Stocks and flows in a system are interconnected. Stocks are the foundation of a system and can be seen, felt, counted, or measured. Flows, on the other hand, are the changes in the stocks. A feedback loop is formed when changes in stock affect the flows into or out of that same stock. For instance, the amount of money in a bank account (stock) can be affected by the interest it generates (flow). If the money in the account decreases, one might react by working more to increase the flow into the stock.
How do you avoid wasted time, money, and resources from short-sighted decisions? When you think in s...
View summary