisions. How did you do? What was your final score? It's New Year's day, 2016. You just had a great New Year's Eve celebration, you finished another four years of moving Clipboard Tablet Co. through 2012 - 2015, and are ready to charge ahead into the future. You turn on the TV and notice something strange (again?). The TV commentator is saying something about New Year's Day, 2016. You have moved ahead into 2016. You realize that this experience has been invaluable. You know it will help you make better decisions for Clipboard Tablet Co. as you move forward. But before you move ahead, you want to make sure that you have learned what you need to know. You decide to analyze and compare the last two Time Warp results. You want to see how this last Time Warp results compare to the previous Time Warp results (the results from this run in SLP5 to the results of the run in SLP4). Putting the results side by side and the decisions side by side, you are able to analyze what happened and how the results are different. You use CVP analysis to help you understand why the results were different. You think this is very important and you write it all down so you can refer back to it later if you need to as you move forward into 2016 and beyond.

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    Solution Preview

    Balancing feedback loops are circles of cause and effect that counter a change with a push in the opposite direction. The harder the push the harder the system pushes back. Balancing feedback loops bring stability to the system. The balancing loop brings two things to an agreement. Any situation where one attempts to solve a problem or achieve an objective shows a balancing loop.
    Reinforcing loops are circles of cause and effect such that after going around the loop, one ends up with the same result as the initial assumption. In a reinforcing loop the interactions are such that each action adds to the other. A situation where action produces a result which promotes more of the same action shows reinforcing loop. Consider the case where there is repeated improvement of quality. Every feedback brings an increasing improvement of quality.
    For reinforcing loop at Whole Foods Market there is continuous growth in quality. Reinforcing loops are related to increases or decreases. In case of Whole Foods Market there is increase in quality. Whole Foods Market creates quality standards for the food being natural. Initially, only minimally processed foods were considered to be of good quality. On receiving feedback its standards required that the foods be free from artificial flavors, colors, sweeteners, and preservatives. The "quality" of foods improved. As ...

    Solution Summary

    The answer to this problem explains balancing loop and reinforcing loop. The references related to the answer are also included.