The systems analysis community has a lot of lore about leverage points. Those of us who were trained by the great Jay Forrester at MIT have all absorbed one of his favorite stories. “People know intuitively where leverage points are,” he says. “Time after time I’ve done an analysis of a company, and I’ve figured out a leverage point — in inventory policy, maybe, or in the relationship between sales force and productive force, or in personnel policy. Then I’ve gone to the company and discovered that there’s already a lot of attention to that point. Everyone is trying very hard to push it IN THE WRONG DIRECTION!”
The classic example of that backward intuition was my own introduction to systems analysis, the world model. Asked by the Club of Rome to show how major global problems — poverty and hunger, environmental destruction, resource depletion, urban deterioration, unemployment — are related and how they might be solved, Forrester made a computer model and came out with a clear leverage point1: Growth. Not only population growth, but economic growth. Growth has costs as well as benefits, and we typically don’t count the costs — among which are poverty and hunger, environmental destruction, etc. — the whole list of problems we are trying to solve with growth! What is needed is much slower growth, much different kinds of growth, and in some cases no growth or negative growth.
Positive Feedback Loop is flow from a point to an area.
Negative Feedback Loop is flow from an area to a point.